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Danilo Lopez Garcia v. Yachting Promotions, Inc.
662 F. App'x 795
| 11th Cir. | 2016
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Background

  • Garcia (plaintiff) worked for Yachting Promotions and claimed he worked over 40 hours weekly but was not paid proper FLSA overtime.
  • On March 2, 2007, Garcia signed a company memorandum stating he would be paid a weekly base salary that would "compensate [him] for any and all hours worked" and that overtime would be paid at half-time under a fluctuating workweek method.
  • Garcia testified he was paid a weekly salary ($779.84) rather than an hourly wage, but asserted he did not understand the English memorandum and signed it to keep his job; he also said supervisors gave unclear explanations about pay calculations.
  • Yachting Promotions argued the fluctuating workweek method applied and thus overtime was payable at one-half the regular rate, not time-and-a-half.
  • The district court granted summary judgment for the employer, finding Garcia clearly understood his salary covered fluctuating hours; the Eleventh Circuit affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether employer satisfied the § 778.114 first prong: did employee clearly understand salary covered all hours Garcia: did not understand the English agreement; signed under duress and received confusing explanations Yachting Promotions: Garcia signed the memorandum, admitted he was paid a salary, and supervisors told him he was a salaried employee who received overtime Court: No genuine dispute — Garcia clearly understood salary covered fluctuating hours; fluctuating workweek applies

Key Cases Cited

  • Rioux v. City of Atlanta, 520 F.3d 1269 (11th Cir. 2008) (standard of review for summary judgment)
  • Skop v. City of Atlanta, 485 F.3d 1130 (11th Cir. 2007) (summary judgment principles)
  • Hinkle v. Midland Credit Mgmt., Inc., 827 F.3d 1295 (11th Cir. 2016) (genuine dispute standard for summary judgment)
  • Anderson v. Liberty Lobby, 477 U.S. 242 (U.S. 1986) (reasonable jury standard on summary judgment)
  • Walling v. Youngerman-Reynolds Hardwood Co., 325 U.S. 419 (U.S. 1945) (definition of regular rate)
  • Lamonica v. Safe Hurricane Shutters, Inc., 711 F.3d 1299 (11th Cir. 2013) (fluctuating workweek is a permissible method, employee bears burden to prove noncompliance)
  • Clements v. Serco, Inc., 530 F.3d 1224 (10th Cir. 2008) (fluctuating workweek requires clear mutual understanding)
  • Valerio v. Putnam Assocs., Inc., 173 F.3d 35 (1st Cir. 1999) (employee need not understand every calculation detail if understands salary is fixed)
  • Samson v. Apollo Res., Inc., 242 F.3d 629 (5th Cir. 2001) (employer's duty to educate employees about the pay method)
  • Monahan v. County of Chesterfield, Va., 95 F.3d 1263 (4th Cir. 1996) (mutual understanding may be implied from employee's actions)
Read the full case

Case Details

Case Name: Danilo Lopez Garcia v. Yachting Promotions, Inc.
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Oct 27, 2016
Citation: 662 F. App'x 795
Docket Number: 16-10095
Court Abbreviation: 11th Cir.