Eric Gracie v. Department of Labor (George Wohlgemuth Landscape, Employer), 2016-211

Employer George Wohlgemuth operated a landscaping business and employed the claimant seasonally in 2013–2014.
Claimant alleged 177.5 overtime hours unpaid; Wage & Hour Division initially found $2,041.25 owed; employer contested.
Employer conceded the overtime hours were likely accurate but asserted landscapers were exempt as agricultural workers and that he had raised claimant’s rate to $23/hr in lieu of overtime.
ALJ credited claimant’s testimony that no agreement to waive overtime existed and found employer had to pay overtime under 21 V.S.A. § 384(b).
Employment Security Board adopted the ALJ’s findings, rejecting employer’s credibility and legal arguments; ordered payment of $2,014.25 in unpaid overtime.
Employer appealed; Supreme Court affirmed, deferring to factual findings and ruling that parties cannot contractually waive mandatory overtime requirements.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether claimant agreed to accept $23/hr in lieu of statutory overtime	Claimant: never agreed; paid raise was to retain him	Employer: parties agreed to higher straight rate instead of time-and-a-half	ALJ/Board/Supreme Court credited claimant; no agreement found on facts
Whether employer’s mistaken belief that landscapers are exempt relieves overtime liability	Claimant: statutory overtime applies; exemptions not met	Employer: honestly believed business was agricultural and exempt	Court: mistaken belief of law does not excuse noncompliance
Whether parties may contractually waive mandatory overtime in advance	Claimant: cannot waive statutory overtime rights	Employer: parties should be able to structure pay to avoid overtime	Court: statutory requirement is mandatory; private waiver not permitted
Whether ALJ abused discretion by denying more time to develop employer’s evidence	Claimant: hearing was properly noticed and evidence opportunity existed	Employer: sought additional notarized statements after hearing set	Court: no abuse; employer had adequate opportunity and additional evidence would not change legal outcome

Fleece on Earth v. Dep’t of Emp’t & Training, 181 Vt. 458 (explaining deferential review of Board factual findings)
State v. Rafuse, 168 Vt. 631 (statutory "shall" is mandatory)
Reich v. Stewart, 121 F.3d 400 (8th Cir.) (employee cannot waive FLSA entitlement)
Mumbower v. Callicott, 526 F.2d 1183 (8th Cir.) (waiver of FLSA benefits not permitted)
Dunlop v. Gray-Goto, Inc., 528 F.2d 792 (10th Cir.) (private agreements cannot defeat overtime policy objectives)
Brooklyn Bank v. O’Neil, 324 U.S. 697 (waiver of public-interest–charged rights will not be allowed)