Gordon v. City of Oakland
627 F.3d 1092
| 9th Cir. | 2010Background
- City policy requires repayment of police academy training costs if officers voluntarily leave before five years.
- Gordon left the City before completing five years of service, triggering repayment of training costs.
- The agreement set an $8,000 training cost with a pro rata repayment schedule based on years of service remaining.
- Gordon signed a Conditional Offer reiterating the repayment terms but did not include a statement about withholdings from final pay for repayment.
- Gordon believed the repayment violated FLSA minimum wage requirements; the City deducted funds from final pay and added a collection fee.
- District court dismissed the claim; Gordon amended to focus on FLSA minimum wage and related relief, which the court partially denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether repayment of training costs is a kick-back under 29 C.F.R. 531.35. | Gordon argues deductions in staff's final pay resemble kick-backs reducing wages below minimum. | City argues the payment is a loan repayable post-employment, not a kick-back, and wages were at least minimum. | repayment is not a kick-back; not violation of FLSA. |
| Whether Gordon was paid at least the federal minimum wage in any week. | Deduction reduces weekly pay below minimum in the final week. | Gordon received a paycheck at or above minimum wage; no week paid below minimum. | The City paid at least minimum wage; no weekly violation found. |
| Whether the Conditional Offer/collective bargaining terms can waive FLSA rights. | waiver agreements attempt to contract away minimum wage protections. | FLSA rights cannot be waived by employees or unions; terms do not alter minimum wage. | FLSA protections cannot be waived; rights preserved. |
Key Cases Cited
- Heder v. City of Two Rivers, 295 F.3d 777 (7th Cir. 2002) (reimbursement scheme analyzed as loan acceptable if wage minimum met)
- City of Oakland v. Hassey, 163 Cal.App.4th 1477 (Cal. Ct. App. 2008) (California appellate rejection of kick-back theory similar to FLSA view)
- Brooklyn Savings Bank v. O'Neil, 324 U.S. 697 (Sup. Ct. 1945) (employees cannot waive FLSA protections)
- Barrentine v. Ark.-Best Freight Sys., 450 U.S. 728 (Sup. Ct. 1981) (labor protections cannot be waived by agreements)