Hernandez v. Stringer
210 F. Supp. 3d 54
| D.D.C. | 2016Background
- Plaintiff Israel Hernandez worked for Broughton Construction (owned by Casey Stringer) from Feb 2010 to Feb 27, 2014 as an Assistant Superintendent and was paid a salary (not hourly). He claims he worked overtime in at least 33 workweeks and was not paid time-and-a-half.
- Defendants characterize Hernandez as a worksite manager supervising subcontractors (not Broughton employees) and deny paying overtime because he was exempt; they also contend Hernandez falsified time records.
- At termination Hernandez signed a standard Employment Separation and Release Agreement (without attorney consultation) that broadly released many claims, including FLSA claims, in exchange for a few days’ additional pay.
- Plaintiff filed suit alleging violations of the FLSA, DCMWA, and DCWPCL; defendants counterclaimed for breach of the separation agreement (including indemnity for attorneys’ fees and alleged failure to return property).
- Court considered plaintiff’s motion for partial summary judgment and (1) rejected the executive exemption claim because supervision of subcontractors does not satisfy the requirement to direct two or more of the employer’s own employees, and (2) held the separation agreement unenforceable as a release of FLSA claims because it was not a settlement of a bona fide FLSA dispute.
- The court declined to decide liability or damages (including liquidated damages) under the FLSA/DCMWA because plaintiff failed to prove the precise amount of uncompensated overtime; withheld judgment on the enforceability of the release and indemnity provisions as to local-law claims and declined supplemental jurisdiction over the property-return counterclaim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicability of FLSA executive exemption | Hernandez: not a manager; did not supervise two+ Broughton employees | Defendants: Hernandez supervised two or more workers (counting subcontractors) | Executive exemption inapplicable; supervision of subcontractors does not count as supervising two+ of employer's employees |
| Waiver/release of FLSA claims via separation agreement | Hernandez: release invalid as to FLSA because not a bona fide FLSA settlement | Defendants: agreement releases all claims, including FLSA; seeks fees if suit filed | Release unenforceable as to FLSA; agreement was not a settlement of a bona fide FLSA dispute |
| Liability and damages for unpaid overtime | Hernandez: entitled to summary judgment on violation and liquidated damages | Defendants: contest number of hours; assert records overreporting; exemption defense | Denied summary judgment on liability/damages — plaintiff failed to prove amount of uncompensated overtime; issues of hours are factual for trial |
| Counterclaim for breach/fees and jurisdiction over return-of-property claim | Hernandez: counterclaim invalid; court lacks jurisdiction over property-return claim | Defendants: counterclaim valid; seek fees under indemnity; assert supplemental jurisdiction over property claim | Indemnity and breach as to FLSA claims unenforceable; court withholds decision on local-law claims' enforceability; declines supplemental jurisdiction over property-return counterclaim (argument waived) |
Key Cases Cited
- Corning Glass Works v. Brennan, 417 U.S. 188 (FLSA exemptions are affirmative defenses and employer bears burden)
- Arnold v. Ben Kanowsky, Inc., 361 U.S. 388 (FLSA exemptions construed narrowly)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard)
- Mt. Clemens Pottery Co. v. Anderson, 328 U.S. 680 (employee must show hours worked by just and reasonable inference; employer must then produce records)
- Brooklyn Savings Bank v. O'Neil, 324 U.S. 697 (FLSA rights cannot be waived by private agreement)