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110 F.4th 1296
11th Cir.
2024
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Background

  • Owl, Inc. contracts with the Department of Veterans Affairs to transport veterans and agreed orally to pay its drivers around $11/hour, classifying them as taxi drivers.
  • The Department of Labor (DOL) later determined Owl drivers should be classified and paid as shuttle bus drivers (around $15/hour), not taxi drivers.
  • A class of drivers sued Owl for failing to pay the proper prevailing wage (under the Service Contract Act, SCA) and for failing to pay proper overtime (under the Fair Labor Standards Act, FLSA).
  • The district court granted summary judgment for Owl on the breach of contract claim and limited available damages for the FLSA claim to the rate actually paid, not the SCA rate.
  • The parties settled the FLSA claim for $350,000, with drivers reserving their appellate rights on both the breach of contract and FLSA damages rulings.
  • On appeal, the Eleventh Circuit addressed appellate jurisdiction, the merits of the breach of contract claim, and whether FLSA overtime damages should reflect the SCA-determined rate.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
1. Is there appellate jurisdiction after a consent judgment on the FLSA claim and prior dismissal of the contract claim? Judgment was final and rights reserved; appeal should proceed. No jurisdiction; not all claims mentioned in final order. Jurisdiction exists; all claims fully resolved.
2. Does a Florida breach of contract claim for backpay incorporate the SCA prevailing wage by operation of law? SCA wage is incorporated into Florida employment contracts. Only the agreed rate applies; SCA isn't incorporated. No incorporation; only agreed rate in contract applies.
3. Does the FLSA "regular rate" for overtime include the SCA prevailing wage instead of the rate actually paid? FLSA overtime should be based on the legal (SCA) prevailing wage. Overtime should be based only on what was actually paid. Yes, FLSA “regular rate” includes SCA prevailing wage.
4. Do drivers have standing to appeal the FLSA damages limitation after settlement? Rights on the damages issue were expressly reserved in settlement. No, because damages were accepted by agreement. Standing exists due to reservation of appellate rights.

Key Cases Cited

  • Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541 (finality for appellate jurisdiction construed practically)
  • Cunningham v. Hamilton County, 527 U.S. 198 (finality means nothing left but execution of judgment)
  • Walling v. Youngerman-Reynolds Hardwood Co., 325 U.S. 419 ("regular rate" is the lawful rate, not just actually paid rate)
  • Powell v. U.S. Cartridge Co., 339 U.S. 497 (FLSA and other wage statutes are mutually supplementary)
  • Skidmore v. Swift & Co., 323 U.S. 134 (agency interpretations may be persuasive)
  • Barrentine v. Arkansas-Best Freight Sys., 450 U.S. 728 (statutory rights not automatically incorporated in contracts)
  • Alexander v. Gardner-Denver Co., 415 U.S. 36 (statutory rights under Title VII are distinct from contractual terms)
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Case Details

Case Name: Jose Perez v. Owl, Inc.
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Aug 6, 2024
Citations: 110 F.4th 1296; 22-12974
Docket Number: 22-12974
Court Abbreviation: 11th Cir.
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