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794 N.W.2d 805
Wis.
2011
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Background

  • Kuhnert was employed by Advanced Laser from October 2005 to November 2007 as an entry/scheduling clerk and a purchasing agent and was paid a salary with no overtime pay.
  • She filed a wage complaint alleging she was misclassified as overtime exempt under Wis. Admin. Code § DWD 274.04 after her termination.
  • Labor Standards Bureau director Anderson applied the department's long-standing methodology for salaried employees: determine a regular rate by salary divided by hours worked, set overtime rate as half the regular rate, and multiply by overtime hours, noting the salary already covers regular pay for overtime hours.
  • Anderson concluded Kuhnert was owed $2,699.25 in overtime pay and Advanced Laser tendered payment which Kuhnert refused.
  • The circuit court granted declaratory judgment upholding the department's calculation method, held a bench trial on exemption and extra overtime hours, and subsequently awarded Kuhnert $2,325 in attorney fees and costs; Kuhnert appealed.
  • The appellate court affirms the circuit court, rejecting Kuhnert’s arguments on both methodology and attorney fees.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Overtime calculation methodology. Kuhnert argues department method is incorrect and underpays overtime. Kuhnert relied on statutory definitions but department’s method is proper. Department method given great weight deference and upheld.
Attorney fees and costs. Kuhnert seeks full fees as prevailing party or most fees. Court did not err in reducing fees; Kuhnert not prevailing on all issues. Circuit court’s partial fee award affirmed.

Key Cases Cited

  • Currie v. Department of Industry, Labor & Human Relations, 210 Wis. 2d 380, 565 N.W.2d 253 (Ct. App. 1997) (deference standards for agency interpretations of statutes and rules)
  • UFE Inc. v. Labor & Industry Review Comm’n, 201 Wis. 2d 274, 548 N.W.2d 57 (1996) (great weight deference to agency interpretations under statutory schemes)
  • Morder v. Board of Regents, 2004 WI App 177, 276 Wis. 2d 186, 687 N.W.2d 832 (Wis. App. 2004) (deference to agency interpretations of rules)
  • Katchel v. Northern Engraving & Manufacturing Co., 249 Wis. 578, 25 N.W.2d 431 (1946) (salary basis and overtime owed as additional half-time compensation)
  • Beaudette v. Eau Claire Cnty. Sheriff’s Dept., 2003 WI App 153, 265 Wis. 2d 744, 668 N.W.2d 133 (Wis. App. 2003) (attorney-fee determination follows trial court discretion)
  • Allied Processors v. Western Nat’l Mut. Ins. Co., 2001 WI App 129, 246 Wis. 2d 579, 629 N.W.2d 329 (Wis. App. 2001) (standards for appellate review of fee awards)
  • Rotfeld v. Department of Natural Resources, 147 Wis. 2d 720, 434 N.W.2d 617 (Ct. App. 1988) (judicial review of agency actions and discretionary determinations)
Read the full case

Case Details

Case Name: Kuhnert v. Advanced Laser Machining, Inc.
Court Name: Wisconsin Supreme Court
Date Published: Jan 11, 2011
Citations: 794 N.W.2d 805; 2011 Wisc. App. LEXIS 14; 331 Wis. 2d 625; 2011 WI App 23; No. 2010AP333
Docket Number: No. 2010AP333
Court Abbreviation: Wis.
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    Kuhnert v. Advanced Laser Machining, Inc., 794 N.W.2d 805