30 F.4th 705
8th Cir.2022Background
- Plaintiffs are current and former employees of the University of Iowa Hospitals and Clinics (UIHC) who allege UIHC paid overtime late—overtime is paid each month but not with the regular wages for the relevant pay period (often at least one month later).
- Plaintiffs amended their complaint to add an FLSA claim; the Iowa Board of Regents (the Board), which operates UIHC, removed the case to federal court and moved to dismiss under Rule 12(b)(1) arguing state sovereign immunity bars private FLSA suits.
- The district court denied the Board’s motion, concluding that UIHC employment policies—when viewed with Iowa’s Wage Payment Collection Law (IWPCL)—constituted a constructive waiver of the Board’s sovereign immunity.
- The Board appealed the denial; the Eighth Circuit recognized it had interlocutory appellate jurisdiction under the collateral-order doctrine because sovereign immunity is immunity from suit.
- The panel held the Board did not expressly waive immunity (Iowa law exempts Board employees from the statutory pay-plan regime that the Iowa Supreme Court relied on in Anthony), but remanded for the district court to determine whether UIHC policies can be imputed to the Board for constructive-waiver purposes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Iowa expressly waived the Board’s sovereign immunity for private FLSA suits | Anthony means Iowa’s wage statutes and implementing pay plans create an express consent to sue for FLSA overtime | §8A.413 excludes Board employees from the statutory pay-plan regime, so no express guarantee of FLSA overtime and no express waiver | No express waiver — Anthony’s reasoning does not apply to the Board because statute exempts Board employees (express waiver rejected) |
| Whether the Board constructively waived sovereign immunity by voluntarily accepting FLSA legal consequences via UIHC policies | UIHC manuals, HR website, and policies state or incorporate FLSA overtime rules, showing the Board accepted legal consequences and thus constructively waived immunity | UIHC policies are not necessarily Board actions; only Board conduct can bind/waive the Board’s immunity | Remanded — Eighth Circuit did not resolve constructive-waiver on the record and ordered district court to decide whether UIHC policies can be imputed to the Board |
| Whether appellate court has jurisdiction to review denial of sovereign immunity interlocutorily | N/A (issue over whether denial is immediately appealable) | N/A | Appellate jurisdiction exists under the collateral-order doctrine because sovereign immunity is immunity from suit |
| Whether district court erred by assuming UIHC policies are attributable to the Board without findings | UIHC policy references suffice to show Board acceptance | Attributing UIHC conduct to the Board requires a factual finding about authorization or adoption by the Board | The district court must make that factual determination; remand for consideration of attribution |
Key Cases Cited
- Alden v. Maine, 527 U.S. 706 (1999) (Congress may not subject nonconsenting States to private suits for damages in state courts)
- Mitchell v. Forsyth, 472 U.S. 511 (1985) (distinguishing immunity from suit and immunity as a defense; collateral-order review principles)
- Anthony v. State, 632 N.W.2d 897 (Iowa 2001) (Iowa’s wage statutes and administrative pay plans construed to incorporate FLSA overtime, resulting in state consent to private suits)
- Lee v. Polk Cnty. Clerk of Ct., 815 N.W.2d 731 (Iowa 2012) (Iowa recognizes constructive waiver of sovereign immunity in certain contexts)
- College Savings Bank v. Florida Prepaid Postsecondary Educ. Expense Bd., 527 U.S. 666 (1999) (federal courts reject constructive waiver doctrine in some contexts)
- Fant v. City of Ferguson, 913 F.3d 757 (8th Cir. 2019) (interlocutory appealability of sovereign-immunity rulings under the collateral-order doctrine)