123 F.4th 643
3d Cir.2024Background
- East Penn Manufacturing produces lead-acid batteries requiring some hourly workers to change into uniforms and shower due to lead exposure.
- East Penn awarded grace periods (5-10 mins) for changing/showering but did not record actual time spent by employees on these activities.
- The U.S. Department of Labor sued East Penn for violating the Fair Labor Standards Act (FLSA) by not paying for all required post/pre-shift activities, based on expert evidence that actual time exceeded grace periods.
- Both parties agreed the activities (changing/showering) are "integral and indispensable," making them compensable work under FLSA.
- A jury awarded approximately $22.25 million in backpay to over 11,000 employees; the district court denied liquidated damages due to East Penn’s good faith reliance on legal advice.
- Both sides appealed: East Penn on liability and damages, the government on denial of liquidated damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Who bears burden to prove time is de minimis | Employer bears burden | Employee bears burden | Employer bears burden as an affirmative defense |
| Measure of compensable work time: actual vs. reasonable | Must pay for actual time worked | Paying for 'reasonable' time is enough | Employers must pay for actual time worked |
| Admissibility of expert time study testimony | Study is representative & valid | Method flaws mean evidence unreliable | Testimony admissible; goes to weight, not admissibility |
| Denial of liquidated damages | Was not reasonable/good faith | Acted on reasonable legal advice | District Court did not err in denying liquidated damages |
Key Cases Cited
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946) (establishes de minimis doctrine and burden in FLSA claims)
- Steiner v. Mitchell, 350 U.S. 247 (1956) (changing/showering "integral and indispensable" under FLSA)
- IBP, Inc. v. Alvarez, 546 U.S. 21 (2005) (distinguishes compensable activities from preliminary walking time)
- De Asencio v. Tyson Foods, Inc., 500 F.3d 361 (3d Cir. 2007) (aggregate approach to de minimis analysis under FLSA)
- Smiley v. E.I. Dupont De Nemours & Co., 839 F.3d 325 (3d Cir. 2016) (employer must pay for all hours worked under FLSA)