State Ex Rel. Storbakken v. Scott's Electric, Inc.
2014 ND 97
| N.D. | 2014Background
- Scott's Electric employed seven electricians and used company-owned vehicles to transport employees, tools, and materials to multiple job sites within a 250-mile radius.
- From April 1991 to March 2008, claimants sought unpaid wages for travel time; the North Dakota Department of Labor investigated and determined amounts owed.
- The Department filed suit under North Dakota Century Code ch. 34-14 to collect unpaid wages, penalties, and interest after collecting the wage determinations.
- The district court bench trial awarded the State $149,551.03 for unpaid wages, penalties, and interest.
- After judgment, Scott's paid $48,236.44 as undisputed wages, penalties, and interest and appealed seeking a take-nothing judgment.
- The State argued the partial payment did not bar appeal for the disputed portion; Scott's argued for reversal of the entire judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are travel times in company vehicles compensable as wages? | Storbakken argues travel time is compensable as part of principal employment activities. | Scott's contends travel is ancillary and not a principal activity; only isolated, necessary exceptions apply. | Travel time found compensable; district court's factual findings upheld. |
| Does voluntary partial payment bar appellate review of the remaining amount? | N/A | Scott's argues payment of undisputed amounts bars appeal of the rest. | Partial payment does not bar appeal for excess; Scott's may challenge the disputed portion. |
| Was the amount of unpaid travel time properly proven and calculated? | Records and Department calculations reliably show compensable travel time and amounts owed. | Scott's challenges the Department's methodology and estimated hours as unreliable. | District court's calculations adopted the Department’s determinations; methodology not clearly erroneous. |
Key Cases Cited
- Ramsey Fin. Corp. v. Haugland, 2006 ND 167 (N.D. 2006) (voluntary payment may waive appeal rights)
- Bernal v. Trueblue, Inc., 730 F. Supp. 2d 736 (W.D. Mich. 2010) (travel time exceptions under Portal-to-Portal Act; continuous workday rule)
- Allen v. Board of Pub. Educ., 495 F.3d 1306 (11th Cir. 2007) (burden-shifting framework when employee lacks precise records)
- United States Dep’t of Labor v. Cole Enters., Inc., 62 F.3d 775 (6th Cir. 1995) (use of employer records and approximate calculations in FLSA disputes)
- Ballaris v. Wacker Siltronic Corp., 370 F.3d 901 (9th Cir. 2004) (mixed questions of law and fact; FLSA application)