Arnold v. State of Ark.Arnold v. State of Ark.
MEMORANDUM OPINION AND ORDER
Bеfore the Court are Plaintiffs Arnold and Stoneman’s Motions for Leave to Amend Complaint and all parties’ Cross-Motions for Partial Summary Judgment (which the Court will address later in this Order).
I. Motions for Leave to Amend Complaints
The State argues that because the plaintiffs “opted-in” pursuant to
The Stoneman Plaintiffs filed their original Complaint on December 15, 1993 while the Arnold Plaintiffs filed their original Complaint on March 31, 1994. Both eases were consolidated with the Loggins ease on April 21, 1994, because they all alleged that the State, specifically, the Department of Corrections, had violated the Fair Labor Standards Act (
The motions to amend followed the November 6, 1995, hearing on the parties’ cross
The Stoneman Plaintiffs assert that during discovery, additional violations of the FLSA became known. Those alleged violations are as follows: (1) failure to pay the plaintiffs for 30 minutes of work performed each day as pre-shift and post-shift work; (2) failure to keep accurate and complete records of the hours worked by the plaintiffs; (3) failure to pay the plaintiffs for thirty minutes of a purported lunch break each day; (4) requiring the plaintiffs to use compensatory time prior to reaching the 480 hour threshold at which cash must be paid; (5) not allowing plaintiffs' to use compensatory time when they choose; (6) failure to designate the plaintiffs as 207(k) exempt employees with a fourteen day work period.
The Court will review each of the “additional violations” that the Stoneman and Arnold Plaintiffs seek to add to their complaints. Addressing the first claim, 8 the Court notes that this claim was asserted by the Loggins Plaintiffs in their original complaint. 9 Therefore, the State will not be unfairly prejudiced in defending against this claim since it has already been raised. This is the only claim that the Arnold Plaintiffs seek to add to their complaint. 10 The Stone-man and Arnold Plaintiffs will be permitted to amend their complaints to add this claim.
The second claim is the alleged “failure to keep accurate and complete records of the hours worked by the plaintiffs.” The Stoneman Plaintiffs did not raise this claim prior to filing their motion for partial summary judgment, nor in their response to
Since it is arguable that third claim (lunch breaks) has already been asserted 12 the Stoneman Plaintiffs will be permitted to amend their complaint to specifically assert this claim.
The fourth and fifth claims challenge the State’s requirement that plaintiffs use their compensatory time prior to reaching the 480 hour threshold and the State’s alleged failure to allow the plaintiffs to use compensatory time when they chose. These claims are distinct from the
The sixth additional claim alleges the State’s failure to designate the plaintiffs as 207(k) exempt employees with a fourteen day work period. Plaintiffs have already conceded that they are salaried employees and are employed pursuant to and in accordance with
II. Cross-Motions for Partial Summary Judgment
The Court noted in its Hearing on Motions For Partial Summary Judgment
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that it was prepared to pass on the issues raised by those motions. The Court eventually refrained from doing so
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due pending the motion to amend and response thereto. The Court will now revisit the cross-motions for
Plaintiffs are past or present correctional (security) officers who were, during the relevant time period, employed by the Arkansas Departmеnt of Corrections (“Department”), a governmental entity of the State of Arkansas. They were employed based upon a fourteen day work period pursuant to and in accordance with
STANDARD FOR SUMMARY JUDGMENT
The moving party bears the burden of establishing that no genuine dispute of material facts exists.
Celotex Corp. v. Catrett,
FAIR LABOR STANDARDS ACT
The Fair Labor Standards Act, passed by Congress in 1938, is a comprehensive remedial scheme requiring a minimum wage and limiting the maximum number of hours worked. The FLSA prohibits employers from employing any worker for a work week longer than forty hours unless the employee receives compensation for his employment in excess of forty hours.
The two central themes of the FLSA are its minimum wage and overtime requirements. The principal provision compelling the payment of an overtime wage for hours worked above a maximum hour threshold is
(1) in a work period of 28 consecutive days the employee receives for tours of duty which in the aggregate exceed the lesser of (A) 216 hours, or (B) the average number of hours (as determined by the Secretary pursuant to section 6(c)(3) of the Fair Labor Standards Amendments of 1974) in tours of duty of employees engaged in such activities in work periods of 28 consecutive days in calendar year 1975; or
(2) in case of such an employee to whom a work period of at least 7 but less than 28 days applies, in his work period the employee reсeives for tours of duty which in the aggregate exceed a number of hours which bears the same ratio to the number of consecutive days in his work period as 216 hours (or if lower, the number of hours referred to in clause (B) of paragraph (1)) bears to 28 days, compensation at a rate of not less than one and one half time the regular rate at which he is employed.
ISSUES FOB PARTIAL SUMMARY JUDGMENT
As outlined above, the purpose of the FLSA was to set limits on minimum wages and the number of hours an employee could work before the employer is required to pay overtime. Here, there is no dispute that the plaintiffs’ salary is above the minimum wage and that they are appropriately compensated for all overtime hours worked in accordance with the FLSA. Instead, Plaintiffs contend that they were required to work up to 85.75 hours per fourteen day period but were only compensated for 80 hours and that they are entitled to pay at their “rеgular rate” for those hours worked between 80 and 86.
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Plaintiffs argue that Federal Regulations mandate that all extra compensation for excess hours of overtime work cannot be “said to have been paid to an employee unless all the straight time compensation due him for the non-overtime hours under his contract (express or implied) or under any applicable statute has been paid.” 29 Code Fed.Reg. § 778.315. Plaintiffs contend that the Defendants have failed to compensate them for “all the straight time compensation due” and that this violates section 778.315. Plaintiffs argue that “in order to comply with the overtime requirements of the FLSA (
The fact that plaintiffs brought this “straight time” claim in federal court under the FLSA is unusual. However, there is some precedent for their claim.
See Schmitt v. State of Kansas,
For the present, pending further findings or argument, the Court will assume it has jurisdiction over the plaintiffs’ Claim 1. If the Plaintiffs’ argument (as to Claim 1) is legally viable at all, then the issue is whether all the straight time compensation due to the Plaintiffs under their contract for the non-overtime hours worked has been paid. Under this theory, before it can be determined whether the FLSA was violated, the terms of the employment agreement between the Department and the Plaintiffs must be known.
Terms of the Work Agreement
Plaintiffs claim with respect to Claim 1, that they contracted to work for an hourly wage (not a salary) and that they did not agree to work for up to 86 hours in two weeks for a statutory salary.
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Defendants contend that the Plaintiffs were informed and agreed, prior to beginning employment with the Department, that they would be paid on a salary basis for the reoceurring 85.75 hour 14 day work periods at the annual statutory salary as quoted.
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Defendants assert that Plaintiffs were informed of their yearly salary, 86 hour work period, and 12.25 hour work days as a condition to acceptance of employment
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and that “plaintiffs are employed based on a fourteen day work period pursuant to and in accordance with
Plaintiffs have filed affidavits in which several of the plaintiffs attest “at no time was I told that I was a salaried employee ... I was never told by anyone that I would not be paid for the hours worked between 80 and 86.” 45 Plaintiffs argue that the fact that the Department, in January of 1994, began recognizing the hours worked between 80 and 86 by awarding “straight time” demonstrates that the Department knew it was not compensating plaintiffs for those hours. 46 Defendants offer the affidavit of Bill Lowe to support their contention that the plaintiffs agreed to work up to 86 hours for the statutory salary. 47
It occurs to the Court that the decision by the State’s Department of Finance and Administration, for convenience, to determine hourly rates on a uniform basis (i.e., by electing to base its calculations on the standard 40 hour week) for all state employees, whether they are paid on a hourly basis or on a salary basis, and whether they were subject to a
The Court doubts that there is any genuine issue of fact about the agreed terms and conditions of plaintiffs’ contract of employment. Nevertheless, the present submissions are perhaps not as complete as they should be. If the parties have any additional evidence to support their argument (e.g. postings and advertisements, employee handbooks, any writings reflecting the work agreement, affidavits of training officers who informed the plaintiffs of the terms of the employment, written work agreements, or additional affidavits) they should, by January 5,1996, file same with this Court. The Court further directs the defendants to submit evidence regarding the date on which the 86 hour work period was first adopted by the Department. Absent such evidence there may be a genuine issue of material fact as to the terms
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of the employment agreement between the Department and the Plaintiffs. Therefore, the Court will delay its decision on this issue at this time. Further, this Court directs both parties to further brief the Court on their interpretations of
Calculation of “Regular Rate”
As stated, Plaintiffs argue that to make fully effective any award or payment of overtime comрensation under the FLSA, it must first be established that the worker has been compensated, at their “regular rate,” for all non-overtime hours worked. Plaintiffs assert that their “regular rate” of compensation is derived by dividing their statutory salary by 2080 hours. 52 The Defendant maintains that the State of Arkansas provides payroll support services through its office of Personnel Management, Payroll Section, with a mechanized payroll system which provides computer generated pay vouchers 53 and that the Department of Finance and Administration has elected to reduce all pay calculations to a standard forty hour week for administrative convenience. 54 Thus, Defendant argues the “regular rate” of compensation is not the salary divided by a 40 hour work week, but instead the salary divided by a forty-three hour work week.
Under the FLSA it, of course, cannot be left to a declaration by the parties as
The Court notеs that if plaintiffs were caused to use leave and compensation time at a rate calculated upon a forty hour work week then the discrepancy between the calculation based upon a forty-three hour work week and a forty hour work week might possibly form the basis for a cause of action in state court. However, this Court is without jurisdiction over such a claim.
STATUTE OF LIMITATIONS
Defendants argue for a two year statute of limitations
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while Plaintiffs argue for a three year statute of limitations. Ordinarily, the statute of limitations on an action under the FLSA for unpaid minimum wages, unpaid overtime compensation or liquidated damages is two years, pursuant to
A finding by the Court that a FLSA violation was wilful would expand the statute of limitations to three years. In this action, whether the statute of limitations is two years or three years is irrelevant because all plaintiffs filed their actions within two years of the alleged violation.
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Moreover, the failure of an employer to pay minimum wages or overtime in accordance with the FLSA constitutes a continuing violation, so that a new cause of action accrues with each paycheck.
FIELD RIDERS 61
Loggins Plaintiffs contend that up until February 1995, the Department required
LUNCH BREAKS
Stoneman and Loggins Plaintiffs contend that the Defendant violated the FLSA by not compensating them for the “lunch period.” 65 Plaintiffs claim that they are “on call” during this period and are often required to break up fights or deliver inmates. 66
Code of Federal Regulations, Title 29, Section 553.233(b) governs the compensability of meal periods. The Code provides that a
LIQUIDATED DAMAGES
Defendants argue that liquidated damages are inappropriate as a matter of law because
Plaintiffs contend that alleged violations were not in good faith becausе Bill Lowe was informed by Pete Gregan, executive director of a labor union, that the Department was in violation of the FLSA because security officers were not being compensated for hours worked between 80 and 86. 72 Plaintiffs contend that Bill Lowe’s inaction in response to this information constitutes reckless disregard by omission.
It appears to the Court, on the basis of submissions of the parties to date, that it is very unlikely that the plaintiffs can establish a basis for the award of liquidated damages in this case. However, the defendants’ submissions do not fully address the “eighty to eighty-six” compensation allegation, the “field riders” issue, or the lunch period issue. Therefore, the Court concludes that the present record is insufficient for the Court to determine whether the Department’s actions were in “good faith” and “objectively reasonable.”
Hultgren v. County of Lancaster, Neb.,
IT IS THEREFORE ORDERED that the Stoneman Plaintiffs’ Motion for Leave to Amend Their Complaint 73 be, and it is hereby, GRANTED IN PART and DENIED IN PART as provided by this Order.
IT IS FURTHER ORDERED that the Arnold Plaintiffs Motion for Leave to Amend Their Complaint 74 be, and it is hereby, GRANTED.
IT IS FURTHER ORDERED that Defendants’ Motion for Partial Summary Judgment 75 be, and it is hereby, GRANTED IN PART and DENIED IN PART as provided by this Order.
IT IS FURTHER ORDERED that Plaintiff Loggins’ Motion for Partial Summary Judgment 76 on the Field Riders Issue be, and it is hereby, HELD IN ABEYANCE as provided by this Order.
IT IS FURTHER ORDERED that Plaintiff Loggins’ Motion for Partial Summary Judgment 77 regarding the Lunch Break Issue be, and it is hereby, HELD IN ABEYANCE as provided by this Order.
IT IS FURTHER ORDERED that Defendants’ Motion for Partial Summary Judgment 78 Finding Liquidated Damages to be Inappropriate as a Matter of Law be, and it is hereby, DENIED.
Thе parties are directed to submit all filings as required by this Order no later than January 5, 1996.
IT IS SO ORDERED.
Notes
. Early on in this action, the plaintiffs sought to have the cases certified as class actions pursuant to
. The statute provides in relevant part "No employee shall be party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.”
. The Loggins Plaintiffs (the “Field Riders”) were the only group of plaintiffs who sought compensation for the 15 minutes of pre-shift activities. Counsel for the Loggins Plaintiffs stated that there were approximately 19 plaintiffs in this group.
. The Stoneman and Loggins Plaintiffs contended that the State violated the FLSA by not compensating them for the “lunch period.” See Docket No. 35 (Loggins), ¶ 6; Docket No. 1 (Stoneman), ¶ 6.
. In other words, those plaintiffs that did not have additional claims for uncompensated work time (lunch periods or pre-shift work).
. The Court did not make a final determination on this issue in light of the developments that occurred during the course of the hearing.
. The new claims alleged in the hearing track those alleged in the Stoneman Plaintiffs’ motion to amend.
. Failure to pay the plaintiffs for 30 minutes of work performed each day as pre-shift and post shift.
. Loggins contended that he was required to report to work each morning, fifteen minutes early. See Loggins Complaint, ¶ 7.
. The Arnold Plaintiffs claim that they were not payed for the 15 minutes of work performed each day while participating in "shift report.”
. An employer’s failure to maintain records under the FLSA shifts the burden to the employer to come forward with evidence of the precise amount of work performed or with evidence to negate the reasonableness of the inference to be drawn from the plaintiff's evidence.
Anderson v. Mt. Clemens Pottery Co.,
. See, Docket No. 1 (Stoneman), ¶ 6 ("security officers who work at the Arkansas Department of Corrections are scheduled to work 8 ¡4 hours per day [and] ... they are not given any uninterrupted breaks.”)
.
See Heaton v. Moore,
. The date the motion for leave to amend the complaint was filed.
.
See
Docket No. 42, Statement of Undisputed Facts, ¶¶ 4 and 5.
See also
Docket No. 46, Statement of Material Facts in Dispute by Plaintiff In Response (does not dispute the
. October 13, 1995.
. See Court's Order, November 8, 1995, nunc pro tunc, October 13, 1995 (denying cross-motions for partial summary judgment), Docket No. 56 (Stoneman), Docket No. 44 (Arnold), Docket No. 41 (Loggins).
. Docket Nos. 20 and 23 (Loggins); Docket Nos. 18 and 23 (Arnold); Docket Nos. 33 and 36 (Stoneman).
. Docket No. 31 (Arnold); Docket No. 30 (Log-gins); Docket No. 43 (Stoneman).
. Defendant Loggins was the only defendant to directly respond to the field riders issue. See Docket No. 36 (Loggins), Docket No. 44 (Stone-man), Docket No. 33 (Arnold).
. Plaintiff (Loggins) contends that "plaintiffs’ employment consists of non-supervisory work and they are not exempt from coverage under the FLSA.” The application of the
. The plaintiffs are clearly salaried employees. Despite the fact that the plaintiffs have conceded this fact in their Statement(s) of Undisputed Facts (Docket No. 21 (Loggins), Docket No. 20 (Arnold), Docket No. 35 (Stoneman) at para. 6), Plaintiffs Stoneman and Loggins attempt to argue that they are not salaried employees (Docket 31 (Loggins) and Docket 45 (Stoneman)). Their evidence in support of this argument consists of the affidavits of several of the plaintiffs, a time keeping training exercise, and the State’s Schedule 4800 which lists an hourly wage and, incidently, an annual rate. This evidence is insufficient to challenge the Defendant's assertion that the plaintiffs are salaried employees, especially in light of the fact that all plaintiffs have admitted that they are salaried employees.
. See Defendant’s Motion for Partial Summary Judgment, Docket 23 para. 1 (Loggins) & Plaintiffs Brief In Support of Motion for Partial Summary Judgment, Docket No. 22, p. 1 (Loggins).
.
. See Statement of Undisputed Facts (Loggins), Docket No. 21, para. 7 and Statement of Undisputed Facts (Defendant), Docket No. 24, para. 5.
. See Statement of Undisputed Facts: Docket No. 20 (Arnold), Docket No. 35 (Stoneman), Docket No. 21 (Loggins). This compensаtion is in the form of "compensatory time" which is one and one half hours of banked time credited to an employee for each hour of overtime worked.
. See Statement of Undisputed Facts: Docket No. 20 (Arnold), Docket No. 35 (Stoneman), Docket No. 21 (Loggins).
. See Statement of Undisputed Facts: Docket No. 20 (Arnold), Docket No. 35 (Stoneman), Docket No. 21 (Loggins).
. "[N]o employer shall employ any of his employees ... for a workweek longer than forty hours unless such employee receives compensation ... at a rate of not less than one and one-half times the regular rate at which he is employed."
. Including security personnel in correctional institutions.
. Agencies have the option of requiring 86 hours every two weeks or 171 hours every twenty-eight days.
See Lamon v. City of Shawnee,
. The plaintiffs’ claim encompasses two legаlly distinct claims: (1) periods in which overtime was worked (Claim 1); and (2) periods in which overtime was not worked (Claim 2).
. See Docket No. 19 (Arnold), p. 7.
. In this action, none of the plaintiffs have identified any specific pay periods where overtime was worked (Claim 1).
. Section 206 is the "minimum wage” provision.
.
. Section 212 is the “child labor” provision.
. Section 211(c) pertains to record keeping requirements.
. Regulations regarding the employment of apprentices and those whose earning capacity is impaired by age, physical deficiency, etc.
. See Plaintiffs’ Brief in Support of Motion for Partial Summary Judgment, p. 3, Docket No. 34 (Stoneman) ("[P]laintiffs receive compensatory time for all hours worked in excess of 86 hours per work period.’’); Plaintiffs’ Brief in Support of Motion for Partial Summary Judgment, p. 3, Docket No. 19 (Arnold) ("[Pjlaintiffs receive сompensatory time for all hours worked in excess of 86 hours per work period.”); Plaintiffs' Brief in Support of Motion for Partial Summary Judgment, p. 2, Docket No. 22 (Loggins) C[P]laintiffs receive compensatory time for all hours worked in excess of 86 hours per work period.”).
. See Docket No. 33 (Arnold), p. 5.
.Docket No. 28 (Loggins), p. 3.
. See Docket No. 23, Exhibit B, para. 11 (Affidavit of Bill Lowe).
. Docket No. 24, para. 5. Plaintiffs concede that the Department of Correction employees are employed based upon a fourteen day work period. See Docket No. 21 (Loggins).
. Docket No. 33 (Loggins), Exhibit 3. Defendants would state that no one told Plaintiffs that they would not be paid for the hours worked between 80 and 86 because plaintiffs were paid, in fact, for such hours under their contracts of employment.
. Docket No. 33 (Loggins), p. 4.
. Docket 23 (Loggins), para. 11.
. The Court recognizes that this determination could have a slightly negative effect in the case where a plaintiff was being penalized for, say, unauthorized absence since the two weeks statutory salary divided by 80 would result in a per-hour change in excess of what it would be if that salary was divided by 86.
. This compensatory credit is known as "straight time”.
. Specifically, the number of hours to be worked per pay period in order to receive the statutory salary.
. The briefs should only address Claim 1 (the six hours when overtime was in fact awarded in a particular work period). Of course, the factual basis for the two claims is the same even though relief under the FLSA may not be given to those plaintiffs who have had no overtime. Further relief under Claim 1 can only be given for those pay periods for which overtime was paid.
. 2080 hours reflects a 40 hour work week multiplied by 52 work weeks in a year. See Docket No. 22, Exhibit 2, p. 12-13 (Deposition of Bill Lowe).
. See Brief in Support of Defendant's Motion for Summary Judgment, Docket No. 25, p. 5.
. Docket No. 23 (Loggins), Exhibit B, para. 13 (Affidavit of Bill Lowe).
. Defendant’s Motion for Partial Summaiy Judgment, Docket No. 23 (Loggins), para. 2.
. The Court notes that Plaintiffs have not alleged unpaid minimum wages or unpaid overtime compensation. Thus, there exists a question as to what penalty provision, if any, would .apply to the alleged misconduct of defendants. See discussion supra.
. Loggins Plaintiffs filed March 3, 1994; Arnold Plaintiffs filed March 31, 1994; Stoneman Plaintiffs filed March 31, 1994.
. See Docket No. 22 (Loggins), p. 7 and Docket No. 34 (Stoneman), p. 2.
. See Docket No. 36 (Loggins), p. 9.
. See Docket No. 36 (Loggins), p. 11.
. The other plaintiffs also have similar claims in this regard. The Arnold Plaintiffs claim fifteen minutes of uncompensated time as a result of shift report. See Motion for Leave to Amend Complaint. ¶ 3. The Stoneman Plaintiffs contend that they worked before and after their regular shift for a total of 30 minutes a day without compensation. See Motion for Lеave to Amend Complaint, ¶ 4. However, because these claims are just now being asserted they were not the subject of this motion for partial summaiy judgment.
. Docket No. 35 (Loggins), para 5. Plaintiffs Arnold and Stoneman have not raised the "field riders” issue. See Complaint, Docket No. 1 (Stoneman), Amended Complaint, Docket No. 7 (Stoneman), and Complaint, Docket No. 1 (Arnold).
. Docket 36 (Loggins), p. 9, Exhibit 8.
. The defendants are asked to respond to these supplemental submissions.
. Docket No. 35 (Loggins), para 6; Docket No. 1 (Stoneman), para. 6 ("Security officers who work at the Arkansas Department of Corrections are scheduled to work 8)4 hours per day [and] ... they are not given any uninterrupted breaks.”).
. Docket 35 (Loggins), Exhibit 5 (affidavits of plaintiffs).
. The defendants are asked to respond to these supplemental submissions.
.
See Hill v. United States,
. Defendants did not move for partial summary judgment on this issue. See Defendants’ Motion for Partial Summary Judgment, Docket No. 23 (Loggins).
. “If the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and that he had reasonable grounds for believing that his act or omission was not a violation of the [FLSA], the court may, in its sound discretion, award no liquidated damages ..."
. See Defendant's Motion for Partial Summary Judgment, Docket No. 23 (Loggins), Exhibit A (affidavit of Artee Williams), Exhibit B (affidavit of Bill Lowe), Exhibit C (memorandum from the State Personnel Administrator and from the Director of the Department of Corrections).
. Docket No. 33 (Loggins), Exhibit 4.
. Docket No. 53.
. Docket No. 39.
. Docket No. 36 (Stoneman); Docket No. 23 (Arnold & Loggins).
. Docket No. 35 (supplement to Motion for Summary Judgment, Docket No. 20).
. Docket No. 35 (supplement to Motion for Summary Judgment, Docket No. 20).
. Docket No. 23 (Loggins); Docket No. 33 (Stoneman); Docket No. 18 (Arnold).