Beauchamp v. Flex-N-Gate LLCBeauchamp v. Flex-N-Gate LLC
OPINION AND ORDER REGARDING CROSS-MOTIONS FOR SUMMARY JUDGMENT
I. INTRODUCTION
Plаintiff Terrance V. Beauchamp commenced this action in Wayne County Circuit Court, State of Michigan, on February
By motions filed on October 25, 2004, both Plaintiff and Defendant seek summary judgment in their favor on Plaintiffs claim for overtime pay under the FLSA.
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The issue presented in these cross-motions is straightfоrward — namely, whether Plaintiff was exempt from the FLSA’s overtime pay requirement by virtue of the duties he performed as a production supervisor at Defendant’s Hoover Road facility in Detroit, Michigan. Specifically, Defendant argues that Plaintiff was employed in an “executive ... capacity,”
The Court heard oral argument on the parties’ cross-motions on February 17, 2005. Having reviewed the briefs and supporting materials submitted by the parties, and having considered the arguments of counsel at the February 17 hearing, the Court is now prepared to rule on these motions. This Opinion and Order sets forth the Court’s rulings.
IL FACTUAL BACKGROUND
For present purposes, it is enough only to describe the overall nature of the operations performed at Defendant’s Hoover Road facility in Detroit and the duties generally performed by a production supervisor at this facility. The Court discusses Plaintiffs specific job duties in further detail below, as they bear upon the questiоn whether Plaintiff was exempt from the overtime pay requirement of the FLSA.
Defendant Flex-N-Gate LLC assembles and ships parts to various automobile manufacturers, including DaimlerChrysler and Nissan. Its Hoover Road facility, also known as the “SPD” facility, carries out “sequencing” operations, serving as a just-in-time supplier for automotive assembly plants. The SPD facility periodically receives “broadcasts” via a computer link from the assembly plants, through which Defendant is notified about the parts needed at the plant in the next few hours. Defendant uses these broadcasts to rеtrieve the requested parts from storage, perform any necessary additions or assembly, place the parts on racks in the required sequence, and ship the properly sequenced parts to the appropriate assembly plant.
In order to carry out this sequencing operation, Defendant’s SPD facility is organized into three areas or departments. First, the individuals who work in the broadcast area are responsible for receiving broadcasts from assembly plants and translating the coded broadcast information into “pick” sheets used to determine the parts to be retrieved and the sequence in which to ship them. Next, the shipping and receiving department is responsible for receiving inbound shipments of parts and supplies and shipping the sequenced parts to the requesting assembly plant. Finally, the production department carries out the retrieval and sequencing of parts, plus additional assembly when necessary, as specified in the pick sheets derived from
After initially working at Defendant’s SPD facility as an employee of a temporary help agency, Plaintiff was hired by Defendant in March of 1997 as a member of the plant’s hourly workforce. Following a series of transfers and promotions, Plaintiff became a production supervisor in June of 2001. Plaintiffs claim for overtime pay in this case is limited solely to this production supervisor position, which he continued to occupy until Defendant terminated his еmployment on February 28, 2003. Consequently, the question presented here is whether the duties of a production supervisor fit within an exemption from the FLSA requirement of time- and-a-half overtime compensation.
III. ANALYSIS
A. The Standards Governing the Parties’ Cross-Motions
Through their present cross-motions, each party seeks summary judgment in its favor pursuant to
B. Plaintiffs Employment as a Production Supervisor Was Encompassed Within the FLSA’s “Executive” Exemption.
As noted, Plaintiffs claim for overtime compensation in this case is limited to the period during which he worked as a production supervisor at Defendant’s SPD facility. (See Plaintiffs Motion, Br. in Support at 1 (“[A]t all relevant times ..., [Plaintiff] was a prоduction supervisor at the Flex-N-Gate facility located on Hoover Rd. [i]n Detroit.”).) Thus, the resolution of the parties’ cross-motions turns upon the question whether the duties of a production supervisor fit within one of the statutory exemptions from the FLSA requirement of time-and-a-half overtime pay. Upon considering this issue in light of the controlling statutory provisions and federal regulations, the Court finds that Plaintiff is not entitled to an award of overtime compensation.
1. The Standards Governing Plaintiffs Claim for Overtime Pay under the FLSA
Plaintiffs claim for overtime pay in this case rests upon the general command of the FLSA that, “[ejxcept as otherwise provided,” an employer cannot insist that an employee exceed a 40-hour workweek unless the employee receives overtime pay “at a rate not less than one and one-half times the regular rate.”
In this case, Defendant appeals to the “executive” exemption as set forth in the statute and its implementing regulations. 2 Under the pertinent regulations, this exemption applies to any employee who is paid a salary “of not less than $455 per weеk,” and:
(2)Whose primary duty is management of the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof;
(3) Who customarily and regularly directs the work of two or more other employees; and
(4) Who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight.
includ[ing], but ... not limited to, activities such as interviewing, selecting, and training of emplоyees; setting and adjusting their rates of pay and hours of work; directing the work of employees; maintaining production or sales records for use in supervision or control; appraising employees’ productivity and efficiency for the purpose of recommending promotions or other changes in status; handling employee complaints and grievances; disciplining employees; planning the work; determining the techniques to be used; apportioning the work among the employees; determining the type of materials, supplies, machinery, equipment or tools to be used or merchandise to be bought, stocked, or sold; controllingthe flow and distribution of materials or merchandise and supplies; providing for the safety and security of the employees or the property; planning and controlling the budget; and monitoring or implementing legal compliance measures.
The record indicates that Plaintiff earned a salary of at least $37,000 as a production supervisor, and the parties otherwise agree that the salary-related portions of the test for “executive” status are satisfied here. Accordingly, this leaves only the question whether the duties performed by Plaintiff as a production supervisor establish the remaining, duty-based elements of the “executive” exemption. The Court now turns to this inquiry.
2. The Duties Performed by Plaintiff as a Production Supervisor Triggered the FLSA’s “Executive” Exemption.
At first glance, it might appear that a production supervisor at Defendant’s SPD facility clearly should be deemed an “executive” under the FLSA and its implementing regulations, as this individual presumably would be responsible for managing “a customarily recognized department or subdivision” of Defendant’s operations аt this facility,
a relief supervisor or working supervisor whose primary duty is performing nonexempt work on the production line in a manufacturing plant does not become exempt merely because the nonexempt production line employee occasionally has some responsibility for directing the work of other nonexempt production line employees when, for example, the exempt supervisor is unavailable.
The evidence on this point consists of (i) documents setting forth the job duties of a production supervisor and (ii) the deposition testimony of Plaintiff and his superiors as to what tasks he was expected to perform in this position. As to the former, the record includes two documents that, in Plaintiffs view, encоmpassed most or all of his duties and responsibilities as a production supervisor. (See Defendant’s Response to Plaintiffs Motion, Ex. D, Plaintiffs Dep. at 40-41.) The first of these documents, prepared by former human resources manager Karen Andriths and dated October 23, 2001, 4 is a formal job description for the position of “Production and Assembly Supervisor,” and states in pertinent part:
SUMMARY
Supervises and coordinates activities of workers engaged in assembling parts or assemblies into units by performing the following duties.
ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.
Studies production schedules and estimates worker hour requirements for completion of job assignments.
Interprets company policies to workers and enforces safety regulations.
Communicates specifications, blueprints, and job orders to workers, and assigns duties.
Examines items assembled to determine if items meet specifications.
Establishes or adjusts work procedures to meet production schedules.
Recommends measures to improve production methods, equipment performance, and quality of product.
Suggests changes in working conditions and use of equipment to increase efficiency of shop, department, or work crew.
Analyzes and resolves work problems, or assists workers in solving work problems.
Initiates or suggests plans to motivate workers to achieve work goals.
Maintains time and production records. Estimates, requisitions, and inspects materials.
Confers with other supervisors to coordinate activities of individual departments.
Reports machine and equipment malfunctions to maintenance personnel.
Ability to perform activities of workers supervised.
(Defendant’s Response to Plaintiffs Motion, Ex. C, 10/23/2001 Job Description.) This job description further states that the production and assembly supervisor reports to the plant manager, 5 and that the “FLSA Status” of this position is “Exempt.” 6
In addition to this formal job description, Defendant has produced an undated document entitled “Shift Supervisor’s Daily Responsibilities,” and Plaintiff agreed at his deposition that he performed “most of’ the duties enumerated in this document. (See Plaintiffs Dep. at 41.) These duties included, among others, the responsibility to “[mjaintain the proper manning levels and set quota[]s for each work cell,” to “[h]old employees accountable for work performance' and enforce the company work rules,” to “[ajudit the work instructions in the work cells and look for ways to improve productivity,” to “adhere to the safety requirements and enforce them on the plant floor to all hourly and management employees,” and to “[hjandle all employee issues,” including “vacations, [timekeeping] adjustments and discipline.” (See Defendant’s Response to Plaintiffs Motion, Ex. C, Shift Supervisor’s Daily Responsibilities.)
These written materials, on their face, encompass most of the duties cited in the regulations as typical of an “executive” position. Among the items in common between the regulatory examples of “managemеnt” duties,
see
Moreover, the deposition testimony of Plaintiff and other management officials at Defendant’s SPD facility bridges much of this modest gap. With regard to the hiring of employees, for example, Defendant’s human resources manager, Karen An-driths, testified that the company initially filled its worker needs through a temporary agency, but that the elevation of such workers to permanent status — or, alternatively, the determination that a temporary worker should no longer be sent to work at Defendant’s facility — was based upon the recommendation of the temporary employee’s supervisor.
(See
Andriths Dep. at 10-12.) This comports with the regulatory requirement that an executive’s suggestions and recommendations as to hiring “are given particular weight.”
Plaintiff also testified about a number of functions that he performed that are cited in the FLSA regulations as “management” duties. He testified, for example, that he trained employees in the production depаrtment as to the proper use of tools and other equipment in performing their designated tasks.
(See
Plaintiffs Dep. at 38-39.) He also authorized requests for vacations and determined who should work overtime, making sure as to this latter determination that he was adhering to the terms of the collective bargaining agreement in assigning overtime according to worker seniority.
(See id.
at 25, 39.)
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Plaintiff further testified that he conducted yearly reviews of the production department’s hourly employees, that he disciplined these employees, and that he generally was responsible for ensuring that thеse workers adhered to the company’s procedures and instructions.
(See id.
at 37-38.) Finally, Plaintiff acknowledged that he regularly supervised perhaps as many as twenty employees,
(see id.
at 43-44),
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thereby satisfying the “two or more” numerical requirement under the pertinent regulation,
Against all this evidence of a production supervisor’s management duties, Plaintiff observes that Defendant’s SPD facility was a “closely controlled environment” in certain resрects, (see Plaintiffs Motion, Br. in Support at 11), thereby limiting the discretion exercised by supervisors in carrying out their oversight functions. Plaintiff notes, for example, that Defendant’s overall operations at the plant were constrained by the “QS9000” automotive industry standards and guidelines that Defendant adopted for this facility, which dictated to a significant extent the precise procedures that workers would follow in carrying out the sequencing process. Plaintiff further observes that a supervisor’s hiring authority was limited by the company’s use of a temporary worker agency as the initial sourсe of hew employees, and that his disciplinary powers were limited by the terms of the collective bargaining agreement.
Yet, nothing in the governing regulations or relevant case law requires that a supervisor must have unfettered discretion in the performance of his management duties in order to be deemed an “executive.” In elaborating upon the requirement that an executive’s hiring and'firing recommendations be given “particular weight,” for example, the FLSA regulations explain that “[a]n employee’s suggestions and recommendations may still be deemed to have ‘particular weight’ even if a higher level manager’s recommendation has more importance and even if the employee does not have the authority to make the ultimate decision.”
Similarly, in this case, Defendant’s production supervisors carry out management functions by training workers to perform their tasks in accordance with the QS9000 standard and other corporate policies and practices, and by ensuring that the employees in their charge actually meet these standards in their daily work. As defense counsel noted at oral argument, it is not enough merely to propagate standards— rather, supervision is necessary so long as a company must rely on human workers to cаrry out these standards. Indeed, this point is confirmed in the “wheel flare sequencing” instructions Plaintiff has provided to the Court — this document emphasizes to workers that “[i]n all situations, if you have trouble understanding your job duties or need any type of assistance, see your supervisor.” (Plaintiffs Motion, Ex. 16, Wheel Flare Sequencing Instructions at 4.) This document further states that supervisors have the responsibility to “[r]ead, understand, and enforce these requirements,” and to train new workers in accordance with the instructions. (Id. at 5.)
At the February 17 hearing, however, Plaintiffs counsel suggested that certain Sixth Circuit precedents demand that employees possess a higher degree of discretion in order to be deemed “executives” under the FLSA. Plaintiff points first to the decision in
Schaefer v. Indiana Michigan Power Co.,
Yet, as noted by Defendant,
Schaefer
differs from the present case in one crucial respect. The question before the Court in
Schaefer
was whether the plaintiffs position was “properly classified as exempt under the
administrative
exemption of the FLSA.”
Nonetheless, Plaintiff correctly points out that the Sixth Circuit expressly distinguished
Donovan
in
Ale, supra,
Uрon reviewing this case law, it is evident to the Court that the facts here are more analogous to those presented in
Donovan
than in
Ale.
First, the record here indicates that Plaintiff, like the supervisors in
Donovan
but unlike those in
Ale,
spent the bulk of his time performing managerial tasks, and only a modest amount of time covering the duties normally performed by the hourly workforce. Next, and more importantly, while the shift supervisors in
Ale
were largely “supervisors” in name only, and lacked most of the authority typically associated with management, the
Even Plaintiff largely concedes this latter point. Instead, he contends only that a production supervisor’s discretionary powers and flexibility in performing these management duties are limited by such factors as the QS9000 quality assurance standard in use at the SPD facility, the method for hiring new employees, and the terms of the collective bargaining agreement that governs Defendant’s hourly workforce. As discussed earlier, however, these limits to a production supervisor’s authority do not alter the essential “managerial” nature of the duties actually performed by Plaintiff in this position. Accordingly, the Court finds as a matter of law that Plaintiff was employed in a “bona fide executive” capacity during the period that he held a production supervisor position at Defendant’s SPD facility.
IV. CONCLUSION
For the reasons set forth above,
NOW, THEREFORE, IT IS HEREBY ORDERED that Defendant’s October 25, 2004 Motion for Summary Judgment is GRANTED, and that Plaintiffs October 25, 2004 Motion for Partial Summary Judgment is DENIED.
Notes
. Defendant also sought summary judgment in its favor on Plaintiff's state-law claim of race discrimination. By stipulated order entered December 9, 2004, however, this claim was dismissed with prejudicе, leaving only Plaintiffs FLSA claim still to be resolved.
. Although Plaintiff addresses both the "executive” and the "administrative” exemptions in his motion, Defendant has not advanced any sort of argument that the latter exemption should apply here.
. Prior to their amendment in 2004, the governing regulations established a "long test” and a "short test” for determining whether an employee fits within the “executive” exemption.
See Ale v. Tennessee Valley Authority,
. Plaintiff first became a production supervisor in June of 2001, a few months before Defendant adopted this job description, but he agreed at his deposition that this document lists most of the duties that he performed as a production supervisor. (See Plaintiff's Dep. at 40-41.)
. During the period that Plaintiff was a production supervisor, the plant manager at Defendant's SPD facility was Gerald R. Guriel. Guriel testified at his deposition that this job description acсurately depicted Plaintiff's duties as a production supervisor, with the sole exception that Plaintiff "[njever had anything to do with blueprints.” (Guriel Dep. at 26.)
. As noted by Plaintiff, there is evidence in the record that, under prior plant management, at least some supervisors were paid overtime. (See, e.g., Andriths Dep. at 9.) In addition, Plaintiff has produced timesheets from the period when he was a plant manager that reflect his status as “non exempt.” (See Plaintiff's Motion, Ex. 18.) Neither party, however, argues that Defendant’s designation of a position as "exempt” or "non-exempt,” or its past praсtice of paying overtime to its supervisors, should be accorded any particular weight or significance in the Court’s present inquiry.
. Indeed, Plaintiff testified that, if he erred in assigning overtime, this would result in a union grievance that, if successful, would require Defendant to compensate all higher-seniority employees who should have had priority in the assignment of overtime. (See id. at 25.)
. Plaintiff apparently worked exclusively on the second shift as a production supervisor. During this shift, he was the only production supervisor at the facility, and the only other supervisor who typically was at the plant during this shift was the supervisor for the shipping and receiving department.