243 Conn. 454 | Conn. | 1997
Opinion
The plaintiff, the commissioner of the department of labor, brought this action pursuant to General Statutes § 31-72,
The court concluded that: (1) Skidmore was not an exempt employee under § 31-58 (f)
I
The defendant’s principal claim is that the trial court improperly interpreted § 31-72 to permit personal liability when Skidmore’s employer was Hartec. Specifically,
The trial court properly reasoned that the defendant personally was hable for the nonpayment of Skidmore’s overtime wages pursuant to § 31-72 because “[h]e was the president and treasurer and the person in control of the institute. The evidence at trial clearly indicated that he was solely responsible for ah decisions in regard to wages. He was specifically the cause for the withholding of, and the failure and refusal to pay the overtime wages to Skidmore.”
Our consideration of whether, if a corporate employer exists, an individual can be considered an “employer” pursuant to § 31-72 is guided by well established principles of statutory construction. “ ‘Statutory construction is a question of law and therefore our review is plenary.’ ” Jupiter Realty Co. v. Board of Tax Review, 242 Conn. 363, 367, 698 A.2d 312 (1997). “The process of statutory interpretation involves a reasoned search for the intention of the legislature. Frillici v. Westport, 231 Conn. 418, 431, 650 A.2d 557 (1994). In
We begin our analysis with a review of the pertinent statutory language. Section 31-72 provides that “[wjhen any employer fails to pay an employee wages in accordance with the provisions of sections 31-71a to 31-71Í, inclusive . . . such employee . . . may recover, in a civil action, twice the full amount of such wages, with costs and such reasonable attorney’s fees as may be allowed by the court. . . .” (Emphasis added.) Section 31-71a (1) defines employer as “any individual, partnership, association, joint stock company, trust, corporation, the administrator or executor of the estate of a deceased person, the conservator of the estate of an incompetent, or the receiver, trustee, successor or assignee of any of the same, employing any person, including the state and any political subdivision thereof . . . .”
The defendant first argues that Skidmore’s employer is Hartec and that he personally cannot be liable because § 31-72 does not provide for the collection of unpaid wages against an officer or agent of a corporation. This argument, however, does not respond to the theory of liability upon which the plaintiff relies. Count two of the complaint does not allege that the defendant is liable by virtue of his position as a corporate officer. Rather, the plaintiff argues that the defendant is liable
The defendant claims, however, that by the express terms of § 31-71a (1), once an employer, Hartec in this case, has been identified as having statutory liability, such liability cannot also be imposed upon an individual. The plaintiff does not dispute that Hartec, a corporate entity, was Skidmore’s employer. The plaintiff argues, however, that the categories under the definition of employer are not exclusive and that the defendant falls within the definition of employer because one of the statutory terms is “individual.” Under the plaintiffs interpretation, the fact that Hartec was Skidmore’s employer does not preclude the defendant, as the individual in the corporation with exclusive authority to set Skidmore’s hours of employment and wages and whose exercise of that authority was the direct cause of the failure to pay wages, from also being considered an employer for purposes of § 31-72.
The plaintiff further argues that his construction of employer as used in § 31-72 is necessary in order to effectuate the legislature’s intent. Specifically, the plaintiff contends that § 31-72 must be read in conjunction with the text of General Statutes § 31-71g,
Section 31-71g is the criminal counterpart of § 31-72 and provides that “[a]ny employer or any officer or agent of an employer or any other person authorized by an employer to pay wages who violates any provision of this part may be” fined or imprisoned or both, with the penalties varying with the amount of wages owed.
The defendant maintains that the plain language of § 31-72 does not authorize the imposition of liability to the same extent as § 31-71g. Although the defendant’s argument — that liability in the present case should be confined to Hartec, the corporate employer — has a “superficial textual appeal”; United Illuminating Co. v. New Haven, supra, 240 Conn. 455; it is unpersuasive in application because it leads to a bizarre result. Under the defendant’s interpretation of §§ 31-71a (1), 31-71g and 31-72, an individual could be convicted of a felony under § 31-71g and imprisoned for up to five years for
Accordingly, on the basis of the language of § 31-72, the policy it was designed to implement, and its structural relationship to § 31-71g, we conclude that an individual personally can be liable as an employer pursuant to § 31-72, notwithstanding the fact that a corporation is also an employer of the claimant, if the individual is the ultimate responsible authority to set
Having established the contours of the definition of employer, we now apply it to the facts in the present case. The trial court expressly found Skidmore performed only work which the defendant and Susan Meyers requested. Skidmore was expected to work overtime and did so. The trial court further found that the defendant was the individual in control of, and solely responsible for, all decisions with regard to wages, and concluded that the defendant “was specifically the cause for the withholding of, and the failure and refusal to pay the overtime wages” to Skidmore. (Emphasis added.) The defendant “cannot overturn [these] finding[s] of fact[s] unless [he] can demonstrate that [they are] clearly erroneous. Practice Book § 4061; Pandolphe’s Auto Parts, Inc. v. Manchester, [181 Conn. 217, 219-22, 435 A.2d 24 (1980)].” Campisano v. Nardi, 212 Conn. 282, 288, 562 A.2d 1 (1989).
The record amply supports the trial court’s findings regarding the defendant’s authority over Skidmore’s hours of employment and control over the payment of wages. The defendant was the president and treasurer of Hartec. Skidmore testified that she reported directly to the defendant and was closely supervised by him. The defendant told Skidmore, prior to hiring her, that she would be required to work long hours, and possibly some weekends, in order to get the accounting area caught up. On two occasions in June, 1992, the defendant urged Skidmore to stay late to complete projects that were needed the next morning.
Skidmore also testified that the supervisors of Hartec’s hourly employees gave those employees’ time cards directly to the defendant for his authorization. The time cards could not be processed and, therefore, employees would not be paid, if the cards did not bear
II
The defendant next claims that the trial court improperly determined that Skidmore was not employed in a “bona fide administrative capacity” and, therefore, was not exempt from overtime compensation provisions.
General Statutes § 31-76c provides: “No employer, except as otherwise provided herein, shall employ any of his employees for a workweek longer than forty hours, unless such employee receives remuneration for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.” Section 31-58 (f) exempts
The defendant argues that Skidmore was employed in a bona fide administrative capacity according to the criteria established in § 31-60-15 of the Regulations of Connecticut State Agencies. Specifically, the defendant argues that Skidmore qualifies as a bona fide administrative employee under the following description contained in § 31-60-15: “ ‘[E]mployee employed in a bona fide administrative capacity’ means any employee: (a) whose primary duty consists of . . . (1) The performance of office or nonmanual work directly related to management policies or general business operations of his employer or his employer’s customers . . . and (b) who customarily and regularly exercises discretion and independent judgment; and (c) . . . (2) who performs under only general supervision work along specialized or technical lines requiring special training, experience or knowledge . . . ,”
The trial court held that Skidmore’s employment did not meet the elements set forth in subsections (a) (1), (b) and (c) (2) of § 31-60-15. Specifically, the trial court
The primary factor in the determination of whether a person is employed in a bona fide administrative capacity, and thus exempt from overtime compensation, is the nature of his or her duties. See Shell Oil Co. v. Ricciuti, supra, 147 Conn. 285 (applying analysis to determination of executive capacity). In examining Skidmore’s responsibilities, the trial court specifically found that her “duties were primarily those of a bookkeeper. She handled accounts receivable, accounts payable, payroll and checkbooks. . . . She was closely supervised by both [the defendant] and Susan Meyers and performed only work which they requested. She did not act independently or use independent judgment.”
On appeal, the defendant challenges the trial court’s factual findings regarding Skidmore’s duties. The defendant claims that Skidmore exercised discretion and independent judgment in her dealings with vendors. He characterizes her work as requiring specialized training and knowledge, and as being performed under only general supervision. Finally, the defendant relies heavily on his assertion that Skidmore’s previous jobs had all been salaried, exempt positions. “ ‘[W]here the factual basis of the court’s decision is challenged we must determine whether the facts set out in the memorandum of decision are supported by the evidence or whether, in light of the evidence and the pleadings in the whole record, those facts are clearly erroneous.’ ” E. Udolf,
The record supports the trial court’s findings. Both Skidmore and Eileen Lewis, the investigator for the department of labor, testified regarding the scope of Skidmore’s responsibilities. Lewis stated that based on Skidmore’s duties, she was a nonexempt employee, and Skidmore testified that the defendant monitored her progress on her assignments and that she was called into his office for a daily status report; that her involvement with payroll was limited; and that the time cards for the hourly employees were reviewed directly by the defendant, who then gave them to Skidmore to complete the necessary payroll sheets for dispatch to the vendor.
m
The defendant next contends that, even if we were to assume that Skidmore was a nonexempt employee, the trial court improperly concluded that she was entitled to overtime wages because she was not authorized to work overtime and she failed to report her horns to her employer.
The trial court found that, despite the defendant’s testimony to the contrary, “on several occasions [Skidmore] was expected to work overtime and in fact did so.” The trial court also found that neither Hartec nor the defendant maintained records of her overtime hours as required by General Statutes § 31-66
The defendant’s claims are not supported by the record. There was evidence that prior to hiring her, the defendant alerted Skidmore to the fact that she would have to work extra hours for a number of weeks. On at least two occasions Skidmore gave Susan Meyers documentation of her hours, only to be told that she would not be paid for them and that the topic was not to be discussed further. At the defendant’s request and with his approval, Skidmore stayed late to complete needed projects and worked with Susan Meyers on some of them. We conclude that the trial court properly concluded that the defendant authorized and expected Skidmore to work hours in excess of a forty hour week.
IV
The defendant’s final claim is that the trial court’s award of double damages to the plaintiff was improper
Section 31-72 provides for a discretionary award of double damages to employees who are successful in actions against their employers for wages due. Although the statutory language does not require evidence of bad faith, arbitrariness or unreasonableness,
The defendant’s principal claim is that his failure to pay Skidmore for overtime could not have been in bad faith because she did not inform him of her hours and, therefore, he never had the information or opportunity to pay her overtime wages. The trial court’s memorandum of decision is unclear as to the basis of the double damages award.
The judgment is affirmed.
In this opinion the other justices concurred.
General Statutes § 31-72 provides: “Civil action to collect wage claim, fringe benefit claim or arbitration award. When any employer fails to pay an employee wages in accordance with the provisions of sections 31-71a to
Although both Hartec and Robert Meyers were held liable for Skidmore’s unpaid overtime wages, only Robert Meyers has appealed. Hereafter, we refer to Robert Meyers as the defendant.
The defendant’s wife, Susan Meyers, is not a party to this litigation.
General Statutes § 31-58 (f), which defines “employee” for puiposes of, inter alia, the overtime provisions of General Statutes § 31-76b, provides in relevant part: “ ‘Employee’ means any individual employed or permitted to work by an employer but shall not include ... an individual employed in a bona fide executive, administrative or professional capacity as defined in the regulations of the Labor Commissioner . . . .”
The trial court awarded Skidmore $14,205.20, which was computed as follows. In accordance with § 31-72, Skidmore was entitled to twice her
The plaintiff does not challenge the rejection by the trial court of the “piercing the corporate veil” and “alter ego” theories, contained in count three of the plaintiffs complaint, as a basis for imposing personal liability on the defendant.
General Statutes § 31-71g provides: “Penalty. Any employer or any officer or agent of an employer or any other person authorized by an employer to pay wages who violates any provision of this part may be: (1) Pined not less than two thousand nor more than five thousand dollars or imprisoned not more than five years or both for each offense if the total amount of all unpaid wages owed to an employee is more than two thousand dollars; (2) fined not less than one thousand nor more than two thousand dollars or imprisoned not more than one year or both for each offense if the total amount of all unpaid wages owed to an employee is more than one thousand dollars but not more than two thousand dollars; (3) fined not less than five hundred nor more than one thousand dollars or imprisoned not more than six months or both for each offense if the total amount of all unpaid wages owed to an employee is more than five hundred but not more than one
Because we conclude that, for purposes of § 31-72, the determination of whether an individual can be considered an employer where a corporate entity exists depends on the individual’s authority to control hours and wages and responsibility for illegally withholding wages, it is unnecessary for us to adopt, as the plaintiff requests, the “economic reality” test used in cases involving the Federal Labor Standards Act to determine if an individual
“Senator Nancy L. Johnson said in committee hearings, held in 1978 to amend General Statutes § 31-72 to increase the penalties on employers, that the payment of earned wages is a basic gut-level right that should be assured by clear, strong state statutes .... Conn. Joint Standing Committee Hearings, Labor, 1978 Sess., pp. 154-55.” (Internal quotation marks omitted.) Shortt v. New Milford Police Dept., supra, 212 Conn. 309 n.13.
Skidmore later assumed this duty.
Although the defendant alleged in his answer that Skidmore was a nonexempt salaried employee who was employed in a “bona fide executive, administrative and professional capacity,” his brief only addresses the administrative capacity exemption. We, therefore, decline to review the executive and professional exemptions because they are not adequately briefed. “Claimed errors not adequately briefed and not fully developed will not be considered by this court. See Practice Book § [4064C]; Liscio v. Liscio, 204 Conn. 502, 507, 528 A.2d 1143 (1987); Petrizzo v. Commercial Contractors Corporations, 152 Conn. 491, 496, 208 A.2d 748 (1965).” State v. Tatum, 219 Conn. 721, 742, 595 A.2d 322 (1991).
The definition of employee provided in § 31-58 (f) is used because General Statutes § 31-76b, which provides the definitions used in the overtime pay provisions, states that the term employee as used in those provisions “means employee as defined in section 31-58.”
The parties do not dispute the applicability of subsections (d) and (e) of § 31-60-15 and confine their arguments to subsections (a) (1), (b) and (c) (2) of that regulation.
General Statutes § 31-66 provides: “Employers’ records. Orders to be posted. Each employer subject to the provisions of this part, unless exempted by regulation issued by the commissioner or as hereinafter provided, shall keep at the place of employment for a period of three years a true and accurate record of the hours worked by, and the wages paid by him to, each employee, as required by the applicable regulations issued by the Labor Commissioner, and shall furnish to the commissioner or his authorized representative, upon demand, a sworn statement of the same provided if the place of employment is designed primarily as an establishment for the
Section 31-60-12 of the Regulations of Connecticut State Agencies provides in pertinent part: “Records, (a) For the purpose of this regulation, ‘true and accurate records’ means accurate legible records for each employee showing: (1) His name; (2) his home address; (3) the occupation in which he is employed; (4) the total daily and total weekly hours worked, showing the beginning and ending time of each work period, computed to the nearest unit of fifteen minutes; (5) his total hourly, daily or weekly basic wage; (6) his overtime wage as a separate item from his basic wage; (7) additions to or deductions from his wages each pay period; (8) his total wages paid each pay period; (9) such other records as are stipulated in accordance with sections 31-60-1 through 31-60-16; (10) working certificates for minor employees (sixteen to eighteen years). True and accurate records shall be maintained and retained at the place of employment for a period of three years for each employee. ...”
Because we agree with the plaintiff that the record contains evidence of bad faith on the part of the defendant, we need not reach the plaintiff’s contention that an award of double damages pursuant to § 31-72 does not require such evidence.
Neither party contends that Sansone requires that the trial court make a specific finding of bad faith, arbitrariness or unreasonableness in order to award double damages. Rather, both parties agree that an award of double damages can be based on evidence of such conduct contained in the record. Accordingly, in (he present case, the parties dispute the sufficiency of the evidence demonstrating bad faith.
The defendant did not request an articulation of the trial court’s decision to award the plaintiff double damages. Although it is the “ ‘responsibility of the appellant to provide an adequate record for review’ Connecticut National Bank v. Giacomi, 242 Conn. 17, 73, 699 A.2d 101 (1997); Practice Book § 4007; we note that the trial court should provide a basis for its exercise of discretion to award double damages.