Elliott Gelber v. AKAL Security, Inc.Elliott Gelber v. AKAL Security, Inc.
[PUBLISH]
Appeals from the United States District Court for the Southern District of Florida
(September 30, 2021)
Before MARTIN, NEWSOM, and BRANCH, Circuit Judges.
This is an unusual case. It presents a seemingly straightforward question: Under the Fair Labor Standards Act, may an employer automatically deduct one-hour meal periods from its employees’ otherwise
I
Akal Security is a government contractor that repatriates persons ordered removed from the United States. It transports detainees on airplanes—both domestically, from one holding facility to another, and internationally, from the United States to the detainees’ home countries. To ensure the safety of its flights, Akal staffs them with air security officers (ASOs).
Once the detainees have been transported to their respective destinations, the ASOs are required to return to the United States—here, to Miami—aboard the same aircraft. Because these return flights—“Empty Return Legs”—carry no detainees, the ASOs have few affirmative duties during them. Accordingly, they can sleep, meditate, play video games, or watch TV on their flights home. On arrival in Miami, the ASOs have to unload and clean the plane and perform other minor administrative duties to prepare for the following day.
Importantly here, Akal acknowledges that under the Fair Labor Standards Act, it has to pay its ASOs for overtime spent on the Empty Return Legs, and it generally does so. See Br. of Appellant at 31; Reply Br. of Appellant at 13; Oral Arg. Tr. 7:40–8:07. But for Empty Return Legs lasting longer than 90 minutes, Akal has a different policy. For those flights, Akal automatically deducts one hour from each shift as a “meal period.” In relevant part, Akal‘s policy states: “There is a mandatory un-paid 1 hour meal period on each shift. This meal period will be taken by all ASOs and Leads on the return leg of each mission.” The policy instructs ASOs to disengage from work duties during those “meal period[s]” and to use their time as they wish. Here, Akal didn‘t record actual meal periods, but instead, simply subtracted one hour from each ASO‘s timesheet.
Elliot Gelber and other ASOs sued Akal under the FLSA for unpaid wages. The district court granted summary judgment to Gelber, holding that Akal‘s automatic “meal period” deductions violated the Act. Then, following a bench trial, the court found that Akal had acted in good faith and hadn‘t willfully violated the FLSA.
The principal question presented on appeal is whether Akal was entitled to make the challenged meal-period deductions from otherwise compensable work. We hold that it was not and that, in doing so, Akal violated the FLSA. We must also decide whether the district court correctly found that Akal acted in good faith and not willfully. We conclude that it did.
II
The FLSA requires employers to pay overtime wages to employees for all “hours worked” over 40 per week. See
Although these principles are easily stated, two difficult issues arise in this case, both critical to its resolution. First, who bears the burden of proof? Must Gelber and the ASOs show that they were in fact performing “work[]” during meal periods, or must Akal instead show that it is entitled to exclude a meal period from compensable time? Second, what standard does
A
Begin with the burden. Ordinarily, a party seeking overtime pay has the burden of “proving that he performed work for which he was not properly compensated.” Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 686–87 (1946). Given that
These two competing rationales have led the courts of appeals to divide over the burden-of-proof question in meal-break cases. Compare Hertz v. Woodbury Cnty., 566 F.3d 775, 783–84 (8th Cir. 2009) (“Mealtimes . . . are not exempt from compensation, but rather they are not compensable in the first instance.”), and Myracle v. Gen. Elec. Co., 33 F.3d 55 (6th Cir. 1994) (unpublished table opinion) (similar), with Bernard v. IBP, Inc. of Neb., 154 F.3d 259, 265 (5th Cir. 1998) (“The employer bears the burden to show that meal time qualifies for this [meal time] exception from compensation.”), and Roy v. Cnty. of Lexington, 141 F.3d 533, 544 (4th Cir. 1998) (similar). Although this Court has addressed meal periods under the FLSA, we have never squarely decided who bears the burden of proof. For reasons we will explain, we hold that a burden-shifting scheme applies in meal-break cases and that, once an employee satisfies his burden by showing that his logged work hours are generally compensable, the employer bears
Our conclusion follows from the Supreme Court‘s decision in Anderson. There, employees of a pottery plant sued the plant for undercompensating them.
328 U.S. at 682. The employees were required to punch in and out at the beginning and end of each shift. Id. at 682–83. But rather than compensate the employees for all of the time logged on their cards, the plant counted working time from the “succeeding even quarter hour after employees punch in” to the “quarter hour immediately preceding the time when they punch out.” Id. at 683. Thus, an employee who punched in at 6:46 a.m. and out at 12:14 p.m. was paid only for work from 7:00 a.m. to 12:00 p.m., rather than, as the employees believed was proper, for the entire period. Id. at 683–84. In reversing a judgment for the employers, the Supreme Court held that the employees could be awarded for the entire duration—even though they couldn‘t show that they were always and necessarily doing “productive work” when they were punched in. Id. at 686–88, 693. The Court explained that once an employee has shown that “he has in fact performed work for which he was improperly compensated,” the “burden then shifts to the employer to come forward with evidence of the precise amount of work performed or with evidence to negative the reasonableness of the inference to be drawn from the employee‘s evidence.” Id. at 686–87.
The issue of automatic deductions for meal periods in many ways resembles the record-keeping situation in Anderson, and we apply Anderson‘s burden-shifting rule here. In Anderson, the Court concluded that the employees had shown that their “preliminary activities after arriving at their places of work” had to be “included within [their] compensable workweek.” Id. at 692–93. Accordingly, the Court held that the burden shifted to the employer to show that its automatic quarter-hour deductions were justified. Id. at 693. In the same way, in meal-period cases, the employee bears the initial burden to show that the meal period constituted work. If the employee does so, and the employer seeks an automatic deduction, Anderson teaches that it‘s up to the employer to show how much it is entitled to deduct. See id.; see also Harp v. Starline Tours of Hollywood, Inc., No. 14-cv-7704, 2015 WL 4589736, at *6–7 (C.D. Cal. July 27, 2015) (citing Department of Labor guidance explaining that an automatic pay deduction for lunch “does not violate the FLSA so long as the employer accurately records actual hours worked, including any work performed during the lunch period”).
In the circumstances here, we hold that Gelber has satisfied his initial burden to
Although it acknowledges that idle time on Empty Return Legs is compensable work, Akal insists that the ASOs’ general—which is to say idle—status on those segments is irrelevant. The pertinent inquiry, Akal contends, “is whether Plaintiffs had one-hour of time during the Empty Return Legs in which they were ‘completely relieved from duty.’” Reply Br. of Appellant at 33. But that‘s not right. Consider what it means if, as Akal seems to recognize here, the Empty Return Legs are indeed generally compensable: It means that idle time spent on the plane is compensable overtime work that is spent predominantly for Akal‘s benefit. Cf. Armour, 323 U.S. at 133 (holding that work is compensable if it is “predominantly for the employer‘s benefit” and noting that “an employer, if he chooses, may hire a man to do nothing”). It follows, then, that the meal breaks must also be compensable
Akal never does so. To the contrary, it merely—and repeatedly—hammers the point that the ASOs had idle time throughout the Empty Return Legs. See, e.g., Br. of Appellant at 1 (“Plaintiffs do not genuinely dispute that they had no duties during at least one hour of each such flight . . . .” (emphasis added)); id. at 2 (“Plaintiffs retained few, if any, duties on the Empty Return Legs and . . . Plaintiffs had at least one hour of free time . . . .” (emphasis added)); id. at 8 (“There were minimal duties that Plaintiffs may have performed on the Empty Return Legs; and, if any Plaintiffs had such duties, it took at most three out of the twelve ASOs on board the airplane ten to twenty minutes to complete those duties.”); id. at 9 (“Plaintiffs typically enjoyed at least one hour and forty minutes of time during which they had no affirmative work duties.” (emphasis added)); see also id. at 13, 22–26, 37, 38, 44 (same). And Akal emphasizes that the ASOs could sleep, meditate, watch movies, or do whatever else they wanted on the flight. Id. at 13. But Akal‘s argument proves too much—namely, that the entire Empty Return Leg isn‘t compensable, a conclusion that Akal expressly disavows, in both word (see Br. of Appellant at 31, Reply Br. of Appellant at 13) and deed (by paying the ASOs overtime for all other time spent on the flights).
To emphasize the point: Under Akal‘s position—that it should prevail here because the ASOs were idle during the supposed meal breaks—why would any part of the Empty Return Legs be compensable? And what would prevent Akal from simply increasing the duration of the “meal period” from an hour to two, three, or four hours?5 Akal‘s argument, it seems, would require us to accept two contradictory conclusions that can‘t both be true—the Empty Return Leg simultaneously is and is not work.
The contradiction at the heart of Akal‘s position results, we think, from a foundational error: Akal believes that it is Gelber‘s burden to show that the meal breaks were not bona fide, rather than its own burden to show that they were. Akal would thus have us artificially limit our analysis to fixed timepoints within the return flight and ask whether there was “at least” one hour during which the ASOs were relieved from the ordinary responsibilities of supervising detainees. See Br. of Appellant at 1, 2, 8, 9, 22–26, 37, 38, 44. But that analysis proceeds from the wrong premise. Rather than assume that the Empty Return Leg is work, Akal impliedly asks us to assume that it isn‘t. That assumption runs contrary to its own admission that idle time spent on the flight is compensable work.
Of course, none of this is to say that an employer could never deduct a bona fide meal period during travel. Indeed, other Department of Labor guidance indicates that bona fide meal periods can be taken
In sum, Akal hasn‘t carried its burden to show that it is entitled to exclude a bona fide meal period from otherwise compensable work. Accordingly, the district court correctly concluded that the ASOs were entitled to compensation for their “meal break” periods on the Empty Return Legs.
B
Our meal-breaks caselaw confirms our conclusion. We first confronted the question whether an employer may deduct meal breaks from an employee‘s overtime pay in Kohlheim. There, firefighters sued the county, alleging that it had unlawfully deducted mealtimes from their overtime pay. Id. at 1474. We agreed. In doing so, we adopted the Department of Labor‘s guidance regarding meal breaks in
Admittedly, Kohlheim is open to another reading. In a footnote, Kohlheim stated that “what matters in meal period cases is whether the employees are subject to real limitations on their personal freedom which inure to the benefit of their employer.” Id. at 1477 n.19. And Kohlheim appeared to apply this test too. The panel there noted that the limitations on the firefighters’ freedom—remaining subject to emergency calls—“inure[d] to the benefit of the county” because they ensured “an available pool of competent firefighters for immediate response to emergency situations.” Id. Arguably, then, as the dissent states in a footnote, Kohlheim adopted a “real limitations” test that, the dissent says, is “likely just ‘[a] version of the predominant benefit test’”—which, recall, governs the general question whether time spent is compensable work. See Dissenting Op. at 32 n. 9 (quoting Babcock v. Butler Cnty., 806 F.3d 153, 156 (3d Cir. 2015)).
Given Kohlheim‘s mixed signals, it‘s no surprise that there is disagreement over what it means. Compare Dean v. Akal Sec., Inc., 3 F.4th 137, 143 (5th Cir. 2021) (noting that our Circuit, rather than applying the predominant-benefit test, “may review” the compensability of meal periods “under a heightened standard”), with Babcock, 806 F.3d at 156 (noting that Kohlheim
Although Kohlheim can be confusing, we think it‘s best read to adopt the completely-relieved-from-duty test.6 First, we emphasized in Kohlheim that the Department of Labor‘s regulations should be given great weight and, indeed, expressly stated that we “join[ed] the other circuits which have adopted the mealtime exclusion standards of
Second, our subsequent decision in Avery v. City of Talladega, 24 F.3d 1337 (11th Cir. 1994), clarifies Kohlheim‘s meaning. In Avery, we discussed
The ASOs were not completely relieved from duty here. Again,
III
There is one last issue—or two, really. In his cross-appeal, Gelber contends that the district court erred by holding that Akal acted in good faith and that Akal‘s violation of the FLSA wasn‘t willful. We disagree.10
A
The issues of good faith and willfulness affect, respectively, the availability of liquidated damages and the relevant statute of limitations. We start with good faith. Under the FLSA, liquidated damages are presumptively available. An employer who violates the overtime pay requirement,
Before the district court, Akal asserted the good-faith defense. The district court held a bench trial and heard from witnesses whose testimony bore directly on that issue. Most importantly, Akal‘s outside counsel testified that a company executive sought his advice regarding the meal-breaks policy and that he advised Akal that the policy comported with the FLSA. Based on this testimony, the court concluded that Akal acted in good faith on the advice of counsel. After careful review, we find no clear error in that conclusion.
Nor do we find Akal‘s lawyer‘s advice objectively unreasonable. Although we have concluded today that Akal‘s deductions violate the FLSA, this Court had never before addressed a similar question. And as we have explained, our caselaw had not clearly settled either the allocation of burdens or the standard for judging the compensability of meal breaks. The district court did not abuse its discretion in refusing to award liquidated damages.
B
Turning to the issue of willfulness, there is ordinarily a two-year statute of limitations for actions seeking unpaid overtime compensation under the FLSA. See
“fail[s] to make adequate inquiry into whether conduct is in compliance with the Act.” Id. at 1163 (quoting
We see no clear error in the district court‘s finding that Akal did not willfully violate the FLSA. There is nothing in the record indicating Akal knew that the FLSA prohibited its conduct. Although Gelber points to Akal‘s settlement of a different lawsuit involving a similar meal-period policy, a lawsuit and subsequent settlement do not alone suffice to show Akal knew that its conduct was prohibited. And even if it was sufficient, because the other lawsuit involved a different meal-period policy, we can‘t say Akal knew that this meal-period policy was prohibited. While reckless disregard can also be sufficient to show willfulness, Akal didn‘t “fail[] to make adequate inquiry” into whether its conduct was in compliance with the FLSA. Id. To the contrary, as already explained, one of Akal‘s company executives sought outside counsel‘s advice regarding whether the meal-period policy complied with the FLSA.
* * *
At first blush, it may seem strange to conclude that Akal has to pay its employees who “sleep[], eat[] meals . . . , read[], watch[] movies on their iPads and other tablets, play[] video games, and engag[e] in other leisure activities of their choice” on flights home. But Akal admits that it does so already—just not for so-called “meal periods.” That admission proves critical. Akal has not carried its burden to show that the purported “meal periods” were distinguishable from other compensable time on the flight, and thus that it could deduct these periods from the ASOs’ overtime pay. The district court thus correctly concluded that by automatically deducting the ASOs’ meal periods, Akal violated the FLSA. The district court also correctly concluded, though, that Akal acted in good faith and did not willfully violate the FLSA.
AFFIRMED.
BRANCH, Circuit Judge, dissenting:
During certain flights (called Empty Return Legs) that last more than 90 minutes, Akal Security, Inc. allows the Air Security Officers (ASOs) it employs to sleep, eat meals, read, watch movies on their iPads and other tablets, play video games, and engage in other leisure activities of their choice. Apart from 10–15 minutes of small tasks, Akal does not impose any work duties on the ASOs during those flights. Under the Department of Labor‘s advisory interpretations of the Fair Labor Standards Act (FLSA),
Despite the plain language of
I. Background
A. Facts
Akal “provides air security services in connection with transporting detainees . . . internationally from the United States to the detainees’ home countries to which they are being deported.” The plaintiffs here—Elliott Gelber and a class of Miami-based ASOs3—worked for Akal and were responsible for “maintain[ing] safety while the detainees [were] being loaded on and off the plane and while the plane [was] in flight; and . . . tend[ing] to the fundamental needs of the detainees while they [were] transported on the flights (e.g., bathroom breaks, feeding, medicine).”
After returning detainees to their home countries, the ASOs were required to return to Miami aboard the plane. The parties dispute whether Akal was required to pay the ASOs for one-hour meal periods during the Empty Return Legs. The Empty Return Legs (1) were the last flight legs of the day back to Miami, Florida, (2) where there were no detainees on board, and (3) where the flight legs were at least ninety minutes long. During these flights, the ASOs were required to remain in uniform and comply with Akal policies. The ASOs would also sometimes be required to perform small tasks or training, or complete paperwork. These tasks would normally last 10–15 minutes, leaving at least 60 minutes for the ASOs to use for their own purposes. Because the Empty Return Legs averaged two to two-and-one-half hours in duration, the ASOs typically had at least one hour and forty minutes during which they had no affirmative work duties.
Gelber does not dispute that the ASOs were able to use much of their time on the Empty Return Legs for their own purposes, “such as sleeping, eating meals (some warmed up in the aircraft ovens), reading, watching movies on their iPads and other tablets, playing video games, and engaging in other leisure activities of their choice.” However, he notes that the conditions on the plane were sometimes “not sanitary” because detainees defecated, urinated, and vomited on themselves on the outbound flight, preventing the ASOs from eating. And, after returning to Miami, he emphasizes, the ASOs were required to unload equipment from the airplane.
After each trip, Akal required the ASOs to sign time sheets with the time for meal breaks left blank for a supervisor to complete. A supervisor would later fill in a time for a meal period without regard for when a meal period actually occurred.
Akal‘s timekeeping policy provides for an unpaid one-hour meal period on Empty Return Legs, stating in relevant part:
7.0 POLICY FOR UNPAID MEAL PERIODS ON ICE AIR TRANSPORT WORK (CSI SUBCONTRACT) FOR AVIATION SECURITY OFFICERS AND LEADS. There is a mandatory un-paid 1 hour meal period on each shift.
This meal period will be taken by all ASOs and Leads on the return leg of each mission. Exceptions to this rule are the following:
- A mission on which there are detainees on-board for the return leg of the trip; there will be no un-paid meal period and ASOs will be paid for the entire mission.
- If the return leg of a mission is shorter than 90 minutes, there will be no un-paid meal period and ASOs will be paid for the entire mission.
The “return leg” is defined as the last leg of the mission prior to arriving at the point of origin during which there are no detainees on board and no security duties are required. During this un-paid meal period, ASOs and Leads will be expected to disengage from work duties and may use their time as they wish.4 As this meal period will be taken in the workplace, professional conduct must be maintained and any violations of company policy will not be tolerated.
Gelber does not dispute that the ASOs read, understood, and acknowledged receipt of the Timekeeping Policy. Nor does he dispute that each ASO signed an “Employee Offer Letter” at the beginning of their employment that set out the meal period policy.
B. Procedural History
In 2016, Gelber sued Akal for unpaid minimum wage and unpaid overtime under the FLSA and moved to certify a nationwide class of ASOs. The district court granted the motion for certification in part and denied it in part, certifying a class of only Miami-based ASOs.
After discovery, each party moved for summary judgment. The district court granted Akal‘s motion for summary judgment on Gelber‘s claims for unpaid minimum wage but permitted Gelber‘s claim for unpaid overtime to proceed to trial. At trial, the district court informed the parties that it could not identify any disputed facts as to Gelber‘s claim for unpaid overtime and that it would decide the question of the compensability of the meal periods based on the undisputed facts. The parties then agreed to waive trial by jury for the question of whether Akal willfully violated the FLSA.
The district court held a bench trial on the issues of willfulness and good faith. At the end of the trial, the district court found that Akal acted in good faith and did not willfully violate the FLSA. It then stated that because of “the uniqueness of the job as a[n] air security officer, even in return flights . . . as a matter of law . . . the plaintiffs must be compensated for the one-hour meal breaks that were automatically deducted.”
Following the trial, the district court entered a written order “granting reconsideration of summary judgment” and ruling that “there was no bona fide meal break for the Air Security Officers on the return empty legs of their work flights and that Plaintiffs are entitled to compensation for their travel time” under Kohlheim v. Glynn County, 915 F.2d 1473 (11th Cir. 1990), and
II. Discussion6
Akal argues that the district court erred in concluding that the Empty Return Leg meal periods were compensable hours worked under Kohlheim and
Under the FLSA, Gelber has the burden “of proving that he performed work for which he was not properly compensated.” Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 686–87 (1946); Lamonica v. Safe Hurricane Shutters, Inc., 711 F.3d 1299, 1315 (11th Cir. 2013). Although the FLSA requires that covered employers pay the minimum wage or overtime pay for each hour that an employee works, see
We therefore must rely on a mix of administrative guidance and court decisions to determine whether the Empty Return Leg meal periods were “work” for which the ASOs were entitled to compensation.
The Supreme Court originally defined “work” in the FLSA context to mean “physical or mental exertion (whether burdensome or not) controlled or required by the employer and pursued necessarily and primarily for the benefit of the employer and his business.” Tenn. Coal, Iron & R.R. Co. v. Muscoda Local No. 123, 321 U.S. 590, 598 (1944). It later clarified the “exertion” requirement, noting that “an employer, if he chooses, may hire a man to do nothing.” Armour & Co. v. Wantock, 323 U.S. 126, 133 (1944). Accordingly, the key test remains “[w]hether time is spent predominantly for the employer‘s benefit or for the employee‘s,” which “is a question dependent upon all the circumstances of the case.” Id. But this test does not specifically resolve the question of whether the Empty Return Leg meal periods were compensable “work.”
The Department of Labor administers the FLSA and has promulgated advisory interpretations of the statute that aid our analysis.8 See
(a) Bona fide meal periods. Bona fide meal periods are not worktime. Bona fide meal periods do not include coffee breaks or time for snacks. These are rest periods. The employee must be completely relieved from duty for the purposes of eating regular meals. Ordinarily 30 minutes or more is long enough for a bona fide meal period. A shorter period may be long enough under special conditions. The employee is not relieved if he is required to perform any duties, whether active or inactive, while eating. For example, an office employee who is required to eat at his desk or a factory worker who is required to be at his machine is working while eating. . . .
(b) Where no permission to leave premises. It is not necessary that an employee be permitted to leave the premises if he is otherwise completely freed from duties during the meal period.
Gelber does, however, identify several limitations that the ASOs were subjected to during the Empty Return Leg meal periods, such as not being able to leave the aircraft, stop at home, pick up or drop off laundry, go to the bank, or take an exercise class. But he failed to demonstrate that these limitations qualified as “real limitations“—that is, that these limitations inured to Akal‘s benefit.
In Jenkins, we found that certain meal periods were bona fide even though the employees stayed at their employer‘s facility throughout lunch and talked about the work that they were doing. 922 F.3d at 1270. By contrast, in Kohlheim, “the [plaintiff] firefighters were required to remain at the station and were subject to emergency calls” during mealtimes. 915 F.2d at 1477. We found that these restrictions “benefit[ed] the [employer] by ensuring maintenance of an available pool of competent firefighters for immediate response to emergency situations,” and that the challenged mealtimes were compensable worktime. Id. But we have never held that a bona fide meal period only covers the time during which an employee eats a meal—instead, that time belongs to the employee. See Jenkins, 922 F.3d at 1270.
Unlike the limitations in Kohlheim, the limitations on the ASOs in this case are consequences of being on an airplane and did not inure to Akal‘s benefit. See
Gelber‘s final argument is that Akal violated the FLSA by automatically deducting an hour for the Empty Return Leg meal periods, without regard to when the meal period took place. Although Gelber concedes that automatically-deducted meal periods are not per se unlawful, he cites Harp v. Starline Tours of Hollywood, Inc., No. 14-cv-7704, 2015 WL 4589736, at *6–7 (C.D. Cal. July 27, 2015), for the proposition that Akal had an impermissible “policy to violate a policy.” In Harp, the court found that an employer violated the FLSA because it had a policy to prevent its employees from taking lunch breaks while still automatically deducting an hour for those breaks—a “policy to violate a policy.” Id. at *6. But Harp is plainly inapposite here—Akal did not have a policy to prevent the ASOs from taking meal periods on the Empty Return Legs or of refusing to compensate the ASOs for meal periods they worked through. See id. at *7 (“Again, it is not ‘the mere existence’ of an automatic deduction mechanism that violates the FLSA, but rather, it is the ‘failure of an employer to compensate employees who work through those unpaid breaks . . . .‘” (quotation omitted)). Because Gelber has provided no evidence that Akal had a policy of preventing the ASOs from taking their meal periods or that Akal refused to compensate the ASOs for meal periods they worked through, he failed to demonstrate that Akal‘s automatic deduction mechanism violated the FLSA.
* * *
The majority comes to a different conclusion. According to the majority, Akal bore the burden—but failed—to show that the ASOs were completely relieved from duty for the purpose of eating regular meals. The majority‘s reasoning requires a lot of unpacking.
The majority first attempts to shift the burden to Akal to prove that Gelber did not perform work for which he was not properly compensated. Despite the majority‘s acknowledgement that, ordinarily, the employee has the burden of “proving that he performed work for which he was not properly compensated,” the majority skips over the question of whether Gelber actually met that burden. Instead, the majority simply declares that “the employer bears the burden” in meal period cases under the FLSA and then spends several pages discussing a burden-shifting rule that is not actually implicated here.13 Tucked away in the middle of that discussion is an admission that meal periods are not “hours worked” as defined by the FLSA, see
The majority ultimately answers that question in the affirmative. But its answer deserves an asterisk because the majority first concedes the exact opposite—that Gelber failed to make “any affirmative showing” that he performed work for which he was not properly compensated. The majority goes on to claim that Gelber satisfied his initial burden “because of the way that Akal litigated this case.” Apparently, Akal conceded that “idle time spent on the Empty Return Leg is compensable travel time.” Case closed. But Akal did not make that concession—the majority just made it up.14 Here is the majority‘s case-dispositive “concession” in context:
Judge Newsom: Do I understand correctly that you don‘t deny that the entirety of the—the flight, the return flight—is compensable. Correct?
Akal: So, the entirety of the Empty Return Leg is compensable except for the meal period, pursuant to section 785.41, yes.
Oral Arg. Recording at 7:43–8:07 (emphasis added).
This purported concession does not satisfy Gelber‘s burden to demonstrate that he performed work for which he was not properly compensated. Akal did not concede that the Empty Return Leg meal periods are compensable hours worked—only that the rest of the Empty Return Leg is compensable.15 Without the majority‘s invented concession, its conclusion that Gelber satisfied his initial burden crumbles.
As demonstrated by its full context,
So how, then, does the majority reach its conclusion that Gelber satisfied his initial burden? It does so by claiming that “the meal breaks must . . . be compensable—because there is nothing that distinguishes the ‘meal breaks’ from any other time on
First, the majority is factually wrong. There is a key distinction between the meal periods and the rest of the Empty Return Legs: Akal could impose work duties on the ASOs during the Empty Return Legs but could not impose work duties on the ASOs during the meal periods. See Oral Arg. Recording at 9:00–9:30 (“Akal could have imposed duties on these ASOs for the entire Empty Return Leg, had they not had the meal period policy in place . . . .“); id. at 10:12–26 (“However, were Akal to have elected to, it could have said: ‘Hey, look. For the one-and-a-half hour[s] that we‘re paying you, we‘re actually going to impose work duties on you.’ Akal just elected not to do that.“). Thus, Akal‘s concession that the Empty Return Legs were compensable except for the meal periods has no effect on the compensability of the meal periods.
Second, the majority‘s claim is legally flawed. The reason why nothing distinguishes the meal periods from the rest of the Empty Return Legs is because the ASOs had no affirmative work duties during any part of the Empty Return Legs. Under the majority‘s reasoning, Akal could have deducted for the Empty Return Leg meal periods had it only assigned work duties to the ASOs during the Empty Return Legs instead of giving them the entire time off. As Akal put it at oral argument: “Certainly, it shouldn‘t be to Akal‘s detriment that it elected to allow its ASOs to have [an] additional period of paid relaxation.” Id. at 10:27–10:40.
But make no mistake, the majority today punishes Akal for its act of grace. As the majority explains, “[an] employer can demonstrate a bona fide meal break by affirmatively showing that something different happens during the meal period—specifically, disengagement from th[e employee‘s] affirmative duties.” So, because the ASOs have no affirmative duties whatsoever during the Empty Return Legs, the majority concludes that the ASOs cannot “disengage” and cannot be completely relieved from duty for the purpose of eating regular meals. Put another way, the majority concludes that because the ASOs are completely relieved of duty during the entire two hour flight home, they cannot be completely relieved of duty during any 60 minute period during the flight. To state the majority‘s argument is to refute it.
The majority warns that adopting Akal‘s position would yield absurd results. According to the majority, “Akal‘s argument proves too much—namely, that the entire Empty Return Leg isn‘t compensable.” Worse yet, the majority warns, “what would prevent Akal from simply increasing the duration of the ‘meal period’ from an hour to two, three, or four hours?” Unmasked, this parade of horribles is really just a parade of disappointments.
First, Akal‘s argument does not prove too much—Akal does not even argue that the entire Empty Return Leg is not compensable and the issue is not before us. Instead, Akal admits that the entire Empty Return Leg, except for the meal periods, is compensable under
Second, the FLSA and the Department of Labor‘s meal period guidance would prevent an employer from increasing the duration of the meal period to an unreasonable amount of time. Under
III. Conclusion
The Empty Return Leg meal periods were bona fide meal periods that were not compensable because the ASOs were completely relieved from duty and the limitations on the ASOs’ freedom did not inure to Akal‘s benefit. The Department of Labor‘s travel time guidance does not disturb this conclusion, nor did Gelber demonstrate that Akal violated the Department‘s record-keeping guidance by automatically deducting for the meal periods. Accordingly, Akal did not violate the FLSA. I respectfully dissent.
Notes
The Department‘s guidance is “not controlling upon the courts,” but does “constitute a body of experience and informed judgment to which courts and litigants may properly resort for guidance.” Skidmore v. Swift & Co., 323 U.S. 134, 140 (1944) (addressing FLSA guidance); see Freeman v. Nat‘l Broad. Co., 80 F.3d 78, 83 (2d Cir. 1996) (“Unlike regulations, interpretations are not binding and do not have the force of law.“). The Department‘s guidance is entitled to deference “depend[ing] upon the thoroughness evident in its consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade, if lacking power to control.” Skidmore, 323 U.S. at 140.
Akal requests that we apply the “predominant benefit” test here. Gelber counters that we may not apply the “predominant benefit” test because we are bound by our prior decision in Kohlheim. It is not necessary to resolve this dispute because, in my view, Akal prevails under either test. In any event, the “real limitations” test is likely just “[a] version of the predominant benefit test.” Babcock, 806 F.3d at 156; cf. Leahy, 96 F.3d at 230 n.2 (“An employee is considered to be completely relieved from duty during a meal period when the employee‘s time is not spent predominantly for the benefit of the employer.“).
Regardless, his argument fails. “Whether waiting time is time worked under the [FLSA] depends upon particular circumstances” and “involves ‘scrutiny and construction of the agreements between particular parties, appraisal of their practical construction of the working agreement by conduct, consideration of the nature of the service, and its relation to the waiting time, and all of the circumstances.‘”
The majority poses a false dichotomy—a court can apply either the “completely-relieved-of-duty” test or the “predominant benefit” test. I disagree with the majority‘s analytical framework. Both the “real limitations” test and the “predominant benefit” test are attempts to give effect to the language of the FLSA and