We hold that the term “days” as used in the Wage Payment Statute refers to business days and not calendar days. We also hold that (1) our reasoning in
Brownsburg Community School Corp. v. Notare Corp.,
Facts and Procedural History
Beech Grove City Schools (“Beech Grove”) is a public school corporation located in Beech Grove, Indiana. Tabatha J. Naugle and Sandra M. Cain were , employed by Beech Grove as custodians during 2003.
Prior to 2003, Beech Grove paid its employees twenty-six times in each calendar year based on pay periods of two weeks. Payments were made seven calendar days (five business days) after the end of each pay period. Beech Grove adjusted its payroll schedule to-resolve two issues in 2003. First, in that year there were twenty-seven pay dates instead of the usual twenty-six. This anomaly occurs every seven years. Second, several employees requested that they receive their paychecks on the Wednesdays before the four-day Thanksgiving and Fall Recess breaks, rather than on the Mondays following the breaks. Under the previous payroll schedule, Beech Grove could not satisfy these requests because it would have had insufficient time — only three workdays after the pay period — to prepare and issue the payroll before the breaks.
To correct the extra pay period and meet these employee requests, Beech Grove implemented a new payroll schedule beginning on July 11, 2003. The first pay date in July 2003 was moved from July 4 to July 11. The new payroll schedule provided for the employees to receive their wages fourteen calendar days (ten business days) after the end of each pay period instead of the previous seven calendar days (five business days). Under this new payroll schedule, Beech Grove had twenty-six pay dates in 2003 instead of twenty-seven and was able to pay employees on the Wednesdays before the two breaks. The only complaint Beech Grove received about the new schedule was from a single employee who mistakenly thought that he would lose one week of pay. Beech Grove discontinued the new system on July 9, 2004 and reverted to the previous procedure of paying employees seven calendar days (five business days) after the end of each pay period.
Naugle voluntarily resigned from her employment at Beech Grove on October 24, 2003, and Cain was terminated on February 6, 2004. On February 18, 2004, Naugle and Cain filed suit against Beech Grove, alleging that Beech Grove had violated the Wage Payment Statute by failing to pay their wages within the time the statute required. 1 Naugle and Cain initiated this claim as a class action and requested actual wages, liquidated damages, and attorney fees as provided under the *1062 damages provision of the Wage Payment Statute. The parties, with the approval of the trial court, agreed to defer the issue of class certification until the issue of liability was resolved.
The Wage Payment Statute provides that “[p]ayment shall be made for all wages earned to a date not more than ten (10) days prior to the date of payment.” Ind.Code § 22 — 2—5—1 (b). Naugle and Cain moved for partial summary judgment on the issue of Beech Grove’s liability for violating this “Ten-Day Rule.” Beech Grove filed a cross-motion for summary judgment, arguing that (1) the Ten-Day Rule requires a demand for payment before penal damages and attorney fees may be assessed but no demand was made; (2) the term “days” in the Ten-Day Rule means business days rather than calendar days; (3) Beech Grove is a political subdivision and, as such, is not subject to the Wage Payment Statute; (4) Beech Grove is not subject to punitive damages and attorney fees under the doctrine announced in
Brownsburg Community School Corp. v. Notare Corp.,
Naugle and Cain appealed. The Court of Appeals held that the trial court wrongly interpreted “days” to mean business days instead of calendar days. Nevertheless, it affirmed, concluding that under
Brownsburg
public school corporations were not employers subject to the Wage Payment Statute.
Naugle v. Beech Grove City Schs.,
Standard of Review
Upon reviewing the grant or denial of summary judgment, we use the same standard of review as the trial court. Summary judgment is appropriate only where the evidence shows that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.
Poznanski ex rel. Poznanski v. Horvath,
Application of the Wage Payment Statute
In
St. Vincent Hospital and Health Care Center, Inc. v. Steele,
A. Brownsburg v. Community School Corp. v. Natare Corp.
Beech Grove contends that this case is controlled by the reasoning of this Court in
Brouwnsburg Community School Corp. v. Natare Corp.,
In
Broumsburg,
a supplier of prefabricated pools sued a school corporation, an architect, and a swimming pool consultant, alleging the three conspired in violation of the Indiana Antitrust Act to exclude the supplier from consideration as a supplier for a swimming pool construction project. The supplier sought treble damages, costs, and attorney fees under the Antitrust Act. The school corporation moved for judgment on the pleadings, alleging it was not a “person” as that term was used in the Antitrust Act and therefore it was not an entity subject to the civil treble damages under that statute.
Brownsburg,
The Court of Appeals, citing
Broums-burg,
concluded that “[i]t is illogical to suggest that public schools should be subject to treble damages .for paying wages four days late, but immune from such penalties when they engage in more serious— quasi-criminal — wrongdoing as in
Brownsburg.” Beech Grove,
The Wage Payment Statute applies to “[ejvery person, firm, corporation, limited liability company, or association, their trustees, lessees, or receivers appointed by any court, doing business in Indiana....” I.C. § 22-2-5-l(a) (emphasis added). Indiana Code section 1-1-4-5(17) extends the definition of a “person” to include “bodies politic and corporate.” Moreover, Indiana Code section 20-26-2-4 defines a school corporation as “a local public school corporation established under Indiana law....” Thus, Beech Grove is a “person” *1064 and a “corporation” as these terms are used in the Wage Payment Statute, just as the school corporation in Brownsburg was a “person” under the Antitrust Act.
Brownsburg
did not turn on the definition of “person” under the relevant statute. In
Brownsburg,
we concluded that “municipal corporations are ‘persons’ as that term is used in the Indiana Antitrust Act” but nevertheless are not subject to treble damages claims.
We conclude that the Wage Payment Statute applies to school corpora-' tions. This holding is consistent with a number of
pre-Brownsburg
opinions from the Court of Appeals that assumed without specific discussion that the Wage Payment Statute applied to governmental employers.
See Abner v. Dep’t. of Health of State of Ind. ex rel. Ind. Solders’ and Sailors’ Children’s Home,
B. School Powers Statute
Beech Grove points
to the
statutory authority of the governing bodies of school corporations as support for its claim that the Wage Payment Statute does not apply to it. Specifically, it identifies the authority to “[f]ix and pay the salaries and compensation” of school employees and to “adopt schedules of salaries or compensation.” I.C. § 20-26-5^(8)(B), (C) (West Supp.2006). Beech Grove argues that these school powers preclude application of the Wage Payment Statute to school corporations. Beech Grove cites no authority for the claim that this general power of a school corporation authorizes it to exercise the power in a manner that contravenes other specific statutes. As a general proposition, the law does not support Beech Grove’s contention. The usual rule is that the board of school commissioners possesses the powers necessary to carry out its purpose, but the “powers must be exercised subject to the paramount laws of the
*1065
state.”
Bd. of Sch.
Comm’rs
of Indianapolis v. State,
C. Good Faith Exception
Beech Grove asserts that it has no liability under the Wage Payment Statute because Beech Grove’s actions in this case fit within a good faith exception to the Wage Payment Statute. Beech Grove relies on
David
A
Ryker Painting Co. v. Nunamaker,
Until
Ryker,
the Court of Appeals had described the language of Indiana Code section 22-2-5-2 as “mandatory.”
See, e.g., Valadez v. R.T. Enters., Inc.,
[e]very such person, firm, corporation, limited liability company, or association who shall fail to make payment of wages to any such employee as -provided in section 1 of this chapter shall, as liquidated damages for such failure, pay to such employee for each day that the amount due to him remains unpaid ten percent (10%) of the amount due to him in addition thereto, not exceeding double the amount of wages due, and said damages may be recovered in any court having jurisdiction of a suit to recover the amount due to such employee, and in any suit so brought to recover said wages or the liquidated damages for nonpayment thereof, or both, the court shall tax and assess as costs in said case a reasonable fee for the plaintiffs attorney or attorneys.
(emphasis added). First, and most importantly, there is no good faith exception in the language of the Wage Payment Statute; rather the statute by its terms mandates compliance. Second, permitting a good faith exception to the Wage Payment Statute would contravene the public policy of the statute to ensure that employers pay their employees’ wages in a timely fashion and in the correct amount. Many employees find it essential that they be paid on time to meet current obligations of daily life. Employees often do not have the will or economic staying power to engage in a court battle over relatively small amounts. Without the incentive of liquidated damages and attorney fees, employees may be hesitant to assert claims for violations of the law. If so, a good faith defense would lessen the deterrent effect of the penalty provision of the Wage Pay- *1066 merit Statute. In short, the plain language of the statute and the public policy behind it compel us to conclude that there is no good faith exception to the Wage Payment Statute.
D. The Ten-Day Rule
1. Requirement that Employee Request or Demand Wages
Beech Grove contends that the Ten-Day Rule of the Wage Payment Statute contains an implicit requirement that an employee demand or request the receipt of wages within ten days of the date wages are earned before the penalty provision of Indiana Code section 22-2-5-2 is triggered. Beech Grove argues the plaintiffs have no claim under the Wage Payment Statute because they did not demand or request to be paid within ten days following a pay period. Beech Grove claims that without an implicit requirement for an employee to demand or request a wage payment the Ten-Day Rule impinges upon the parties’ constitutional right to contract. For the reasons explained below, we find no such requirement in the Ten-Day Rule of the Wage Payment Statute.
An early version of the Wage Payment Statute imposing a penalty on employers who did not pay employees semi-monthly was held unconstitutional in
Superior Laundry Co. v. Rose,
The current version of the Wage Payment Statute, however, does have a provision for a request or demand of payment by the employee. Indiana Code section 22-2-5-1 (a) clearly states that employers “shall pay each employee at least semimonthly or biweekly,
if requested,
the amount due the employee.” (emphasis added). There is no reference to a “request” in subsection (b). It therefore seems the legislature intentionally did not incorporate the “if requested” language in the Ten-Day Rule but did include it in the immediately preceding subsection that addresses the length of pay periods. These two subsections do not impose two distinct timing requirements. Rather the two subsections operate in concert: parties may freely agree to various pay periods under subsection 1(a).
Pope v. Wabash Valley Human Servs., Inc.,
Beech Grove contends that this interpretation of the Ten-Day Rule will pose “harsh and illogical consequences,” arguing that employers would be deterred from offering a variety of traditional compensation plans and benefits. We disagree. Beech Grove first argues that if we adopt this interpretation “[v]acation pay could no[t] be accrued beyond 10 days after the payroll period in which the services supporting the benefit were provided.” There is no legal requirement to compensate for unused vacation time.
Williams v. Riverside Cmty. Corr. Corp.,
2. Business Days or Calendar Days
Beech Grove contends that the word “day” in the Ten-Day Rule means business days rather than calendar days. Beech Grove argues that because it paid its employees ten business days (or fourteen calendar days) after each pay period during the payroll schedule at issue it complied with the terms of the Wage Payment Statute. The trial court agreed with Beech Grove, but the Court of Appeals reversed, concluding that our opinion in
Moag v. State,
The Court of Appeals found the following paragraph to establish that the term “days” as used in the Wage Payment Statute referred to calendar and not business days:
A day is the unit of time. It commences at 12 o’clock P.M. and ends at 12 o’clock P.M., running from midnight to midnight. In the division of' time throughout the world, we believe this is regarded as the civil day. When the word “day” is used in a statute or in a *1068 contract, it means the twenty-four hours, and. not merely the day as popularly understood, from sunrise to sunset, or during the time the light of the sun is visible.
Moag,
Benson,
on the other hand, did involve a statute that used the term “days”: “On all bills of exchange, payable within this State, whether sight or time, bills, three days grace shall be allowed.”
Benson,
When the meaning of a term in a statute is at issue, we follow several rules of statutory construction. “[W]hen a statute is unambiguous, a court must apply the plain and obvious meaning and not resort to other rules of construction.”
Sholes v. Sholes,
Finally, Naugle and Cain argue that this interpretation of “days” under the Ten-Day Rule will produce adverse consequences under other Indiana statutes that refer to “days.” Our interpretation of “days” in the Ten-Day Rule of the Wage Payment Statute is based on the language and purpose of this statute. It has no particular force in other contexts.
Conclusion
For the foregoing reasons, we affirm the trial court’s grant of summary judgment in favor of Beech Grove.
Notes
. The plaintiffs also initiated a claim under the Wage Claims Statute. That statute states in pertinent part: “[wjhenever any employer separates any employee from the pay-roll, the unpaid wages or compensation of such employee shall become due and payable at regular pay day for pay period in which separation occurred....” Ind.Code § 22-2-9-2(a). We have noted the differences between the Wage Payment Statute and Wage Claims Statute.
St. Vincent Hosp. and Health Care Ctr., Inc.
v.
Steele,
. On March 27, 2006, Naugle and Cain filed a motion to strike portions of Beech Grove’s Brief in Response to Petition To Transfer and the Indiana School Boards Association's Brief as Amicus Curiae in Response to Petition To Transfer. The Motion to Strike is granted as to Beech Grove’s Brief in Response to Petition To Transfer and denied as to the Indiana School Boards Association’s Brief as Amicus Curiae in Response to Petition To Transfer. Because our decision on the merits of this cause does not turn on the challenged portions of these briefs, there is no need for further discussion of this motion.
