Salazar v. BUTTERBALL, LLCSalazar v. BUTTERBALL, LLC
In this case we are asked to decide whether donning and doffing poultry processing workers’ personal protective equipment is “changing clothes” under
I
Factual Background
Butterball’s Longmont plant produces turkey products, including cooked ready-to-eat (RTE) turkey products. Butterball acquired the plant from ConAgra Foods in 2006. Butterball retained the same workforce, management, and pay practices that were in place during ConAgra’s ownership.
The plaintiffs worked at various times in the plant’s deboning, evisceration, packaging, and quality assurance departments. They were required to don various items of apparel and equipment prior to their shifts and to doff such items after their shifts. Generally, production employees wore frocks, aprons, plastic sleeves, gloves, cotton glove liners, boots or overshoes, hard hats, earplugs, and safety glasses. When working in the deboning and evisceration areas, plaintiffs also wore mesh gloves, knife holders, and arm guards. As the parties have done, we refer to these items collectively as personal protective equipment, or PPE. See Aplt. Br. at 3, Aple. Br. at 3-4.
Butterball, continuing ConAgra’s practice, has never paid most production employees for donning and doffing time.
2
Aplt.
Production employees at the plant are represented by United Food and Commercial Workers Local 7 (UFCW 7 or the Union). ConAgra and' UFCW 7 entered into a collective bargaining agreement (CBA) for the period of February 6, 2005 through February 2, 2008. ApltApp., Vol. Ill at 7. Butterball and UFCW 7 entered into a new CBA for the period of February 3, 2008 through February 2, 2009. Id. at 62. As of April 1, 2009, the Union was working without a contract, and the current status of negotiations is not evident from the record presented. Aple. Add., Vol. I at 186. Neither CBA discusses donning and doffing pay or how hours worked are to be calculated.
On December 16, 2005, the Union filed a grievance claiming that employees should be paid for donning and doffing time. ConAgra denied the grievance and the Union demanded arbitration on November 13, 2006. ApltApp., Vol. Ill at 115-17. However, arbitration did not occur. Butterball presented evidence that the grievance had been resolved by April 2008.
Id.,
Vol. I at 463. On the other hand, the plaintiffs presented evidence that the Union considered the grievance to be pending, at least as of June 1, 2007. Aplt.
The FLSA, Portal-to-Portal Act, and
Congress enacted the FLSA in 1938 “to establish nationwide minimum wage and maximum hours standards.”
Moreau v. Klevenhagen,
Among other things, the Portal-to-Portal Act provided that employers could not be liable under the FLSA for failure to compensate time an employee spent performing activities that were preliminary or postliminary to “the principal activity or activities which such employee is required to perform.”
Congress amended the FLSA again in 1949 enacting, among other provisions, what is now
Hours worked. — In determining for the purposes of sections 206 and 207 of this title [minimum wage and maximum hours] the hours for which an employee is employed, there shall be excluded any time spent in changing clothes or washing at the beginning or end of each workday which was excluded from measured working time during the week involved by the express terms of or by custom or practice under a bona fide collective-bargaining agreement applicable to the particular employee.
Colorado Wage Order 27
The Colorado Minimum Wage Act,
Procedural History
Plaintiffs filed a complaint in the United States District Court for the District of Colorado, seeking to bring a collective action under the FLSA and a class action under Colorado law for compensation for time spent “donning, doffing, and sanitizing gear and equipment, and walking to and from the production floor.” ApltApp., Vol. I at 12-13. Butterball moved for summary judgment on both claims. A magistrate judge issued a Report and Recommendation determining that plaintiffs’ PPE was clothes under
II
This court reviews the grant of summary judgment de novo, applying the same standards as the district court.
Gwinn v. Awmiller,
III
Plaintiffs contend that Butterball violated the FLSA by failing to compensate them for donning and doffing time. Butterball argues that it is not required to compensate donning and doffing time for the following reasons: it is not work under the FLSA
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; it is excluded from FLSA “hours worked” by
The district court based its FLSA ruling on
“Changing Clothes”
The meaning of “changing clothes” under
We conclude that the term “changing clothes” in
The Wage and Hour Division has repeatedly shifted its position when asked to interpret the meaning of “changing clothes.” “The [Wage and Hour Division] issues opinion letters to explain the requirements of the FLSA and its regulations and how they apply to particular circumstances.”
In re Wal-Mart Stores, Inc.,
Having determined that “changing clothes” is ambiguous, “we are left to resolve that ambiguity.”
Robinson,
We conclude that
We hold that “clothes” under
As a preliminary matter, we decline to defer to the Wage and Hour Division’s most recent interpretation of
We begin our analysis of
Plaintiffs contend that “clothes” does not include PPE because PPE is designed to protect against workplace hazards, serves specialized functions, and is required by the employer or by law. Similarly, the Wage and Hour Division currently distinguishes between everyday clothes and items required by law or by the employer. We do not find this distinction particularly coherent or workable.
Accord Franklin,
In
Alvarez,
the Ninth Circuit made a slightly different distinction: between generic protective clothing (or non-unique PPE), such as boots, hard hats, and frocks, and unique PPE, such as mesh gloves or knife holders.
Nonetheless, we determine that the unique PPE worn by the plaintiffs in this case is clothing under
Plaintiffs make the policy-based argument that including PPE within
Custom or Practice
The parties disagree as to who bears the burden of proof to establish a custom or practice under
The plain language of
We have little trouble concluding that a custom or practice of non-payment for donning and doffing time existed in this case. It is undisputed that Butterball has never paid most employees for donning and doffing time,
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'and that plaintiffs knew this. This practice occurred regularly and frequently (in fact, every pay period), such that employees could reasonably expect it to continue.
See Sunoco,
Plaintiffs argue that the filing of the grievance extinguished any Union acceptance of the custom or practice. Butterball argues that the Union acquiesced because it abandoned or settled the grievance. 8 We conclude that the resolution of the grievance is immaterial because it is undisputed that Butterball and the Union entered into a new CBA in 2008 — after the grievance was filed. Despite the parties’ knowledge of the non-compensation practice and the Union’s apparent prior dissatisfaction with that practice, the parties did not raise the issue during negotiations or incorporate it into the 2008 CBA. There is no evidence to suggest that the Union and Butterball agreed to defer resolution of the donning and doffing issue when negotiating the 2008 CBA. 9 By failing to negotiate over the pre-existing practice of non-payment under these circumstances, the Union acquiesced in the continuation of that practice under the new CBA. Contrary to plaintiffs’ contention, acquiescence was not a fact issue for the jury in this case because there are no other inferences to be drawn from the undisputed evidence.
Plaintiffs and the UFCW argue that this view of a custom or practice essentially requires unionized employees to “opt in” to statutory rights or “bargain for that which they would otherwise be entitled.”
See
Aplt. Br. at 31, 33; UFCW Br. at 10. This argument ignores the fact that
We affirm the district court’s ruling that donning and doffing the PPE at issue in this case is “changing clothes” and that there was a custom or practice of not compensating that time at the Longmont plant. Thus, donning and doffing time is not “hours worked” pursuant to
Miscellaneous FLSA issues
Plaintiffs brought claims not only for pre-and post-shift donning and doffing time, but also for donning and doffing time during their breaks.
IV
Plaintiffs claim that Butterball’s failure to compensate donning and doffing time violates Colorado law, specifically Wage Order 27. Wage Order 27 mandates a minimum wage and overtime compensation for hours worked in excess of forty for employees in the retail and service, food and beverage, commercial support service, and health and medical industries. Assuming for the sake of argument that donning and doffing time is “time worked” under Colorado law, 10 we affirm the district court’s entry of summary judgment on plaintiffs’ Colorado law claim because Butterball is not an employer in the industries covered by Wage Order 27.
Plaintiffs argue that Butterball is subject to Wage Order 27 because it is a food and beverage industry employer. A food and beverage employer is:
any business or enterprise that prepares and offers for sale, food or beverages for consumption either on or off the premises. Such business or enterprise includes but is not limited to: restaurants, snack bars, drinking establishments, catering services, fast-food businesses, country clubs and any other business or establishment required to have a food or liquor license or permit, and includes any employee who is engaged in the performance of work connected with or incidental to such business or enterprise, including office personnel.
The interpretation and application of Wage Order 27 is a matter of Colorado law. We apply Colorado rules of construction to determine whether Butterball is a food and beverage industry employer. The primary objective of statutory construction “is to effectuate the intent of the General Assembly by looking to the plain meaning of the language used, considered within the context of the statute as a whole.”
Bly v. Story,
Reading the food and beverage industry definition as a whole, it is plain that food and beverage employers are those that sell food directly to the consuming public, rather than for resale. While a wholesale food product manufacturer like Butterball “prepares and offers for sale, food or beverages,” it does not prepare or sell those items “for consumption either on or off the premises.” Butterball’s food products are prepared for eventual consumption (after all, they are food), but they are not
sold
for consumption.
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They are sold for resale. The examples listed in the second sentence of the definition support this interpretation. A common feature of restaurants, snack bars, and catering services is that they all provide food to the end consumer. In contrast, food manufacturers or producers like Butterball sell products to restaurants and grocery stores.
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In further contrast to the example establishments, Butterball is not required to maintain a food or beverage license. The Longmont plant is registered as a wholesale food manufacturing and/or storage facility pursuant to
Plaintiffs cite to a Colorado Division of Labor 2009 advisory bulletin which states that “a bakery that operates on a retail or wholesale basis and prepares and offers food for sale or consumption on or off its premises is covered by [Wage Order 27].” Aplt.
Plaintiffs also argue that an interpretation limiting food and beverage enterprises to those businesses that sell food products to the ultimate consumer is incorrect because such businesses are already covered by the “retail and service” category in Wage Order 27.
See
Aplt. Br. at 13. “Retail and service” businesses are those that sell “any service, commodity, article, good, real estate, wares, or merchandise to the
V
The judgment of the district court is AFFIRMED. Plaintiffs’ motion to strike, and Butterball’s motion to supplement the record, are both DENIED as moot.
Notes
. The Colorado wage order at issue has been re-numbered several times. At the time plaintiffs filed their complaint, it was number 24. This opinion will refer to the wage order by its current number: 27.
. ConAgra paid employees in the live hang department an extra twenty minutes per day. Butterball continued this practice. Neither plaintiff worked in the live hang department, and the department was eliminated (along with the deboning and evisceration departments) in November 2008.
. In
Reich v. IBP, Inc.,
. The Ninth Circuit also held that donning and doffing unique and non-unique PPE (for example, hard hats and safety goggles) was compensable under the Portal-to-Portal Act because it was integral and indispensable to primary activities, but that donning and doffing non-unique PPE was ultimately not compensable because it was de minimis.
Alvarez,
. We note that, in
Nichols v. Hurley,
. The Wage and Hour Division has criticized courts’ reliance on dictionary definitions of "clothes.” Wage and Hour Division,
Opinion Letter Fair Labor Standards Act FLSA 2010-2 dated June 16, 2010,
. The evidence regarding the live hang employees simply shows that there was a different custom or practice for those employees.
. Plaintiffs make the somewhat incomprehensible argument that the failure to arbitrate is meaningless because the grievance was not arbitrable in the first place.
See
Aplt. Br. at 27. We do not consider this argument because it was raised for the first time on appeal.
Tele-Commc’ns, Inc. v. C.I.R.,
. Further, there is no evidence that the Union was actively pursuing the donning and doffing grievance. This is not a case where, for example, arbitration was ongoing while CBA negotiations were underway.
. Colorado law does not have a statutory equivalent to
. This is the most plausible explanation for the inclusion of the phrase "for consumption.” The plaintiffs argue that the phrase excludes food transportation and storage.
See
Aplt. Br. at 16. However, the word "prepares” would have provided the same limitation because transporters do not prepare food. As plaintiffs point out in their reply brief, “food” is, by definition, intended for consumption.
See
Aplt. Reply Br. at 1-2 (citing
. The fact that Butterball occasionally sells items produced at the plant directly to employees does not convert Butterball into a retail food establishment. Similarly, the fact that Butterball makes RTE products which require no further preparation before consumption does not convert it into a retail food establishment.