Thomas v. Speedway SuperAmerica, LLCThomas v. Speedway SuperAmerica, LLC
OPINION
Plaintiff Mabel Kay Thomas (“Thomas”) appeals the district court’s grant of sum
I.
Speedway operates a chain of more than six hundred gas station/eonvenience stores. Speedway’s organization is arranged as a corporate hierarchy, with multiple layers of managerial oversight. Each individual station is run and operated by a store manager who is supervised by a district manager. The district managers typically visit each of their stations once or twice a week, but, during busy periods, two weeks might lapse between a district manager’s in-person visits. In addition to stringent managerial oversight, Speedway has also adopted detailed company policies and standardized operating procedures, as an additional means of fostering consistency throughout its multi-store organization.
In July 1998, Thomas began working as a store manager for Speedway. Her position as store manager made her the most senior on-site employee and, according to her own testimony, “the person ultimately in charge of [her] store.” Speedway expected Thomas to work at least fifty hours per week, but she often worked much more than that, and always remained on call — “24 hours a day, seven days a week.” In return for these long hours, Thomas earned a base salary of $522 per week and additional compensation under the store manager bonus program, which paid her up to five percent of the gross profit margin on the sale of certain products in her store (up to a maximum of $2,500 each month).
Thomas spent approximately sixty percent of her work time performing non-managerial tasks, such as stocking merchandise, sweeping floors, cleaning bathrooms, operating the register, and performing routine clerical duties. Even though Thomas devoted a majority of her time to nonmanagerial activities, she testified that her “primary duty was to manage [her] store,” which required her to perform many management functions. She supervised, interviewed, hired, trained, and disciplined employees; she prepared weekly work schedule for her employees; she resolved employee complaints; she monitored her employees’ performance with formal evaluations; she recommended salary or merit increases for her employees (most of which were accepted by her district manager); she frequently recommended employee terminations to her district manager; and she even terminated some employees without prior approval from her district manager (although she would later notify her district manager of these unilateral termination decisions).
In August 2003, Speedway terminated Thomas, and six months later, she filed suit against Speedway, asserting (1) failure to pay overtime wages under the Fair Labor Standards Act (“FLSA”),
In the meantime, Speedway filed a motion for summary judgment on the overtime claims and a separate motion for summary judgment on Thomas’s ADEA and wrongful discharge claims. While waiting for the district court to rule on Speedway’s summary judgment motions, Thomas filed a motion for leave to file an amended complaint, seeking to add twenty-eight representative plaintiffs to the overtime claim, all of whom were store managers at various Speedway - stations during the relevant time period. The district court did not rule on Thomas’s motion for leave to file an amended complaint but, instead, granted both of Speedway’s motions for summary judgment and dismissed all of Thomas’s claims.
On appeal, Thomas asserts that the district court erred in granting summary judgment to Speedway on the federal and state overtime claims. 1 She does not, however, challenge the court’s dismissal of her age discrimination or wrongful discharge claims; thus we do not consider them.
II.
“We review a grant of summary judgment
de novo,
applying the same test as used by the district court.”
Tate v. Boeing Helicopters,
At the outset, we acknowledge that the district court conditionally certified Thomas’s federal overtime claim as a collective action under
Even though Thomas asserts an overtime claim under both federal and state law, we need consider only federal law on this issue, as the Ohio statute expressly incorporates the standards and principles found in the FLSA.
See
FLSA overtime exemptions are “affirmative defense[s] on which the employer has the burden of proof,”
Corning Glass Works v. Brennan,
We clarify here that the phrase “clear and affirmative evidence” does not heighten [the defendant’s] evidentiary burden when moving for summary judgment. The word “clear,” as used in this phrase, traces to the “clearly erroneous” Rule 52(a) standard, but that standard is inapposite to our current review of a motion for summary judgment. And because establishing the applicability of an FLSA exemption is an affirmative defense, [the defendant] has the burden to establish the ... elements by a preponderance of the evidence.
The Secretary of Labor, as directed by statute, has adopted regulations defining a bona fide executive employee.
See
The issue before this court, then, is whether Thomas — an individual store manager in a chain retail operation — had management as her primary duty. Numerous courts have addressed this issue in factually similar cases, and all have held that the plaintiffs primary duty consisted of management.
See, e.g., Donovan v. Burger King Corp. (Burger King I),
Thomas cautions that these cases, beginning with
Burger King I,
The Secretary’s former regulations provide detailed guidance to aid in our interpretation of the terms “management” and “primary duty.” 5 “Management” includes:
Interviewing, selecting, and training of employees; setting and adjusting their rates of pay and hours of work; directing their work; maintaining their production or sales records for use in supervision or control; appraising their productivity and efficiency for the purpose of recommending promotions or other changes in their status; handling their complaints and grievances and disciplining them when necessary; planning the work; determining the techniques to be used; apportioning the work among the workers; determining the type of materials, supplies, machinery or tools to be used or merchandise to be bought, stocked and sold; controlling the flow and distribution of materials or merchandise and supplies; providing for the safety of the men and the property.
Nevertheless, “[t]he amount of time spent in performance of ... managerial duties is a useful guide in determining whether management is the primary duty of an employee.”
“[I]n situations where the employee does not spend over 50 percent of [her] time in managerial duties, [she] might nevertheless have management as [her] primary duty if the other pertinent [factors] support such a conclusion.”
The first factor considers “the relative importance of the managerial duties as compared with other types of duties.” Under this factor, courts must compare the importance of the plaintiffs managerial duties with the importance of her non-managerial duties, keeping in mind the end goal of achieving the overall success of the company.
See Burger King II,
The second factor examines “the frequency with which the employee exercises discretionary powers.”
7
The plain language of this factor instructs courts to focus merely on the prevalence or regularity of the plaintiffs discretionary decisions, but we note that the employee’s exercise of discretion over matters of importance strengthens the employer’s showing under the second factor.
Cf.
In addition to rejecting Thomas’s characterization of the facts, we acknowledge, as a matter of law, that “active supervision and periodic visits by a [district] manager
The third factor considers the employee’s “relative freedom from supervision.” Thomas was the most senior employee at her station; no other on-site employee was her equal. Thus, on a day-to-day basis, she generally operated without a supervisor looking over her shoulder, monitoring her every move. In an attempt to undermine the obvious degree of autonomy inherently associated with being the most senior on-site employee, Thomas argues that she was not free from supervision because her district manager constantly monitored her job performance, both in person and by means of telecommunications. We have already rejected Thomas’s attempt to characterize Beatty’s oversight as consistent, meticulous, and overbearing. The record indicates that Beatty visited Thomas’s store approximately once or twice a week, communicated with Thomas frequently via phone and email, and remained constantly available to address her concerns. While these facts establish that Thomas was not completely free from oversight, we reiterate that the third factor considers only the “relative freedom from supervision”; it does not demand complete freedom from supervision, such that she is answerable to no one, as this would disqualify all but the chief executive officer from satisfying this factor of the primary duty inquiry.
A “local store manager’s job is [no] less managerial for FLSA purposes simply because ... she has an active [district manager].”
Murray I,
Furthermore, the level of supervision by Thomas’s district manager in this case differs significantly from that in cases in which courts have found that retail store managers were not exempt executives under the FLSA.
Compare Smith v. Heartland Auto. Servs., Inc.,
The fourth factor contemplates “the relationship between [the employee’s] salary and the wages paid other employees for the kind of nonexempt work performed by [her].” At the time of her termination, Thomas earned $522 per week, and, assuming she worked an average of fifty hours per week, her weekly salary equaled $10.44 per hour. There are many variables that might affect this estimated hourly rate. For example, Thomas testified that she often worked much more than fifty hours per week, which would decrease her hourly earnings. On the other hand, Thomas was eligible to participate in the store manager bonus program, which enabled her to earn a percentage of the gross profit margin from certain products sold in her store, up to a maximum of $2500 each month, which roughly equals a maximum of $600 each week. This money earned
Thomas argues that the relevant inquiry under the fourth factor is to compare the amount Speedway paid to her for her overtime hours versus the amount Speedway paid to her subordinates for their overtime hours. She reasons that because she was a salaried employee, she was not paid anything for her overtime, whereas her employees were paid upwards of $10.00 per hours for theirs. Putting aside Thomas’s questionable calculation of her overtime earnings, we think that she seriously misapprehends the inquiry demanded by the fourth element. That element inquires into “the relationship between [the plaintiffs] salary and the wages paid other employees for the kind of nonexempt work performed by [her]”; it does not confine its inquiry to, or otherwise mention, overtime earnings or wages, and Thomas’s argument — by focusing as it does entirely on overtime earnings — is unpersuasive. Indeed, the record in this case discloses that Thomas grossed approximately $21,947 in her final seven-month period of employment and that the next highest grossing employee at that location earned approximately $13,943 during the same period. We conclude that the fourth factor, like the other three, weighs in favor of a finding that management was Thomas’s primary duty.
Speedway, in particular, has established that each of the four factors supports its position and, in general, has produced abundant evidence indicating that Thomas’s primary duty was management. We thus conclude that Speedway has satisfied its burden on summary judgment of demonstrating that Thomas qualified as a bona fide executive employee under the FLSA.
III.
We accordingly AFFIRM the district court’s grant of summary judgment in favor of Speedway.
Notes
. In addition to her challenge to the district court's grant of summary judgment, Thomas presents a one-paragraph argument contesting the district court's failure to rule on her motion for leave to file an amended complaint. The argument is short, vague, and unsupported by legal authority; it is the epitome of a perfunctory argument, and we need not address it.
See McPherson v. Kelsey,
. Thomas is apparently attempting to transform
. The current regulations, which were enacted in 2004, have eliminated the distinction between the short and long test. The lone test in the current regulations mirrors the short test in the former regulations, albeit with a higher weekly salary and an additional element. The current regulations provide that an employee qualifies as a bona fide executive if: (1) she is “Compensated on a salary basis at a rate of not less than $455 per week”; (2) her "primary duty is management of the enterprise in which [she] is employed or of a customarily recognized department or subdivision thereof”; (3) she “customarily and regularly directs the work of two or more other employees”; and (4) she “has the authority to hire or fire other employees,” or her "suggestions and recommendations as to the hiring, firing, advancement, promotion[,] or any other change of status of other employees are given particular weight.”
. We do not adopt a rule that any employee who is in charge of a store has management as her primary duty; we merely conclude that other cases stating as much do not conflict with our precedent. When a court is asked to consider whether an employee's primary duty consists of management, the proper analytical approach is to scrutinize the factors in the Secretary’s regulations, not simply to determine whether the employee was "in charge.”
. The current regulations also offer guidance to courts construing the terms "management,”
see
. Thomas repeatedly asserts that Speedway has the burden of establishing each element of the executive exemption.
See Renfro v. Ind. Mich. Power Co.,
. Thomas incorrectly asserts that this second factor requires that the employee "exercise discretion frequently and regularly.” Thomas mistakenly incorporates the standard required under the "long test” of the former regulations, which states that an employee qualifies for the executive exemption only if she "customarily and regularly exercises discretionary power.”