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Travis Paul v. Petroleum Equipment Tools Co.
708 F.2d 168
5th Cir.
1983
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*2 Before RANDALL and HIGGINBOT HAM, BUCHMEYER,* Judges, Circuit Judge. District HIGGINBOTHAM, E. PATRICK Circuit Judge: Paul, Travis a company airplane pilot, Randall, Judge, Circuit dissented and brought against this suit Equip- Petroleum opinion.

filed Co., ment Tools employer, former seek- ing pay allegedly overtime due under the Fair Labor Standards Act. 29 U.S.C. trial, 201-219. After a bench the dis- §§ trict court concluded that Paul was em- ployed in a professional bona fide capacity meaning within the 213(a)(1) of 29 U.S.C. § regulations and its and therefore was ex- empt provisions from thе overtime Taking judicial FLSA. notice of Federal Aviation Administration detail- ing the level skill needed to fly PETCO’s airplane, we affirm the district de- court’s employed termination that Paul was in a professional capacity. 12, 1979,

On January PETCO hired Travis Paul to fly company one its airplanes, a twin-engine, turboprop King Air Beechcraft B100 Lafayette, located in Louisiana. Paul experienced was an long and had living pilot. earned his as a commercial England’s to fly Flying Since Mobile, Alabama in Service Paul logged had flying 4900 hours of time as pilot-in-command of types numerous of air planes. He held an transport pilot airline certificate, certificate, instructor rating, instrument and was authorized to both fly single multiengine airplanes. PETCO, At Paul not flew only plane it, it, also but cleaned stocked prepared reports of expenses flight operations, and maintained charts and manuals. He monthly salary received a ranging from $2081. Ltd., Hawley Schеxnayder, & Nelson J. Jr., La., plain- Paul

Schexnayder, Lafayette, resigned September for from PETCO on brought then tiff-appellant. ‍​‌​‌‌‌​‌​​​‌‌​​​​​​​​​​​‌​​​​​​​‌‌​‌‌‌‌‌‌​​​​‌​​‍against He suit seeking compensation overtime Davidson, Meaux, & Roy, Sonnier L. Lane liquidated damages under the FLSA La., Roy, Lafayette, defendant-appellee. under penalty wages Louisiana law. PET- defenses, including asserted numerous CO the claim was a * Texas, Judge sitting by designation. District District Northern employment if the of his only overtime conditions

thus was from the FLSA’s set in 29 day satisfy requirеments three bench forth During the provisions. If, however, trial, 541.3(a)-(e). on the an em primarily focused C.F.R. parties time,” salary on accuracy reported “duty ployee weekly receives minimum $250, employer’s he plan, and contention that company of a bonus existence regarding exempt may understanding measured the shorter on Paul’s *3 The dis- streamline test in required he to work. described 29 C.F.R. hours issues; 541.3(e), undisputed not reach these it .315. Because it is trict court did §§ from exemрt weekly, instead that Paul was that Paul received at least the ruled employed properly because he was a district court resorted to the the FLSA ap- capacity. Paul streamline test. professional bona fide claiming the evidence peals, record test, Under this PETCO must show that finding. not support does this per- consists the “primary duty of knowledge work of requiring formance of its over exempts

The FLSA from type an in a field of science or advanced provisions “any employee employed time learning which requiring ... includes work administrative, executive, a bona fide or the consistent exercise of discretion and professional 29 U.S.C. capacity....” “Primary judgment.” 544.3(e), .315.1 §§ 213(a)(1). The bears the bur employer § major part, duty” means that “the or over of proving exempt Usery den status. v. See percent, employee’s 50 must be 1191, time” Inc., Drugs, Associated 538 F.2d 1194 spent performing exempt work. 541.103. addition, § (5th Cir.1976). exemptions In the part Activitiеs that are “an ‍​‌​‌‌‌​‌​​​‌‌​​​​​​​​​​​‌​​​​​​​‌‌​‌‌‌‌‌‌​​​​‌​​‍essential of and narrowly contained in Act are be necessarily professional incident to” Bren against employer. construed See Exempt exempt. work are also 541.307. Service, Inc., § v. Propane nan Greene’s Gas involving learning work is de- advanced 1027, (5th Cir.1973). 479 F.2d While requires scribed in 541.302. Such work § uncertainty there be in the deference may type gener- of an knowledge advanced given be a trial court’s ultimate conclu ally high cannot be attained at the school status, of Pa exempt sion see Jacksonville level. This must be field McComb, knowledge in a of per (5th Co. v. 167 F.2d 448 Cir. distinguished science or as 1948), is no disagreement there the mechanical arts. It also must be “cus- underlying facts that determina subsidiary tomarily acquired by a are errone governed by “clearly tion specialized intellectual 52(a). See, of ous” standard Fed.R.Civ.P. study, distinguished from a aca- Cole, v.

e.g., Continental Oil Co. 634 F.2d demic from an apprentice- education and Cir.1981). (5th See also Robi ship, training performance and from Material, Inc., cheaux Radcliff F.2d manual, mental, physical routine or Cir.1983). 666 (5th processes.” Finally, a § 541.3(aXl). of professional Determination status is “prime professional characteristic of work is guided regulations issued the Secre- the fact that the employee apply does tary of Labor the Administrator special or talents with discretion Wage-Hour pursuant congres- Division judgment. Purely or rou- mechanical regulations permit sional direction. These not professional.” tine work is 541.- “long an to use either a test” employer 305(b). meet its “streamline test” to burden Paul, In proving employee’s professional applying regulations status. an test, first long may Under a court decide district court found that Paul’s work required the exercise of employee professional that an discretion instructor, flight Paul, recognize expressly work in aircraft like also professiоnal exemption teaching professional falls artistic fields is within course, inap- 541.302(g)(2). teachers. provisions, nature. These are C.F.R. § plicable Nevertheless, here. we note that an noted, judgment. showing court “He made the CO made no that his “numerous fly final of whether or not to decision F.A.A. licenses” were fly needed to he chose the most efficient route. safest and company plane. A problem second is that Airborne, consistently exposed he was prеsented PETCO no evidence regarding periods might wherein at moment he the level of skill training needed to judgment, to make an instant required obtain those licenses. While we agree with drawing knowledge acquired through on these are indeed the relevant We find that these find- training.” inquiries and that without the explanatory erroneous. Two ings clearly of fact are aid controlling regulations the “evi- testified that had the they dence” of Paul’s level training scarce, authority possible sole to decide whether we nonetheless find that Paul was engaged weather disturbances require would cancel- profession” a “learned and thus was em- lation of the alteration of ployed in a capacity. *4 route. testified They they also that had to Paul’s first contention is that PETCO decide whether a particular plane was “air- failed to show he needed his airline trans- worthy.” decisions are not “purely Such port pilot certificate single with and mul- mechanical or routine” but involve consider- tiengine ratings class the fly company able discretion and judgment. This case is plane. suggests He thus any that skill and thus materially different from Martin v. training needed to obtain this license is Service, Inc., Penn F.Supp. Line 1387 irrelevant pro- determination of his (W.D.Pa.1976), on which Paul relies. The fessional status. It is true that the record helicopter court there held that pilots hired nowhere explicitly states whether an ATP fires, brush, to control spray forest and take certificate “required” to fly PETCO’s air- aerial did not photographs req- exercise the show, plane. however, It does that Paul in uisite discretion judgment they because job application represented that he had were “merely highly trained technicians” rating. this There was no direct evidence who could not make decisions without con- rating the was a prerequisite for the sulting superior. with their Id. at 1390. In job. having But been hired as pilot contrast, Paul had sole authority to make level, a listed skill Paul is in no problems decisions about to which there now suggest less was “required” by were often recognized no or established an- simply PETCO required because the law swers. 541.207. See § less. Regardless, Paul could not legally fly The district court also found that Paul the aircraft with passengers engaged profession” a “learned distance without a pilot certifi- within the meaning 541.3(a)(1) § rating, cate and an instrument see 14 C.F.R. 541.302. It reasoned: § 61.129, .139, a classification one notch § be- Ability snap judgments to make based on low an ATP certificate. See C.F.R. unexpected flight conditions is not an “in- 61.171. § herent talent” but is attained after spe-

cialized required instruction be- Paul’s second contention is that PETCO fore being licensed.... Paul’s numerous offered no specific evidence of the level of F.A.A. licenses for highly technical air- skill and training required to obtain such craft are the best evidence of his ad- licenses. This deficiency problem, is not a knowledge acquired by study vanced and however, because we may judicial take no- training and to this Court are the func- tice of Federal Aviation Administration equivalents tional of the advanced degree regulations ‍​‌​‌‌‌​‌​​​‌‌​​​​​​​​​​​‌​​​​​​​‌‌​‌‌‌‌‌‌​​​​‌​​‍establishing requirements prima which is a facie showing profes- for these licenses. Judicial notice of such sional status regulations. under the regulations is expressly by authorized argues finding this is flawed 1507 and may U.S.C. be taken an two respects. deficiency One is that PET- appellate 201(f).2 court. Fed.R.Evid. notice, not, taking judicial lengths gap Company’s In this we do to fill in suggests, “go the dissent to considerable demonstrating requisite In reg- experience. determine whether thus must

We have re- must knowledge, applicant for detailing requirements ulations logged Paul had home ground instruction ratings establish ceived (IFR), in a field of type flight advanced rules knowledge of an learn instrument study to aby acquired that was weather use of aviation navigation, IFR instruction intellectual specialized forecasts, opera- safe and the reports and they do. We conclude that study. instrument weather airplanes tion of under pass must a writ- applicant The conditions. a com requirements threshold The subjects. The examination on these ten proof include pilot mercial certificate training is obtained requisite instrument certifi applicant private holds a an authorized old, through instruction is able to cate, years than 18 is more instructor, certify appli- that the English, and is who must read, and understand speak, must applicant to control and maneuver medically competent certified. cant aeronau demonstrate extensive thereafter reference to instru- airplane solely by experi knowledge, proficiency, tical ments, navigation, perform to use IFR requisite demonstrating In ence. cross-country fly approaches, instrument have taken must knowledge, applicant conditions, respond to emer- in IFR a course of completed ground instruction pass then must applicant gencies. to learn the private study these skills. Fi- test to demonstrate pilots, governing commercial logged have applicant nally, requirements reporting the accident time, in- 40 hours of pilot flight hours of *5 Board, ba Safety Transportation National time, of instrument and 15 hours strument and flight principles, and aerodynamics sic 61.65. instruction. C.F.R. flight § See appli airplane operations. numerous flying that Contrary argument to Paul’s test on these pass cant also must a written skill, regu- mechanical art or only is a is obtained subjects. Flight proficiency that a with a com- lations demonstrate flight by instruction an authorized through rating instrument in- mercial license and certify This instructor must instructor. of science or “knowledge has in a field deed perform to applicant prepared that is regulations make learning.” As these duties, critically slоw flights at preflight acquire extensive knowl- plain, pilot a must takeoffs and crosswind airspeeds, normal airplane regulations, edge aerodynamics, take landings, performance and maximum operations, procedures, instrument airplane emergency proce landings, and and offs charts, and weather forecast- aeronautical must be demon proficiency dures. This of the FAA’s ing. An examination official Fi flight tests. through strated oral and supplement regu- testing manuals that have a total of 250 nally, applicant 100 hours in detail the flight including greater time demonstrates in hours of lations aircraft, flight instruc 50 hours level of aeronautical powered high tion, pilot-in-command 100 hours of example, and must achieve. For applicant an 61.121 — .141. time. C.F.R. §§ See Airplane Pilot Writ- the FAA’s Commercial Guide, (1979) contains ten Test AC 61-71B license, a commercial Having obtained a and 120 page study six outline a detailed for hire fly passengers pilot who desires require sample questions pages nautical miles or in of more than 50 flights varied nature. knowledge of a wide and instrument an night also must obtain Rating Instrument Written Similarly, the 61.129(a). Like the rating. See 14 C.F.R. § Guide, (1977) nearly 61-8D outlines Test AC an in- requirements, licensing commercial ranging from “unusual sixty major topics applicant rating requires strument factors.” skill, “physiological conditions” to knowledge, and demonstrate extensive regulations. essary lengths” rep- proof.” to our consideration These “considerable they digress duty apply here because are extant We need not more than resent no our by respect, properly the rule and regulations. before us at least neither 44 law and In this legal simply 201(f) arguably citable material. if not as nec- statute U.S.C. 1507 nor F.R.E. is § (emphasis original). abstract 1-2 The in- topics might not as Id. at While these medicine, requires integration struction thus an it esoteric as those in law knowledge, reasoning, physical abstract they are less com- argue is difficult to nurses, skill.3 account- those learned plex than are

ants, who re- computants and actuarial log an also must applicant The fact that profes- “learned employees in garded as mean, does flying considerable time 541.302(e)(1). sions.” See C.F.R. § pilot’s knowledge that a is suggests, general appren- a only “through obtained this knowl- persuaded We also are training learning-by- ticeship, on-the-job necessity, “customarily edge today, by is Whatever the circumstanc- doing method.” specializ- course of acquired by prolonged a barnstorming days, suggestion that a es as dis- study instruction ed intellectual multi-million dollar turbo- pilot of a modem educa- from a academic tinguished experience aircraft can obtain prop from an apprenticeship tion and from and without su- through experimentation men- of routine training performance of a startling. is The foundation pervision tal, manual, Under physical processes.” extensive, indisputably pilot’s experience for a regulations, applicant the FAA formal, specialized training. expe- His rating is license and instrument from quality rience is thus of a different from an autho- required log who many employees industry that of certify who must rized instructor positions by their natural high-level rise to array in an competent applicant sense, longevity with- ability, common relating flight proficiency. areas See As the study. out the aid of a course ap- when the 61.65(c), Only .127. C.F.R. § note, these individuals are not is he obtained this instruction plicant has 29 C.F.R. 541.- professionals. tests. requisite flight eligible to take 302(e)(2). contrast, In like Paul at- instruction oc- 61.39. Much of this See § tain their status after a is a of tutorial teach- specie curs aloft and study that cer- instruction and specialized description ing, as demonstrated fairly described as an intellectual tainly is Handbook, AG Flight Training FAA’s *6 endeavor, campus. from despite its distance (1980): 61-21 the FAA аnd Aided training period, the instructor During the handbooks, per that Paul persuaded we are flight. before the explain will each lesson work. The exempt professional be include what will explanation This will ‍​‌​‌‌‌​‌​​​‌‌​​​​​​​​​​​‌​​​​​​​‌‌​‌‌‌‌‌‌​​​​‌​​‍formed Division, interpreta whose done, Wage and Hour how it done, it should be and why Boutell “great weight,” is not tions are entitled point that Any should be done. 470-71, 463, S.Ct. By asking Walling, U.S. questioned. should be clear has, 631, 635-636, (1946), with 90 L.Ed. 786 considerable ground, on the questions vacillation, a unwilling to take instruc- out beеn in-flight be saved for time can years.4 for at least fifteen contrary position instruc- flight, After each tion .... “pilots as Division has noted that This is While the day’s will review the lesson. tor exempt profes be considered up any mis- a class cannot student’s chance to clear industry on an wide ba pro- employees a about each element of sional taken ideas sis,” (Flight Per- Policy of Application .. see or maneuver.. cedure suggests Training that in fact this has Flight research Flandbook also states Our 3. The effective, Wage truly position and Hour Divi “[fjlight training, if it is to be been the labor law service notes sion since 1954. One than the mechanical involves more willing to extend airplane’s the Division was manipulation in 1954 controls. of company pilots exemption “who have Physical is not mechanical skill alone knowledge augmented continued with enough. Operational under- their study experience” particu- and have considerablе standing are the associated elements of (CCH) Lab.L.Rep. safety flying, met “other tests.” larly is the where essential 25,210.80 Opinion (summarizing W-H Letter important Id. at 1. most factor.” ¶ 15, 1954). of October a That idea takes (BNA) 92:653-54 intellectual endeavor. sonnel), Lab.Rel.Rep. view we do not provincial of education that it will take (1976), has stated that it also interpretation. find the act its of defined subclass against “no action” a Hour position Wage “no action” is, That Paul is a member. pilots оf which agency’s recognition Division reflects that em- exempt status an assertion of of economic Wage realities.5 Like the rating and Paul’s any pilot of with ployer Division, and Hour we do not decide that opposed: would not experience level company pilots perform exempt as a class take Division will and Hour Wage [T]he only We face here a professional work. respect action with no enforcement highest rat- like Pаul with and rotor- airplanes of pilots copilots ing, training, job experi- considerable Transport hold an FAA Airline craft who ence. Certificate or Commercial Certificate Paul Having correctly determined that per week not less than paid who are work, exempt the district court performed engaged [fjlying in the ... and who are duty” his con- “primary then concluded that company pilots. as business or of aircraft noted, such work. The court sisted of WH-357, Test, Op. Flight Sаlary Personnel thirty to spent approximately “While Paul 2, Lab.Rel.Rep. (BNA) (Sept. 92:685-86 flying of work time forty per cent 1975). the “no ac This reaffirms twenty cent of plane, spent per he less than 1971, Pilots tion” issued in see opinions performing non-essen- his work time tasks Certificate, Op. With FAA or Commercial pilot’s tial duties.... professional to a ($225 WH-133, 1971) (May id. 92:681 engaged responsible was primarily Paul WH-553, minimum), Op. and in see employment in a characteristic of work 8, 1967) (CCH) ¶ 30,540 (Feb. Lab.L.Rep. capacity.” find bоna fide .We ($175 minimum). surprising It is then not erro- finding clearly of fact is that this litigated involving pilots to find no cases approximately testified that neous. training. of The near level of his time consisted of actu- duty one-third acceptance of such classification universal ally plane. of other flying Testimony pilots may part be in a realization such minimal pilots indicated aircraft re cockpits routine, spent time on non- amount of mil outlays in excess one quiring capitаl tasks, stock- including cleaning and here, dollars, protec not need the lion do ing plane. duty The rest of his time wage rates. That commer tion overtime “necessarily inci- involved work that was income as make cial command such waiting included time flying. dent” to This apart virtually overtime rates irrelevant reports flights, preparation between spite responds of ill will and matters and the expenses flight operations, training persons to a demand for of that maintenance charts and manuals. spent and skill. Their belies idea scarcity thus demonstrates that Paul record *7 is acquiring requisite judgment fifty percent performing and skill over of his time rigorous study or serious work. product not out, agree, company pilots points earn- Manual all 5. The dissent and we characterizes “exempt.” equivalent ing position as to an or more a week this “no action” is not however, exemption. mentioning, company of all is listed status other It is worth published Wages follows: privately Hours “uncertain.” The checklist reads as Opinion Letter Non-Exempt Exempt Date Uncertain Title Job Company X 5/25/73 X* Airplane Pilot thereafter). (1975 paid $300 a or more *If week (BNA) Rep. Exemption, Qualifying 6 Lab. Rel. on Jobs for White-Collar See Checklist (1976). 92:531-32 found that Paul fit within It has not. The Division has been willing The trial court out, years, majority points test for status for some as the the streamline of proving and PETCO sustained its burden take a “no respect action” in a bona fide employed that Paul was highly paid pilots, to certain but it has therefore was ex- professional capacity Indeed, exempted pilots. never those it has provisions the overtime empt from consistently declined to do so. A “no ac- Finding sup- this conclusion to be FLSA. tion” letter from an agency enforcement findings factual ported by subsidiary simply thing not the same as a erroneous, clearly were not we affirm.6 exemption. decision, The result of today’s however, just will be to establish such a AFFIRMED. general exemption. RANDALL, Judge, dissenting: Circuit The record in this case is deficient. We commercial, have no how most idea instru- Although agree majori- I with the fully pilots acquire training; ment-rated their highly conclusion that a skilled and well ty’s acquired nor do we know how Paul paid company pilot such as his. I “do[es] would therefore reverse. protection wage need the of overtime rates,” anywhere I am unable to discover

this case that would enable us to anything type

determine whether has, theoretically

that Paul virtue

certificates, “customarily acquired by

prolоnged specialized course of intellectual 541.- study.”

instruction and 29 C.F.R. § Eugene THEZAN, V. Plaintiff-Appellant, 302(d) added). I re- (emphasis therefore dissent. spectfully OVERSEAS CORPORA- MARITIME employer carry Since an the burden al., TION, Defendants-Appellees. ‍​‌​‌‌‌​‌​​​‌‌​​​​​​​​​​​‌​​​​​​​‌‌​‌‌‌‌‌‌​​​​‌​​‍et proving exemption applies, that an concedes) (as majority since PETCO has No. 82-3334 Summary presented “customarily no evidence on the Calendar. has acquired” question, majority had United States Court of Appeals,

go lengths to fill in the gaps considerable Fifth Circuit. Company’s proof. majority What the has done is to show what a with Paul’s June pass FAA certificates must know to examinations; Rehearing 11, 1983. Denied sophisti- Aug. from the

requisite complexity knowledge, cation and of that necessarily infers that it must majority “customarily acquired by specialized intellectual validly If it were study.” possible simply

draw this inference Code and the various test Regulations

Federal FAA, Wage

guides published by the

Hour Division would have done so now. *8 sister, virtually complete litigation dissenting if this absence of be- 6. With deference to our profes- employers support finding of tween would be ab- evidence will not such ought upset ruptly We to be hesitant sional status it would be most difficult to find halted. particularly ratings expectations, when like Paul’s to such settled differently, undoubtedly they encouraged by professional. Expressed we been be a have employer interpretative of what evidence the of the law’s administra- are uncertain dissenting ought to have offered. If the here tor. adopted but the view were we have little doubt

Case Details

Case Name: Travis Paul v. Petroleum Equipment Tools Co.
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Jun 27, 1983
Citation: 708 F.2d 168
Docket Number: 82-3216
Court Abbreviation: 5th Cir.
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