Case Information
*1 Before MURPHY, MELLOY, and SMITH, Circuit Judges.
____________
SMITH, Circuit Judge.
This case requires us to construe the phrase "private home" in a regulatory provision of the Fair Labor Standards Act (FLSA). The relevant provision exempts employers from paying overtime wages to domestic service employees who provide companionship services in a "private home." 29 U.S.C. § 213(a)(15); 29 C.F.R. § 552.3 (2014). The employees in this case provide services on behalf of *2 their employer, United Cerebral Palsy of Central Arkansas (UCP), to people who reside in the employees' private residences. The employees, led by Lisa and Frederic Fezard, filed this suit seeking overtime pay from UCP, contending that the living arrangement requires additional work time that should be compensated as overtime. Ms. Fezard has also claimed that UCP terminated her in retaliation for filing a complaint with the Department of Labor (DOL). The district court granted summary [1] judgment to UCP, concluding that the homes in which the employees provided services were "private homes" under the FLSA and that Ms. Fezard failed to establish pretext in response to the legitimate, nonretaliatory reasons that UCP provided for her termination. We affirm.
I. Background
UCP is a nonprofit organization that provides services to disabled persons. UCP employees provide companionship services to UCP's clients at each client's place of residence. But instead of living on their own or with family members, the clients in this case live with the UCP employees who provide their care. The employees have opened their homes and invited their clients to live as roommates or surrogate family members.
UCP has not dictated that its employees and clients live together. It does not mandate that clients move into its employees' homes when they become a UCP client. It does not require them to move out when they stop receiving UCP services. And it does not control the details of the living arrangement, such as how much rent a client must pay to live with the employee. Instead, the living arrangements are between the client and the employee acting as an independent third party—a relationship over which UCP has exerted no control.
*3 Pursuant to the domestic-service-employment exception of the FLSA, 29 U.S.C. § 213(a)(15), UCP pays the employees a flat daily rate without overtime. On March 5, 2012, Ms. Fezard sent an e-mail to UCP demanding that UCP increase her daily rate from $160 to $200. On March 9, UCP paid her the $160 rate. On March 12, Ms. Fezard told UCP that she had filed a complaint with the DOL. UCP terminated her on March 15. Unknown to UCP, Ms. Fezard had not actually filed the complaint.
Prior to her termination, Ms. Fezard experienced other problems with UCP. Three months before her termination, she wrote a "very hostile and accusatory" e- mail. In a discussion with UCP's CEO about the e-mail, she told him, "I have no respect for anybody here at UCP." UCP considered terminating her at that time on the basis of her insubordination but it decided to continue her employment because her stepson was a UCP client. Then on February 23, 2012, just weeks before her termination, a state inspector conducted a home visit for one of Ms. Fezard's clients; the home inspection revealed numerous performance deficiencies and concerns for the client's welfare. UCP asserts that it terminated Ms. Fezard on the basis of her insubordination and deficient performance, not her alleged complaint to the DOL.
The Fezards filed this collective action, seeking certification of an opt-in class of UCP employees. The district court certified the class, and ten other employees joined the litigation. As a class, the employees sought overtime pay under the FLSA and the Arkansas Minimum Wage Act. Ms. Fezard also alleges that UCP wrongfully terminated her in retaliation for filing a complaint with the DOL. The district court granted summary judgment to UCP on all claims. The employees appeal. We have jurisdiction to review the final judgment of the district court pursuant to 28 U.S.C. § 1291.
II. Discussion
The employees challenge the district court's summary judgment on appeal,
arguing that they did not provide services in a "private home" under the FLSA. And
*4
Ms. Fezard argues that she has satisfied a prima facie claim for employment
retaliation and therefore that the district court's summary judgment was improper.
"We review de novo a grant of summary judgment, considering the facts in the light
most favorable to the nonmoving party. Summary judgment is proper when no
genuine issues of material fact exist and the moving party is entitled to judgment as
a matter of law."
Neb. Beef, Ltd. v. Wells Fargo Bus. Credit, Inc.
,
A. A "Private Home" Under the FLSA
The district court granted summary judgment to UCP, citing the factors set
forth by the Tenth Circuit in
Welding v. Bios Corp.
,
The FLSA requires employers to pay overtime compensation. 29 U.S.C. § 207.
But the Act exempts
any employee employed in domestic service employment to provide companionship services for individuals who (because of age or infirmity) are unable to care for themselves (as such terms are defined and delimited by regulations of the Secretary).
Id. § 213(a)(15) (emphasis added). At the time in question, the associated regulations defined the phrase "domestic service employment" as
services of a household nature performed by an employee in or about a private home (permanent or temporary) of the person by whom he or she is employed. The term includes employees such as cooks, waiters, butlers, valets, maids, housekeepers, governesses, nurses, janitors, laundresses, caretakers, handymen, gardeners, footmen, grooms, and chauffeurs of automobiles for family use.
29 C.F.R. § 552.3 (2014) (emphasis added). Section 552.101 further clarifies this [2] definition, directing that the physical form of the residence does not determine whether it can be a private home. That section notes that "[a] separate and distinct dwelling maintained by an individual or a family in an apartment house, condominium or hotel may constitute a private home," id. § 552.101(a), even though they are commercial in form and operation. In contrast, those who happen to work in structures that look like private homes, but are "primarily rooming or boarding houses are not considered domestic service employees." § 552.101(b). The same is true for "employees employed in connection with a business or professional service which is conducted in a home (such as a real estate, doctor's, dentist's or lawyer's office)." Id.
We have not previously construed the term "private home" in § 552.3. But as
a general matter, we have held that exemptions to the FLSA are "narrowly construed
in order to further Congress' goal of providing broad federal employment protection."
Spinden v. GS Roofing Products Co.
,
In
Welding
, the Tenth Circuit set forth six factors for determining whether a
dwelling is a private home under the FLSA regulations.
whether significant public funding is involved; who determines who lives together in the home; whether residents live together for treatment purposes as part of an overall care program; the number of residents; whether the clients can come and go freely; whether the employer or the client acquires the furniture; who has access to the home; and whether the provider is a for profit or not for profit entity.
Application of the Fair Labor Standards Act to Domestic Service, 78 Fed. Reg. 60462
(citing
Johnston v. Volunteers of Am., Inc.
,
The factors employed in prior cases are somewhat helpful; but they fall short
because of factual distinctions present here. In prior cases, the relevant comparison
was between the employer and the client—the employer's commercial care facility or
*7
the client's traditional single-family residence.
See Welding
, 353 F.3d at 1218;
Johnston
,
Nevertheless, the discussion of "private home" in prior cases has revolved
around this question: Does the employer own or control the home?
See Welding,
In this case, every client lived in a dwelling that was private in relation to UCP. UCP did not exert control over the room in which a client lived, the rent paid, or any other term or condition of the living arrangement. UCP did not require a client to live in a specific dwelling unit in order to receive services. Further, while UCP may have acted to facilitate a connection between a client and the caregiver, UCP's involvement was limited to making the connection. Finally, UCP had no ability to evict any client if the client ceased to use UCP's services.
Additionally, many of the clients in this case paid rent. The rental agreements ranged from a written, long-term lease to an informal at-will tenancy, with some clients paying several hundred dollars each month. Moreover, many of the clients rented a specific room—or even a separate building—that constituted an identifiable dwelling unit within the property as a whole. Such arrangements render the clients tenants, or subtenants, and confer upon them a legally significant interest in the dwelling unit—even if that unit constitutes only a part of a traditional single-family residence.
In sum, the district court correctly granted summary judgment to UCP, concluding that the dwelling units in which the employees provided services were private homes.
B. Employment Retaliation
The district court granted summary judgment to UCP because Ms. Fezard did not provide evidence that she filed her claim with the DOL before she was terminated and because she did not establish that the legitimate, nonretaliatory reasons that UCP provided for her termination were pretextual. Ms. Fezard successfully challenges the timing of her DOL claim, but she has not rebutted the legitimate, nonretaliatory basis for her termination. Accordingly, we affirm.
Ms. Fezard's employment-retaliation claim is evaluated under the
McDonnell
Douglas
burden-shifting framework.
See Smith v. Allen Health Sys., Inc.
,
The district court found that Ms. Fezard failed to establish that she engaged in
a protected activity. The court noted that Ms. Fezard did not file a report with the
DOL until after UCP terminated her. But the district court also found that on March
12, 2012, before her termination, Ms. Fezard told UCP employees that she had filed
a DOL complaint. In
Saffels v. Rice
,
The prima facie analysis, however, does not end the inquiry. The district court concluded that UCP had provided evidence of a legitimate, nonretalitory basis for terminating Ms. Fezard. In particular, the district court recited several instances of unprofessional and insubordinate communication from Ms. Fezard; a significant, unfavorable performance report from a state inspector who conducted a home visit for one of Ms. Fezard's clients; and written evidence that UCP was considering her termination before she told them about the DOL report. In short, Ms. Fezard was not performing and was creating significant unrest within the organization. Ms. Fezard argues that the bases asserted by UCP are pretextual, pointing to the close proximity of her notice to UCP of her DOL claim and her termination. Although we have held *10 that timing may be sufficient to make out a prima facie case, it is not enough to undermine a preexisting, nonretaliatory basis for the termination. at 834. Here, Ms. Fezard fails to put forth evidence beyond temporal proximity to show that a material fact dispute remains as to her termination.
The district court correctly granted summary judgment to UCP because Ms. Fezard failed to provide evidence from which a jury could conclude that the nonretaliatory bases for termination asserted by UCP are pretextual.
III. Conclusion
Accordingly, we affirm the judgment of the district court.
______________________________
Notes
[1] The Honorable James M. Moody Jr., United States District Judge for the Eastern District of Arkansas.
[2] The regulations in this area have changed substantially, eliminating the third-
party employer provision by which UCP was able to take advantage of the domestic-
service-employment exception.
See Home Care Ass'n of Am. v. Weil
,
