Despite its swiftly-approaching eightieth birthday the Fair
Labor Standards Act is as relevant today as it was when passed in 1938. Despite its vintage, the last year has seen
D.C.-area courts struggle with a number of complex and consequential questions
of interpretation under the FLSA which have the potential to inform litigation
nationwide. A smorgasboard of the most
important and most interesting issues addressed by D.C.-area courts in the last
year is provided below.
I.
Equitable
Tolling
In Cruz
v. Maypa, 773 F.3d 138 (4th Cir. 2014), the
Court, Judge Gregory writing for the panel, held that that the failure to post the
required FLSA notice in the employer’s home could equitably toll the statute of
limitations, and remanded for discovery.
The panel’s decision was consistent with the Fourth Circuit’s 1983
decision in Vance v. Whirlpool Corp.,
716 F.2d 1010 (4th Cir. 1983) where the Court held that the EEOC filing
requirement under the Age Discrimination in Employment Act could be equitably
tolled by the employer’s failure to post an ADEA notice of rights. The
plaintiff was a domestic servant from the Philippines and spoke Tagalog. The defense argued that posting of the notice
would have been futile because the poster provided by the Wage and Hour
division is not available in Tagalog. In
response, the Court stated "Besides being offensive, this argument turned
on a factual issue which must be construed in Cruz's favor...Cruz has not
alleged that she speaks no English, only that her English is limited. Furthermore, this argument would lead to the
absurd result of affording fewer protections to non-English speaking
employees."
II.
Individual
Liability
In Martin
v. Wood, 772 F.3d 192 (4th Cir. 2014), the
Fourth Circuit, Judge Niemeyer writing for the panel, dismissed on Eleventh
Amendment grounds, an FLSA suit brought by an employee against supervisors in
their individual capacities of a state-operated hospital for allegedly
improperly refusing to authorize overtime for hours worked in excess of a
forty-hour week. The Court seemingly
indicated that if the supervisors were alleged to have been acting in an ultra vires manner or if they had acted
to serve a personal interest, the FLSA action could proceed against them in
their individual capacities. Based on
the pleadings before the Court here, the Court concluded that the plaintiff was
simply attempting to circumvent Eleventh Amendment immunity.
III.
Preemption
In Barton
v. House of Raeford Farms, 745 F.3d 95 (4th Cir. 2014), Judge
Niemeyer writing for the panel, the Court held that the plaintiff’s claims
under a state wage law were preempted by the Labor Management Relations Act,
because their disputes about pay were essentially a disagreement as to how to
calculate their “hours worked” under a collective bargaining agreement. Here, the collective bargaining agreement was
silent as to how compensable time was to be calculated in a donning and doffing
circumstance. The custom and practice
had been to compensate only for “line” time and not for “clock” time. As a result, the panel, repeatedly noting
that the CBA stated that it was the “exclusive” agreement, even though the
employer allegedly had represented at the time of hire that it would pay “clock”
time, the Court held that such claim was preempted.
IV.
Timely
Payment of Wages
In Martin
v. U.S., 117 Fed. Cl. 611 (2014), the Court
of Federal Claims (Chief Judge Campbell-Smith) addressed the Federal
Government's partial shutdown which lasted from October 1 through October 16,
2013, resulting in a five-day delay in paying some federal workers. The issue before the Court was whether such a
short delay in the payment of wages could nonetheless give rise to an FLSA
claim for failure to timely pay non-exempt employees. The Court, applying the Supreme Court's
"On Time" mandate found in Brooklyn Savings Bank v. O'Neil,
324 U.S. 697, 707 (1945) declined to adopt the government's proposed
"totality of the circumstances" test and instead held that
"timely payment was the usual rule."
Given that the federal employees had all been paid, albeit a few days
late, the claim here is a claim for liquidated damages. The Court did not address that issue except
to note the good faith test.
V.
The
Tucker Act
In Abbey v.
United States, 745 F.3d 1363 (Fed. Cir. 2014), the
plaintiffs pursued an FLSA claim in the Court of Federal Claims, invoking the
Court's jurisdiction under the Tucker Act.
The Government, in a reversal of what has been its position for three
decades, argued that the Supreme Court’s decision in U.S. v. Bormes, 133 S. Ct. 12 (2012) requires the overturning of
the longstanding holding that the Tucker and Little Tucker Acts apply to
damages cases against the federal government under the FLSA. The Court, Judge Taranto writing for the
panel, rejected this argument.
VI.
Full
Payment
In Marshall
v. Safeway, Inc., 88 A.3d 735 (Md. 2014), the Maryland
Court of Appeals held that where an employer made an unauthorized deduction of $29.64
from an employee’s pay in response to two writs of garnishment, it was not
paying all the compensation that was due to the employees, which constituted a
violation of the Maryland Wage Payment and Collection Law.
VII.
Overtime
and Wage Theft
In Peters
v. Early Healthcare Giver, Inc., 97 A.3d 621 (Md. 2014), the Maryland
Court of Appeals (Judge Adkins writing for the Court) addressed enhanced damages
where the Employer failed to pay overtime, which the Court characterized as “Wage
Theft.” First, the Court rejected the
employee's argument that there should be a presumption in favor of granting
enhanced damages. Next, the Court
addressed whether there was a basis for a legitimate, bona fide,
dispute, stating that an incorrect legal belief may form the basis for a
legitimate, bona fide, dispute. When asked to establish guiding
principals that the trial courts should follow when exercising their discretion
as to whether, and in what amount, to award enhanced damages, the court's
solution was to simply say that "the trial courts are encouraged to
consider the remedial purpose of the MWPCL when deciding whether to award
enhanced damages to employees.” Finally,
the Court affirmed that the WPCL contemplates a maximum award of three times
the unpaid wage, not three times the unpaid wage in addition to recovery the
unpaid wages.
VIII. Misclassification
In Mock
v. Fed. Home Loan Mortg.
Corp., No. 1:13-cv-01292, 2014 U.S. Dist. LEXIS 97259
(E.D. Va. July 15, 2014), aff’d, No. 14-1782, 2014 U.S.
App. LEXIS 24569 (4th Cir. Dec. 30, 2014), the plaintiff, an Engineering
Senior and Engineering Tech Lead, claimed that he had been improperly and
willfully classified as exempt under the FLSA.
The Court granted the employer’s motion for summary judgment, on the
bases that the plaintiff is a highly compensated employee who performs
non-manual work, and that he also qualified for the administrative employee and
computer professional exemptions under the FLSA.
IX.
Rounding
In Hughes-Smith
v. Crown Linen Serv., Inc., No. 1:13-cv-1048, 2014 U.S. Dist. LEXIS 28415 (E.D.
Va. March 5, 2014), the Court (Judge Cacheris) approved the
employer's policy whereby it rounded down employee time from one to seven
minutes and rounded up employee time from eight to fourteen minutes. The employer tracked hours in fifteen minute
intervals.
X.
Collective
Action Certification/Decertification
In Lafleur
v. Dollar Tree Stores, Inc., No. 2:12-cv-00363, 2014 U.S. Dist. LEXIS 69886
(E.D. Va. May 20, 2014), the Court (Judge Jackson) reaffirmed
its denial of defendant’s motion to decertify the collective action which it
had certified under the FLSA. Among
other reasons, the Court indicated that the decision of the Fourth Circuit in Monahan
v. Cnty. of Chesterfield, 95 F.3d 1263 (4th Cir. 1996) was distinguishable
because Monahan does not deal with the similarly situated standard for
collective action certification.
XI.
State
Legislation
On September 19, 2014 the Mayor signed the D.C. Wage Theft Prevention
Act, B20-0671, which is projected to go into effect, following Congressional
review, on February 26, 2015. Among its
provisions, the Act requires employer notices (and allows for tolling of the
SoL in their absence), permits class actions, amends the D.C. Wage Payment
& Collection law to cover white collar, executive, and professional
employees previously excluded, and provides that fee awards “shall” be
made using adjusted Laffey rates.
Please be sure to visit our website at http://RobertBFitzpatrick.com
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