JOSE L. LINARES, District Judge.
This is an action brought pursuant to the Court's diversity jurisdiction against the defendant, American Airlines, Inc. (hereinafter, "American"), by several plaintiffs who are employees of American.
The plaintiffs allege that American has violated the New Jersey Wage and Hour Law (hereinafter, "the NJWHL") by: (1) paying them a straight hourly wage for the hours they work in excess of 40 hours in a given week as a result of voluntary shift trades with other employees, rather than paying them at the overtime rate for those excess hours (hereinafter, "the Shift Trade Claim"); (2) requiring them to perform work before clocking in, after clocking out, and during meal breaks without compensation (hereinafter, "the Uncompensated Time Claim"); and (3) configuring time clocks to round down and reduce the amount of time that the plaintiffs are credited with performing work (hereinafter, "the Rounding Down Claim"). (
In addition to seeking to recover unpaid wages, the plaintiffs seek "liquidated damages, injunctive relief and punitive damages" in relation to all of their claims (hereinafter, "the Liquidated, Injunctive, and Punitive Claims"). (
American has filed a motion (hereinafter, "American's Motion") pursuant to Federal Rule of Civil Procedure (hereinafter, "Rule") 56 for summary judgment in its favor and against the plaintiffs as to: (1) the Shift Trade Claim; and (2) the Liquidated, Injunctive, and Punitive Claims. (
In turn, the plaintiffs have filed: (1) a cross motion (hereinafter, "the Plaintiffs' Cross Motion") pursuant to Rule 56 for summary judgment in their favor and against the Airline as to the Shift Trade Claim; (2) opposition to the Unions' Amicus Motions; and (3) purported opposition to the entirety of American's Motion, even though their papers lack any argument concerning the Liquidated, Injunctive, and Punitive Claims. (
The Court resolves the Unions' Amicus Motions, American's Motion, and the Plaintiffs' Cross Motion upon a review of the papers and without oral argument.
The Court presumes that the parties are familiar with the factual context and the procedural history of the action, and the Court will not repeat the contents of the Introduction section of this Opinion. Thus, the Court will only set forth a brief summary here.
The New Jersey Commissioner of Labor and Workforce Development (hereinafter, "the Commissioner") is authorized to promulgate regulations in the New Jersey Administrative Code to complement the NJWHL, including regulations that address overtime pay.
The New Jersey Administrative Code contains a subchapter that specifically requires airlines to pay overtime wages to their employees for hours that they work in excess of 40 hours in a week:
N.J.A.C. § 12:56-15.3(a) (entitled "Overtime rates") (emphasis added);
Thus, Section 12:56-15.3 permits the employees of airlines to trade shifts in order to deal with personal matters, and also permits the airlines to accommodate those employees in scheduling shifts while legally paying straight time for the hours worked in excess of 40 hours due to shift trades requested by those employees. However, Section 12:56-15.3 still protects those employees by requiring the airlines to pay the overtime rate for hours worked in excess of 40 hours if those excess hours are not the result of an employee's request to trade shifts.
The Court notes that Section 12:56-15.3 is far more favorable to the employees of airlines than the Fair Labor Standards Act (hereinafter, "the FLSA"), which completely exempts airlines from being required to pay overtime wages to their employees, even if those employees work in excess of 40 hours under any circumstance.
American argues that shift trading is a privilege that the Unions — who represent the interests of American's employees — have long bargained for. Furthermore, American argues that the Commissioner has previously confirmed in correspondence in a different matter that the practice of not paying overtime wages for hours worked in excess of 40 hours due to voluntary shift trades in the airline industry is a permissible practice under Section 12:56-15.3. (
American also argues that the Liquidated, Injunctive, and Punitive Claims are explicitly barred by the terms of the NJWHL. Thus, American argues that it is also entitled to summary judgment as to those claims.
The Unions support American's argument concerning the Shift Trading Claim. The Unions confirm that the option of trading shifts on short notice "is an extremely valuable benefit," and that their "members greatly value the ability to shift swap and take no issue with the fact that they are paid straight time rates, even if it results in working more than 40 hours in a week." (Dkt. 58 at 7-8;
The plaintiffs urge the Court to invalidate Section 12:56-15.3 for being contrary to the intent of the NJWHL, and for constituting an overreach by the Commissioner, "because it flies in the face of the humanitarian and remedial nature of the New Jersey wage and hour law." (
The plaintiffs also argue that if the Court is not inclined to strike down Section 12:56-15.3, then the Court should deny American's Motion insofar as it concerns the Shift Trade Claim, and that the Court should allow them to conduct further discovery in order to determine whether the shift trades were indeed voluntary. The plaintiffs also urge the Court to disregard the arguments raised by the Unions.
The Court has carefully reviewed all of the plaintiffs' submissions, and finds that the plaintiffs have failed to raise any arguments in opposition to the part of American's Motion seeking summary judgment as to the Liquidated, Injunctive, and Punitive Claims in their papers.
Before addressing American's Motion and the Plaintiffs' Cross Motion, the Court addresses the Unions' Amicus Motions.
The Court possesses the authority to consider the arguments raised by the Unions in their amicus curiae briefs.
Therefore, the Court exercises its discretion to grant the Unions' Amicus Motions and to consider the arguments raised by the Unions in their briefs.
It is not necessary for the Court to restate the standard for resolving a motion for summary judgment made pursuant to Rule 56, because that standard has been already enunciated.
Furthermore, the summary judgment standard is not affected when the parties file cross motions for summary judgment.
The plaintiffs have not raised any arguments in opposition to the part of American's Motion seeking summary judgment in its favor as to the Liquidated, Injunctive, and Punitive Claims. Thus, the "plaintiffs appear to have abandoned th[ose] claim[s], as they have failed to offer any argument or evidence on th[ose] claim[s] in opposition to [American's] motion for summary judgment."
The Court finds that American is entitled to summary judgment in its favor and against the plaintiffs on the Liquidated, Injunctive, and Punitive Claims. It is now wellsettled law that the relief available for a cause of action concerning an alleged failure to pay overtime wages pursuant to the NJWHL is limited to unpaid wages, costs, and reasonable attorneys' fees, and that the NJWHL does not provide for liquidated damages, injunctive relief, or punitive damages.
Therefore, the Court grants the part of American's Motion that seeks summary judgment in its favor as to the Liquidated, Injunctive, and Punitive Claims.
The Court holds that American has demonstrated its prima facie entitlement to judgment as a matter of law on the Shift Trade Claim. First, the Commissioner possessed the authority in general to promulgate Section 12:56-15.3.
The plaintiffs argue that the Court should invalidate Section 12:56-15.3 as being in contravention to the general overtime requirements set forth in the NJWHL. In support, the plaintiffs rely on the aforementioned holding of
However, the holding in
In addition, the Third Circuit Court of Appeals actually acknowledged Section 12:56-15.3 as an example of an overtime regulation promulgated by the Commissioner that did not appear to be in contravention of the NJWHL, because it "allow[s] the use of compensatory time off instead of overtime pay for air carrier employees, in certain circumstances," and it does not comprise a blanket exemption to overtime wages.
Furthermore, the plaintiffs raise a novel argument in opposition to American's Motion: that further discovery may reveal that the system of trading shifts was not entirely voluntary. However, the Plaintiffs' Amended Complaint contains no allegations whatsoever that their conduct in trading shifts was anything other than voluntary. In fact, the Amended Complaint characterizes the "policy [of] allowing full- and part-time Employees the ability to take time off to deal with emergencies or other personal issues" as a "benefit". (
Therefore, the Court grants the part of American's Motion that seeks summary judgment as to the Shift Trade Claim, and denies the Plaintiffs' Cross Motion.
For the aforementioned reasons, the Court: (1) grants the Unions' Amicus Motions; (2) grants American's Motion; (3) denies the Plaintiffs' Cross Motion; and (4) enters summary judgment in favor of American and against the plaintiffs as to the Shift Trade Claim and all of the Liquidated, Injunctive, and Punitive Claims. The Uncompensated Time Claim and the Rounding Down Claim remain viable at this juncture.
The Court will enter an appropriate order.