RIVERA, J.
The common issue presented in these joint appeals is whether, pursuant to the New York State Department of Labor's (DOL) Miscellaneous Industries and Occupations Minimum Wage Order (Wage Order), an employer must pay its home health care aide employees for each hour of a 24-hour shift. DOL has interpreted its Wage Order to require payment for at least 13 hours of a 24-hour shift if the employee is allowed a sleep break of at least eight hours—and actually receives five hours of uninterrupted sleep—and three hours of meal break time. DOL's interpretation of its Wage Order does not conflict with the promulgated language, nor has DOL adopted an irrational or unreasonable construction, and so the Appellate Division erred in rejecting that interpretation. Therefore, we reverse the Appellate Division orders and remit for consideration of alternative grounds for class certification for alleged violations of New York's Labor Law, inclusive of defendants' alleged systematic denial of wages earned and due, unaddressed by the courts below because of their erroneous rejection of DOL's interpretation.
New York's Labor Law requires that all employees be paid a minimum wage for each hour worked (Labor Law § 652). The legislature passed the Minimum Wage Act (the Act) in 1937 to ensure that workers "receive wages sufficient to provide adequate maintenance and to protect their health" (L 1937, ch 276, § 551). In 1971, the legislature extended the Act to cover home health care aides living outside the employer's home (L 1971, ch 1165, § 1), and in 1978 again amended the Act to require a minimum wage for "each hour worked" (L 1978, ch 747, § 1).
The Act delegates to the Commissioner of Labor
Since 1972, home health care aides have come under DOL's Minimum Wage Order Number 11 for Miscellaneous Industries and Occupations (12 NYCRR part 142), which applies to all non-exempt employees who are not subject to a different wage order (i.e., those not in the hospitality industry, the building services industry, or farm workers) (see 12 NYCRR 142-2.14; NY St Dept of Labor, Minimum Wage Order for Miscellaneous Industries and Occupations at 1 [eff Dec. 31, 2016] ["This Part shall apply to all employees, as such term is defined in this Part, except: (a) employees who are covered by minimum wage standards in any other minimum wage order promulgated by the commissioner; and (b) employees of a nonprofitmaking institution which has elected to be exempt from coverage under a minimum wage order, pursuant to subdivision 3 of section 652 of the Minimum Wage Act"]).
The Wage Order states, in relevant part:
In March 2010, DOL issued an opinion letter, responding to questions about the application of the Wage Order to home health care aides, including the calculation of hours worked when assigned to a patient's home, referred to as a "live-in employee." The letter distinguishes between employees who are "on call"—meaning employees who are considered to be working
The letter further acknowledges that a "residential employee," defined in the Wage Order as a person who lives on the premises of the employer, is deemed not to be working during normal sleeping hours solely because they are "on call," or when free to leave the place of employment. The letter goes on to explain that DOL treats all "live-in" employees the same when determining the number of hours worked, regardless of whether they are residential employees. Specifically, the letter states that
The letter explains that home health care aides assigned to a 24-hour shift at a patient's home are live-in, nonresidential employees, who must be paid for at least 13 hours of work. Under DOL's interpretation of the Wage Order, the remaining 11 hours of the shift are not included in the calculation of compensable hours because this time is allocated for eight hours of sleep and three hours of mealtime for the employee. If the home health care aide does not receive a minimum of five hours of uninterrupted sleep and work-free meal breaks, the employer must pay for every hour of a 24-hour shift—meaning the employer cannot exclude 11 hours from the compensable hours total—because when the aide is not provided with actual and substantial duty-free periods for personal use, the employer rather than the employee benefits from the time and the employer must pay for profiting off the employee's labor.
In 1998, the Commissioner expressly addressed home health care aides, in response to a letter from an employee of a home health care provider, and explained that, for "live-in" home health care aides, including those working an on-site 24-hour shift:
This interpretation of the Wage Order is similar to the federal government's guidance on the minimum compensable
In both appeals, plaintiffs seek certification of a class of home health care aides for alleged violations of the Labor Law based on their respective employer's failure to pay putative class members a required minimum wage for each hour of a 24-hour shift. Plaintiffs care for some of the most vulnerable members of our society, doing work essential to the survival of their patients. Plaintiffs allege that they are part of a workforce that is predominantly composed of women and recent immigrants, and one that they claim is easily exploited and vulnerable to various forms of wage abuse. Plaintiffs and amici paint a picture of a growing home health care industry where employers reap huge profits from both private and taxpayer funds, while refusing to pay the minimum wage for each hour worked to those who do challenging labor, at all hours of the day and night, often four or five times a week.
Defendants are private home health care companies and their owners who employ plaintiffs and other home health care aides to serve elderly and infirm patients for up to 24 hours at a time. Throughout these litigations, defendants maintained that the applicable law and DOL regulations do not mandate that they pay the equivalent of minimum wage for each hour of a 24-hour shift, relying on DOL's interpretation of its Wage Order.
Plaintiffs Lilya Andryeyeva and Marina Ordus are former employees of New York Home Attendant Agency, an entity formed by defendant New York Health Care (NYHC), a New York State Department of Health licensed home health care agency. They commenced an action individually and sought class certification on behalf of all other home health care aides who were employed by NYHC and worked 24-hour shifts. NYHC provides home care services to elderly and disabled individuals in New York City and Nassau County pursuant to contracts with various managed care companies and local health departments. Defendants' home health care aides assist patients with a range of tasks, including cooking, feeding, bathing, housework, using the restroom, and changing diapers.
NYHC regularly assigns home health care aides to work 24-hour "sleep-in" shifts. During such shifts, a home health care aide is required to be present in the patient's home for a full 24-hour period. Plaintiffs allege that defendants violated the Labor Law by failing to pay the required minimum wage, overtime, and "spread of hours" premiums
In support of their motion for class certification, plaintiffs argued that they met each of the statutory requirements of CPLR 901, namely, numerosity, predominance, typicality, ade
In opposition, defendants asserted that they were not required to pay the minimum wage to home health care aides for each hour of a 24-hour shift because the aides were "live-in" employees, and under DOL's March 2010 opinion letter, they could be paid less than the minimum wage for up to eight hours of sleep time and three hours of mealtime. Therefore, defendants argued, each worker's claim required an individual examination of the facts and circumstances of their respective employment, rendering the claims unsuitable for class certification. Unpersuaded, Supreme Court refused to adopt DOL's interpretation and granted plaintiffs' motion to certify a class of home attendants who worked 24-hour shifts during a defined period.
The Appellate Division affirmed, concluding that "DOL's interpretation is neither rational nor reasonable, because it conflicts with the plain language of the Wage Order" (Andryeyeva v New York Health Care, Inc., 153 A.D.3d 1216, 1218 [2d Dept 2017]). The Court reasoned that, because plaintiffs were required to be present at the patient's home and to perform services as needed if called upon, they were "available for work," regardless of whether they were afforded sleep and meal breaks. In reaching this conclusion, the Court held that the phrase "available for work" includes nighttime hours when the employee was "not called upon to perform services" (id. at 1218-1219). The Court relied on the First Department's decision in Tokhtaman v Human Care, LLC (149 A.D.3d 476 [1st Dept 2017]), in which that Court similarly rejected DOL's interpretation of the Wage Order as in conflict with its plain meaning.
Plaintiffs Adriana Moreno and Leonidas Peguero-Tineo are home health care aides employed by defendants Future Care Health Services, Inc. and Americare Certified Special Services, Inc. As in Andryeyeva, plaintiffs allege that defendants underpaid their employees by failing to pay the minimum wage for each hour of their assigned 24-hour shifts, not paying overtime, and failing to pay "spread of hours" premiums. The Moreno plaintiffs further allege that defendants failed to pay employees adequate wages to attend mandatory "in-service" training sessions, reimburse employees for supplies or uniform cleaning, and maintain adequate employment records as required by Labor Law § 195 and 12 NYCRR 142-2.
Plaintiffs moved to certify a class of "current and former home health care workers employed by Defendants." Plaintiffs argued that they satisfied the requirements under CPLR 901 because the proposed class included at least 40 members and presented several common questions, including whether defendants "engaged in a pattern or practice of not paying all wages due for work performed and overtime" and "whether Defendants have kept true and accurate time records for all hours worked by Plaintiffs and the Class." They further argued that plaintiffs were adequate class representatives and had selected qualified counsel to prosecute the class wage claims. Finally, plaintiffs argued that class treatment was superior to other means of resolving their claims because requiring hundreds of class members to file separate actions alleging the same misconduct against the same defendants was inefficient and would waste judicial resources. Plaintiffs also argued that the requirements of CPLR 902 were satisfied.
Like the Andryeyeva defendants, the Moreno defendants responded in opposition that plaintiffs failed to establish grounds for certification because resolving plaintiffs' claims would require "individualized investigation, proof and determination." Defendants relied, in large part, on the fact that under DOL's interpretation of the Wage Order, plaintiffs' sleep and meal time was non-compensable and defendants were not obligated to pay the minimum wage for this time so long as
The Appellate Division reversed in an opinion decided the same day as Andryeyeva. The Court concluded that the DOL opinion letter "conflicts with the plain meaning of" the Wage Order, and that home health care aides were entitled to be paid the minimum wage for every hour of a 24-hour shift even if they were afforded sleep and meal time because they are not "residential employees" within the meaning of the Wage Order (Moreno v Future Care Health Servs., Inc., 153 A.D.3d 1254, 1255-1256 [2d Dept 2017], citing Andryeyeva, 153 AD3d at 1219). The Court further concluded that plaintiffs had established the prerequisites for class treatment and certified the proposed class. As in Andryeyeva, the Appellate Division granted defendants' motion for leave to appeal to this Court.
In direct response to these decisions and the holding in Tokhtaman, DOL issued an emergency regulation which added the following language to the Wage Order:
In DOL's Notice of Emergency Rulemaking, it announced that the emergency regulation was
In the accompanying Regulatory Impact Statement (RIS),
The emergency regulation expired approximately two months later, on January 3, 2018. To avoid any lapse in coverage, DOL promulgated a series of substantially identical emergency regulations between January and September 2018, as well as a proposed final rule on April 5, 2018 (NY Reg, Apr. 25, 2018 at 43-45). Then, in a separate action by different plaintiffs, Supreme Court invalidated the emergency regulation in September 2018, holding DOL failed to justify an emergency in accordance with the State Administrative Procedure Act (see Matter of Chinese Staff & Workers Assn. v Reardon, 2018 NY Slip Op 32391[U],*8 [Sup Ct, NY County 2018]).
As defendants' respective challenges to the Appellate Division's approval of class certification in Andryeyeva and Moreno are analytically indistinguishable, we address these matters jointly. Defendants argue the Appellate Division should have deferred to DOL's rational and reasonable interpretation of the Wage Order, which requires individualized assessment
Our review of DOL's interpretation of its Wage Order is quite circumscribed. As a general rule, "courts must defer to an administrative agency's rational interpretation of its own regulations in its area of expertise" (Matter of Peckham v Calogero, 12 N.Y.3d 424, 431 [2009]). Thus, an agency's construction of its regulations "`if not irrational or unreasonable,' should be upheld" (Samiento v World Yacht Inc., 10 N.Y.3d 70, 79 [2008], quoting Matter of Chesterfield Assoc. v New York State Dept. of Labor, 4 N.Y.3d 597, 604 [2005]). However, "courts are not required to embrace a regulatory construction that conflicts with the plain meaning of the promulgated language" (Matter of Visiting Nurse Serv. of N.Y. Home Care v New York State Dept. of Health, 5 N.Y.3d 499, 506 [2005], citing Matter of 427 W. 51st St. Owners Corp. v Division of Hous. & Community Renewal, 3 N.Y.3d 337, 342 [2004]). Judicial deference to an agency's interpretation of its rules and regulations is warranted because, having authored the promulgated text and exercised its legislatively delegated authority in interpreting it, the agency is best positioned to accurately describe the intent and construction of its chosen language (see Peckham, 12 NY3d at 431).
When an agency adopts a construction which is then followed for "a long period of time," such interpretation "is entitled
We have no occasion to deviate from our well-settled law in the appeals before us. Thus, if DOL's interpretation of the Wage Order meets our deferential standard, we may not reject it. In making our determination, we must give our foremost consideration to DOL's opinion letters and prior statements because they represent a long-standing articulation of its interpretation of the Wage Order, as applied to nonresidential 24-hour shift employees, including home health care aides. We are also mindful that DOL's fair and studied consideration is grounded in its specialized knowledge and experience of both round-the-clock work assignments and the home health care industry.
There is nothing "novel" (dissenting op at 192) about the standard of review we reiterate today. As revealed by the case law cited above, judicial deference to an agency's interpretation of its own regulations is a basic tenet of administrative law. The dissent appears to confuse our discussion of the well-established justifications for deference (e.g., administrative expertise and the fact that an agency is best positioned to explain what it meant by the words it chose) for the standard itself. Further, the dissent relies on case law addressing agency interpretation of statutory—not regulatory—text to bootstrap an inapposite rule and observes that an agency's interpretation is entitled to no deference "where `the question is one of pure legal interpretation of statutory terms'" (dissenting op at 192, quoting Matter of Toys "R" Us v Silva, 89 N.Y.2d 411, 419 [1996] [concluding that a municipal zoning board's determination revoking a building permit was not inconsistent with local zoning code]). That rule does not apply to an agency's interpretation of its own regulations. As noted above, the Court "must defer to an administrative agency's rational interpretation of
The Wage Order does not define what it means for an employee to be "required to be available for work at a place prescribed by the employer" (see 12 NYCRR 142-2.1 [b]). DOL has interpreted the phrase as applied to employees assigned to 24-hour shifts, (including home health care aides), to exclude up to 11 hours for sleep and meal breaks from compensable hours, based on DOL's understanding that these are regularly scheduled substantial periods of assignment-free personal time. DOL, appearing as amicus curiae, argues that we should defer to its construction because it is consistent with the plain text of the Wage Order, and reflects DOL's well-founded concern for the well-being of workers on round-the-clock assignment, informed judgment grounded in its specialized knowledge of the home health care industry, and the Commissioner's election to align the state's requirements with the federal approach. Upon our review of the Wage Order and DOL's policy statements, we conclude that DOL's interpretation is not inconsistent with the plain language as promulgated, nor is it an irrational or unreasonable construction of the Wage Order as applied to 24-hour shift workers.
DOL's interpretation is not inconsistent with the plain text of the Wage Order, which requires that an employee be paid the minimum wage for the time when they are "required to be available for work at a place prescribed by the employer" (12 NYCRR 142-2.1 [b]). That language requires both presence and an availability during a time scheduled for actual work. Plaintiffs mistakenly argue, and the Appellate Division erroneously concluded, that once a worker is physically present at the designated work site, they are thus able to work if called upon and so are "available for work." That interpretation ignores the entirety of the phrase and renders superfluous the regulation's separate requirement that the employee be both "available for work" and be so available "at a place prescribed by the employer," in violation of two fundamental rules of statutory construction that apply with equal force in the administrative regulatory text: words must be "harmonize[d]" and read together to avoid surplusage (Matter of Tall Trees Const: Corp. v Zoning Bd. of Appeals of Town of Huntington, 97 N.Y.2d 86, 91 [2001]; Matter of Kamhi v Planning Bd. of Town of Yorktown, 59 N.Y.2d 385, 391 [1983]; see also FDA v Brown & Williamson
When it first adopted the Wage Order in 1960, DOL recognized the difficulty of defining hours worked for employees who are on call around-the-clock and the hardship imposed at setting a work day at 24 hours (NY St Dept of Labor, Report of the Industrial Commissioner upon the Promulgation of Minimum Wage Order No. 11 for Miscellaneous Industries and Occupations at 6 [Sept. 29, 1960]). Nevertheless, the realities of
Here, DOL explains that its interpretation is an attempt to apply the Wage Order's requirement that workers be paid for the time that they are "required to be available for work at a place prescribed by the employer" (12 NYCRR 142-2.1 [b]) with the realities of in-home health care aides who work 24-hour shifts. According to its brief in this Court, DOL has "concluded that an employee who enjoys genuine sleep and meal breaks consistent with the strict requirements of DOL's policy—i.e., regularly scheduled, substantially uninterrupted, work-free times to eat and sleep—is not meaningfully `available for work' during those breaks, precisely because DOL's criteria are
In adopting its interpretation, DOL "sought to protect ... employees' ability to engage in a significant degree of personal activity during their breaks by imposing strict rules that employers must comply with if they wish to exclude such breaks from compensable time."
Moreover, DOL's interpretation of the Wage Order reflects its specialized knowledge of labor law's evolving application to domestic workers and the home health care industry (see International Union of Painters, 32 NY3d at 208-209; Matter of KSLM-Columbus Apts., Inc. v New York State Div. of Hous. & Community Renewal, 5 N.Y.3d 303, 312 [2005]). It further reflects DOL's expertise in handling labor law violations and its historical efforts to ensure that its policies reflect the realities of the diverse industries and occupations over which it has administrative oversight. With respect to home health care aides, this interpretation of the Wage Order is supported by DOL's experience with the particularities of this occupation, where the needs of some patients allow for regularly scheduled work-free uninterrupted periods to sleep and eat. In other words, DOL has determined that a patient may need an aide on site around-the-clock without requiring adult care services for all 24 hours of the day. Indeed, defendants maintain that when a patient requires full-time attention and care, two home health care aides are, or ought to be, assigned to separate 12-hour
DOL's interpretation also reflects the Commissioner's interest in conforming state and federal guidance on the proper calculation of compensable hours. Interpreting the Wage Order to exclude sleep and eating breaks in a 24-hour shift, on the presumption that the employer will in fact structure the work assignment to provide such time for a home health care aide, harmonizes with the federal approach. It is neither unreasonable nor irrational for DOL to interpret its Wage Order in a manner that reduces administrative burdens, such as dual-sovereign reporting and wage payment requirements, and also has the added benefit of avoiding intergovernmental conflict.
Plaintiffs unpersuasively argue that DOL's interpretation is a misapplication of the residential exception set forth in the Wage Order. Contrary to plaintiffs' suggestion, the Wage Order's treatment of residential employees is not an exception or a particularized carve-out (which creates nothing more than a general exception) (see e.g. Mullen v Zoebe, Inc., 86 N.Y.2d 135, 142 [1995]). The Wage Order does not exclude residential employees from coverage, but rather, subjects these workers to a particular interpretation of compensable hours, grounded in DOL's knowledge and experience with this type of work. Nor do plaintiffs argue that a home health care aide working a 24-hour shift who does not live in the employer's residence is a residential employee for purposes of the Wage Order (Matter of Settlement Home Care v Industrial Bd. of Appeals of Dept. of Labor of State of N.Y., 151 A.D.2d 580, 581 [2d Dept 1989]). Instead, such an employee is covered under the remaining language of the Wage Order, language which DOL applies to an employee assigned to a 24-hour shift. Nothing in the Wage Order language precludes DOL from interpreting the remainder of the provision and, specifically, the "available for work" language, as implementing a similar approach to compensable hours for nonresidential home health care employees working 24-hour shifts. Moreover, there is nothing unreasonable or irrational
Plaintiffs' argument is essentially a claim that DOL must issue a separate wage order for home health care aides. Although courts must ensure that administrative entities comply with their statutory, regulatory, and the State Administrative Procedure Act requirements in exercising their legislatively delegated powers, DOL's highly fact-specific, industry-specific interpretation of its own Wage Order is a far cry from the "fixed, general principle to be applied by an administrative agency without regard to other facts and circumstances relevant to the regulatory scheme of the statute it administers" that requires a separate rulemaking under the State Administrative Procedure Act (Matter of Roman Catholic Diocese of Albany v New York State Dept. of Health, 66 N.Y.2d 948, 951 [1985]). Apart from the fact that DOL complied with procedural requirements when it promulgated the Wage Order, and plaintiffs do not argue to the contrary, plaintiffs' interpretation devolves to a requirement that DOL issue individualized wage orders for each of the numerous occupations across a variety of industries for which it has administrative responsibility. Plaintiffs' approach is in contravention of the Act's requirement of periodic publication of Wage Orders, is unworkable in practice and ignores DOL's administrative knowledge of how best to address the common concerns that arise for 24-hour shift workers.
While we ultimately conclude that the Appellate Division failed to afford adequate deference to DOL's interpretation of
Defendants in both appeals argue that, assuming we defer to DOL's interpretation of the Wage Order, individual issues preclude class certification.
Plaintiffs allege, and claim there is evidence of, defendants' systemic violations of the Wage Order and Labor Law, such as defendants' failure to adequately compensate home health care aides when they did not receive the minimum time for sleep and meal breaks during their 24-hour shifts, maintain adequate records of, or compensate for, the hours actually worked, and provide appropriate sleep facilities. Claims of uniform systemwide violations are particularly appropriate for class certification (see e.g. Maul, 14 NY3d at 513-514). Indeed, plaintiffs' allegations suggest a policy or practice of unlawful action of the type our courts have previously found ripe for class treatment (see id. at 513 [affirming certification of a class challenging "a de facto policy followed by (a city agency) of delaying the receipt of services as a result of its practices"]; Labor Law § 661; 12 NYCRR 142-2.6 [a] [4] [requiring employers to maintain records of "the number of hours worked daily and weekly"]). DOL maintains that if plaintiffs establish prima facie that defendants failed to comply with Labor Law and regulatory record keeping requirements that the burden would shift to defendants to establish they maintained the required work records, serving as another basis for class certification. We do not reach the underlying legal question raised by DOL's argument, but note only that assertion of these types of common questions may be considered by the courts in determining whether class certification is appropriate.
A difference in damage awards is an insufficient basis to deny certification as a matter of law where the class may rely on representative evidence of the class-wide violations (see id.).
Given the posture of these appeals—where the Appellate Division determined that class certification was appropriate under its erroneous interpretation of the Wage Order—we may not consider unaddressed or alternative grounds proffered for class certification. The courts below are charged with that task in the first instance and therefore we remit for that determination.
For the reasons discussed, the Appellate Division orders should be reversed and the matters remitted to permit the courts below to evaluate the issues in accordance with DOL's interpretation of the Wage Order and to consider alternative bases for class certification. In Andryeyeva, because Supreme Court certified the class upon finding that DOL's interpretation did not apply to plaintiffs, and the Appellate Division affirmed, neither court reached the issue of whether class certification is otherwise warranted. Accordingly, in Andryeyeva, the Appellate Division order should be reversed, with costs, the matter remitted to Supreme Court for further proceedings in accordance with this decision, and the certified question
GARCIA, J. (dissenting).
Workers are entitled to a minimum wage for each hour worked (Labor Law § 652 [1]). Today, the majority defers to a New York State Department of Labor (DOL) interpretation of a wage order, allowing home health care aides to be paid an hourly rate less than minimum wage. That result is not only unfair, it is completely at odds with the plain text of the wage order. Accordingly, I dissent.
The Minimum Wage Act, first enacted in 1937, was designed to address the financial hardship faced by those receiving "wages insufficient to provide adequate maintenance for themselves and their families" (Labor Law § 650). Payment of insufficient wages, the legislature noted, "threatens the health and well-being" of our State's workers (id.). In enacting the Minimum Wage Act, the legislature sought to provide relief "as rapidly as practicable without substantially curtailing opportunities for employment or earning power" (id.). Minimum wage standards are vital to accomplishing that goal (id.; see West Coast Hotel Co. v Parrish, 300 U.S. 379, 398-399 [1937] ["minimum wage requirements" prevent "the exploiting of workers at wages so low as to be insufficient to meet the bare cost of living"]). Given these important policy objectives, and the careful balancing critical to setting a minimum wage, the Minimum Wage Act sets forth a detailed procedure for issuing wage orders—one that mandates transparency and the inclusion of various affected stakeholders (see Labor Law §§ 655-659).
As a first step, the Commissioner must convene and appoint a "wage board ... composed of not more than three representatives of employers, an equal number of representatives of employees[,] and an equal number of persons selected from the general public" (Labor Law § 655 [1]). The wage board has extensive authority. It has the power to "conduct public hearings,"
The wage board's submission of a report is followed by continued dialogue and consultation. The Commissioner is statutorily obligated to "publish a notice" of the report and to receive "objections to the report and recommendations" (Labor Law § 656). The Commissioner may then "accept ... the board's report and recommendations"—potentially with modifications—or "reject" them (Labor Law § 656). If the board's report and recommendations are accepted, "[t]he Commissioner... thereafter issues a wage order setting a minimum wage in a specific occupation" (Matter of National Rest. Assn. v Commissioner of Labor, 141 A.D.3d 185, 192 [3d Dept 2016]). The statute also contemplates further amendments; after the wage order "has been in effect for six months or more," the same wage board may be "reconvene[d]" by the Commissioner or on a "petition of fifty or more residents ... in or affected by" the covered occupations (Labor Law § 659 [1]). "Any minimum wage order ... issued by the [C]ommissioner ... shall, unless appealed from ... be final" (Labor Law § 657 [1]).
This exhaustive process complies, as it must, with the strictures of the State Administrative Procedure Act (see majority op at 164-165). The State Administrative Procedure Act was formulated "[a]fter years of study ... to guarantee that the actions of administrative agencies conform to uniform, sound and equitable standards" (Matter of Cortlandt Nursing Home v Axelrod, 66 N.Y.2d 169, 177 [1985]). Among other things, the State Administrative Procedure Act "outlines uniform administrative procedures that State agencies must follow in their rule making, adjudicatory and licensing processes" (Matter of Industrial Liaison Comm. of Niagara Falls Area Chamber of Commerce v Williams, 72 N.Y.2d 137, 144 [1988]).
DOL's Minimum Wage Order Number 11 for Miscellaneous Industries and Occupations (the Wage Order) was passed in 1960 in accordance with the procedures required by the State Administrative Procedure Act and the Minimum Wage Act (see 12 NYCRR 142-2.14; see also NY St Department of Labor,
As relevant here, the Wage Order mandates minimum wage compensation whenever an employee is "available for work at a place prescribed by the employer" (12 NYCRR 142-2.1 [b]). The Wage Order contains only one exception—applicable only to residential employees—permitting employers to deduct certain hours of pay that would otherwise be compensable.
Plaintiffs are nonresidential home health care aides who work 24-hour shifts. During each shift, home health care aides are required to be present in the patient's home for the full 24-hour period (majority op at 169). They assist with a variety of tasks integral to a patient's daily functioning: "cooking, feeding, bathing, housework, using the restroom, and changing diapers" (majority op at 169). According to plaintiffs' allegations, home health care aides routinely do not receive meal breaks or adequate time for uninterrupted sleep, as their patients require assistance throughout the shift. As one employer's orientation manual states: "Patients are never to be left alone!" Plaintiffs further allege that defendants failed to record when (or even whether) plaintiffs took sleep and meal breaks, making it impossible to reconstruct their actual hours of work.
All agree that the Wage Order applies to plaintiffs in this case, and that plaintiffs do not fall within the Wage Order's
DOL (and the majority) may be correct that the Wage Order's "available for work" requirement entails more than physical presence at a place prescribed by the employer (majority op at 176). Unlike mere presence, the notion of availability implies that an employee is "ready, willing, and able to" take on work (Black's Law Dictionary [10th ed 2014], available for work). Thus, an employee might not be "available for work" at a time when, for instance, the employee cannot be reached, or is otherwise guaranteed to remain undisturbed. Plaintiffs, then, must be both present and "available for work"—not merely present—to be entitled to minimum wage compensation.
But DOL (and the majority) cannot be correct that plaintiffs' sleep time may be excluded from their wages. Under the Wage Order's single exception—not applicable to plaintiffs—residential employees' "sleeping hours" are expressly excluded from the time they are considered "available for work," thereby allowing employers to deduct those hours of pay. By providing that, for residential employees, sleep hours do not constitute time the employee is "available for work," the exception signifies that, for all other employees, sleep hours do constitute time they are "available for work"—and, accordingly, must be paid (Walker v Town of Hempstead, 84 N.Y.2d 360, 366-367 [1994] [noting that it is "not ... necessary" to provide exceptions to a general term if they "fall within the preceding general proscription"]; McKinney's Cons Law of NY, Book 1,
The majority asserts that the "residential employee" exception does not "exclude" sleeping hours from compensable time, but rather serves only to "clarif[y] that sleeping hours shall not be deemed work hours solely because the employee is required to be on call during such hours" (majority op at 181 n 8 [quotation marks, brackets, and citation omitted]). Whether called an "exception" or a "clarification," the provision's import is the same: In specifying that a residential employee's sleeping hours should not be compensated solely because the employee is on call, the provision signifies that—for all other employees— sleeping hours should be compensated solely because they are on call.
By distinguishing residential from nonresidential employees in this way, the Wage Order reflects the policies of dignity and fairness advanced by the Minimum Wage Act. Residential employees, by definition, have living quarters on the premises and are provided regular periods of rest. "In the ordinary course of events," a residential employee "has a normal night's sleep, has ample time in which to eat his meals, and has a certain amount of time for relaxation and entirely private pursuits," and "the employee may be free to come and go during certain periods" (US Dept of Labor, Interpretative Bulletin No. 13, Hours Worked: Determination of Hours for Which Employees are Entitled to Compensation under the Fair Labor Standards Act of 1938 at 4 [July 1939]). Recognizing this unique arrangement, the Wage Order permits employers to deduct a residential employee's "sleeping hours," as well as time when the employee is "free to leave the place of employment" (12 NYCRR 142-2.1 [b]).
Under the plain terms of the Wage Order, for nonresidential employees like plaintiffs—who remain consistently "available for work," even during sleeping hours—sleep time cannot be deducted from their pay. DOL's contrary reading is expressly belied by the text of the regulation, and therefore warrants no deference (see Matter of Visiting Nurse Serv. of N.Y. Home Care v New York State Dept. of Health, 5 N.Y.3d 499, 506 [2005]; Matter of Albano v Board of Trustees of N.Y. City Fire Dept., Art. II Pension Fund, 98 N.Y.2d 548, 553 [2002]; Matter of Raritan Dev. Corp. v Silva, 91 N.Y.2d 98, 100 [1997]).
Casting aside the plain text of the Wage Order, the majority defers to DOL's incompatible reading. Not only does that holding impose a new and problematic standard for agency deference, it enables DOL to circumvent statutory promulgation procedures in favor of an informal and erratic process replete with inconsistency. Worst of all, DOL's interpretation, now adopted by the majority, will have profound and far-reaching ramifications for a vulnerable and often mistreated workforce.
Under the guise of deference, the majority adopts a construction of the Wage Order that runs contrary to the regulation's text. Deference is unwarranted, however, where an agency's interpretation is "irrational or unreasonable" (Matter of Howard v Wyman, 28 N.Y.2d 434, 438 [1971]) or, in other words, unsupported by the regulation's plain text (Visiting Nurse Serv., 5 NY3d at 506). While we will defer to "a rational interpretation that [is] not inconsistent with the plain language" (James Sq. Assoc. LP v Mullen, 21 N.Y.3d 233, 251 [2013]), we have never elevated deference over clear, unambiguous text.
Rather, as we have repeatedly emphasized, plain language must control over an inconsistent agency interpretation (see Raritan Dev. Corp., 91 NY2d at 100 [noting our "long-established rule" that we "decline() to enforce" an agency interpretation that is "contrary to the plain meaning" of the relevant "language"]). We have therefore declined to "embrace a regulatory construction that conflicts with the plain meaning of the promulgated language" (Visiting Nurse Serv., 5 NY3d at 506). Indeed, where "the question is one of pure legal interpretation of statutory terms," we have held that "deference to the [agency] is not required" altogether (Matter of Toys "R" Us v Silva, 89 N.Y.2d 411, 419 [1996]). Because pure interpretation is the "function" of the courts, we have reasoned that there is "little basis to rely on any special competence or expertise of the administrative agency" (Matter of Albano v Board of Trustees of N.Y. City Fire Dept., Art. II Pension Fund, 98 N.Y.2d 548, 553 [2002]).
According to the majority, however, deference to DOL is warranted because, "having authored the promulgated text and exercised its legislatively delegated authority in interpreting it, the agency is best positioned to accurately describe the intent and construction of its chosen language" (majority op at 174). That is not, and has never been, a basis for deference at the expense of plain text.
DOL's atextual construction warrants particularly exacting scrutiny in light of the extensive, collaborative process by which wage orders must be created. The Minimum Wage Act establishes detailed procedures, involving research, consultation, public hearings, notice, and input from various stakeholders. The transparency and delicate balancing that typify this process assure "fair and studied consideration" (majority op at 175), and ensure that each wage order furthers the critical policy goals underlying the Minimum Wage Act.
Rather than codify rules through the processes required by statute—mandating public notice, hearings, and comments— DOL opts to promulgate revised wage orders "under the guise of interpreting a regulation" (Christensen v Harris County, 529 U.S. 576, 588 [2000]; see also Talk America, Inc. v Michigan Bell Telephone Co., 564 U.S. 50, 69 [2011, Scalia, J., concurring] [allowing an agency "to do what it pleases" with an existing regulation "frustrates the notice and predictability purposes of rulemaking, and promotes arbitrary government"]; Axelrod, 66 NY2d at 177 [the State Administrative Procedure Act was designed to "guarantee that the actions of administrative agencies conform to uniform, sound and equitable standards"]). For instance, in support of its most recent interpretation of the Wage Order, DOL relies heavily on a 2010 opinion letter issued in response to the query of an undisclosed recipient. The opinion letter, signed only by an associate attorney at DOL, inserts a new exception into the Wage Order for "live-in, non-residential employees," permitting employers to compensate them for only 13 hours of each 24-hour shift (majority op at 166). Presumably, that opinion letter was never considered by the members of the wage board. It was never reviewed in consultation with affected employers or employees. And it certainly was never the subject of public notice or comment. Yet DOL contends that its opinion letter constitutes an "official statement[]" embodying the "general policy towards compensable
The majority predicts "staggering burdens" if DOL were forced to issue a separate regulation (majority op at 182 n 9). But the federal government's scheme—which the majority seeks to emulate (majority op at 180)—has done just that. In lieu of ever-changing "interpretations," the federal Department of Labor employs detailed, duly promulgated provisions aimed at implementing clear, codified rules (see 20 Fed Reg 9963, 9965 [Dec. 24, 1955]). For instance, unlike the Wage Order, the relevant federal provisions expressly carve out exceptions for "employee[s] ... required to be on duty for 24 hours or more" (20 Fed Reg at 9965; see also 29 CFR 785.22). For that category of employees, "the employer and employee may agree to exclude bona fide meal periods and a bona fide regularly scheduled sleeping period of not more than eight hours from hours worked provided adequate sleeping facilities are furnished" (20 Fed Reg at 9965; see also 29 CFR 785.22). And for "[e]mployees residing on employer's premises," any "reasonable agreement of the parties which takes into consideration all of the pertinent facts will be accepted" (20 Fed Reg at 9965 [emphasis omitted]; see also 29 CFR 785.23).
If DOL prefers an alternative compensation scheme—so as to dock 11 hours of plaintiffs' pay—it should amend the Wage Order in accordance with statutory procedure. While a "separate regulation" is not required "for every circumstance" (majority op at 182 n 9 [emphasis added]), it is required for those instances involving dramatic pay cuts that are directly precluded by existing regulations. DOL itself apparently recognizes the importance of the promulgation process in adopting exceptions to minimum wage requirements; DOL saw fit to codify the "residential employee" provision before implementing those pay exclusions. Given the devastating impact of DOL's "interpretation" —imposing substantive changes and substantial pay cuts—compliance with formal promulgation procedures is hardly an unreasonable requirement. Any "burdens" that may
As this case bluntly demonstrates, agency regulations carry the force of law; they "frequently play a more direct role than statutes in defining the public's legal rights and obligations" (John F. Manning, Constitutional Structure and Judicial Deference to Agency Interpretations of Agency Rules, 96 Colum L Rev 612, 614-615 [1996]). DOL's "experience with the particularities of this occupation" might well provide a basis for modifying the existing regulatory regime (majority op at 179). It does not, however, permit DOL to unilaterally impose an entirely new wage order.
Seeing no issue with DOL's evasion, the majority asserts that deference is further warranted because, "for ... five decades," DOL has not "vacillated in its position" (majority op at 178). Even if a long-standing, uniform construction could supersede plain text, DOL has not exhibited the consistency or clarity that the majority describes. Rather, DOL has been consistent on one and only one position: nonresidential home health care aides may be paid for fewer hours than their shift requires. The interpretations that DOL has adopted to achieve that result have "vacillated" dramatically.
In a 1972 version of DOL's enforcement manual, investigators were told that, to discount a home health care aide's working hours, a "bona fide, regularly scheduled `sleeping period'" must be established, and "[t]he employer and the employee [must] agree to exclude" those hours from "working time" (brief for NY St Dept of Labor at ADD91). The 1972 manual also stated that, in order to exclude an aide's sleeping period, "[a]dequate sleeping facilities" must be "provided" to the employee (id.). That guidance was relatively short-lived. In a 1988 opinion letter issued by the Supervisor for the Administrative Services Unit, DOL moved to a "rule of thumb" that fixed "13 hours as the normal standard for working time" for home health care aides (brief for NY St Dept of Labor at ADD134). A bona fide, regularly scheduled sleeping period was no longer required. An agreement between employer and employee was no longer required. And adequate sleeping facilities were no longer required.
Far from "consistently interpret[ing] the Wage Order" (majority op at 167), DOL has adopted varying and even conflicting interpretations of the very same text. These so-called "[m]inor variations" (majority op at 178 n 6) have very real effects on plaintiffs' lives: they make the difference between adequate sleeping facilities (or not), an agreed-upon schedule (or not), and a livable wage (or not). In light of the profound impact on plaintiffs' daily lives, they are certainly entitled to "quibble[]" (majority op at 178 n 6) over these meaningful departures from their governing wage order.
As the majority notes, home health care aides "care for some of the most vulnerable members of our society, doing work essential to the survival of their patients" (majority op at 168). These employees are "predominantly composed of women and recent immigrants" (majority op at 168), and comprise a workforce that is "easily exploited and vulnerable to various forms of wage abuse" (majority op at 168). Plaintiffs allegations in this case are "disturbing" to say the least, and "paint a picture of rampant and unchecked years-long exploitation" (majority op at 183). DOL's interpretation of the Wage Order not only enables this mistreatment of home health care aides, it directly affects their livelihood: with 11 hours of pay deducted from their earnings, home health care aides are paid an hourly rate less than the statewide minimum wage. Rather than hold DOL accountable, the majority defers.
In Andryeyeva v New York Health Care, Inc.: Order reversed, with costs, matter remitted to Supreme Court, Kings County, for further proceedings in accordance with the opinion herein and certified question answered in the negative.
Opinion by Judge RIVERA. Chief Judge DIFIORE and Judges STEIN, WILSON and FEINMAN concur. Judge GARCIA dissents and votes to affirm in an opinion in which Judge FAHEY concurs.
In Moreno v Future Health Care Servs.: Order, insofar as appealed from, reversed, with costs, matter remitted to the Appellate Division, Second Department, for further proceedings in accordance with the opinion herein and certified question answered in the negative.
Opinion by Judge RIVERA. Chief Judge DIFIORE and Judges STEIN, WILSON and FEINMAN concur. Judge GARCIA dissents and votes to affirm in an opinion in which Judge FAHEY concurs.