J. LEON HOLMES, District Judge.
The parties have filed cross motions for partial summary judgment in the related cases of Helmert v. Butterball, No. 4:08CV00342 JLH, and Garner v. Butterball, No. 4:10CV01025 JLH. For the following reasons, the plaintiffs' motion for partial summary judgment is granted in part, and the defendants' motion for partial summary judgment is denied.
A court should enter summary judgment if the evidence, viewed in the light most favorable to the nonmoving party, demonstrates that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986); Cheshewalla v. Rand & Son Constr. Co., 415 F.3d 847, 850 (8th Cir.2005). The party moving for summary judgment bears the initial responsibility of demonstrating
Under the Fair Labor Standards Act, an employer must pay its employees a minimum wage for forty hours of work each week. 29 U.S.C. § 206(a) (2006). For any hours worked in excess of forty hours per week, the employer must pay its employees "at a rate not less than one and one-half times the regular rate at which he is employed." Id. § 207(a)(1). The FLSA does not define "work" or "workweek," and as a result, courts have been left to decide whether particular activities engaged in by employees constitute "work" and, if so, whether an employer has violated the FLSA by failing to compensate its employees for those activities. To define the term "work" as it is used in the Act,
29 C.F.R. § 785.7 (2011). In Anderson v. Mount Clemens Pottery Co., the Court defined the statutory workweek as "all time during which an employee is necessarily required to be on the employer's premises, on duty or at a prescribed workplace," and held that employers are required to compensate employees for that time. 328 U.S. 680, 690-91, 66 S.Ct. 1187, 1194, 90 L.Ed. 1515 (1946) (holding that the time necessarily spent by employees walking from timeclocks near the factory entrance gate to their workstations was part of the statutory workweek and, thus, compensable).
In the year following Mount Clemens, Congress passed the Portal-to-Portal Act, amending certain provisions of the FLSA and narrowing the coverage of the FLSA "by excepting two activities that had been treated as compensable under [prior caselaw]: walking on the employer's premises to and from the actual place of performance of the principal activity of the employee, and activities that are `preliminary or postliminary' to that principal activity." IBP, Inc. v. Alvarez, 546 U.S. 21, 27, 126 S.Ct. 514, 520, 163 L.Ed.2d 288 (2005); see 29 U.S.C. § 254(a). "Other than its express exceptions for travel to and from the location of the employee's `principal activity,' and for activities that are preliminary or postliminary to that principal activity, the Portal-to-Portal Act [did] not . . .
29 C.F.R. § 790.6(a).
Under the FLSA, the "workday" is "the period between the commencement and completion on the same workday of an employee's principal activity or activities." Id. § 790.6(b). "It includes all time within that period whether or not the employee engages in work throughout all of that period." Id. The FLSA regulations define "principal activities" as those which the employee is "employed to perform" or those integral and indispensable to a principal activity. Id. § 790.8.
Id. § 785.24(c); see also Steiner v. Mitchell, 350 U.S. 247, 252-56, 76 S.Ct. 330, 333-35, 100 L.Ed. 267 (1956) (changing clothes and taking showers in a battery plant, where the manufacturing process involved the extensive use of toxic materials, was an integral part of the employees' jobs); Mitchell v. King Packing Co., 350 U.S. 260, 263, 76 S.Ct. 337, 339, 100 L.Ed. 282 (1956) (knife-sharpening activities of workmen in a meatpacking plant before and after their scheduled shift time were integral and indispensable to their work). In other words, "any activity that is `integral and indispensable' to a `principal activity' is itself a `principal activity.'" Alvarez, 546 U.S. at 37, 126 S.Ct. at 525. "Periods of time between the commencement of the employee's first principal activity and the completion of his last principal activity on any workday must be included in the computation of hours worked. . . ." 29 C.F.R. § 790.6; see Gorman v. Consol. Edison Corp., 488 F.3d 586, 591 (2d Cir.2007) (noting that "employees are paid for a continuous workday—which begins with the first principal activity and ends with the last").
In light of this understanding of what constitutes compensable work under the FLSA, the relevant regulations, and case law, the Court will address each of the cross motions for partial summary judgment in turn.
In their motion for partial summary judgment, the plaintiffs contend that the undisputed facts establish that donning and doffing smocks at Butterball's Ozark and Huntsville plants are integral and indispensable to the principal duties of the production employees at those plants.
Alvarez v. IBP, Inc., 339 F.3d 894, 902-03 (9th Cir.2003), aff'd, 546 U.S. 21, 126 S.Ct. 514, 163 L.Ed.2d 288 (2005). Courts generally consider three factors to determine whether activities performed before or after the regular work shift are integral and indispensable: (1) whether the activity is required by the employer, (2) whether the activity is necessary for the employee to perform the employee's job duties, and (3) whether the activity primarily benefits the employer. Bonilla v. Baker Concrete Const., Inc., 487 F.3d 1340, 1344 (11th Cir.2007); Ballaris v. Wacker Siltronic Corp., 370 F.3d 901, 910-12 (9th Cir.2004); Dunlop, 527 F.2d at 400-01.
Consideration of these factors necessarily involves factual determinations. See Bernard v. IBP, Inc. of Neb., 154 F.3d 259, 265 (5th Cir.1998) ("Whether meal time is predominantly for the benefit of the employer is a question of fact that is ordinarily resolved by the trier of fact after hearing all of the evidence."); Ruffino v. North Slope Borough, No. 92-36866, 1994 WL 201174, at *3 (9th Cir. May 23, 1994) ("[W]hether time is spent predominantly for the employer's benefit . . . is a question of fact. . . .") (internal citations omitted); Rodriguez v. Carey Intern., Inc., Nos. 03-22442-CIV, 03-22752-CIV, 03-22962-CIV, 03-22963-CIV, 03-23211-CIV, 04-21074-CIV, 04-21104-CIV, 2004 WL 5582173, at *4 (S.D.Fla. Sept. 15, 2004) (refusing to grant judgment as a matter of law on the compensability of certain activities because "[t]here is a factual question as to the regularity of the activities, whether the employer required some of these actions, or whether the employee performed them for his own benefit"); Jerzak v. City of South Bend, 996 F.Supp. 840, 847 (N.D.Ind.1998) (stating that whether an activity was reasonably necessary was a question of fact for the jury).
As with any other type of case, however, when the material facts are not in dispute, a court may grant summary judgment on the issue of whether a particular activity is integral and indispensable to the employees' principal job duties.
In this case, the parties have stipulated to the relevant facts regarding the donning and doffing of smocks. The smocks at issue are single-layered cloth, white shirts that tie in the front. They have three-quarter length sleeves, are permeable, and provide no insulation. Before the shift begins, a production employee must obtain a clean, laundered smock from the supply window. An employee is not allowed to wear a smock that was worn on the previous work day, even if the smock is not noticeably soiled. During each break, the employee stores the smock on a hook and dons the same smock again when the break is concluded, unless the smock is soiled enough to warrant obtaining a new one. At the end of each shift, the employee deposits the used smock in a bin located near the exits to the production areas.
Butterball's employee handbook requires production employees to comply with Butterball's Good Manufacturing Processes, which are used to ensure food safety and the quality of Butterball's products. As they relate to smocks, the Good Manufacturing Processes generally state that each employee must obtain a clean smock from the supply room on a daily basis, may not wear the smock outside the plant or in restrooms, and must turn in the smock after each shift. Butterball's training materials state that "[s]mocks, hairnets, and the other forms of outerwear are necessary to prevent both contamination and foreign objects from getting into our product. Our product must be kept clean and must not be contaminated with any foreign material." (Pls.' Stip. Facts ¶ 56, Helmert ECF No. 361.) In deposition testimony, a number of Butterball managers at the Ozark and Huntsville plants stated that smocks are worn primarily for food safety. (Id. ¶¶ 57, 59, 61, and 62.)
Based on these facts, the plaintiffs argue that there is no genuine issue of material fact as to whether donning and doffing the smocks are integral and indispensable to the principal job duties of Butterball's production employees. In other words, the plaintiffs contend that wearing smocks is (a) required by Butterball, (b) necessary for the employee to perform his or her duties, and (c) primarily for the benefit of Butterball. "An act is necessary to a principal activity if that act is required by law, by company policy, or by the nature of the work performed." Perez v. Mountaire Farms, Inc., Nos. 09-1917 and 09-1966, 650 F.3d 350, 366, 2011 WL 2207110, at *7 (4th Cir. Jun. 7, 2011) (citing Alvarez, 339 F.3d at 903). Here, the parties have stipulated that Butterball, pursuant to its Good Manufacturing Processes,
As evidenced by Butterball's training materials, Butterball's handbook, and the deposition testimony of Butterball managers, the smocks' primary purpose—and the reason Butterball requires them—is food safety. Although smocks also help protect employees' clothes, it cannot reasonably be denied that donning and doffing smocks primarily benefit Butterball. As Judge Trauger has explained:
Jordan v. IBP, Inc., 542 F.Supp.2d 790, 807 (M.D.Tenn.2008) (emphasis in original). Food safety is, or should be, the paramount concern in every facility that
Based on the stipulated facts, the plaintiffs are entitled to summary judgment on the claim that donning and doffing of smocks by production employees at Butterball's Huntsville and Ozark plants are integral and indispensable to the principal activities of those employees. Consequently, donning and doffing of smocks by those employees are not excluded from compensation under the FLSA by the Portal-To-Portal Act.
The plaintiffs have also requested the Court to rule on several hypothetical questions, urging that a ruling on those questions would assist the parties in reaching a settlement, but the Court declines to give an advisory opinion answering hypothetical questions. Cf. Aetna Life Ins. Co. v. Haworth, 300 U.S. 227, 240-41, 57 S.Ct. 461, 464, 81 L.Ed. 617 (1937) (distinguishing a justiciable controversy from "an opinion advising what the law would be upon a hypothetical state of facts"); State of Minn. v. U.S. Steel Corp., 438 F.2d 1380, 1384 (8th Cir.1971) (refusing to address issues not yet ripe even though doing so might hasten settlement and avoid lengthy, expensive litigation). Therefore, the plaintiffs' motion for partial summary judgment is granted in part and denied in part.
It is undisputed that Butterball compensates its employees for six minutes per day for donning and doffing, regardless of the amount of time that the employees actually spend doing so. Butterball contends that the six minutes per day is a reasonable amount of time for donning and doffing.
It is clear from the Supreme Court's decision in Alvarez that employers are to record and pay employees for actual hours worked—in other words, all of the time between an employee's first principal activity and last principal activity that is not otherwise excluded under the Act.
Butterball argues to the contrary. Butterball first contends that it may compensate employees for reasonable or average time worked rather than actual time. Butterball cites to a number of cases in which courts calculated back pay awards for employees based upon reasonable estimates of the amount of time that it took the employees to perform the compensable work at issue. See Tum v. Barber Foods,
Metzler v. IBP, Inc., 127 F.3d 959, 965-66 (10th Cir.1997). In a case such as this one, it is impossible to determine the actual time that each plaintiff spent in compensable donning-and-doffing-related activities over a two or three year period when the employer failed to keep a record of that time. Cf. Alvarez, 339 F.3d at 914 (upholding the district court's compensation measure based on "reasonable" time, "thereby avoiding countless individual plaintiff-specific quagmires while directing the parties to individualize the damage measure to the extent possible nevertheless"). More often than not, such awards may be based on a reasonable estimate of the time that employees were engaged in the compensable activities.
However, those cases do not stand for the proposition that under the FLSA employers need not compensate employees for all of the time that they actually worked. In Reich v. IBP, Inc., the Secretary of Labor brought an action against IBP alleging that it had violated the overtime and recordkeeping provisions of FLSA.
On appeal, the Tenth Circuit affirmed the district court's conclusion that employees should be paid on the basis of reasonable time to conduct the compensable activities rather than on the basis of the actual time it took them to conduct the activities. Reich v. IBP, Inc., 38 F.3d 1123, 1127 (10th Cir.1994). After the second
Jordan, 2004 WL 5621927, at *13; see also Garcia v. Tyson Foods, Inc., 474 F.Supp.2d 1240, 1248 (D.Kan.2007) ("Other statements made by the trial court in Reich further suggest that the court intended defendants to compensate . . . employees for the reasonable time spent donning and doffing only until such time as defendants began recording the actual time spent by employees in performing these activities."). Although damages may be awarded on a reasonable basis, as explained in Jordan v. IBP, Inc., the FLSA requires employers to compensate their employees for actual hours worked.
Butterball also relies heavily upon a U.S. Department of Labor Field Operations Handbook that authorizes employers to "set up a formula by which employees are allowed given amounts of time to perform clothes changing and washup activities, provided the time set is reasonable in relation to the actual time required to perform such activities." Dept. of Labor Wage and Hour Division, Field Operations Handbook § 31b01a (Sept. 19, 1996), available at http://www.dol.gov/whd/FOH/index. htm. Butterball argues that the Department of Labor provides for plug time payments through this handbook provision and, thus, has not rejected the practice as a matter of law. Like opinion letters, administrative handbooks do not bind the courts, though they can be persuasive. Myers v. Copper Cellar Corp., 192 F.3d 546, 554 (6th Cir.1999). The handbook section cited above is unpersuasive. First, it appears that section 31b01a is a subpart to section 31b01, which explains whether clothes changing and washup activities are compensable in the context of a collective bargaining agreement when the agreement makes no mention of the practice. Despite the structure of the handbook sections, Butterball argues that the provision makes no sense in the context of a collective
Even if the Court were to agree with Butterball on this point, however, the section is unpersuasive for other reasons. In January of 2001, the Administrator of the Wage and Hour Division of the Department of Labor issued an opinion letter stating that a company must record and pay for each employee's actual hours of work. The letter stated that "in order to comply with the FLSA and its implementing regulations . . . a company must record and pay for each employee's actual hours of work. . . ." U.S. Department of Labor Wage & Hour Division, FLSA Opinion Letter, 2001 WL 58864 (Jan. 15, 2001) (emphasis added). The letter makes clear that "the [Department of Labor] . . . [has] rejected the average time concept used by the defendant[s]." Lopez v. Tyson Foods, No. 8:06CV459, 2007 WL 1291101, at *3 (D.Neb. Mar. 20, 2007). The defendants argue that the opinion letter is an advisory memorandum with no legal authority. See Christensen v. Harris Cty., 529 U.S. 576, 587, 120 S.Ct. 1655, 1663, 146 L.Ed.2d 621 (2000). Still, the letter is "entitled to respect" to the extent that it has the power to persuade. Id. (citing Skidmore, 323 U.S. at 140, 65 S.Ct. at 164).
Butterball also cites to a letter issued in 2006 to livestock slaughterhouse managers by the Food Safety Inspection Service of the United States Department of Agriculture ("USDA") in which the Department explained that, in light of Alvarez, the eight hours of USDA inspection service provided to slaughterhouses each day, at the USDA's expense, would be modified to include a maximum of thirty minutes for donning, doffing, and travel time from the USDA office to the postmortem inspection station. (Defs.' S.J. Mot. Ex. I; Helmert ECF No. 389.) In other words, the USDA—not the individual slaughterhouse facilities—would compensate employees for donning-and-doffing-related activities. The Food Safety Inspection Service also proposed a rule that would amend the regulations for USDA inspections to include donning-and-doffing-related activities in the eight hours of work that the inspectors perform for slaughterhouses and that is paid for by the USDA. Changes to the Schedule of Operations Regulations, 75 Fed. Reg. 47,727 (proposed Aug. 9, 2010). If a slaughterhouse did not wish for donning-and-doffing-related activities to be included in the eight hours of work performed by the inspectors each day, then it could opt to pay the inspectors overtime for those activities. Neither the letter nor proposed rule suggests that a plug time system of payment is lawful under the FLSA.
Finally, Butterball argues that even if employees must be compensated for actual hours spent in compensable, donning-and-doffing-related activities, the number of actual hours an employee works does not necessarily include all of the time between the employee's first and last principal activities. In support of its argument, Butterball cites to Anderson v. Wackenhut Corp., No. 5:07CV137-DCB-JMR, 2008 WL 4999160 (S.D.Miss. Nov. 19, 2008), an unpublished opinion in which the court considered whether time spent waiting is compensable as a matter of law when the waiting occurs between an employee's first and last principal activities. The district court in Anderson concluded that the continuous workday doctrine alone does not make all time between an employee's first and last principal activities compensable. 2008 WL 4999160, at *6. The court based this conclusion on the Supreme Court's holding in Alvarez, which it interpreted to mean that post-donning walking time is compensable not because it occurs during the continuous workday but because it primarily benefits the employer. In fact, Alvarez makes clear that walking time and waiting time that occur during the continuous workday are compensable regardless whether they benefit the employer. Alvarez, 546 U.S. at 40, 126 S.Ct. at 527 ("[T]he Court of Appeals was incorrect with regard to the predoffing waiting time. Because doffing gear that is `integral and indispensable' to employees' work is a `principal activity' under the statute, the continuous workday rule mandates that time spent waiting to doff is . . . covered by the FLSA."); see also Perez, 610 F.Supp.2d at 522 ("[D]uring a continuous work day, any walking time that occurs after the beginning of the employee's first principal activity and before the end of the employee's last principal activity is . . . covered by FLSA.").
Several of the jury instructions cited by Butterball
Butterball makes a pragmatic argument against this interpretation of the continuous workday doctrine. Butterball contends that, if all of the time during the continuous workday is compensable, then an employee could arrive at the plant long before the shift begins, engage in a principal activity, sit idly in the cafeteria until the shift begins, and then demand compensation for that time. See Albanese v. Bergen Cty., N.J., 991 F.Supp. 410, 423-24 (D.N.J.1997) (noting the concern that employees might attempt to pad their hours or shirk their responsibilities if they are not required to prove that the overtime hours they worked are reasonable). Although this is a legitimate concern, it is not a basis for avoiding the continuance workday doctrine. According to the FLSA regulations,
29 C.F.R. § 785.13. Butterball, as the employer, has the authority to manage its employees' continuous workday so as to avoid idle wait time. Butterball can control when its employees' arrive to and leave from the plant and the activities they engage in while at the plant. If Butterball does not want its employees to don gear before going to the cafeteria or restrooms, it can instruct them accordingly.
Although the FLSA requires employers to compensate employees for their actual hours worked, which are measured according to the continuous workday, it is yet to be determined whether the plaintiffs are entitled to any recovery. In order to recover, the plaintiffs will have to establish that they were paid less than minimum wage for any hours worked up to forty hours per week or that they were compensated at a rate less than time and a half for hours worked in excess of forty hours per week. 29 U.S.C. §§ 206(a), 207(a)(1). If Butterball's pay practices—including its plug time policies—meet these minimum wage and overtime requirements, then the plaintiffs will not be entitled to relief.
For the reasons stated above, the plaintiffs' motion for partial summary judgment is GRANTED in part and DENIED in part. The defendants' motion for partial summary judgment is DENIED. Helmert ECF Nos. 367 and 387; Garner ECF Nos. 74 and 76.