JEROME B. SIMANDLE, Chief District Judge.
This is an action brought by Vanessa Graham against her employers for failing to compensate her for overtime at the required higher overtime rate, in violation of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201
Defendants and Plaintiff have each filed for summary judgment on the two claims. [Docket Items 12 & 17.] Because Defendants have shown that the employment contract was intended to compensate Plaintiff for overtime at time and a half her regular hourly wage, Plaintiff has not raised a material factual dispute, and no reasonable jury could find on the present record that Defendant violated the overtime requirements of the FLSA or the NJWHL, the Court will grant summary judgment for Defendants and deny Plaintiff's motion.
The summary judgment record in this case is short, and the facts are largely undisputed.
Plaintiff Vanessa Graham was hired in 2011 by Defendant Hathaway's Lodge, Inc. to work as a server at its restaurant, Hathaway's, and subsequently at its sister restaurant next door, Sweetwater at Hathaways, Inc. ("Sweetwater"). (Def. Statement of Material Facts ("SMF") [Docket Item 12-1] ¶¶ 1-2.)
Graham was promoted to the position of server supervisor in October 2012. The employment contract, dated October 1, 2012 and signed by both Graham and Defendants' President, George Kyrtatas, states,
(Employment Contract, Ex. A to Pl. Br. [Docket Item 17-2].) The central dispute in this case concerns Graham's regular hourly wage under this contract and whether the contract incorporated overtime pay at the rate of one and one-half the regular hourly wage.
Graham, by contrast, argues that her weekly salaries were exclusive of overtime pay. She asserts in a response to an interrogatory that from October 1, 2012 through June 2, 2013, her "regular hourly rate" was "$18.75, "based upon the $750 I was paid for the week." The $18.75 hourly wage appears to have been calculated by dividing $750 by 40 hours. Thus, Graham asserts that her $750 weekly salary was based upon a 40-hour workweek. (Graham Interrog., Ex. B to Pl. Br. [Docket Item 17-2] at 5.) Taking $18.75 as her regular hourly rate, she calculates her "hourly overtime wage [at] $28.13 per hour ($18.75 × 1.5)." (
Graham further claims in her interrogatory response that after her weekly salary was reduced to $625 beginning in June 2013, her hourly wage changed to $15.63. Graham appears to have calculated this new wage by dividing $625 by 40 hours, and therefore appears to argue that her $625 weekly salary was based upon a 40-hour workweek. (
Graham's interrogatory response, however, is inconsistent with the position she takes in her opposition and cross-motion for summary judgment. In her brief, she argues that, according to the employment letter which compensated her $750 per week for 55 hours of work, her regular hourly wage was $750 divided by 55, or $13.64, and thus her overtime wage, one and a half times her hourly wage, was $20.46 per hour. (Pl. Br. [Docket Item 17-1] at 4.) She asserts that she should have been paid at a rate of $13.64 per hour for 40 hours and $20.46 per hour for 20 hours of overtime, or $954.80 each week, for the entire period from October 1, 2012 through February 7, 2014. (
Plaintiff filed her Complaint on May 29, 2014. Count One asserts a violation of the FLSA, while Count Two asserts a violation of the NJWHL. Plaintiff argues under both counts that Defendants failed to pay her overtime compensation for all of the hours she worked over 40 hours per week. (Compl. [Docket Item 1] ¶¶ 17, 24.) Defendants moved for summary judgment on both counts, arguing that Plaintiff's employment contract was intended to cover all overtime pay in accordance with the statutory requirements. (
At summary judgment, the moving party bears the initial burden of demonstrating that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a);
A factual dispute is material when it "might affect the outcome of the suit under the governing law," and genuine when "the evidence is such that a reasonable jury could return a verdict for the nonmoving party."
The standard by which the Court decides a summary judgment motion does not change when, as here, the parties file crossmotions.
Congress's purpose in enacting the Fair Labor Standards Act ("FLSA") "was to protect all covered workers from substandard wages and oppressive working hours."
The dispute in this case is over whether Graham's employment contract was intended to include overtime premiums for hours worked over 40 each week. The employment contract states only that Graham be paid "$750.00 for a 50-60 hour work week," without specifying a regular hourly rate
Kyrtatas' testimony supports this interpretation. He testified that the salary was intended to compensate Graham for overtime each week at one and a half times the regular rate, and that when he was deciding what a "reasonable" weekly salary would be, he based his calculation on a regular rate of $10 per hour and an overtime rate of $15 per hour. (Kyrtatas Dep. 17:1-13.) Plaintiff makes no argument that this type of contract is unlawful under the FLSA or NJWHL: she does not argue that it is impermissible under either statute to prohibit an employer and employee from agreeing upon a workweek that includes regularly scheduled overtime at a total weekly salary that includes adequate compensation for both regular and overtime hours.
Nor does Plaintiff point to anything in the record that would contradict Kyrtatas' version of facts. She makes no argument at all that the employment contract was intended to exclude payment for overtime premiums. Nor does she contend that when she signed the employment contract, she expected to separately receive payment on top of the agreed-upon sum she received every week. On the contrary, Kyrtatas testified that before the contract was signed, he "made it very clear" to Plaintiff that she would work approximately sixty hours a week and told her that her weekly salary would be $750. (
Plaintiff makes only a single argument in opposition to Defendants' motion and in support of her motion for summary judgment: she argues that 29 C.F.R. § 778.113(a) requires the regular hourly rate of pay to be computed "by dividing the salary by the number of hours which the salary is intended to compensate," and that, based upon a salary of $750 for a 55-hour workweek, Plaintiff should be compensated at a regular rate of $13.64 and a resulting overtime rate of $20.46. She argues that under the plain language of § 778.113, "it is clear that plaintiff's compensation did not account for her first 40 hours of work plus an additional 20 hours at the overtime rate." (Pl. Br. at 5.)
The Court does not agree. 29 C.F.R. § 778.113 is only a general provision and describes broadly how regular and overtime pay for salaried employees are computed.
These provisions make clear that the hourly rate calculation championed by Plaintiff is used in situations where both parties agree that the weekly salary is exclusive of overtime premiums. That is not the case here. There is evidence from Kyrtatas that the parties intended the contract to include all compensation for overtime. Although Plaintiff is entitled to the benefit of all favorable inferences at summary judgment, Plaintiff has failed to point to even a scintilla of evidence from which the Court may infer that she and Defendants had a "clear mutual understanding" that her weekly salary would not include compensation for overtime premiums. Plaintiff does not attempt to rebut Kyrtatas' testimony, and makes no argument at all in her brief about the intention of the parties — her argument rests solely on the language of § 778.114.
Based on the record, which Plaintiff has not attempted to refute, and the arguments presently before the Court, the Court concludes that no reasonable jury could find that Plaintiff was deprived of overtime compensation in violation of the FLSA and NJWHL. The Court will therefore grant summary judgment in favor of Defendants. Because Defendants have shown that a reasonable jury could find in their favor, the Court will deny Plaintiff's cross-motion.
For the foregoing reasons, the Court will grant Defendants' motion for summary judgment and deny Plaintiff's cross-motion for summary judgment. The accompanying Order will be entered.