Thursday, January 8, 2015

Sixth Circuit’s Squall of FLSA Meal Break Litigation

In the last few days, the Sixth Circuit has affirmed the dismissal of two different FLSA lawsuits in two different states involving two different industries, which attempted to challenge the well-established rule that employees need not be paid for lunch breaks (of at least 20 consecutive minutes) when that time is not spent predominantly for the employer’s benefit.  So, even if you eat at your desk and your phone rings, or you eat in the employer cafeteria where your boss or a co-worker may ask you a question, or you eat in your work truck, etc. , listening for emergency calls, unless you spend time working, your lunch break is not considered compensable work time under the FLSA.   In the first case, EMTs in Louisville attempted to challenge their unpaid meal breaks when they could not prove that they had reported actual working time and where the employer had a reasonable policy of imputing a 30 minute unpaid lunch break into their shift unless the employee reported working during his or her lunch break.   Jones-Turner v. Yellow Enterprise Systems, LLC., No. 14-5407 (6th Cir. 1-5-15).  The second case involved casino security guards who were required to remain on casino property during meal periods, monitor their radios and respond to emergencies if called, but otherwise could spend their lunch breaks as they chose.  Ruffin v. Motor City Casino, No. 14-1444 (6th Cir. 1-7-15).

The Ruffin Court summarized the analysis for unpaid meal breaks:

As long as the employee can pursue his or her mealtime adequately and comfortably, is not engaged in the performance of any substantial duties, and does not spend time predominantly for the employers benefit, the employee is relieved of duty and is not entitled to compensation under the FLSA.

Whether time is spent predominantly for the employer’s or the employees benefit  depends on the totality of the circumstances.  . . . It is the employee’s burden to prove that a meal period is compensable.

 . . . Although “substantial duties need not be more than waiting for something to happen, or ‘[r]eadiness to serve[,]’”“‘[i]t is only when an employee is required to give up a substantial measure of his time and effort that compensable working time is involved.’”
                 . . . .
A second factor to consider is whether the employer’s business regularly interrupts the employee’s meal period. The frequency of such interruptions is important because “[t]he question is not whether [the employees’] meals were interrupted . . . but whether the degree of interruption caused them to spend their meal periods primarily for [the employer’s] benefit.”  . . . It is thus possible that an employee who does not perform a substantial duty during the meal break, but who must consistently interrupt the meal to perform one task or another, nevertheless spends that time predominantly for the employer’s benefit.
                 . . . 
A final factor we consider is the employee’s inability to leave the employer’s property during meal breaks.
 . . . [The FLSA] regulations says that “[i]t is not necessary that an employee be permitted to leave the premises if he is otherwise completely freed from duties during the meal period.” 29 C.F.R. § 785.19(b).
                . . . .
                . . . The relevant inquiry should therefore be whether the employer requires an employee to take meals on the premises as an indirect or round-about way of extracting unpaid work from the employee.
 
In Ruffin, the issue was the alleged non-payment of 1.25 hours/week FLSA overtime compensation if the meal breaks were considered to be compensable hours worked.   (The guards were also mandated to attend a 15 minute roll call meeting every day for which they had not been properly paid).   The plaintiff guards were covered by a collective bargaining agreement which provided for paid meal breaks.  If a guard’s meal break were interrupted by an emergency call (which were “essentially unheard of”), they were entitled to make up the break.  No grievances were ever filed alleging a failure to make up a break.  The plaintiffs complained about having to monitor their radios, but admitted that they were able to read, make and receive telephone calls, surf the internet and otherwise socialize during their meal breaks.    Because the meal breaks did not constitute compensable hours worked under the FLSA, the court used those 30 minutes of paid time to offset the 15 minutes of improperly uncompensated roll-call meeting time and found that the employees had only worked 38.75 hours per week for FLSA overtime purposes. “Numerous courts . . . have declined to find that an employer’s requirement that an employee carry a radio and respond if necessary converts the meal time to work time.” 
In Yellow Enterprises, the EMTs contended that they sometimes reported working through their unpaid meal break, but occasionally were not paid for that time.  However, they also admitted that they could not prove it with examples of specific instances (and bore the burden of proof).   The employer’s policy had the following wrinkles:
·        During the plaintiffs’ employment, [the employer] automatically designated a 30-minute slot during each 8.5-hour shift as an unpaid lunch break. EMTs in the field were not allotted a specific time period for lunch but were instructed to take advantage of down time  between ambulance runs to eat a meal. This 30-minute meal break could occur at any point during an employee’s 8.5-hour shift.

·        [The employer’s] policy required employees to radio the dispatch to request permission to take a lunch break. Occasional requests for lunch breaks would be denied if call volume was too high.  . . . [C]rews would not be paid for lunch if they had the opportunity to obtain a lunch but chose not to do so.
 

The plaintiffs attempted to show that the employer knew that they had worked through some unpaid meal periods because the dispatchers were required to note when employees reported off for lunch.  However, the dispatchers were not reliable in completing this task and the employer relied exclusively on employees reporting missed lunch breaks to their supervisor, Administrator or dispatch officer.   The plaintiffs admitted that they did not always notify anyone about missed meal breaks and could not show that any employees had ever been disciplined or threatened with discipline for reporting a missed meal break.          
The Court noted that “if an employer establishes a reasonable process for an employee to report uncompensated work time the employer is not liable for non-payment if the employee fails to follow the established process.”
 

Here, the plaintiffs have not produced evidence that [the employer] had either constructive or actual knowledge that they were not receiving compensation for missed meal breaks.  . . . .  Although the plaintiffs argue that their managers had actual knowledge that the plaintiffs were regularly missing meal breaks and were not submitting missed-lunch slips, the plaintiffs’ counsel conceded at oral argument that there was no evidence in the record that the managers were regularly reviewing the crew logs at any time other than when a missed-lunch slip was submitted.  . . .  Moreover, given that the plaintiffs have testified that on several occasions they did use the missed-lunch slip procedure and were reimbursed for their missed lunches, we cannot say that it was unreasonable for [the employer] not to cross-check the crew logs with the missed-lunch slips to ensure that the plaintiffs were paid for all missed lunches.
 
The EMTs also argued that their meal breaks predominantly benefitted the employer due to certain restrictions (such as monitoring their radios, remaining within a mile of their assigned territory and responding to emergency calls), but the Court rejected those restrictions as minimal (as already discussed above).
NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.