Powell v. Simon Mgt. Group, L.P.
Case Date: 05/29/1998
Court: Supreme Court
Docket No: 79544
265 Kan. 197 No. 79,544 MICHAEL POWELL, RICK LANCASTER, RICK WOLFF, TED HOGAN, MARK DUTTON, and ROBERT SAGE, Appellants, and TIM LEARNED, Intervenor/Appellant, v. SIMON MANAGEMENT GROUP, L.P., Appellee. SYLLABUS BY THE COURT 1. The test to determine if meal break periods are compensable under the Fair Labor Standards Act is whether the employee's time is spent predominantly for the employer's benefit or for the employee's. 2. The record is examined and it is held: The district court did not err in finding that the employees predominantly benefited from how they spent their meal time break and granting the employer's motion for a directed verdict. Appeal from Sedgwick district court; KARL W. FRIEDEL, judge. Opinion filed May 29, 1998. Affirmed. Jim L. Lawing, of Wichita, argued the cause and was on the briefs for appellants. Kelly J. Johnson, of Morrison & Hecker, L.L.P., of Wichita, argued the cause, and Alan L. Rupe, of the same firm, was with her on the brief for appellee. The opinion of the court was delivered by ALLEGRUCCI, J.: Six security officers and a maintenance worker, all full-time employees, filed this action under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (1994), (FLSA) against the shopping mall management firm which employed them. They alleged that they worked 2 1/2 hours overtime each week without compensation, in violation of 29 U.S.C. 207 (1994). They sought liquidated damages and an award of costs and attorney fees under 29 U.S.C. 216(b) (1994). The case was tried to the court, and judgment was entered for the employer. The employees appealed. This court granted employer's motion to transfer the case from the Court of Appeals to this court. Plaintiffs/appellants Michael Powell, Rick Lancaster, Rick Wolff, Ted Hogan, Mark Dutton, and Robert Sage were at pertinent times security officers employed by defendant/appellee Simon Management Group, L.P., (Simon Group) a shopping mall management firm. Intervenor/appellant Tim Learned was at pertinent times employed by the Simon Group as a maintenance worker. Christine Viles and John Bates supervised the employees for the Simon Group. They testified for defendant. The employees' workday was 8 1/2 hours long, including a 1/2-hour uncompensated meal break. They sought compensation for the meal break on the theory that they were required to continue rendering service to the employer during the meal break. The security officers monitored their radios and sometimes responded to calls during the meal break, and they believed that they were required to do so. The Simon Group's position was that the security officers were mistaken in that belief. The supervisors, however, had not corrected the mistaken belief. The maintenance worker also was required to monitor the radio and respond to calls during his meal breaks. Any worker who missed his lunch break to respond to a call could note it on his time card and receive compensation for the time. After trial and the subsequent submission of proposed findings of fact and conclusions of law by the parties, the trial judge stated that he was granting the Simon Group's motion for directed verdict, which had been made at the close of the plaintiffs' testimony. Having done so, the judge went further to "consider the evidence as a whole." He explained to counsel that he was "trying to save [counsel] another trip back to the well." In this endeavor, the trial judge said he made "findings on the basis of the evidence as a whole, where I do weigh credibility and--determine credibility and weigh the evidence." He further explained: "Well, I'm saying that even when we come to the point of the--on the motion for directed verdict, that even if I considered in light most favorable to the plaintiffs and intervenor, what they understood, that that's not sufficient as a matter of law to get them over the bridge." There are several unusual circumstances that make it difficult to review the "facts" of this case on appeal. One confounding circumstance is the trial judge's making alternative rulings. He granted the Simon Group's motion for a directed verdict, but he also took all the evidence into account as a fallback measure. When a motion for directed verdict has been granted, this court is required to resolve all facts and inferences reasonably to be drawn from the evidence in favor of the party against whom the ruling was made. Simon v. National Farmers Organization, Inc., 250 Kan. 676, 683, 829 P.2d 884 (1992). The trial judge did not make a statement of the evidence resolved against the Simon Group. This court is not in a position to review the evidence independently because the record on appeal does not contain a full trial transcript. "An appellant has the burden to designate a record sufficient to establish the claimed error. Without an adequate record, an appellant's claim of alleged error fails." Smith v. Printup, 254 Kan. 315, Syl. 14, 866 P.2d 985 (1993). When the trial court makes findings of fact and conclusions of law and enters judgment at the conclusion of the evidence, this court generally is to determine whether the findings are supported by substantial competent evidence and whether the findings are sufficient to support the trial court's conclusions of law. Tucker v. Hugoton Energy Corp., 253 Kan. 373, Syl. ¶ 1, 855 P.2d 929 (1993). In this case, however, appellants do not challenge the trial judge's findings of fact. "Determinations of fact, unappealed from, are final and conclusive." Justice v. Board of Wyandotte County Comm'rs, 17 Kan. App. 2d 102, 109, 835 P.2d 692, rev. denied 251 Kan. 938 (1992). The trial judge in this case, however, generally failed to determine issues of credibility or to resolve inconsistent testimony except by inference. As a result, his "determinations of fact," which are unchallenged by the appellants, are more often than not merely recitals of who said what. With all this in mind, we turn to a patched-together account. The district court stated aloud the following findings of fact:
Tim Learned's testimony that he was required to monitor the radio, that a response by him was required more often than not, and that he was reprimanded for not responding to direct radio calls was not contradicted or rebutted. The testimony of the other employees to the same effect was contradicted. The meal breaks were to be taken when time permitted and with the supervisor's approval. The employees were not required to remain on mall premises during meal breaks. The remaining findings of fact were made by the trial judge from the bench by referring to the proposed findings filed by the parties. The trial judge expressly rejected the following two of the Simon Group's proposed findings of fact:
The trial judge rejected plaintiffs' proposed finding No. 5 on account of its including the phrase "at all times." The proposed finding states:
The trial judge adopted the following two of plaintiffs' proposed findings with the qualification that the subject was what plaintiffs believed or understood to have been the case rather than what they knew or what actually occurred:
With regard to plaintiffs' proposed finding No. 12, the trial judge stated:
The trial judge rejected proposed finding No. 13. We note that plaintiffs' counsel did not differentiate proposed findings of fact from proposed conclusions of law. It appears that Nos. 14-17 should be considered conclusions of law. For ease of reference, the employee handbook provision for meal breaks is quoted here in pertinent part:
The following appears to be the Simon Group's proposed findings of fact which the trial judge seems to have "subscribed to": The principal complaint for each of the employees, except Sage, was that he was required to keep his radio on during meal breaks. Lancaster complained that he was required to monitor his radio during meal breaks, but he did not recall any specific incidents when his meal period was interrupted. He was allowed to have lunch with other security guards, and he was allowed to leave the premises during the meal break with no geographic limitations placed on his movements. He could, and sometimes did, eat in the mall, read, watch television, listen to the radio, and make telephone calls. The testimony of the other security guards echoed Lancaster's with one exception--Sage recalled no restrictions on meal periods, and he testified "that no one ever told him he had to leave his radio on during meal periods." Learned, the maintenance worker, also complained that he was required to monitor the radio during his meal break. He testified that his lunch periods always lasted longer than half an hour, that he talked with his wife on the telephone for approximately 15 minutes and spent the remainder of his break in the break room with other maintenance and landscaping employees. He was able to leave the premises and run errands. The sole issue on appeal is whether the "predominant benefit test" is the proper test to determine if meal break periods are compensable under the FLSA. We preface our discussion of this issue by noting that state and federal courts have concurrent jurisdiction of actions brought under the FLSA, 29 U.S.C. §§ 201 et seq. Olson v. Rembrandt Printing Co., 375 F. Supp 413, 417 (E.D. Mo. 1974). As noted above, the plaintiffs do not challenge the trial judge's findings of fact. "Determinations of fact, unappealed from, are final and conclusive." Justice v. Board of Wyandotte County Comm'rs, 17 Kan. App. 2d at 109. "This court's review of conclusions of law is unlimited." Gillespie v. Seymour, 250 Kan. 123, 129, 823 P.2d 782 (1991). The trial judge adopted various conclusions of law proposed by the Simon Group, but the crux of this case is stated in conclusion of law No. 20:
In resolving this appeal, we need to consider two subsections of 29 U.S.C. § 207--subsection (k), which is applicable to government employees providing fire protection and law enforcement personnel who have nontraditional working hours--and subsection (a)(1), which provides, in part:
29 C.F.R. 785.19 (1997), which governs § 207(a)(1) employees, states in pertinent part:
29 C.F.R. § 553.223(b) (1997) provides, in part:
Lamon v. City of Shawnee, Kan., 972 F.2d 1145 (10th Cir. 1992), cert. denied 507 U.S. 972 (1993), was an action by police officers to recover back pay for, among other things, being on duty during the meal period. Law enforcement and fire protection employees, whose work schedules typically do not fit the workweek method of wage and time calculations, receive separate consideration under 29 U.S.C. 207(k). The police officers in Lamon were subsection (k) employees. With regard to the applicable regulation, the Tenth Circuit Court of Appeals stated:
Shortly after deciding Lamon, the Tenth Circuit reversed a district court's award of back pay to Emporia police detectives for lunch periods. Armitage v. City of Emporia, Kan., 982 F.2d 430 (10th Cir. 1992). Explaining why the lower court's decision was in error, the Court of Appeals stated:
The plaintiffs in Burnison v. Memorial Hosp., Inc., 820 F. Supp. 549 (D. Kan. 1993), were emergency medical technicians and paramedics. During meal periods, they were required to respond to emergency calls but were compensated if interrupted. They could leave the hospital and could patronize drive-through restaurants, but they were not permitted to park their ambulance and go inside a restaurant. Burnison is like the present case in that the plaintiffs were not government employees and the parties had stipulated that 29 C.F.R. 758.19 rather than 29 C.F.R. 553.223 applied. They argued that Armitage and Lamon should be distinguished on those grounds. The federal district court disagreed:
Brinkman v. Dept. of Corr. of State of Kan., 804 F. Supp. 163 (D. Kan. 1992), aff'd 21 F.3d 370 (10th Cir.), cert. denied 513 U.S. 927 (1994), was decided before the Tenth Circuit issued its decision in Armitage. Corrections officers at the Lansing Correctional Facility alleged that their half-hour break period was compensable work time rather than a bona fide meal period. The employees relied on the district courts' decisions in Armitage, Lamon, Wahl, and Nixon. Focusing on recent developments, the trial judge stated:
Nonetheless, the trial judge drew the following conclusion:
Further commenting on its reading of Lamon, the federal district court stated:
"Administrative regulations 'while not controlling upon the courts by reason of their authority, do constitute a body of experience and informed judgment to which courts and litigants may properly resort for guidance.' Skidmore v. Swift & Co., 323 U.S. 134, 140, 65 S. Ct. 161, 164, 89 L. Ed. 124 (1944)." 804 F. Supp. at 172 n.10. In the end, the court declined to enter summary judgment on the ground that it was precluded by genuine issues of material facts from saying "as a matter of law that the meal breaks predominantly benefit the defendant." 804 F. Supp. at 173. Some circumstances in Brinkman were uncontroverted:
Footnote 2 states:
Among those circumstances in question were
The trial judge eventually entered judgment on a jury verdict for the corrections officers, and the Tenth Circuit affirmed. Brinkman v. Dept. of Corr. of State of Kan., 21 F.3d 370 (10th Cir. 1994). The jury determined not only that the Department of Corrections violated the FLSA, but it also determined that the violation was willful, thereby extending the limitations period from 2 to 3 years. 21 F.3d at 372. On appeal, the employer did not challenge the jury's finding that the uncompensated half-hour break constituted a violation of the FLSA. Nor did the employer argue that the evidence was insufficient to support the jury's finding of a willful violation. 21 F.3d 372-73. In the present case, appellants state that their argument
Appellants do not attempt to establish an authoritative status for administrative regulations. Nor do they suggest that the federal court cases from the District of Kansas and the Tenth Circuit Court of Appeals ought not be persuasive authority for this court's consideration of a cause of action arising under federal legislation. As we have seen, in Brinkman the district court quoted Skidmore v. Swift & Co., 323 U.S. 134, 140, 89 L. Ed. 124, 65 S. Ct. 161 (1944), for the proposition that instead of being controlling authorities, administrative regulations provide guidance to the courts. 804 F. Supp. at 172 n.10. The rule generally followed by this court with respect to properly adopted state administrative regulations is that they have the force and effect of statutes, Murphy v. Nelson, 260 Kan. 589, 595, 921 P.2d 1225 (1996), and, like statutes, regulations are subject to certain rules of construction. Both this court and federal courts "strive for a reasonable interpretation or construction of a statute or regulation which avoids an unreasonable or absurd result." 260 Kan. 589, Syl. 3. The interpretation currently given to the administrative regulations concerning employees' meal breaks by the federal courts in this state and in the Tenth Circuit is less literal than appellants advocate, but does not seem to be unreasonable. Appellants have not furthered their cause by directing the court's attention to cases from any other districts or circuits in which 29 C.F.R. 785.19 is interpreted as they would have it. The single authority they cite is Ford Motor Credit Co. v. Milhollin, 444 U.S. 555, 565, 63 L. Ed. 2d 22, 100 S. Ct. 790 (1980): "[J]udges are not accredited to supersede Congress or the appropriate agency by embellishing upon the regulatory scheme." The subject of the Supreme Court's observation was the legislation and regulation governing commerce in credit, a field in which courts particularly heed the lawmakers:
Nothing has been called to this court's attention that would suggest the same degree of deference is due regulation in the field of labor standards. Moreover, as noted by the Simon Group, this court's recent consideration in Stone v. City of Kiowa, 263 Kan. 502, 950 P.2d 1305 (1997), of the related issue of on-call compensation for law enforcement officers included discussion of the predominant benefit test. It seems, therefore, that the predominant benefit test, which the trial judge derived from the recent federal cases from this district and circuit, is the correct one. The question to be posed is "Who predominantly benefited from how the employees spent their meal break time?" In the present case, there is the peculiar circumstance of the employees' perceptions of what was required of them not precisely matching actual requirements. By posing the question in this way, the court will be considering how the employees actually spent their time, thus giving them the "benefit" of their misperceptions. There is no question that the employees in this case performed some service for the employer during meal breaks by monitoring their radios and making themselves available to respond when necessary. Providing this service, however, does not seem to have eclipsed the central purpose of the break as a time for the employees to relax and eat. On occasions when the employees were deprived of their time to relax and eat because they responded to calls, they were eligible for compensation and needed only to make note the occasion on the time card. Thus, it would appear that the employees, rather than the employer, predominantly benefited from how they spent their meal break time. Finally, with respect to liability, the employees contend that accurate records of their meal break activities would show the extent of their duties and that responsibility for keeping the records lies with the employer. Due to the Simon Group's failure to fulfill its recordkeeping duty, the argument continues, the employees cannot prove their case. Thus, they would have the court conclude, the court must rule in their favor. This argument has no merit where, as here, the employees' own accounts of how they spent their meal breaks do not support their claims. The judgment of the district court is affirmed. |