Seventh Circuit Affirms Compensability of Donning/Doffing Time Under State Law Notwithstanding an Applicable Exception Under the FLSA

Section 203(o) of the Fair Labor Standards Act provides that time spent changing clothes or washing at the beginning or end of the workday may be excluded from hours worked pursuant to the terms of, or custom or practice under a collective bargaining agreement. Many states impose their own wage and hour requirements, however. In Spoerle v. Kraft Foods Global, Inc., the Seventh Circuit Court of Appeals concluded that Section 203(o) does not preempt state wage and hour law that does not contain an equivalent exception for time spent changing clothes or washing at the beginning or end of the workday.

In Spoerle, the employees were required to wear safety gear, such as steel-toed boots and hard hats, as well as a smock and hair nets. Each worker spent a few minutes at the beginning and end of the day donning and doffing these items. The employer and the employees’ union had agreed that this time was not compensable. The Court of Appeals rejected the plaintiff’s argument that protective gear was not “clothing” under Section 203(o). The Court of Appeals held, however, that because Wisconsin’s own wage-and-hour legislation lacked any equivalent to Section 203(o), the donning and doffing time counted as work time (and overtime) under state law.

The Court of Appeals relied upon the “saving clause” of the FLSA, which provides that no provision of the Act “shall excuse noncompliance” with any state law that establishes a higher minimum wage or a lower overtime threshold. Nothing in Section 203(o) limited the ability of states to impose broader requirements.

The Court of Appeals also rejected the argument that state law interfered in the parties’ collective bargaining. According to the court, the state statute did not require an interpretation of the collective bargaining agreement. Rather, the statute required that the agreement be ignored to the extent it attempted to avoid the obligations imposed by state wage and hour law. Management and labor acting jointly through a CBA could not override state substantive law.

This entry was written by Andrew Voss.

Fifth Circuit Rules Employers Do Not Have to Pay for Donning and Doffing Time Despite Failure to Address Issue in Collective Bargaining Negotiations

In Allen v. McWane, the Fifth Circuit considered whether an employer is required to pay for pre- and post-shift donning and doffing of protective gear under Section 203(o) of the Fair Labor Standards Act (FLSA) where the company and the union never discussed the issue, and where the employees (and union representatives) attested that they were not even aware that changing time could potentially be compensated under the FLSA. Section 203(o) of the FLSA provides that an employer does not have to pay its employees for time “changing clothes or washing at the beginning or end of each workday ... by custom or practice under a bona fide collective bargaining agreement.” 29 U.S.C. § 203(o).

The employees principally argued that Section 203(o) was inapplicable because the union did not “affirmatively” bargain away potential compensable donning and doffing time during negotiations and, therefore, the company could not have a “custom or practice under a bona fide collective bargaining agreement.” In particular, the employees relied on Kassa v. Kerry, Inc., 487 F. Supp. 2d 1063 (D. Minn. 2007), where the court “identified three elements as essential to determine the existence of a ‘custom or practice‘ under § 203 (o): time, knowledge, and acquiescence.” In Kassa, the district court found that the employer’s custom and practice did not meet these requirements because the record only established non-payment by the company for six years. In contrast, in Allen, the company had not compensated its employees for changing time since 1965. Moreover, the court noted that the employees knew that they were not being compensated for that time, and whether they were aware of their legal rights under the FLSA was not a relevant consideration. Consequently, the court affirmed summary judgment.

The court also rejected the employees’ contention that Section 203(o) should be characterized as an “exemption” under the FLSA, thereby shifting the burden of proof to the employer to establish the exemption as an affirmative defense.. The court reasoned that Section 203 “is a list of definitions and subsection (o) addresses how to define and calculate ‘hours worked,’ in contrast to Section 213, which is titled ‘Exemptions.’”

The Fifth Circuit is now in accord with the Third and Eleventh Circuits, which also have concluded that it is not necessary to raise the issue of compensation for donning and doffing time in negotiations. Anderson v. Cagle's, Inc., 488 F.3d 945, 958-59 (11th Cir. 2007); Turner v. City of Philadelphia, 262 F.3d 222, 226 (3rd Cir. 2001). Notably, only the Ninth Circuit has characterized Section 203(o) as an exemption. See Alvarez v. IBP, Inc., 339 F.3d 894, 905 (9th Cir. 2003), aff’d on other grounds, IBP, Inc. v. Alvarez, 546 U.S. 21 (2005); cf. Anderson, 488 F.3d at 957.

This entry was written by Steven Kaplan.

Fourth Circuit Finds Employers Do Not Have to Pay for Donning & Doffing Time That Was Subject to Collective Bargaining

In Sepulveda v. Allen Family Foods, Inc., the Fourth Circuit held that the company does not have to pay its employees for time spent donning and doffing because it was the subject of collective bargaining between the union—the United Food and Commercial Workers Local 27—and the company. Specifically, the issue in this case was whether time spent donning and doffing protective gear at a unionized poultry processing plant constituted “changing clothes” within the meaning of Section 203(o) of the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. This section provides that that an employer does not have to pay its employees for time “changing clothes or washing at the beginning or end of each workday ... by the express terms of or by custom or practice under a bona fide collective bargaining agreement.” 29 U.S.C. § 203(o).

The employees were required to wear steel-toe shoes, a smock, plastic apron, safety glasses, ear plugs, bump cap, hair net, rubber gloves and sleeves, and arm shields. In addition to donning and doffing these items at the beginning and end of each work day, employees were also required to sanitize their gear by dipping their gloves into a tank, splashing the liquid solutions onto their aprons, and stepping through a footbath before and after working and during extended breaks. The company had a long standing practice of paying its employees for time on the production line only.

In 2002, the union proposed that its members be paid for twelve minutes of donning and doffing time per day. The company rejected the union’s offer and continued to pay its employees for production line work only. In 2007, three production employees filed a putative collective action in which they were joined by approximately 250 current and former production workers.

The employees argued that Section 203(o) was inapplicable because the items were not “clothes” and the act of donning and doffing them was not “changing.” For example, they argued that “clothes” encompassed “regular undergarments and outerwear,” i.e., street clothes, and excluded protective safety items in the workplace. The court found the employees’ “cramped” and “narrow” definition of “clothes” and “changing” unpersuasive, reasoning that the purpose behind Section 203(a) was to leave such donning and doffing activities to the collective-bargaining process.

The court noted that Congress recognized that employers and unions are in a better position than either courts or agencies to “thresh out” how much compensable time should be allocated for “changing clothes.” Additionally, the court observed that collective bargaining allows employers and unions to reach agreements that leave both sides more satisfied than a government or court-imposed solution and that unions may be willing to trade higher wages, enhanced benefits, or improved working conditions in exchange for compensation for changing clothes. Notably, in stark contrast to this decision, the Ninth Circuit reached a different result in Alvarez v. IBP, Inc., 339 F.3d 894 (9th Cir. 2003), aff’d on other grounds, 546 U.S. 21 (2005), holding that protective items worn in the beef and pork industries are not “clothes” within the meaning of Section 203(o).

This entry was written by Steven Kaplan.