Friday, January 3, 2014

Adair v. ConAgra Foods, Inc.[1]

Opinion handed down August 30, 2013
Link to Eighth Circuit Opinion

Laborers brought a suit against their employer, ConAgra Foods, Inc., alleging that ConAgra violated the Fair Labor Standards Act by failing to compensate them and others similarly situated for time spent walking between changing stations where they put on and remove their uniforms and the time clock where they punch in and out for the day. When the district court granted summary judgment in favor of ConAgra on the issue of whether the time spent changing clothes was lawfully excluded under 29 U.S.C.A. § 203(o) but denied ConAgra’s motion for summary judgment on the issue of whether time spent walking between changing stations and the time clock was lawfully excluded, the parties filed a joint motion to certify the second issue for interlocutory appeal. The Eighth Circuit reversed the district court’s denial of summary judgment and remanded for further proceedings.

I.                   Facts & District Court Holding

ConAgra Foods, Inc., operates a facility which produces frozen foods.[2] ConAgra employs hourly production and maintenance laborers and requires them to wear certain protective gear, pursuant to a collective bargaining agreement.[4] ConAgra furnishes and launders the gear, which remains at the facility overnight.[5] Thus the uniforms are kept on site, and the laborers must change into and out of these uniforms at the facility.[6]  After donning their uniforms, the laborers walk to a time clock and punch in for the day; at the end of the day, the laborers punch out at the time clock and walk back to the changing area to doff their uniforms.[7]  The laborers have never been compensated for time spent changing into and out of uniforms or for time spent walking in either direction between changing stations and the time clock.[8]

Two laborers brought suit against ConAgra, alleging that ConAgra violated the Fair Labor Standards Act [9] by failing to compensate them for time spent changing into and out of uniforms, and time spent walking between changing stations and the time clock. [10]

The district court first considered, under ConAgra’s summary judgment motion, whether the time spent changing clothes was lawfully excluded and concluded it was lawfully excluded under an exception created by Congress.[11] Thus the district court granted ConAgra’s summary judgment motion on this issue.[12] This decision was not appealed.[13]

The district court next considered the issue of whether the time spent walking between the clothes-changing station and the time clock was lawfully excluded. [14] The laborers argued that putting on and removing their uniforms were principal activities of their employment, and because the laborers day commences and concludes in the changing stations rather than at the time clock, the time spent walking between the changing stations and the time clock must be included in their hours. [15]
The district court found “substantial disagreement in the case law” on the issue, but concluded that putting on and removing uniforms begin and end the workday, because wearing those uniforms is “integral and indispensable to [the laborers’] principal work activity.”[16] Thus the district court denied ConAgra’s motion for summary judgment on this second issue. [17] The parties filed a joint motion to certify this second issue for appeal. [18]

II.                Legal Background

The Fair Labor Standards Act states an employer must compensate a covered employee “for a workweek longer than forty hours…at a rate not less than one and one-half times the regular rate at which he is employed.”[19] A workweek is a collection of “workdays”, which is a “period between the commencement and completion on the same workday of an employee’s principal activity or activities.”[20] The statute defines a “principal activity” as one “which such employee is employed to perform.”[21] Thus the Eighth Circuit found that if an employee is not “employed to perform” a particular activity, even if that activity may be basic to the employee’s work, then it is not a principal activity that begins or ends the workday.[22]

Under § 203(o) of the Fair Labor Standards Act, “any time spent changing clothes or washing at the beginning or end of each workday” is excluded from “the hours for which an employee is employed.”[23] “The clear implication of § 203(o) is that clothes changing and washing, which are otherwise a part of the principal activity, may be expressly excluded from coverage by agreement.”[24]

III.             Instant Decision

The Eighth Circuit reversed the district court’s denial of ConAgra’s summary judgment on the second, walking-time issue.[25]  The Eighth Circuit found that since the clothes-changing time of the laborers was excluded “by custom or practice” under the collective bargaining agreement, the hours present changing clothes are not “hours for which an employee is employed.”[26] The Eighth Circuit read § 254(a) and § 203(o) together to conclude that the changing of clothes is not a principal activity that begins and ends the workday, because it is not an activity the employee is employed to perform.[27]  Therefore, the Eighth Circuit held that the time spent walking between the clothes-changing station and the time clock was not a part of the workday for which the employer is liable to pay overtime compensation under the Fair Labor Standards Act.[28]

IV.             Comment

The Eighth Circuit adhered strictly to Congress’s exclusion under § 203(o) to reverse the district court’s denial of summary judgment. However, the Eighth Circuit quickly dismissed the laborers Alvarez argument. While the two cases do include factual differences, the holding in Alvarez [29] seems particularly applicable in this instance. The Eighth Circuit could have elaborated on how the holding in Alvarez does not change the outcome of Adair. This elaboration could have helped flesh out the Court’s interpretation of § 203(o) and the Fair Labor Standard Act in general.

- Kaci Peterson


[1] 728 F.3d 849 (8th Cir. 2013).
[2] Id. at 850.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] 29 U.S.C.S. § 201 et seq.
[10] Adair, 728 F.3d at 850.
[11] Id. at 851.  Congress amended the Fair Labor Standards Act to specifically exclude “time spent in changing clothes” from “the hours for which an employee in employed” provided that time has been excluded by “the express terms of or by custom or practice under a bona fide collective-bargaining agreement.” 29 U.S.C.A. § 203(o).
[12] Adair, 728 F.3d at 851.  The district court concluded the protective gear on by laborers constituted “clothes” and the clothes-changing time is uncompensated by custom or practice under a bona fide collective bargaining agreement. Id.
[13] Id.
[14] Id.
[15] Id.
[16] Id.
[17] Id.
[18] Id. at 851-52.
[19] 29 U.S.C.A. § 207(a)(1).
[20] 29 C.F.R. § 790.6(b).
[21] 29 U.S.C.A. § 254(a)(1).
[22] Adair, 728 F.3d at 852. Congress also had passed the Portal-to-Portal Act, which excludes from the workday time spent “walking, riding, or traveling to and from the actual place of performance of the principal activity or activities which [an] employee is employed to perform,” and time spent performing “activities which are preliminary to or postliminary to said principal activity or activities.” 29 U.S.C.A. § 254(a).
[23] 29 U.S.C.A. § 203(o).
[24] Adair, 728 F.2d at 852 (citing Steiner v. Mitchell, 350 U.S. 247, 255 (1956)) (internal citations omitted).  The Eighth Circuit did note that under IBP, Inc. v. Alvarez, an activity that is “integral and indispensable to a principal activity is itself a principal activity.” Adair, 728 F.2d at 852-52, (citing IBP, Inc. v. Alvarez, 546 U.S. 21, 37 (2005)). However, the Eighth Circuit found that since Alvarez did not include a collective bargaining agreement and § 203(o) was not considered by the Alvarez court, the Alvarez decision was not controlling. Adair, 728 F.2d at 853.
[25] Id. at 852.
[26] Id. (citing 29 U.S.C.A. § 203(o)).
[27] Id.
[28] Id. at 853.
[29] See supra ft. 24.