Appeals Court Upholds $22 Million Judgment in FLSA Dispute

The Third Circuit affirmed a jury verdict that awarded more than $22 million in back wages to 11,780 employees at a Pennsylvania battery manufacturing plant. The verdict requires employers to pay employees for the actual time spent completing activities as opposed to a “reasonable time” to get the tasks done.

Putting on and taking off PPE 

The employees at the subject battery manufacturing plant manufacture lead acid batteries and a variety of related components. Exposure to lead is a known hazard associated with their work. Due to this fact, the company required most nonexempt employees to follow workplace safety procedures. Relevant to the case is that the workers had to wear uniforms and other personal protective equipment (PPE) during shifts and then shower at the end of their shifts. So, they ended up spending time donning and doffing the PPE and uniforms.

Department of Labor (DOL) launches investigation

According to a DOL investigation, the battery manufacturing company was not paying nonexempt employees for all the time they spent changing into uniforms and PPE at the start of their shifts. Nor were they paying the employees for the time they spent changing and showering at the end of their shifts. The DOL also alleged this unpaid time led to overtime violations.

According to the DOL, the alleged pay shortage amounted to violations of the Fair Labor Standards Act (FLSA). So, the DOL filed a lawsuit against the battery manufacturer.

During the trial, a federal court in Pennsylvania granted the DOL summary judgment, finding that changing and showering were “integral and indispensable” to the employees’ principal activities.

Later, in 2023, a jury awarded $22.25 million in back wages to the impacted workers. The verdict was the single largest jury award for an FLSA violation ever obtained by the DOL, the agency said. Nonetheless, the district court declined to award liquidated damages.

The battery manufacturer appealed the decision, and the DOL cross-appealed the denial of liquidated damages.

When the lawsuit reached the Third Circuit, the employer argued that the lower court and the jury had made the wrong call. The company argued that there was no FLSA violation because it had been paying workers to shower and change since 2003. According to the battery manufacturer, in 2003, the company started giving workers a five-minute “grace period” at the start of each shift to dress and get to their workstations, and another five minutes to undress and shower. In 2016, the post-shift grace period was doubled to 10 minutes.

However, the company never recorded how much time the workers actually spent changing and showering. The company argued that focusing on the actual amount of time it took to shower and change “would reward employees for dragging their feet or tending to personal matters.”

Nonetheless, the court was not swayed and ruled in favor of the employees. Actual time—not estimated time—was what mattered under the FLSA.

Talk to a Tampa, FL FLSA Attorney Today 

Florin Gray represents the interests of employees in disputes with their employer over overtime concerns. Call our Tampa employment lawyers today to schedule an appointment, and we can begin investigating your claims immediately.

Source:

hrmorning.com/news/flsa-mistake-donning-doffing/