Albertson's, Inc. v. United Food & Commercial Workers Union

157 F.3d 758, 4 Wage & Hour Cas.2d (BNA) 1704, 98 Cal. Daily Op. Serv. 7680, 159 L.R.R.M. (BNA) 2452, 1998 U.S. App. LEXIS 24864, 1998 WL 696425
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 8, 1998
DocketNo. 97-35500
StatusPublished
Cited by34 cases

This text of 157 F.3d 758 (Albertson's, Inc. v. United Food & Commercial Workers Union) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albertson's, Inc. v. United Food & Commercial Workers Union, 157 F.3d 758, 4 Wage & Hour Cas.2d (BNA) 1704, 98 Cal. Daily Op. Serv. 7680, 159 L.R.R.M. (BNA) 2452, 1998 U.S. App. LEXIS 24864, 1998 WL 696425 (9th Cir. 1998).

Opinion

SCHWARZER, Senior District Judge:

We must decide whether members of a labor union may assert claims under the Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201-19, in federal court without resort to the grievance-arbitration procedure under the collective bargaining agreement between their union and their employer. The district court held that the employees are not required to submit their claims to arbitration before bringing suit under the FLSA. We affirm although on somewhat different reasoning.

FACTS AND PROCEDURAL HISTORY

Albertson’s is a retail grocery chain with 800 stores in 19 states, employing about 85,-000 people. Collective Bargaining Agreements (CBAs) cover about 28,000 employees who are members of various local unions (Locals) of the United Food & Commercial Workers International Union (UFCW). The Locals and the UFCW complain that Albert-son’s forces employees to work without punching the time clock and without getting paid-work that is described as “off-the-clock.” Allegedly, an employee who records the full amount of time spent to complete an assignment risks discipline or discharge.

The UFCW threatened to sue to collect for off-the-clock work. Albertson’s responded by filing this action against twenty Locals and the UFCW (together, the Unions). Its complaint contained four counts, but only Count One is before us on appeal. That Count, brought under § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, sought a declaratory judgment that the Unions will breach the CBAs by failing to submit their off-the-clock claims to arbitration.1 Shortly after the filing of this action, the Unions-along with others-filed actions [760]*760against Albertson’s in California, Washington, and Florida alleging claims under the FLSA as well as under state wage and hour statutes. The state court actions were removed and all actions have since been consolidated in the District of Idaho.

Albertson’s moved for partial summary-judgment on Count One declaring that the Unions must arbitrate their FLSA claims. The Unions moved to dismiss the complaint for, among other grounds, lack of subject matter jurisdiction and failure to state a claim. The district court denied Albertson’s motion for partial summary judgment and granted the Unions’ motion to dismiss with respect to Count One. The court then determined that “Count One predominates in terms of its importance to this litigation,” found that under Federal Rule of Civil Procedure 54(b) there was no just reason for delay, and directed entry of final judgment. Albertson’s appealed from the judgment.

The district court had subject matter jurisdiction pursuant to 29 U.S.C. § 185(a) and 28 U.S.C. § 1331. We have appellate jurisdiction under 28 U.S.C. § 1291, and we affirm.

DISCUSSION

The district court, feeling itself bound by the presumption in favor of arbitrability where the CBA contains a broad arbitration clause and finding no limiting provisions, proceeded on the assumption that the wage and hour claims asserted by the Unions were covered by the arbitration clauses. It then acknowledged that an inherent conflict exists between arbitration under the CBAs and the underlying purpose of the FLSA and concluded that public policy resolves that conflict in favor of permitting FLSA claims to be litigated without resort to arbitration. We agree with the result reached by the district court, but on somewhat different reasoning.2

The Supreme Court’s decision in Barrentine v. Arkansas-Best Freight Sys., Inc., 450 U.S. 728, 101 S.Ct. 1437, 67 L.Ed.2d 641 (1981), makes clear that the rights of employees arising out of the collective bargaining agreement are separate and distinct from those arising out of a statute such as the FLSA:

While courts should defer to an arbitral decision where the employee’s claim is based on rights arising out of the collective-bargaining agreement, different considerations apply where the employee’s claim is based on rights arising out of a statute designed to provide minimum substantive guarantees to individual workers.

Id. at 737, 101 S.Ct. 1437. The Court cited its prior decision in Alexander v. Gardner-Denver Co., 415 U.S. 36, 51, 94 S.Ct. 1011, 39 L.Ed.2d 147 (1974), in which it had held that “in enacting Title VII, Congress had granted individual employees a nonwaivable, public law right to equal employment opportunities that was separate and distinct from the rights created through the ‘majoritarian processes’ of collective bargaining.” Barrentine, 450 U.S. at 737-38, 101 S.Ct. 1437. The Court rejected the contention that because FLSA claims are based on disputes over wages and hours and thus “at the heart of the collective-bargaining process,” they are “particularly well suited to resolution through collectively bargained grievance and arbitration procedures.” Id. at 738, 101 S.Ct. 1437. It reasoned:

The statutory enforcement scheme grants individual employees broad access to the courts ... permitting] an aggrieved employee to bring his statutory wage and hour claim “in any Federal or State court of competent jurisdiction.” No exhaustion requirement or other procedural barriers are set up, and no other forum for enforcement of statutory rights is referred to or created by the statute.

Id. at 740, 101 S.Ct. 1437. And it explained:

In submitting his grievance to arbitration, an employee seeks to vindicate his contractual right under a collective-bargaining [761]*761agreement. By contrast, in filing a lawsuit under [the statute], an employee asserts independent statutory rights accorded by Congress. The distinctly separate nature of these contractual and statutory rights is not vitiated merely'because both were violated as a result of the same factual occurrence. And certainly no inconsistency results from permitting both rights to be enforced in their respectively appropriate forums.

Id. at 745-46, 101 S.Ct. 1437 (alteration in original) (quoting Gardner-Denver, 415 U.S. at 49-50, 94 S.Ct. 1011 (internal quotation marks omitted)). That the grievance may have presented a claim under the CBA in addition to one under the FLSA, the Court observed, was thus irrelevant for even if it did, the employees would not be precluded from bringing their action in federal court. See id. at 731 n. 4, 101 S.Ct. 1437. So here, it is irrelevant whether the employees’ claims may present an arbitrable dispute; they have an independent statutory right under the FLSA that they are entitled to pursue in court.

We followed Barrentine in Local 246 Utility Workers Union v. Southern California Edison Co.,

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157 F.3d 758, 4 Wage & Hour Cas.2d (BNA) 1704, 98 Cal. Daily Op. Serv. 7680, 159 L.R.R.M. (BNA) 2452, 1998 U.S. App. LEXIS 24864, 1998 WL 696425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albertsons-inc-v-united-food-commercial-workers-union-ca9-1998.