American Restaurant Group v. Clark

889 P.2d 595, 2 Wage & Hour Cas.2d (BNA) 1113, 1995 Alas. LEXIS 9, 1995 WL 53166
CourtAlaska Supreme Court
DecidedFebruary 10, 1995
DocketS-5545
StatusPublished
Cited by16 cases

This text of 889 P.2d 595 (American Restaurant Group v. Clark) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Restaurant Group v. Clark, 889 P.2d 595, 2 Wage & Hour Cas.2d (BNA) 1113, 1995 Alas. LEXIS 9, 1995 WL 53166 (Ala. 1995).

Opinion

RABINOWITZ, Justice.

This appeal involves the propriety of the superior court’s grants of partial summary judgment in favor of Steven Clark and Robert Lilley on their respective claims for overtime pay against their former employer American Restaurant Group d/b/a Cattle Company Restaurant. The primary question presented for resolution in this appeal is whether a genuine issue of material fact exists as to whether or not Clark and Lilley, as bona fide executives, were exempt from the overtime pay provisions of the Alaska Wage and Hour Act. Because there was sufficient evidence in the record before the superior court to create a material factual dispute, we hold that summary judgment was improper and we therefore reverse.

I. FACTS AND PROCEEDINGS

Steven Clark formerly held the position of general manager of the Cattle Company Restaurant in Anchorage which is owned by the American Restaurant Group (ARG). Robert Lilley formerly held the position of assistant manager of the same restaurant. Clark and Lilley each received substantial salaries as well as incentive bonuses. It is undisputed that Clark and Lilley frequently worked more than forty hours per week, for which *596 they were not paid overtime wages beyond their salaries and bonuses.

After leaving them employment with ARG, Clark and Lilley filed separate law suits against ARG for overtime pay, liquidated damages, interest, and attorney’s fees under the Alaska Wage and Hour Act (Act), AS 23.10.050-.150, and the Federal Fair Labor Standards Act, 29 U.S.C. §§ 201-219 (1988). Clark’s and Lilley’s actions were subsequently consolidated and the superior court thereafter entered partial summary judgment in favor of both Clark and Lilley on the basis that they were not bona fide executives during their employment with ARG and therefore were covered by the overtime pay provisions of the Alaska Wage and Hour Act (i.e., that ARG was obligated to pay Clark and Lilley overtime compensation under the Act). 1 This appeal followed.

II. DISCUSSION 2

Alaska Statute 23.10.060 governs payment of overtime. Alaska Statute 23.10.055 provides, in part, that AS 23.10.060 does not apply to

(9) an individual employed in a bona fide executive, administrative or professional capacity....

The applicable regulations in force throughout the period of Clark’s and Lilley’s employment with ARG defined an “executive employee” as an employee

(A) whose primary duty consists of the management of the enterprise in which he is employed or of a customarily recognized branch, department, or subdivision of the enterprise;
(B) who customarily and regularly directs the work of two or more other employees;
(C) who has the authority to hire or fire or effect any other change of status of other employees or whose suggestions or recommendations regarding these kinds of changes are given particular weight;
(D) who customarily and regularly exercises discretionary authority;
(E) who does not devote more than 20 percent of his weekly hours to activities which are not directly and closely related to the work described in this paragraph or paragraphs (1) or (11) of this section; and
(F) who is compensated on a salary basis

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Former 8 Alaska Administrative Code (AAC) 15.910(a)(7) (1991) (emphasis added). 3

*597 ARG claims that the record demonstrates the existence of genuine issues of material fact as to whether Clark and Lilley were bona fide “executive employees,” exempt from the overtime pay provision of the Act. Thus, the dispositive question in this appeal is whether the record discloses the existence of a genuine issue of material fact as to whether Clark and Lilley devoted more than twenty percent of their weekly activities to performing tasks which were not “directly and closely related” to their executive (managerial) duties.

We conclude that the superior court erred in granting partial summary judgment in favor of both Clark and Lilley for two reasons. First, review of the record shows that a genuine issue of material fact exists as to the percentages of time Clark and Lilley spent performing tasks which were not directly and closely related to their executive-managerial duties. Second, we further conclude that whether the performance by Clark and Lilley of tasks which were otherwise performed by hourly employees were directly and closely related to Clark’s and Lilley’s management duties necessarily presents factual questions which, on this record, are not appropriately resolved by summary judgment.

Clark and Lilley claim that they spent more than forty percent of their weekly work hours performing duties not directly and closely related to their management duties. They based this claim upon their performance of “many of the exact same tasks ... performed by the hourly employees they supervised.” 4 In contrast, ARG’s District Manager, Ron Englund, in his deposition testimony stated that ARG managers such as Clark and Lilley spent less than ten percent of their time “performing tasks that are performed by the hourly employees[.]”

We construe this evidence in the light most favorable to the non-movant, ARG. Wright v. State, 824 P.2d 718, 720 (Alaska 1992). Because Clark’s and Lilley’s claims for overtime rely entirely upon their performance of tasks otherwise performed by hourly employees, we hold that Englund’s deposition testimony creates a genuine issue of material fact as to the percentage of their work week that Clark and Lilley spent performing tasks which were not directly and closely related to their executive duties at ARG.

Clark and Lilley assert that even though the relevant testimony by Englund is part of the record, it should not be considered because it is found only in memoranda submitted by Clark and Lilley. We disagree, and conclude that Englund’s deposition testimony should be considered in determining whether a genuine issue of material fact exists.

Alaska Civil Rule 56(c) states, in part:

Judgment shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, show that there is no genuine issue as to any material fact and that any party is entitled to judgment as a matter of law....

*598 Under Rule 56, even if ARG failed to bring the relevant deposition testimony of Englund to the superior court’s particular attention, it did not relieve the superior court of its obligation to examine the record before determining that no genuine issue of material fact existed.

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Bluebook (online)
889 P.2d 595, 2 Wage & Hour Cas.2d (BNA) 1113, 1995 Alas. LEXIS 9, 1995 WL 53166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-restaurant-group-v-clark-alaska-1995.