Brown v. Ford Storage & Moving Co.

224 P.3d 593, 43 Kan. App. 2d 304, 2010 Kan. App. LEXIS 15
CourtCourt of Appeals of Kansas
DecidedFebruary 12, 2010
DocketNo. 101,915
StatusPublished
Cited by6 cases

This text of 224 P.3d 593 (Brown v. Ford Storage & Moving Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Ford Storage & Moving Co., 224 P.3d 593, 43 Kan. App. 2d 304, 2010 Kan. App. LEXIS 15 (kanctapp 2010).

Opinion

McAnany, J.:

Christopher Brown brought this action on behalf of himself and other similarly situated delivery truck drivers alleg[306]*306ing the failure of the defendants Ford Storage and Moving Co. (Ford), and Nebraska Furniture Mart, Inc. (Nebraska), to pay overtime wages for hours worked in excess of 46 hours per work week in violation of the Kansas Minimum Wage and Maximum Hours Law (KMWMHL), K.S.A. 44-1201 et seq. Brown contends that Ford employed him and other drivers to deliver goods for Nebraska. He contends that Nebraska controlled the deliveiy services of Ford and its drivers to the extent that Ford and Nebraska became joint employers within the meaning of Kansas law.

Nebraska moved to dismiss, contending that the KMWMHL does not apply. The matter was extensively briefed. Nebraska asserted that it is not subject to the KMWMHL because it is already subject to regulation under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq. (2006), based upon its interstate commerce activities and its annual gross sales in excess of $500,000.

While denying the legal conclusion that Nebraska is subject to the FLSA, Brown did not dispute that Nebraska was engaged in interstate commerce with the requisite sales volume. Following oral argument, the district court sustained the motion and dismissed the claims against Nebraska. The court found that Nebraska was not an “employer” under the terms of the KMWMHL, but rather was subject to the Fair Labor Standards Act, and therefore was specifically excluded from the KMWMHL by K.S.A. 44-1202(d).

A week later, Ford moved for judgment on the pleadings or, in the alternative, for summary judgment, asserting the same arguments successfully asserted by Nebraska. Following receipt of Brown’s brief in opposition, the district court sustained Ford’s motion and this appeal followed.

At issue in this appeal is the scope and interaction of KMWMHL and the FLSA

Standard of Review

First, we must briefly address our standard of review. While the district court dismissed Nebraska pursuant to K.S.A. 60-212(b)(6) for failure to state a claim upon which relief may be granted, the court considered facts beyond the face of the pleading (Nebraska’s [307]*307interstate commerce activities and its sales volume), thereby converting the motion to one for summary judgment. See Underhill v. Thompson, 37 Kan. App. 2d 870, 874, 158 P.3d 987 (2007). Ford’s motion was for summary judgment. Accordingly, and also because the scope and effect of the FLSA and the KMWMHL are questions of law, our review of Nebraska and Ford’s motions is de novo. See Double M Constr. v. Kansas Corporation Comm'n, 288 Kan. 268, 271, 202 P.3d 7 (2009); Troutman v. Curtis, 286 Kan. 452, Syl. ¶ 1, 185 P.3d 930 (2008). In our de novo review, we apply the familiar summary judgment standards restated in Underhill, 37 Kan. App. 2d at 874-75.

The Statutes

Kansas

K.S.A. 44-1204(a), which is part of the KMWMHL, sets forth the basic overtime pay requirement of Kansas law. It requires an employer to pay its employee at least 1.5 times the employee’s regular hourly wage for hours worked in excess of 46 hours in a workweek. However, the statute also provides that this overtime pay requirement does not apply to employees who are “covered under the provisions of section 7 of the [FLSA].” K.S.A. 44-1204(c)(1). Similarly, K.S.A. 44-1202(d) provides that the term “employer” “shall not include any employer who is subject to the provisions of the [FLSA].”

Federal

The FLSA, 29 U.S.C. § 207(a)(1) (2006), requires overtime pay for work in excess of 40 hours in the workweek, rather than work in excess of 46 hours under Kansas law. It provides:

“[N]o employer shall employ any of his employees who in any workweek is engaged in commerce or in die production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.” 26 U.S.C. § 207(a)(1).

To be “an enterprise engaged in commerce or in the production of goods for commerce” under 29 U.S.C. § 207(a)(1), the enter[308]*308prise must have “employees engaged in commerce or in the production of goods for commerce, or [have] employees handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce by any person,” and have an annual gross sales volume of at least $500,000. 29 U.S.C. § 203(s)(l) (2006).

Finally, 29 U.S.C. § 213(b) (2006) of the FLSA excludes certain categories of employees from maximum hours and minimum pay regulation:

“The [overtime] provisions of section 207 of this title shall not apply with respect to—
“(1) any employee with respect to whom the Secretary of Transportation has power to establish qualifications and maximum hours of service pursuant to the provisions of section 31502 of tide 49 [including, among other things, interstate motor carriers].” 29 U.S.C. § 213(b).

In our de novo consideration of the motions of Ford and Nebraska, we must answer three questions:

(1) Are Ford and Nebraska subject to regulation under the FLSA?

(2) If so, does this exempt them from regulation under the KMWMHL?

(3) If the FLSA takes Ford and Nebraska out of state wage and hour control, is Brown still entitled to KMWMHL overtime?

1. Are Ford and Nebraska subject to regulation under the FLSAP

Goldberg v. Faber Industries, Inc.,

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Brown v. FORD STORAGE AND MOVING CO., INC.
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877 P.2d 247 (Court of Appeals of Washington, 1994)

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Bluebook (online)
224 P.3d 593, 43 Kan. App. 2d 304, 2010 Kan. App. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-ford-storage-moving-co-kanctapp-2010.