Castaneda v. JBS USA, LLC

819 F.3d 1237, 26 Wage & Hour Cas.2d (BNA) 405, 2016 U.S. App. LEXIS 5884, 2016 WL 1258394
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 31, 2016
Docket14-1217, 14-1221
StatusPublished
Cited by19 cases

This text of 819 F.3d 1237 (Castaneda v. JBS USA, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castaneda v. JBS USA, LLC, 819 F.3d 1237, 26 Wage & Hour Cas.2d (BNA) 405, 2016 U.S. App. LEXIS 5884, 2016 WL 1258394 (10th Cir. 2016).

Opinion

HARTZ, Circuit Judge.

Plaintiffs are current and former hourly employees in the slaughter and fabrication operations of a beef-processing plant in Greeley, Colorado, now owned by JBS USA, LLC (JBS). Employees on the slaughter- line kill the cattle and disassemble them into sides of beef; employees on the fabrication line cut the sides into various beef products.' Plaintiffs have been paid under the terms of collective-bargaining agreements negotiated between the United Food and Commercial Workers International Union (the Union) and JBS. (For convenience we will refer to both JBS and its predecessors as JBS.)

Plaintiffs filed suit against JBS in October '2010,' claiming that they did not receive compensation required by the Fair Labor Standards Act (FLSA). The disputes concern when the work day begins, when it ends, and what, if any, compensation is due when the production lines halt for a 30-minute meal break. After a bench trial the United States District Court for the District of Colorado found that Plaintiffs had failed to' carry their burden of proof and entered judgment in favor of JBS. Exercising jurisdiction under 28 U.S.C. '§ 1291, we affirm. The court could properly finid that compensation for Plaintiffs’ activities complied with the FLSA.

I. BACKGROUND

A. Introduction to the Legal Framework

The FLSA typically requires an employer to compensate employees for all the time that the employee spends working on the employer’s behalf. See Smith v. Aztec Well Servicing Co., 462 F.3d 1274, 1285 (10th Cir.2006). The FLSA does not define work, see Smith, 462 F.3d at 1285, but the Supreme Court has defined the *1242 term in the FLSA as “physical or mental exertion (whether burdensome or not) controlled or required by. the employer and pursued necessarily and primarily for the benefit of the employer and his business,” Tenn. Coal, Iron & R. Co. v. Muscoda Local N. 123, 321 U.S. 590, 598, 64 S.Ct. 698, 88 L.Ed. 949 (1944) (emphasis added).

One issue that has been the source of many disputes is when the work day begins and ends. A partial solution is provided by § 4(a) of the Portal-to-Portal Act of 1947, under which commute time and walking to and from the employee’s work station is ordinarily noncompensable. It provides that the term work does not include either (1) walking or travel time to and from the employee’s “actual place of performance of the principal activity or activities which [the] employee is employed to perform” or (2) “activities which are preliminary to or postliminary to said principal activity or activities.” 29. U.S.C. § 254(a). The .Act leaves open to dispute, however, what is encompassed by the term principal activity. The Supreme Court has explained, that “activities performed either before , or after the regular work shift, on or off the production line, are compensable ... if those activities are an integral and indispensable part of the principal activities for which covered workmen are employed and are not specifically excluded by Section 4(a)(1).” Steiner v. Mitchell, 350 U.S. 247, 256, 76 S.Ct. 330, 100 L.Ed. 267 (1956) (time that battery-plant employees exposed to toxic chemicals spent changing clothes and showering pre- and post-shift was compensable). In other words, “any activity-that is integral and indispensable to a principal activity is itself a principal activity.” IBP, Inc. v. Alvarez, 546 U.S. 21, 37, 126 S.Ct. 514, 163 L.Ed.2d 288 (2005) (internal quotation marks omitted).

. To avoid some of the remaining points of controversy, Congress has left a few matters to collective bargaining. After a Department of Labor interpretive bulletin said that changing clothes, at least in some circumstances, could be an integral part of a worker’s principal activity (and therefore compensable, as confirmed in Steiner, 350 U.S. at 256, 76 S.Ct. 330), Congress enacted 29 U.S.C. § 203(o). See Sandifer v. U.S. Steel Corp., — U.S. —, 134 S.Ct. 870, 875-76, 187 L.Ed.2d 729 (2014). Under that statute a collective-bargaining agreement can provide that changing clothes and washing at the beginning and end of the work day are not compensable. The parties have disputed what activities (such as donning (and doffing) protective gear and picking up (and disposing of) equipment) can be encompassed by this exclusion from compensation. And they have also disputed whether workers must be compensated for their walk time between the locker rooms (where they don and doff clothing) and the production lines. We will discuss the applicable law in greater detail below.

Another ground for ignoring some activities at the beginning and ¿nd of the work day is the de minimis doctrine, which originated in Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 692, 66 S.Ct. 1187, 90 L.Ed. 1515 (1946). “When the matter in issue concerns only a few seconds or minutes of work beyond the scheduled working hours, such trifles may be disregarded. Split-second absurdities are not justified by the actualities of working conditions or by the policy of the [FLSA].” Id. The de minimis doctrine has been codified (and limited, see Sandifer, 134 S.Ct. at 880 n. 8) by the Department of Labor, which has promulgated a rule stating that “insubstantial or insignificant periods of time beyond the scheduled working hours, which cannot as a practical administrative matter be precisely recorded for *1243 payroll purposes, may be disregarded,” 29 C.F.R. § 785.47, although “[a]n employer may not arbitrarily fail to count as hours worked any part, however small, of the employee’s fixed or regular working time or practically ascertainable period of time he is regularly required to spend on duties assigned to him,” Id.; see Reich v. Monfort, 144 F.3d 1329, 1333-34 (10th Cir.1998) (adopting three-factor test to determine whether time is de minimis: “(1) the practical administrative difficulty of recording the additional time; (2) the size of the claim in the aggregate; and (3) whether the claimants performed the work on a regular basis”); id. at 1333 (“There is no precise amount of time that may be denied compensation as de minimis.”).

Once the work day starts, all activity'is ordinarily compensable until the work day ends.

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819 F.3d 1237, 26 Wage & Hour Cas.2d (BNA) 405, 2016 U.S. App. LEXIS 5884, 2016 WL 1258394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castaneda-v-jbs-usa-llc-ca10-2016.