Chancze Leprettre v. Rcs, LLC

CourtLouisiana Court of Appeal
DecidedNovember 16, 2016
DocketCA-0016-0382
StatusUnknown

This text of Chancze Leprettre v. Rcs, LLC (Chancze Leprettre v. Rcs, LLC) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chancze Leprettre v. Rcs, LLC, (La. Ct. App. 2016).

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

16-382

CHANCZE LEPRETTRE

VERSUS

RCS, LLC

**********

APPEAL FROM THE LAFAYETTE CITY COURT PARISH OF LAFAYETTE, NO. 2015CV4081 HONORABLE DOUGLAS J. SALOOM, CITY COURT JUDGE

ULYSSES GENE THIBODEAUX CHIEF JUDGE

Court composed of Ulysses Gene Thibodeaux, Chief Judge, Jimmie C. Peters, and Billy Howard Ezell, Judges.

AFFIRMED.

Gregory J. Miller Miller, Hampton & Hilgendorf 3960 Government Street Baton Rouge, LA 70806 Telephone: (225) 343-2205 COUNSEL FOR: Plaintiff/Appellee - Chancze Leprettre

Michael P. Maraist Maraist Law Firm, APLC 600 Jefferson Street - Suite 810 Lafayette, LA 70501 Telephone: (337) 266-2230 COUNSEL FOR: Defendant/Appellant - RCS, LLC THIBODEAUX, Chief Judge.

Defendant, RCS, LLC (“RCS”), the former employer of appellee,

Chancze Leprettre, appeals a trial court judgment awarding Mr. Leprettre

$1,219.72 in past due wages, $19,083.60 in penalty wages, and $3,500.00 in

attorney fees pursuant to La.R.S. 23:632. Upon termination of Mr. Leprettre’s

employment, RCS offset certain training costs pursuant to a Training Loan

Agreement (“Loan Agreement”) which the trial court determined violated public

policy. Mr. Leprettre answers the appeal and requests additional attorney fees for

work performed on appeal.

For the following reasons, we affirm the judgment of the trial court,

and we award attorney fees in the amount of $4,000.00 to Mr. Leprettre on appeal.

I.

ISSUES

There are four issues before the Court:

(1) whether an employer can offset expenses for required preemployment training prerequisites and withhold these expenses from an employee’s final wages pursuant to a written agreement;

(2) whether RCS properly asserted a good faith defense to the imposition of penalty wages by relying on the terms of the Loan Agreement;

(3) whether Mr. Leprettre introduced sufficient evidence at trial that he made legal demand for his final wages; and

(4) whether the trial court properly calculated Mr. Leprettre’s daily rate of pay for purposes of computing penalty wages owed pursuant to La.R.S. 23:632. II.

STANDARD OF REVIEW

An appellate court may not set aside a trial court’s finding of fact in

the absence of manifest error or unless it is clearly wrong. Stobart v. State,

Through DOTD, 617 So.2d 880 (La.1993); Rosell v. ESCO, 549 So.2d 840

(La.1989). A trial court’s determination with regard to whether a plaintiff is

entitled to penalty wages under La.R.S. 23:632 is a factual finding, which can only

be reversed on appeal if manifest error occurs. Kaplon v. Rimkus Consulting Grp.,

Inc. of La., 09-1275 (La.App. 4 Cir. 4/28/10), 39 So.3d 725, writ denied, 10-1207

(La. 7/2/10), 39 So.3d 587.

III.

FACTS AND PROCEDURAL HISTORY

Mr. Leprettre was hired by RCS effective January 21, 2015. Mr.

Leprettre was an at-will employee of RCS. At the time of his hire, Mr. Leprettre

entered into a Loan Agreement with RCS. The Loan Agreement stated that RCS

would lend Mr. Leprettre $1,625.00 in training costs paid in advance by RCS. If

Mr. Leprettre worked for RCS for at least six months following the successful

completion of the training, the loan would be considered paid in full and Mr.

Leprettre would have no further obligation to RCS. If Mr. Leprettre worked for

less than six months, the training costs would be prorated. Mr. Leprettre

completed the last of the training listed in the Loan Agreement on January 30,

2015, with the six-month anniversary of the training date occurring 181 days later

on July 30, 2015. The last day that Mr. Leprettre performed work for RCS was on

2 March 9, 2015, which was thirty-eight days after his completion of the required

training.

On March 9, 2015, RCS terminated Mr. Leprettre’s employment. Mr.

Leprettre’s payroll for his final pay period for gross wages was $1,613.00. After

RCS subtracted the standard payroll deductions from Mr. Leprettre’s gross wages,

his final net wages amounted to $1,219.72. RCS argues that with respect to the

Loan Agreement’s original principal balance of $1,625.00, Mr. Leprettre was

entitled to a credit of $341.16 for working thirty-eight of 181 days of the loan

forgiveness period, resulting in a loan balance of $1,283.84. RCS further argues

that because Mr. Leprettre’s prorated loan balance of $1,283.84 was greater than

his final net wages of $1,219.72, RCS properly offset the entirety of Mr.

Leprettre’s wages against the prorated loan balance per the terms of the Loan

Agreement.

As an RCS Maintenance Technician, Mr. Leprettre’s typical work

schedule consisted of working “seven days on, seven days off.” Mr. Leprettre

typically worked twelve-hour shifts each day; however, sometimes the position

required that employees work overtime. RCS paid Mr. Leprettre $14.00 per hour

for the first forty hours worked in a work week, plus overtime at $21.00 per hour

for all hours worked over forty in a work week. Mr. Leprettre’s last two-week pay

period with RCS began on Monday, March 2, 2015, and ended on Sunday, March

15, 2015. During the first week of the pay period, Mr. Leprettre worked a total of

ninety-one hours. RCS thereafter informed Mr. Leprettre of the termination of his

employment, with March 9, 2015 being his last day of work. Mr. Leprettre’s final

pay stub indicates that he worked forty hours at regular rate of pay ($14/hour) and

fifty-one hours at time-and-a-half of his regular rate of pay ($21/hour).

3 On appeal, RCS argues that the trial court improperly relied on this

Court’s prior decision in Newsom v. Global Data Systems, Inc., 12-412, 12-413

(La.App. 3 Cir. 12/12/12), 107 So.3d 781, writ denied, 13-429 (La. 4/5/13), 110

So.3d 595, in holding that the Loan Agreement’s final wage deduction provision is

void as against public policy. RCS further argued that even in the alternative that

RCS could not legally offset Mr. Leprettre’s loan balance against his final wages,

RCS established an affirmative defense to the imposition of penalty wages by its

good faith reliance on the terms of an otherwise enforceable loan agreement. RCS

further contends that Mr. Leprettre did not introduce evidence at trial that he made

proper legal demand on RCS for his final wages prior to filing suit, which is fatal

to his claim for penalty wages. Last, RCS argues that the trial court failed to

strictly construe the penalty wage provision of La.R.S. 23:632, when it improperly

included overtime pay in its calculation of Mr. Leprettre’s daily rate of pay.

IV.

LAW AND DISCUSSION

Newsom and Public Policy

RCS argues that Mr. Leprettre and RCS entered into an enforceable

loan agreement and that RCS properly offset the amounts due against Mr.

Leprettre’s final wages pursuant to the Loan Agreement. Specifically, RCS

contends that the trial court improperly relied on this Court’s prior decision in

Newsom, 107 So.3d 781, in holding that the Loan Agreement’s final wage

deduction provision is void as against public policy. In Newsom the court held that

where employees were at-will, the employment contract requiring them to

4 reimburse their employer company for education and training expenses after

separation, was void as against public policy. Id.

RCS contends that the Loan Agreement is distinguishable from the

employment agreement at issue in Newsom insofar as the Loan Agreement was an

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