Chapman v. Ebeling

945 So. 2d 222, 2006 WL 3615582
CourtLouisiana Court of Appeal
DecidedDecember 13, 2006
Docket41,710-CA
StatusPublished
Cited by12 cases

This text of 945 So. 2d 222 (Chapman v. Ebeling) 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
Chapman v. Ebeling, 945 So. 2d 222, 2006 WL 3615582 (La. Ct. App. 2006).

Opinion

945 So.2d 222 (2006)

Judy CHAPMAN, Plaintiff-Appellant,
v.
Robert L. EBELING, Jr., M.D., Northeast Louisiana Radiation Oncology, L.L.C., and William D. Zollinger, M.D., Defendants-Appellees.

No. 41,710-CA.

Court of Appeal of Louisiana, Second Circuit.

December 13, 2006.

*224 C. Bryan Racer, Monroe, for Appellant.

Theus, Grisham, Davis & Leigh by Robert J. Bozeman, Monroe, for Appellees.

Before CARAWAY, MOORE and LOLLEY, JJ.

CARAWAY, J.

Plaintiff/employee sued her former employer and his medical clinic for defamation after the former employer allegedly made unfavorable statements about plaintiff's work performance to a reference checker. Plaintiff also sought compensation payment for unused vacation time, based upon the employer's policy of awarding four weeks' annual paid vacation, and penalties and attorney fees for denying that wage benefit. Following a trial, the trial court denied all of plaintiff's claims and this appeal ensued. Finding no manifest error in the trial court's ruling, we affirm.

Facts

For approximately three and one-half years, Judy Chapman ("Chapman") was employed as the office and billing manager of Northeast Louisiana Radiation Oncology, L.L.C. ("the clinic"), the medical clinic of Robert Ebeling, Jr., M.D. ("Dr. Ebeling"). On February 16, 2000, Chapman gave Dr. Ebeling two-weeks' written notice of her resignation. The following day, Chapman reported sick and stayed home. Because he believed Chapman would not return to work, Dr. Ebeling called Chapman and told her that there was no reason for her to come back. The clinic paid Chapman her wages for the entire month of February. On April 13, 2000, Chapman formally demanded severance pay and *225 compensation for unused vacation time and overtime.

When she quit, Chapman's 2000 vacation time was unused. The trial testimony confirmed that clinic employees received four weeks of annual paid vacation.

In June 2000, Chapman obtained the services of an employment agency. When no offers were forthcoming, she learned that she had received poor work history references. Chapman suspected the clinic as the source and hired a professional reference checker. When the reference checker contacted Dr. Ebeling, he described Chapman as "a little emotionally unstable," and also faulted her for not telling co-workers how to perform tasks, falling behind in her work, and giving abbreviated notice of her resignation. He also blamed Chapman for the high turnover rate of employees at his clinic.

In 2002, Chapman sued Dr. Ebeling and the clinic for compensation of wages and penalties and attorney fees for the wrongful denial of wages. Chapman also included a defamation claim.

After a bench trial, the trial court denied Chapman's wage claims, finding she failed to show that a "stated vacation policy" existed entitling Chapman to four weeks vacation pay, and further, the court determined that Chapman was adequately paid for her 2000 vacation time. The court rejected Chapman's defamation claim on the grounds of inadequate proof that Dr. Ebeling's statements were either false or made with malicious intent. The trial court also viewed the statements as privileged. This appeal by Chapman ensued.

Discussion

I.

Chapman first asserts as error the trial court's failure to award her $1,628.46 for two weeks of unpaid vacation time and penalties and attorney fees under Louisiana wage law. In so arguing, she concedes that the additional payment of two weeks of wages for time she did not work in February approximates half of the annual vacation leave.

The following statutes govern Chapman's entitlement to payment for accrued vacation time. In relevant part, La. R.S. 23:631 provides:

A.(1)(b) Upon the resignation of any laborer or other employee of any kind whatever, it shall be the duty of the person employing such laborer or other employee to pay the amount then due under the terms of employment, whether the employment is by the hour, day, week, or month, on or before the next regular payday or no later than fifteen days following the date of resignation, whichever occurs first.
* * *
D.(1) For purposes of this Section, vacation pay will be considered an amount then due only if, in accordance with the stated vacation policy of the person employing such laborer or other employee, both of the following apply:
(a) The laborer or other employee is deemed eligible for and has accrued the right to take vacation time with pay.
(b) The laborer or other employee has not taken or been compensated for the vacation time as of the date of the discharge or resignation.
(2) The provisions of this Subsection shall not be interpreted to allow the forfeiture of any vacation pay actually earned by an employee pursuant to the employer's policy.

Additionally, La. R.S. 23:634(A) provides:

No person, acting either for himself or as agent or otherwise, shall require any of his employees to sign contracts by which the employees shall forfeit their *226 wages if discharged before the contract is completed or if the employees resign their employment before the contract is completed; but in all such cases the employees shall be entitled to the wages actually earned up to the time of their discharge or resignation.

These statutes are designed to compel prompt payment of wages when an employee is discharged or resigns. Wyatt v. Avoyelles Parish School Bd., 01-3180 (La.12/4/02), 831 So.2d 906. They are penal in nature and must therefore be strictly construed and yield to equitable defenses. Boudreaux v. Hamilton Medical Group, Inc., 94-0879 (La.10/17/94), 644 So.2d 619, citing Mason v. Norton, 360 So.2d 178, 180 (La.1978).

Accrued vacation time is an "amount then due under the terms of employment" and constitutes wages under La. R.S. 23:631 which are due upon resignation by the employee. Wyatt, supra. Subsection (D) of La. R.S. 23:631 cannot be interpreted to allow forfeiture of any vacation pay actually earned by an employee pursuant to the employer's policy. Id. Where an employer has a clearly established policy that vacation time is not considered wages actually earned by an employee, the employee is not entitled to reimbursement for unused, accrued vacation time upon discharge or resignation. However, in the absence of a clear written policy establishing that vacation time granted by an employer to an employee is nothing more than a mere gratuity and not a wage, accrued but unused vacation time is a vested right for which an employee must be paid upon discharge or resignation. Wyatt, supra.

The employer-employee relationship is a contractual relationship. As such, an employer and employee may negotiate the terms of an employment contract and agree to any terms not prohibited by law or public policy. When the employer and employee are silent on the terms of the employment contract, the civil code provides the default rule of employment-at-will. Quebedeaux v. Dow Chemical Co., 01-2297 (La.6/21/02), 820 So.2d 542. Additionally, the foregoing statutes on wage payments supplement the employment relationship. Yet, absent a specific contract or agreement establishing a fixed term of employment, an employer is at liberty to dismiss an employee at any time for any reason without incurring liability for discharge. Williams v. Delta Haven, Inc., 416 So.2d 637 (La.App. 2d Cir.1982).

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Cite This Page — Counsel Stack

Bluebook (online)
945 So. 2d 222, 2006 WL 3615582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-ebeling-lactapp-2006.