Dimas Lopez v. Tyson Foods, Inc.

Procedural entryThis page is a short order in Dimas Lopez v. Tyson Foods, Inc.. Read the opinion of the Court — 690 F.3d 869
Court of Appeals for the Eighth Circuit·Decided September 4, 2012·No. 11-2344·Published

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 11-2344 ___________________________

Dimas Lopez, on behalf of themselves and all other similarly situated individuals; Ibeth Lopez, on behalf of themselves and all other similarly situated individuals; Santos Corona, on behalf of themselves and all other similarly situated individuals; Abel Maravilla, on behalf of themselves and all other similarly situated individuals; Maria De Jesus Ramirez, on behalf of themselves and all other similarly situated individuals; Miguel Guico, on behalf of themselves and all other similarly situated individuals; Dominga Mazariegos, on behalf of themselves and all other similarly situated individuals; Jose Sales Ortiz, on behalf of themselves and all other similarly situated individuals; Manuel Santana, on behalf of themselves and all other similarly situated individuals; Carlos Godinez, on behalf of themselves and all other similarly situated individuals; Mario Mazariegos, on behalf of themselves and all other similarly situated individuals; Carlos Medina, on behalf of themselves and all other similarly situated individuals; Brenda Revolorio, on behalf of themselves and all other similarly situated individuals; Guadalupe Macias, on behalf of themselves and all other similarly situated individuals; Rafael Medina, on behalf of themselves and all other similarly situated individuals; Norma Medina, on behalf of themselves and all other similarly situated individuals; Guadalupe Herrera-Arias, on behalf of themselves and all other similarly situated individuals; Esperanza Ceja Reyes, on behalf of themselves and all other similarly situated individuals; Maria Magdelena Sigoran, on behalf of themselves and all other similarly situated individuals; Francisco Najarro Martinez, on behalf of themselves and all other similarly situated individuals

lllllllllllllllllllll Plaintiffs - Appellants

v.

Tyson Foods, Inc.

lllllllllllllllllllll Defendant - Appellee ------------------------------

Secretary of Labor

lllllllllllllllllllllAmicus on Behalf of Appellant ____________

Appeal from United States District Court for the District of Nebraska - Omaha ____________

Submitted: May 16, 2012 Filed: September 4, 2012 (Corrected: 09/06/2012) ____________

Before MURPHY, BENTON, and SHEPHERD, Circuit Judges. ____________

BENTON, Circuit Judge.

Dimas Lopez and 19 other employees represent a class of hourly production employees at a meat-processing facility of Tyson Foods, Inc. The employees sued Tyson for not paying wages due under the Fair Labor Standards Act of 1938 (FLSA), 29 U.S.C. § 201 et seq., and the Nebraska Wage Payment and Collection Act (NWPCA), Neb. Rev. Stat. § 48-1228 et seq. The jury returned a verdict for Tyson, finding the employees did not perform any compensable work for which they were not compensated. The employees appeal. Having jurisdiction under 28 U.S.C. § 1291, this court affirms.

The employees are current and former hourly employees at Tyson’s facility in Lexington, Nebraska. Tyson acquired the plant in 2001 when it purchased IBP, Inc., which operated many meat-processing facilities. The Lexington plant employs about 2400 production employees.

-2- To calculate the employees’ compensable working time, Tyson measures “gang time” – when the employees are at their working stations and the production line is moving. The employees claim Tyson failed to provide FLSA overtime compensation for donning (putting on) personal protective equipment (PPE) and clothing before production and again after lunch, and for doffing (taking off) PPE and clothing before lunch and again after production.1 The PPE and clothing worn by individual employees vary depending on their role in the process. Tyson classifies items of PPE and clothing as either “unique” or “non-unique” to the meat-processing industry. Tyson stipulated it must pay employees for donning and doffing unique items, but contests paying for donning and doffing non-unique items. The employees also seek compensation for transporting the items from lockers to the production floor.

In addition to “gang time,” Tyson adds “K-code” time to each employee’s paycheck. Before 2007, Tyson paid four minutes of K-code time per day to each employee in order to compensate for the donning and doffing of unique items. From January 2007 to March 2010, Tyson added up to six minutes per day for pre- and post-shift walking time required of the employee. Since March 2010, Tyson has paid 20 to 25 minutes per day in order to compensate for all contested activities. Tyson does not record the actual time that employees perform any of these tasks.

The employees sued in federal court in June 2006, claiming violations of the FLSA and NWPCA. The state claim alleged Tyson violated the NWPCA by failing

1 These activities have been the subject of previous cases with Tyson’s predecessor IBP as defendant. See, e.g., Reich v. IBP, Inc., 820 F. Supp. 1315 (D. Kan. 1993), aff’d and remanded, 38 F.3d 1123 (10th Cir. 1994), remanded to Civil Action No. 88-2171, 1996 WL 445072 (D. Kan. Mar. 21, 1996), aff’d sub nom., Metzler v. IBP, Inc., 127 F.3d 959 (10th Cir. 1997); Alvarez v. IBP, Inc., No. CT-98- 5005-RHW, 2001 WL 34897841 (E.D. Wash. Sept. 14, 2001), aff’d in part and rev’d in part, 339 F.3d 894 (9th Cir. 2003), aff’d, 546 U.S. 21 (2005), remanded to 2005 WL 3941313 (E.D. Wash. Dec. 20, 2005).

-3- to pay what the FLSA required. Thus both claims turn on FLSA liability.2 The district court3 certified the FLSA claim as a collective action, see 29 U.S.C. § 216(b), and the NWPCA claim as a Rule 23 class action. Two hundred twenty-five employees opted in to the FLSA class, and the opt-out NWPCA class included over 10,000.

Tyson moved for partial summary judgment, which was denied. The employees moved for partial summary judgment, which was partially granted. After a nine-day trial, the jury returned a verdict for Tyson. The employees did not move – during or after trial – for judgment as a matter of law under Rule 50 or for a new trial under Rule 59. The Secretary of Labor filed an amicus brief in support of reversal and participated in oral argument.

I.

The FLSA prohibits the employment of any person “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.” 29 U.S.C. § 207(a)(1); IBP, Inc. v. Alvarez, 546 U.S. 21, 25 (2005). An employee who sues for unpaid overtime “has the burden of proving that he performed work for which he was not properly compensated.” Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 686-87 (1946), superseded by statute on other grounds, Portal-to-Portal Act of 1947, Pub. L. No. 80-49, 61 Stat. 84; Fast v. Applebee’s Int’l, Inc., 638 F.3d 872, 881 (8th Cir. 2011). “Neither ‘work’ nor ‘workweek’ is defined in the statute.” Alvarez, 546 U.S. at 25. At one time, the Supreme Court defined work as “physical or mental exertion (whether burdensome

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