Drinkwitz v. Alliant Techsystems, Inc.

140 Wash. 2d 291
CourtWashington Supreme Court
DecidedApril 6, 2000
DocketNo. 67019-6
StatusPublished
Cited by103 cases

This text of 140 Wash. 2d 291 (Drinkwitz v. Alliant Techsystems, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drinkwitz v. Alliant Techsystems, Inc., 140 Wash. 2d 291 (Wash. 2000).

Opinions

Ireland, J.

This is a direct discretionary review of the trial court’s summary judgment ruling. Plaintiffs, on behalf of a currently uncertified class, sued their former employer, Alliant Techsystems, Inc., to recover overtime wages under Washington’s Minimum Wage Act (MWA), chapter 49.46 RCW. On cross-motions for summary judgment involving the issue of liability, plaintiffs argued they were “nonexempt” employees and, thereby, entitled to overtime pay under the MWA. The trial court granted plaintiffs’ motion and denied Alliant’s motion for summary judgment. In so doing, the trial court determined the issue of liability in plaintiffs’ favor, certifying the issue for direct review while leaving the issue of class certification and damages for future determination.

[295]*295The key issue in this direct review is whether the employer preserved the putative class representatives’ “exempt” status under the MWA. Finding that some of Alliant’s payroll policies and practices destroyed plaintiffs’ “exempt” status because they violated the MWA’s “salary basis” test, we affirm the trial court’s summary judgment order and remand for further proceedings consistent with this opinion.

STANDARD OF REVIEW

When reviewing an order granting summary judgment, an appellate court reviews the matter de novo by engaging in the same inquiry as the trial court. E.g., Marquis v. City of Spokane, 130 Wn.2d 97, 104-05, 922 P.2d 43 (1996). Under this standard, the appellate court determines whether genuine issues of material fact exist and whether the moving party is entitled to judgment as a matter of law. Facts are reviewed in the light most favorable to the nonmoving party. E.g., Marquis, 130 Wn.2d at 105 (citing CR 56(c)). Based on this deferential standard of review, we focus on Alliant’s assertions and admissions of fact.

FACTS

Alliant is a Delaware corporation, primarily engaged in the military defense industry. Alliant’s national operations included its Marine Systems Division headquartered in Mukilteo, Washington. Between March 1, 1993 and March 1, 1996, Alfiant employed approximately 335 individuals in Washington, who were classified as exempt “time-reporting” employees. Clerk’s Eapers (CE) 628, 630. These employees were subject to the various Alfiant policies and practices described below.

Elaintiffs and putative class representatives, Dan Drinkwitz and Kenneth Caproni, are engineers formerly employed by Alfiant’s Marine Systems Division. Alfiant classified both Drinkwitz and Caproni as “exempt” employees.

[296]*296Alliant’s Acknowledged Payroll Policies and Practices

Alliant acknowledges the following policies and practices applied to plaintiffs, notwithstanding that they were classified as “exempt” and paid on a “salary basis”:

1. A requirement that employees record their time and submit weekly reports.
2. A requirement that employees work the schedules established by their managers.
3. A practice of calculating and recording the monthly salaries of employees into hourly rates of pay.
4. A requirement that employees work a weekly quota of between 40 and 45 hours per week.
5. A requirement that employees “make up” the difference between the time worked and the expected workweek by one of the following:
(a) working longer hours;
(b) applying hourly credits from compensatory (comp) time banks; or
(c) deducting from earned vacation time.
6. Creation of a discipline plan which allowed management to suspend employees for one or two days when hourly quotas were not met.
7. Employee pay deductions for employees who failed to meet their quota requirements of 40-45 hours per week.

Although Alliant acknowledges that “exempt” employees’ pay was improperly deducted for failing to meet workweek hourly quotas, Alliant claims this practice was inadvertent. Specifically, Alliant asserts it first received notice of this practice when Plaintiff Caproni filed an affidavit to support an action under the Fair Labor Standards Act of 1938 (FLSA), 29 U.S.C. §§ 201-219, brought by Alliant em[297]*297ployees in a Rhode Island federal court in 1995.1 Caproni’s affidavit stated he had recently suffered an improper salary deduction. In response, Alliant expressed surprise to learn of Caproni’s improper deduction, and to learn that the Marine System’s payroll clerk who had made the deduction was unaware of the difference between “exempt” and “nonexempt” employees.2 Between March, 1, 1993 and March 1,1996, this payroll clerk made 243 improper deductions in 54 “exempt” employees’ pay. After Alliant told the payroll clerk to stop making such deductions, all affected employees were identified and fully reimbursed in the amount of $33,691.43 by October 1996. Alliant also assured all current employees that steps had been taken to avoid similar mistakes.

It is undisputed that Caproni suffered five improper deductions between March 1, 1993 and March 1, 1996, all of which were reimbursed by October 1996. It is also undisputed that Drinkwitz never suffered an improper deduction between March 1, 1993 and March 1, 1996.

Alliant admits its management adopted a special disciplinary procedure to enforce the 41-45 hour workweek which called for one- or two-day suspensions without pay. It admits that at least one, and perhaps two, employees were subject to this disciplinary procedure. Alliant claims that both employees were reimbursed for the deductions and that a memorandum was distributed to employees advising them to contact their manager if they had experienced such discipline.

Despite these admissions, Alliant asserts that its salaried employees were treated in a manner consistent with their “exempt” status. Plaintiffs disagree. Therefore, the key issue on this direct review of summary judgment is whether, [298]*298when viewing the facts in the light most favorable to the employer, Alliant preserved the named plaintiffs’ “exempt” status under the MWA as a matter of law.

ANALYSIS

Issue 1: What is the appropriate “salary basis” test under the MWA?

The FLSA deals with overtime and minimum wage requirements for employees. 29 U.S.C. §§ 201-219. The FLSA is intended to be a “floor” below which employers may not drop. It is not a “ceiling” on benefits or terms and conditions of employment. Doctors Hosp., Inc. v. SilvaRecio, 429 F. Supp. 560, 561-62 (D. P.R. 1975), aff’d, 558 F.2d 619 (1st Cir. 1977). Because the MWA is based upon the FLSA, federal authority under the FLSA often provides helpful guidance. However, the MWA and FLSA are not identical and we are not bound by such authority. Chelan County Deputy Sheriffs’ Ass’n v. Chelan County,

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Bluebook (online)
140 Wash. 2d 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drinkwitz-v-alliant-techsystems-inc-wash-2000.