Evelyn Coke v. Long Island Care at Home, Ltd., and Maryann Osborne

376 F.3d 118, 9 Wage & Hour Cas.2d (BNA) 1377, 2004 U.S. App. LEXIS 15191
CourtCourt of Appeals for the Second Circuit
DecidedJuly 22, 2004
DocketDocket 03-7666
StatusPublished
Cited by45 cases

This text of 376 F.3d 118 (Evelyn Coke v. Long Island Care at Home, Ltd., and Maryann Osborne) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evelyn Coke v. Long Island Care at Home, Ltd., and Maryann Osborne, 376 F.3d 118, 9 Wage & Hour Cas.2d (BNA) 1377, 2004 U.S. App. LEXIS 15191 (2d Cir. 2004).

Opinion

JOHN M. WALKER, JR., Chief Judge:

At issue in this appeal is the enforceability of two regulations promulgated by the Department of Labor (“DOL”) that define and interpret the “companionship services” exemption in the Fair Labor Standards Act (“FLSA” or “the Act”), 29 U.S.C. § 213(a)(15). The Act generally requires minimum wage and overtime compensation; the “companionship services” exemption relieves employers from paying such compensation to those employees who work in domestic service as babysitters and companions to the elderly and infirm. The regulations at issue implement the exemption with respect to companions.

The first regulation we consider is a regulation that defines the exemption. It includes within the exemption (1) those who perform household work related to the care of the elderly or infirm and (2) those who also perform housework incidental to their “companionship services” as long as the housework accounts for less than twenty percent of the weekly hours worked. See 29 C.F.R. § 552.6. The second regulation we consider applies the exemption to “[e]mployees who are engaged in providing companionship services, as defined in § 552.6, and who are employed by an employer or agency other than the family or household using their services.” See 29 C.F.R. § 552.109(a). The district court found both of these regulations to be entitled to the highest form of deference available to agency regulations and, accordingly, found them legally enforceable. See Coke v. Long Island Care at Home, Ltd., 267 F.Supp.2d 332 (E.D.N.Y.2003).

We affirm the enforceability of the first regulation, § 552.6, according it the highest level of deference available to agencies pursuant to Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). But we conclude that the second regulation, § 552.109(a), is neither entitled to Chevron deference nor enforceable; we find it to be entitled only to the more limited level of deference announced in Skidmore v. Swift & Co., 323 U.S. 134, 65 S.Ct. 161, 89 L.Ed. 124 (1944), and reaffirmed in United States v. Mead Corp., 533 U.S. 218, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001). Because the second regulation is unpersuasive in the context of the entire statutory and regulatory scheme, it fails Skidmore’s test and cannot be enforced. Accordingly, we AFFIRM in part, VA *122 CATE in part, and REMAND for farther proceedings.

FACTUAL BACKGROUND

Plaintiff-appellant Evelyn Coke appeals from the judgment on the pleadings, entered pursuant to Federal Rule of Civil Procedure 12(e), in favor of defendants-appellees Long Island Care at Home, Ltd. and owner Maryann Osborne, by the United States District Court for the Eastern District of New York (Thomas C. Platt, District Judge). See Coke, 267 F.Supp.2d at 332-41. The Secretary of Labor submitted an amicus brief arguing on behalf of defendants-appellees that the district court’s ruling should be affirmed.

Unlike most, if not all, of the other courts that have considered the issues in this appeal, 2 we review Coke’s case before the summary judgment stage and, thus, without any factual development. All we know is that Coke filed this action under the FLSA, alleging that she was employed as a “home healthcare attendant” by defendants, who did not pay her minimum wage or overtime compensation. While such compensation is generally required under the FLSA, Coke acknowledges that the “companionship services” exemption to the FLSA, as defined and interpreted by the DOL regulations, applies to her employment and that if the regulations at issue are enforceable, she cannot prevail. Her arguments are purely legal.

Coke contends that the two regulations defining and interpreting “companionship services” are unreasonable and impermissible in light of the statute’s clear language and statutory purpose. Coke candidly calls her action a test case, “challenging the regulation^] on [their] face.” She does not allege that the regulations are being improperly applied to a subclass of employees but, rather, that they contravene legislative will and are therefore unenforceable. After the district court accorded the two regulations Chevron deference and found them to be permissible under the statute, it granted defendants’ motion for judgment on the pleadings. This appeal followed.

DISCUSSION

I. Standards of Review

We review the decision of the district court de novo both because the judgment below was entered on the pleadings on a matter of statutory construction, Levy v. Southbrook Int’l Invs., Ltd., 263 F.3d 10, 14 (2d Cir.2001); Davidson v. Flynn, 32 F.3d 27, 29 (2d Cir.1994), and, more specifically, because the decision as to whether an FLSA exemption may be applied to a class of claimants is a question of law, Freeman v. NBC, 80 F.3d 78, 82 (2d Cir.1996). Moreover, the question of the appropriate level of deference to accord agency regulations is one purely of law, subject to de novo review. See Ossen v. Dep’t of Soc. Servs. (In re Charter Oak Assocs.), 361 F.3d 760, 764 (2d Cir.2004) (pure questions of law are reviewed de novo). See generally 5 U.S.C. § 706 (“[T]he reviewing court shall decide all relevant questions of law....”). At this *123 stage of the litigation, it is conceded by both parties that there are no disputed issues of material fact.

Our review in the FLSA context is guided by a few specialized principles. Because the FLSA is a remedial act, its exemptions are to be narrowly construed. See Arnold, v. Ben Kanowsky, Inc., 361 U.S. 388, 392, 80 S.Ct. 453, 4 L.Ed.2d 393 (1960); Mitchell v. Lublin, McGaughy & Assocs., 358 U.S. 207, 211, 79 S.Ct. 260, 3 L.Ed.2d 243 (1959). And an employer bears the burden of proving that its employees fall within an exemption in the FLSA. See Corning Glass Works v. Brennan, 417 U.S. 188, 196-97, 94 S.Ct. 2223, 41 L.Ed.2d 1 (1974); Arnold, 361 U.S. at 392, 80 S.Ct. 453; Donovan v. Carls Drug Co., 703 F.2d 650, 652 (2d Cir.1983).

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376 F.3d 118, 9 Wage & Hour Cas.2d (BNA) 1377, 2004 U.S. App. LEXIS 15191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evelyn-coke-v-long-island-care-at-home-ltd-and-maryann-osborne-ca2-2004.