Fred Meyer of Alaska, Inc. v. Bailey

100 P.3d 881, 2004 Alas. LEXIS 133, 2004 WL 2486272
CourtAlaska Supreme Court
DecidedNovember 5, 2004
DocketS-10958, S-10968
StatusPublished
Cited by25 cases

This text of 100 P.3d 881 (Fred Meyer of Alaska, Inc. v. Bailey) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fred Meyer of Alaska, Inc. v. Bailey, 100 P.3d 881, 2004 Alas. LEXIS 133, 2004 WL 2486272 (Ala. 2004).

Opinion

OPINION

FABE, Justice.

I. INTRODUCTION

This appeal arises out of Fred Meyer’s classification of manager Ron Bailey as an exempt employee and therefore ineligible for overtime pay under the Alaska Wage and Hour Act (AWHA). Bailey opted out of a class action for overtime pay because of a threat by his store manager. Within two years of being told by a different manager that participation in a court action would not jeopardize his job, Bailey filed a lawsuit claiming overtime compensation. Fred Meyer appeals the superior court’s finding that Bailey was not exempt, as well as the superi- or court’s allowance of claims not within the statute of limitations. It also challenges the superior court’s admission of an expert report and its finding that Fred Meyer did not show by clear and convincing evidence that it acted in good faith. Bailey appeals the superior court’s failure to award prejudgment interest. Because the superior court did not err when it found that Bailey was not exempt, we affirm that ruling. We also conclude that the superior court did not err in *883 its determination that Fred Meyer failed to show by clear and convincing evidence that it acted in good faith. Because Bailey claims that he was not notified of the entry of judgment, we remand so that he may be provided an opportunity to submit his calculation of prejudgment interest and his cost bill.

II. FACTS AND PROCEEDINGS

A. Factual History

Ron Bailey began working at the Anchorage Fred Meyer on Dimond in June 1985. He was transferred to the home electronics department in late 1985 and remained in home electronics until he left Fred Meyer in 1997. Bailey was promoted to manager of the department in August 1989 and was transferred to the Fred Meyer in Juneau in March 1990 as the manager of the home electronics department. Although Bailey received a weekly salary with bonuses, he did not receive any overtime compensation. In May 1996 Bailey transferred to the Anchorage Fred Meyer on Northern Lights.

In May 1991, while Bailey was working at the Juneau store, a class action complaint in a suit entitled Adams v. Fred Meyer claiming overtime violations under the Alaska Wage and Hour Act was filed against Fred Meyer. 1 The manager of the Juneau store, Keith Flynn, told all department managers that if they stayed in the lawsuit, they would not be promoted. All of the managers, including Bailey, excluded themselves from the class. Bailey signed his request for exclusion in May 1996. After Bailey moved to the Northern Lights store, his new store manager, Nancy Carey, contradicted Flynn and assured Bailey that there would be no retaliation if he participated in the class action.

B. Procedural History

Bailey filed this lawsuit against Fred Meyer on April 15, 1998. Fred Meyer moved to exclude as time barred evidence of overtime claims prior to April 15, 1996. The superior court denied Fred Meyer’s motion.

A bench trial took place on October 23 and 24, 2000, and Superior Court Judge Dan A. Hensley issued his oral decision on November 22, 2000. The superior court determined that Bailey was not an exempt employee and was thus entitled to overtime compensation. Fred Meyer sought amendment of the judgment and reconsideration, arguing that the superior court incorrectly tolled Bailey’s claim and erroneously found that Bailey was not exempt. The superior court denied Fred Meyer’s motion.

The parties filed supplemental pleadings on two issues: the regular hourly rate applicable to Bailey and Fred Meyer’s good faith defense. Fred Meyer objected to the trial court receiving a report that was prepared by a defense expert in Adams and appended to Bailey’s supplemental pleading, but the trial court considered the defense expert’s advice to Fred Meyer that the home electronics managers should not be considered exempt. In its supplemental filing, Fred Meyer also addressed the issue of prejudgment interest, although the court had not directed the parties to do so. The court limited Bailey’s award of prejudgment interest under AS 09.30.070(b) and although Bailey sought reconsideration on this issue, this relief was denied.

On December 22, 2002, the trial court entered final judgment for Bailey in the amount of $254,056.34, half of this being liquidated damages, and awarded him $70,087.50 in attorney’s fees. It also gave Bailey fifteen days to submit his proposed calculation of prejudgment interest. Bailey’s counsel claims that he did not receive a copy of the judgment and did not learn of it until he received Fred Meyer’s notice of appeal. Although Bailey promptly moved to file a late calculation of prejudgment interest, the superior court did not act on Bailey’s motion and Bailey cross-appeals on this issue.

III. DISCUSSION

A. Standards of Review

We set aside a lower court’s factual findings only when they are clearly errone *884 ous. 2 We determine that factual findings are clearly erroneous when, after a review of the record as a whole, we are “left with a definite and firm conviction that a mistake has been made.” 3 In a mixed question of law and fact, we review the legal question separately, applying our independent judgment to adopt the legal rule that is most persuasive in light of precedent, reason, and policy. 4

B. The Superior Court Did Not Err when It Found that Bailey Was Not Exempt.

Fred Meyer appeals the superior court's finding that Bailey was not an executive employee who was exempt from payment of overtime under the AWHA. Fred Meyer relies principally on the argument that Bailey’s tasks were “directly and closely related” to management duties. 5

Under the AWHA, employees who work more than eight hours in a day or forty hours in a week are entitled to overtime pay 6 unless an exemption applies. 7 One of the exemptions excludes “an individual employed in a bona fide executive, administrative, or professional capacity.” 8 The Alaska Administrative Code defines an exempt executive employee 9 and considers the amount of time that such an employee can spend on nonman-agerial tasks. An exempt executive employee in a retail establishment is one “who does not devote more than 40 percent of the employee’s weekly hours to activities that are not directly and closely related to the work described in this paragraph.” 10 The burden is on the employer to prove beyond a reasonable doubt that the employee is exempt. 11

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Bluebook (online)
100 P.3d 881, 2004 Alas. LEXIS 133, 2004 WL 2486272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fred-meyer-of-alaska-inc-v-bailey-alaska-2004.