Gregory v. First Title of America, Inc.

555 F.3d 1300, 14 Wage & Hour Cas.2d (BNA) 818, 2009 U.S. App. LEXIS 1630, 2009 WL 175155
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 27, 2009
Docket08-10737
StatusPublished
Cited by21 cases

This text of 555 F.3d 1300 (Gregory v. First Title of America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregory v. First Title of America, Inc., 555 F.3d 1300, 14 Wage & Hour Cas.2d (BNA) 818, 2009 U.S. App. LEXIS 1630, 2009 WL 175155 (11th Cir. 2009).

Opinions

PER CURIAM:

Appellant Nelda Gregory (“Gregory”) appeals from an order entered on 14 January 2008 by the Middle District of Florida granting First Title of America, Inc. and Bruce Napolitano’s (collectively, “Appel-lees”) motion for summary judgment. The district court determined that Gregory met the requirements of the Fair Labor Standards Act’s (“FLSA”) outside salesman exemption and so was not entitled to overtime compensation. We agree and AFFIRM.

I. BACKGROUND

Bruce Napolitano (“Napolitano”) is the owner of First Title of America, Inc. (“First Title”), a title marketing company based in Lake Mary, Florida.1 Gregory was an employee of Appellees from July 2004 through January 2005. Gregory was hired by the Appellees as a “marketing executive” due, in large part, to her prior experience in selling title insurance. According to the Employment Agreement (“the Agreement”) executed between the parties, her job description was to “provide the services for referring and closing title insurance companies.” Under the terms of the Agreement, Gregory initially was paid $1000 per week. At Gregory’s suggestion, she later began to be paid on a commission basis and received a fifty percent commission on all orders for title insurance from her clients that closed with First Title. Gregory claimed that although she often worked more than forty hours per week, she was never compensated for her overtime.2

II. DISCUSSION

We review de novo an order granting summary judgment. Drago v. Jenne, 453 F.3d 1301, 1305 (11th Cir.2006). In doing so, we view “the evidence and all reasonable inferences drawn from it in the light most favorable to the nonmoving party.” Battle v. Board of Regents, 468 F.3d 755, 759 (11th Cir.2006) (per curiam). We will affirm the summary judgment only if no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Federal Rule of Civil Procedure 56(c).

[1302]*1302A. FLSA and the Outside Salesman Exemption

The FLSA provides, in pertinent part:

Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, 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). The FLSA includes several exemptions from its minimum wage and overtime requirements. One of those exemptions is contained in § 213(a)(1) of the statute and exempts any employee employed in the capacity of an outside salesperson, as defined by the Secretary of Labor. See 29 U.S.C. § 213(a)(1).

The regulations applicable to outside sales employees are found in 29 C.F.R. Part 541. Regulations such as these, promulgated pursuant to an express delegation of legislative authority, are to be given controlling weight unless found to be arbitrary, capricious, or contrary to the statute. See Chevron, U.S.A., Inc. v. NRDC, Inc., 467 U.S. 837, 843-44, 104 S.Ct. 2778, 2781-82, 81 L.Ed.2d 694 (1984). Agency opinion letters “do not warrant Chevron-style deference.” Christensen v. Harris County, 529 U.S. 576, 587, 120 S.Ct. 1655, 1662, 146 L.Ed.2d 621 (2000). They are, however, “entitled to respect under ... Skidmore v. Swift & Co., 323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124 (1944), but only to the extent that those interpretations have the power to persuade.” Id. at 1663 (quotation marks omitted). It is well established that the employer “bears the burden of proving the applicability of a FLSA exception by clear and affirmative evidence.” Klinedinst v. Swift Invs., Inc., 260 F.3d 1251, 1254 (11th Cir.2001) (quotation marks omitted). We have held that a FLSA exemption must be narrowly construed so that it applies to those plainly within its terms and spirit. Nicholson v. World Bus. Network, Inc., 105 F.3d 1361, 1364 (11th Cir.1997).

The term “outside sales employee” is defined as any employee:

(1) Whose primary duty3 is:
(i) making sales within the meaning of section 3(k) of the Act, or
(ii) obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and
(2) Who is customarily and regularly engaged away from the employer’s place or places of business in performing such primary duty.

29 C.F.R. § 541.500(a). “Primary duty” is further defined in 29 C.F.R. § 541.700:

To qualify for exemption ..., an employee’s “primary duty” must be the performance of exempt work. The term “primary duty” means the principal, main, major or most important duty that the employee performs. Determination of an employee’s primary duty must be [1303]*1303based on all the facts in a particular case, with the major emphasis on the character of the employee’s job as a whole. Factors to consider when determining the primary duty of an employee include, but are not limited to, the relative importance of the exempt duties as compared with other types of duties; the amount of time spent performing exempt work; the employee’s relative freedom from direct supervision; and the relationship between the employee’s salary and the wages paid to other employees for the kind of nonexempt work performed by the employee.

The regulatory scheme governing outside sales employees provides additional guidance concerning the meaning of “making sales or obtaining orders” and “promotional work.” 29 C.F.R. § 541.501 defines “making sales or obtaining orders” as follows:

(b) Sales within the meaning of section 3(k) of the Act include the transfer of title to tangible property, and in certain cases, of tangible and valuable evidences of intangible property.

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Bluebook (online)
555 F.3d 1300, 14 Wage & Hour Cas.2d (BNA) 818, 2009 U.S. App. LEXIS 1630, 2009 WL 175155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-v-first-title-of-america-inc-ca11-2009.