Hays v. Republic Steel Corp.

531 F.2d 1307, 12 Fair Empl. Prac. Cas. (BNA) 1654, 1976 U.S. App. LEXIS 8885, 12 Empl. Prac. Dec. (CCH) 10,960
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 24, 1976
DocketNo. 74-2908
StatusPublished
Cited by64 cases

This text of 531 F.2d 1307 (Hays v. Republic Steel Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hays v. Republic Steel Corp., 531 F.2d 1307, 12 Fair Empl. Prac. Cas. (BNA) 1654, 1976 U.S. App. LEXIS 8885, 12 Empl. Prac. Dec. (CCH) 10,960 (5th Cir. 1976).

Opinion

MILLER, Associate Judge:

Republic Steel Corporation appeals from that part of the judgment of the district court which assessed liquidated damages against it under section 71 of the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S.C. § 626, in favor of appellees Ross C. Hopper, Randall J. Moncus, and Benjamin Grady Goss. Clyde E. Massey appeals from that part of the district court’s judgment denying him relief on the basis that his claim was barred by failure to file a timely notice of intent to sue with the U. S. Department of Labor as required by subsection 7(d)2 of the ADEA.

The trial judge noted that the ADEA provides for payment of liquidated damages only where there is a willful violation of the Act. He observed that if section 113 of the Portal-to-Portal Act of 1947 (PPA), 29 U.S.C. § 260, applied, he would have discretion not to award liquidated damages if the actions of the defendant were in good faith “and there are other provisions that are there described.” He determined that “there was no bad faith on the part of the defendant” and said “this Court would, if it had any discretion in this matter, not award liquidated damages.” However, he held section 11 of the PPA not to be applicable. With respect to whether Republic Steel’s violations were “willful,” the trial judge said:

The Fifth Circuit in 1972, in the case of Coleman v. Jiffy June Farms [5 Cir.] [458 F.2d 1139 (1971), cert. denied, 409 U.S. 948 [, 93 S.Ct. 292, 34 L.Ed.2d 292] (1972)], however, involving the meaning of the [1310]*1310words “willful violation” with respect to a statute of limitations issue involving the Fair Labor Standards Act has taken the position, in effect, that there need not be bad intent for there to be willful violations. That in essence if an act is intentionally done and knowingly done, conscious that there may be implications under a wage act, then it would be a willful violation of that act if their act was wrong even though they thought the action they were taking was correct and proper, and even though they were acting upon advice of counsel as to what the construction of the Act would be. Based upon the Fifth Circuit’s decision in that case which I think has to be analogous here ... I have no option in the case and must find this to be a willful violation and award liquidated damages.

Thus, we are presented with a situation where the trial judge determined that Republic Steel satisfied the requirements of section 11 of the PPA,4 which covers violations under the Fair Labor Standards Act (FLSA), so that he would, if he could, exercise his discretion not to award liquidated damages; but where he has held that section 11 of the PPA does not apply to violations under the ADEA, thus precluding his exercise of discretion. The central issue is whether section 11 of the PPA applies.5

We are satisfied that the PPA, and more particularly section 11 thereof, constituted an “amendment” to the FLSA. The preamble of the Act states that its purpose was—

To relieve employers from certain liabilities and punishments under the Fair Labor Standards Act of 1938, as amended, the Walsh-Healey Act, and the Bacon-Davis Act, and for other purposes.

Cf. Uptagrafft v. United States, 315 F.2d 200 (CA 4), cert. denied, 375 U.S. 818, 84 S.Ct. 54, 11 L.Ed.2d 52 (1963).

In discussing the “Nature of the Problem” giving rise to the legislation, the House committee report (H.R.Rep.No.71, 80th Cong., 1st Sess. 3 (1947) U.S.Code Cong.Serv.1947, p. 1031) treated the subject of liquidated damages in the following words:

It must be remembered also that the action for liquidated damages under the wage-hour law cannot be waived or compromised by agreement between the employer and employee (Brooklyn Savings Bank v. O’Neil [324 U.S. 697, 65 S.Ct. 895, 89 L.Ed. 1296 (1945)]).
Nor can the Court avoid the assessment of the full amount of liquidated damages, regardless of the good faith of the employer [Citing Missel v. Overnight Motor Transportation Co., 126 F.2d 98 (CA 4), aff’d, 316 U.S. 572, 62 S.Ct. 1216, 86 L.Ed. 1682 (1942), and quoting a statement from the Fourth Circuit’s opinion, 126 F.2d at 111: “Yet no matter how much we lament its harshness, the Section [providing for liquidated damages] appears to be mandatory. . . .”]

It was this harshness which prompted the House to include in the bill (H.R. 2157) language similar to what eventually became section 11. The Senate deleted the language, but the Conference Committee added section 11 to the bill. H.R.Rep.No.326, [1311]*131180th Cong., 1st Sess. 17 (1947). The President recognized the amendatory impact of section 11 on subsection 16(b) of the FLSA in a message transmitting his approval of the PPA (H.Doc.No.247, 80th Cong., 1st Sess. 2 (1947)):

Section 11 of the act gives the court discretionary authority to waive liquidated damages. Under the language of the section, however, it continues to be the duty of the court to award liquidated damages unless convinced that the employer has, in good faith, sought to comply with his obligations under the act. I do not believe this section will be used to permit employers to engage in violation of the law with impunity.

Even though section 11 did not specifically refer to subsection 16(b) of the FLSA, it clearly constituted an amendment thereto. See United States v. La Franca, 282 U.S. 568, 51 S.Ct. 278, 75 L.Ed. 551 (1931); 1A Sutherland Statutory Construction § 22.01 (4th ed. 1972).6

Subsection 7(b) of the ADEA plainly states that the provisions of the ADEA shall be enforced in accordance with the remedies provided in section 16 of the FLSA, as amended. The words “as amended” are unambiguous and should be interpreted according to their plain meaning. Ex parte Collett, 337 U.S. 55, 58, 69 S.Ct. 944, 946, 93 L.Ed. 1207, 1210 (1949); Hilton v. Sullivan, 334 U.S. 323, 329, 68 S.Ct. 1020, 1023, 92 L.Ed. 1416, 1421 (1948); State of Israel v. Motor Vessel Nili, 435 F.2d 242 (CA 5 1970), cert. denied, 401 U.S. 994, 91 5. Ct. 1232, 28 L.Ed.2d 532 (1971); Interstate Natural Gas Co. v. Federal Power Commission,

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531 F.2d 1307, 12 Fair Empl. Prac. Cas. (BNA) 1654, 1976 U.S. App. LEXIS 8885, 12 Empl. Prac. Dec. (CCH) 10,960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hays-v-republic-steel-corp-ca5-1976.