Hinchliffe v. Costco Wholesale Corp.

667 F. Supp. 2d 418, 2009 WL 3536646
CourtDistrict Court, D. Vermont
DecidedSeptember 29, 2009
Docket2:06-cv-00083
StatusPublished
Cited by1 cases

This text of 667 F. Supp. 2d 418 (Hinchliffe v. Costco Wholesale Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hinchliffe v. Costco Wholesale Corp., 667 F. Supp. 2d 418, 2009 WL 3536646 (D. Vt. 2009).

Opinion

OPINION and ORDER

JOHN M. CONROY, United States Magistrate Judge.

Plaintiff William Hinchliffe brings this civil action against his former employer Costco Wholesale Corp. for breach of contract. 1 Presently before the Court is Co-steo’s Third Motion for Summary Judgment, which is styled as its “Renewed Second Motion for Summary Judgment.” 2 (Doc. 111). In this Third Motion, Costco makes precisely the same argument that the Court considered and rejected before: because the so-called “after acquired evidence doctrine” provides a complete defense to Hinchliffe’s contract claim, and because its application here does not depend on the resolution of any genuine factual disputes, Costco is entitled to summary judgment. (Docs. 88 and 114). The only additions to the record for this Motion are the newly-taken depositions of two Costco supervisors, both of which support Costco’s version of the relevant facts.

For the reasons stated below, Costco’s Third Motion for Summary Judgment (Doc. Ill) is DENIED.

1. FACTUAL BACKGROUND

Since the facts relevant to Hinchliffe’s contract claim are explained in the Court’s prior Order (Doc. 74 at 2-13), this Opinion will focus on those facts relevant to Costco’s asserted affirmative defense. The facts below are undisputed unless otherwise noted.

A. Hinchliffe’s Employment at Costco

Hinchliffe began working at Costco’s Colchester, Vermont warehouse in 1993. In October 1997, Hinchliffe injured his back while working in Costco’s tire shop. The day after the accident Hinchliffe injured his back again while working in Costco’s cooler. Due to these injuries, Hin-chliffe took workers’ compensation leave for about a year.

Hinchliffe returned to work for Costco in October 1998, but with doctor imposed *421 work restrictions. His doctor specified that he could not walk, sit, or stand for more than one hour at a time and could lift no more than 15 pounds. Costco accommodated these restrictions by reassigning Hinchliffe to a security position.

On May 3, 1999, Costco further accommodated Hinchliffe’s work restriction by moving him to a “comparative shopper” or “comp shopper” position. As a comparative shopper, Hinchliffe was responsible for researching the pricing and merchandising techniques of Costco’s competitors. This required him to visit other stores in the area and report back to Costco as to how these stores priced and marketed particular items. Costco provided Hinchliffe with a list of items to research at the start of each work week. One of Hinchliffe’s initial supervisors as a comparative shopper was Dan Wight, who was the Assistant Manager at the Colchester warehouse with responsibility over Merchandising.

In 2003, Costco changed Hinchliffe’s position again to include 50% comparative shopping and 50% outside marketing. The warehouse manager at the time, Billy Wallace, made this change because he believed that Costco’s needs required only 20 hours of comparative shopping per week. Hin-chliffe’s new role as part-time outside marketer required him to work with Costco business members, increasing business sales and member renewals and new sign-ups. As with comparative shopping, Hin-chliffe often traveled to other area businesses as part of his outside marketing duties.

Hinchliffe reported to Cory Barber when he first began this mixed-position, but in February 2004 Barber stepped down and Randy Dubie became the Membership/Marketing Manager and Hin-chliffe’s immediate supervisor.

In January 2004, Alex Coumans replaced Billy Wallace as the general manager of the Colchester warehouse. Coumans decided to eliminate the comparative shopper position, and, in February 2004, he placed Hinchliffe in a full-time outside marketer position. Costco claims that it created this full-time position to accommodate Hinchliffe’s work restrictions, but Hinchliffe claims that the position already existed. (Doc. 116 ¶ 32). In any case, Hinchliffe was able to perform the outside marketing position without any substantial physical problems. Hinchliffe remained in this position until Costco terminated his employment (and did so, Hinchliffe alleges, in violation of Costco’s Employee Agreement) on April 7, 2006.

B. Costco’s Timekeeping Policies

There are two ways in which hourly Costco employees at the Colchester warehouse can enter their time-worked into the payroll system. In general, employees are required to punch in and out using a time clock at the beginning and end of each shift and for authorized breaks. According to Costco, even those employees who conduct work outside of the warehouse are required to punch in and out at the warehouse at the start and end of each shift. (Doc. 34). The time clock automatically transmits the recorded times to Costco’s payroll software.

Alternatively, employees may write the time they begin and/or end work in the “Exception Log,” which is a document maintained near the employee entrance of the warehouse. When time worked is recorded in the Exception Log, Costco’s Payroll Clerk manually enters the recorded times into the payroll software.

The Parties agree that the Exception Log should be used when an employee fails or is unable to use the time clock, and that on such occasions the employee is required to record his or her actual hours *422 worked, and to have management approve the Exception Log entry. (Doc. 118 ¶ 37; Doc. 116 ¶ 37). Hinehliffe contends, however, that Costco management permitted him to record time in the Exception Log as a matter of course, even when he was otherwise able to punch in and out on the time clock. (Doc. 115 ¶¶ 34, 50, 57). Costco avers that its general timekeeping policy requires employees to enter all time on a daily basis, and that employees who cannot return to the warehouse at the end of their shift are required to call and report their hours to a senior manager that same day. (Doc. 113 ¶¶ 45-46). Additionally, all employees are required to accurately record their actual hours worked, including the actual time-started and time-ended, in the Exception Log. (Doc. 113 ¶ 38). Employees receive a draft timesheet at the end of each two-week pay cycle, and are obligated to report any inaccuracies. Id. ¶ 53. Hinehliffe disputes that these three requirements — recording actual times worked, doing so on a daily basis, and reporting timesheet inaccuracies — applied to him, at least during the time he performed comparative shopper duties. (Doc. 116 ¶¶ 38-58).

Finally, Costco does not generally permit hourly employees to take breaks that are longer than two hours but shorter than eight hours. When that does occur, the employee is entitled to overtime pay for the hours worked following his or her break, even if the total time worked does not exceed eight hours. (Doc. 115-4, Wight Dep. 59:1-60:6).

C. Hinchliffe’s Timekeeping Practices

During his time as a comparative shopper Hinehliffe had a regular assigned schedule of 8 hours per day, 5 days per week, for a total of 40 hours.

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667 F. Supp. 2d 418, 2009 WL 3536646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hinchliffe-v-costco-wholesale-corp-vtd-2009.