Hurley v. Oregon

859 F. Supp. 427, 1993 U.S. Dist. LEXIS 20094, 1993 WL 726254
CourtDistrict Court, D. Oregon
DecidedMay 14, 1993
DocketCiv. No. 92-302-JO
StatusPublished

This text of 859 F. Supp. 427 (Hurley v. Oregon) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hurley v. Oregon, 859 F. Supp. 427, 1993 U.S. Dist. LEXIS 20094, 1993 WL 726254 (D. Or. 1993).

Opinion

OPINION AND ORDER

ROBERT E. JONES, District Judge:

Plaintiffs in this class action are Oregon State Police (“OSP”) employees who have charged the state of Oregon and other defendants with failing to pay them overtime pay in violation of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201 et seq.

Plaintiffs allege willful violations of the overtime compensation requirements of the FLSA and have moved for partial summary judgment as to liability on this FLSA claim. Defendants allege that plaintiffs are exempt from FLSA overtime provisions and have also moved for summary judgment on the FLSA claim, urging the court to dispose of the entire claim in their favor.

In a second claim not at issue here, plaintiffs allege that defendants’ abolition of “exchange time” is an unconstitutional deprivation of plaintiffs’ property pursuant to 42 U.S.C. § 1983.

For the reasons that follow, I find that plaintiffs are executive salaried employees and that defendants are not liable for overtime compensation. Accordingly, defendants’ motion for summary judgment is granted.

BACKGROUND AND FACTS

1. The statutory scheme.

In the landmark case Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 L.Ed.2d 1016 (1985), the Supreme Court held constitutional FLSA application to state and local government employees. On the heels of Garcia came the Fair Labor Standards Amendments of 1985, passed by Congress in part to address the public sector application of the FLSA.

Most public employees covered by the FLSA must be paid overtime. However, the amendments created a partial exemption to address the unique situation of public safety employees, who by the nature of their jobs don’t have “nine-to-five” schedules. This exemption allows public agencies to adopt a 28-day work period, instead of the traditional seven-day work week, and allows them to exempt its otherwise eligible law enforcement employees from overtime for all work up to 171 hours during that 28-day period. FLSA § 7(k), 29 U.S.C. § 207(k). The state has adopted this “7(k) partial exemption” for all OSP employees holding the rank of sergeant.

[429]*429The FLSA has exempted bona fide executive, administrative and professional employees from overtime pay requirements from its enactment in 1938. Administrative regulations promulgated along with the FLSA set out a “duties test” and a “salary test” to determine whether an employee is a bona fide executive. Plaintiffs say that with the exception of Gerald Miller, they all meet the duties test of the overtime exemption. That leaves the salary test at the center of this dispute, because in order to be considered a bona fide executive, an employee must be paid a salary rather than by the hour. In determining whether an employee is salaried or hired by the hour, the regulations provide in pertinent part:

An employee will be considered to be paid ‘on a salary basis’ within the meaning of the regulations if under his employment agreement he regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of his compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed. Subject to the exceptions provided below, the employee must receive his full salary for any week in which he performs any work without regard to the number of days or hours worked.

29 C.F.R. § 541.118(a).

2. The plaintiffs.

Two groups of plaintiffs make up this case: (1) sergeants and (2) first sergeants, lieutenants and a captain (“senior officers”).

Sergeants are considered managers; however, they are treated as hourly employees and are eligible for overtime pay. As noted above, they are subject to the 7(k) partial exemption; they work a 28-day work period and receive time-and-a-half overtime pay for all hours worked in excess of 171 hours.

The senior officers are considered exempt from FLSA overtime requirements and received no overtime pay.

Both groups of plaintiffs earn holiday “comp time,” at the rate of 1.5 hours comp time for each holiday hour worked. They cannot accrue more than 80 hours of holiday comp time.

Plaintiffs allege that they are not salaried employees within the meaning of the FLSA. They claim they are regular “paid by the hour” employees, and that defendants are liable for plaintiffs’ unpaid overtime compensation.

Defendants contend that plaintiffs are all salaried, bona fide executive or administrative employees who are exempt from the FLSA’s overtime provisions. Despite plaintiffs’ FLSA-exempt status, defendants say, the state has voluntarily provided overtime pay to the sergeants and offered flexible schedules for all exempt employees.

3. Exchange time.

Defendants established non-compensable exchange time (“exchange time”) for OSP managers in September, 1988, as a way to provide time off for employees who often work in excess of eight hours a day without cutting into their vacation time. The exchange time system allowed them to accrue paid leave on an hour-for-hour basis for hours worked over eight hours a day. When the program started, eligible employees could not accrue more than 60 hours of exchange time. That limit was increased to 100 hours effective September, 1989. The exchange time had no monetary value, that is, it could not be “cashed out” upon termination or retirement.

The exchange time policy was suspended in March, 1992, as a result of policy and rule clarification by the state of Oregon Executive Department. The suspension was apparently prompted by state officials’ concerns that the use of exchange time for management service and executive employees was in violation of state personnel policies, which provide that certain FLSA-exempt employees shall work without regard to overtime. The relevant section of the policy reads:

(7) Exempt Employees to Work a Professional Workweek.
(a) An employee exempt from the FLSA shall work a professional workweek on a salaried basis. This means that the employee:
[430]*430(A) shall be expected to perforin work assigned, following direction of the supervisor and in a location authorized by the supervisor;
(B) shall work without regard to overtime. For this employee, there shall be no overtime standard ...

State Personnel Policy 30.015.01(a) (emphasis added).

A memo from OSP Deputy Superintendent Leron Howland dated March 23, 1992, notified OSP officers that exchange time was eliminated as of March 9, 1992. It further stated that any accrued exchange time must be taken by June 30, 1992, and as of that date exchange time is eliminated.

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Bluebook (online)
859 F. Supp. 427, 1993 U.S. Dist. LEXIS 20094, 1993 WL 726254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hurley-v-oregon-ord-1993.