Keeley v. Loomis Fargo & Co.

42 F. Supp. 2d 442, 5 Wage & Hour Cas. (BNA) 761, 1998 U.S. Dist. LEXIS 21567, 1998 WL 1026960
District Court, D. New Jersey·Decided October 15, 1998·No. Civ. 97-6207(DRD)·Published·Cited by 2 cases

Opinion

OPINION

DEBEVOISE, Senior District Judge.

In this action for overtime pay the plaintiffs and defendant, Loomis Fargo & Co. (“Loomis Fargo”), cross-move for summary judgment pursuant to Fed.R.Civ.P. 56. For the reasons set forth below, Loomis Fargo’s motion will be granted and the plaintiffs’ motion will be denied.

BACKGROUND AND PROCEDURAL HISTORY

The plaintiffs are four New Jersey residents presently or formerly employed by Loomis Fargo or its predecessor, Wells Fargo Armored Services Corp. (‘Wells Fargo”) at its Lyndhurst, New Jersey facility. The plaintiffs are and have been employed by Loomis Fargo in various positions, including guard, driver-guard, messenger-guard and ATM technician. Since April 1997 plaintiff Keeley has worked full-time for the United Armed Guards of America union (the “Union”).

Loomis Fargo is a trucking industry employer subject to the jurisdiction of the United States Secretary of Transportation pursuant to the Motor Carrier Act, 49 U.S.C. § 31501 et seq., and is thereby exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (“FLSA”). 29 U.S.C. § 213(b)(1). The State of New Jersey has *445 its own minimum wage and overtime statute, N.J.S.A. 34:ll-56a4, which establishes a minimum wage rate of $5.05 per hour and requires payment of wages at one and one-half times an “employee’s regular hourly wage for each hour of working time in excess of 40 hours in any week.”

In July 1996 the New Jersey Department of Labor promulgated N.J.A.C. 12:56-19.1 to 19.3, which became effective on August 5, 1996. Loomis Fargo falls within the definition of a “trucking industry employer” set forth in N.J.A.C. 12:56-19.1. The regulation provides that trucking industry employees will be paid the New Jersey minimum wage. N.J.A.C. 12:56-19.2. It also provides for payment of overtime at a rate not less than one and one-half times the New Jersey minimum wage. N.J.A.C. 12:56-19.3. 1

In the course of employment by Loomis Fargo, the plaintiffs have consistently worked in excess of 40 hours per week. They have been compensated for their overtime hours at their regular hourly rate of pay pursuant to a renewal collective bargaining agreement between Wells Fargo and the Union effective November 1, 1995. 2 Plaintiff Keeley was the Union’s chief negotiator and the plaintiffs’ counsel in this action represented the Union during contract negotiations with Wells Fargo. Vaughan Decl. ¶ 2.

The plaintiffs commenced this lawsuit in the Superior Court of New Jersey, Law Division, Union County on November 13, 1997, to i) recover for themselves and for the class of similarly situated employees payment for their overtime labor at the rate required by the New Jersey Wage and Hour Law and ii) obtain injunctive relief mandating future compliance with the law. The plaintiffs seek certification of a class consisting of all persons employed by Loomis Fargo as guards, driver-guards, messenger-guards and ATM technicians who have earned but have not received overtime pay at the rate prescribed by New Jersey law. Loomis Fargo removed the action to this Court pursuant to 28 U.S.C. § 1441 on the basis of the complete diversity of the parties. 3 Loomis Fargo’s December 19, 1997 Answer to the Complaint alleged, inter alia, that the plaintiffs’ claims were preempted by federal law.

By order dated February 25, 1998 Magistrate Judge Ronald J. Hedges directed Loomis Fargo to file a motion to dismiss based on its preemption defense. Certification of the plaintiff class and discovery by the parties were stayed pending the outcome of the motion. On June 12, 1998 this Court denied Loomis Fargo’s motion, finding that New Jersey’s overtime law was not preempted by the FLSA. Keeley v. Loomis Fargo & Co., 11 F.Supp.2d 517 (D.N.J.1998).

In their brief opposing Loomis Fargo’s motion to dismiss, the plaintiffs had argued that New Jersey’s overtime law should require overtime compensation to trucking industry employees based not on the state minimum wage as required by N.J.A.C. 12:56-19.3 but based instead on their regular hourly rate. However, their argument for striking down this regulation went beyond the scope of Loomis Fargo’s motion to dismiss on preemption grounds and was not addressed at that time. Id. at 519 n. 2.

*446 Magistrate Judge Hedges ordered the parties to cross-move for-summary judgment concerning the validity of N.J.A.C. 12:56-19.8, and these motions are now before this Court. On July 20, 1998 the parties entered into a stipulation, for purposes of these motions, that between November 1995 and November 1997 4 the wages paid by Loomis Fargo to the named plaintiffs were at an hourly rate that exceeds .$7,575, one and one-half times the New Jersey minimum wage. 5

SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate where the moving party establishes that “there is no genuine issue as to any material fact and that [it] is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party must show that if the evidentiary material of record were reduced to admissible evidence in court, it would be insufficient to permit the non-moving party to carry its burden of proof. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

Once the moving party has carried its burden under Rule 56, “its opponent must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The opposing party must set forth specific facts showing a genuine issue for trial and may not rest upon the mere allegations or denials of its pleadings. Sound Ship Bldg. Corp. v. Bethlehem Steel Co., 533 F.2d 96, 99 (3d Cir.), cert. denied, 429 U.S. 860, 97 S.Ct. 161, 50 L.Ed.2d 137 (1976).

At the summary judgment stage the court’s function is not to weigh the evidence and determine the truth of the matter, but rather to determine whether there is a genuine issue for trial. Anderson v. Liberty Lobby, Inc.,

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Keeley v. Loomis Fargo & Co., 42 F. Supp. 2d 442, 5 Wage & Hour Cas. (BNA) 761, 1998 U.S. Dist. LEXIS 21567, 1998 WL 1026960 (D.N.J. 1998).

42 F. Supp. 2d 442 (Keeley v. Loomis Fargo & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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