Leprettre v. RCS, LLC

206 So. 3d 1215
CourtLouisiana Court of Appeal
DecidedNovember 16, 2016
Docket16-382
StatusPublished
Cited by3 cases

This text of 206 So. 3d 1215 (Leprettre v. RCS, LLC) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leprettre v. RCS, LLC, 206 So. 3d 1215 (La. Ct. App. 2016).

Opinion

THIBODEAUX, Chief Judge.

h Defendant, RCS, LLC (“RCS”), the former employer of appellee, Chancze Le-prettre, appeals a trial court judgment awarding Mr. Leprettre $1,219.72 in past due wages, $19,083.60 in penalty wages, and $3,500.00 in attorney fees pursuant to La.R.S. 23:632. Upon termination of Mr. Leprettre’s employment, RCS offset certain training costs pursuant to a Training Loan Agreement (“Loan Agreement”) which the trial court determined violated public policy. Mr. Leprettre answers the appeal and requests additional attorney fees for work performed on appeal.

For the following reasons, we affirm the judgment of the trial court, and we award attorney fees in the amount of $4,000.00 to Mr. Leprettre on appeal.

I.

ISSUES

There are four issues before the Court:

(1) whether an employer can offset expenses for required preemployment training prerequisites and withhold these expenses from an employee’s final wages pursuant to a written agreement;
(2) whether RCS properly asserted a good faith defense to the imposition of penalty wages by relying on the terms of the Loan Agreement;
(3) whether Mr. Leprettre introduced sufficient evidence at trial that he made legal demand for his final wages; and
(4)whether the trial court properly calculated Mr. Leprettre’s daily rate of pay for purposes of computing penalty wages owed pursuant to La.R.S. 23:632.

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STANDARD OF REVIEW

An appellate court may not set aside a trial court’s finding of fact in the absence of manifest error or unless it is clearly wrong. Stobart v. State, Through DOTD, 617 So.2d 880 (La.1998); Rosell v. ESCO, 549 So.2d 840 (La.1989). A trial court’s determination with regard to whether a plaintiff is entitled to penalty wages under La.R.S. 23:632 is a factual finding, which can only be reversed on appeal if manifest error occurs. Kaplon v. Rimkus Consulting Grp., Inc. of La., 09-1275 (La.App. 4 Cir. 4/28/10), 39 So.3d 725, writ denied, 10-1207 (La. 7/2/10), 39 So.3d 587.

III.

FACTS AND PROCEDURAL HISTORY

Mr. Leprettre was hired by RCS effective January 21, 2015. Mr. Leprettre was an at-will employee of RCS. At the time of his hire, Mr. Leprettre entered into a Loan Agreement with RCS. The Loan Agreement stated that RCS would lend Mr. Leprettre $1,625.00 in training costs paid in advance by RCS. If Mr. Leprettre worked for RCS for at least six months following the successful completion of the training, the loan would be considered paid in full and. Mr. Leprettre would have no further obligation to RCS. If Mr. Lepret-tre worked for less than six months, the training costs would be prorated. Mr. Le-prettre completed the last of the training listed in the Loan Agreement on January 30,2015, with the six-month anniversary of [1218]*1218the training date occurring 181 days later on July 30, 2015. The last day that Mr. Leprettre performed work for RCS was on IsMarch 9, 2015, which was thirty-eight days after his completion of the required training.

On March 9, 2015, RCS terminated Mr. Leprettre’s employment. Mr. Leprettre’s payroll for his final pay period for gross wages was $1,613.00. After RCS subtracted the standard payroll deductions from Mr. Leprettre’s gross wages, his final net wages amounted to $1,219.72. RCS argues that with respect to the Loan Agreement’s original principal balance of $1,625.00, Mr. Leprettre was entitled to a credit of $341.16 for working thirty-eight of 181 days of the loan forgiveness period, resulting in a loan balance of $1,283.84. RCS further argues that because Mr. Lepret-tre’s prorated loan balance of $1,283.84 was greater than his final net wages of $1,219.72, RCS properly offset the entirety of Mr. Leprettre’s wages against the prorated loan balance per the terms of the Loan Agreement.

As an RCS Maintenance Technician, Mr. Leprettre’s typical work schedule consisted of working “seven days on, seven days off.” Mr. Leprettre typically worked twelve-hour shifts each day; however, sometimes the position required that employees work overtime. RCS paid Mr. Le-prettre $14.00 per hour for the first forty hours worked in a work week, plus overtime at $21.00 per hour for all hours worked over forty in a work week. Mr. Leprettre’s last two-week pay period with RCS began on Monday, March 2, 2015, and ended on Sunday, March 15, 2015. During the first week of the pay period, Mr. Leprettre worked a total of ninety-one hours. RCS thereafter informed Mr. Le-prettre of the termination of his employment, with March 9, 2015 being his last day of work. Mr. Leprettre’s final pay stub indicates that he worked forty hours at regular rate of pay ($14/hour) and fifty-one hours at time-and-a-half of his regular rate of pay ($21/hour).

|40n appeal, RCS argues that the trial court improperly relied on this Court’s prior decision in Newsom v. Global Data Systems, Inc., 12-412, 12-413 (La.App. 3 Cir. 12/12/12), 107 So.3d 781, writ denied, 13-429 (La. 4/5/13), 110 So.3d 595, in holding that the Loan Agreement’s final wage deduction provision is void as against public policy. RCS further argued that even in the alternative that RCS could not legally offset Mr. Leprettre’s loan balance against his final wages, RCS established an affirmative defense to the imposition of penalty wages by its good faith reliance on the terms of an otherwise enforceable loan agreement. RCS further contends that Mr. Leprettre did not introduce evidence at trial that he made proper legal demand on RCS for his final wages prior to filing suit, which is fatal to his claim for penalty wages. Last, RCS argues that the trial court failed to strictly construe the penalty wage provision of La.R.S. 23:632, when it improperly included overtime pay in its calculation of Mr. Leprettre’s daily rate of pay.

IV.

LAW AND DISCUSSION

Newsom and Public Policy

RCS argues that Mr. Leprettre and RCS entered into an enforceable loan agreement and that RCS properly offset the amounts due against Mr. Leprettre’s final wages pursuant to the Loan Agreement. Specifically, RCS contends that the trial court improperly relied on this Court’s prior decision in Newsom, 107 So.3d 781, in holding that the Loan Agreement’s final wage deduction provision is void as against public policy. In Newsom the court held that where employees were [1219]*1219at-will, the employment contract requiring them to | ¿reimburse their employer company for education and training expenses after separation, was void as against public policy. Id.

RCS contends that the Loan Agreement is distinguishable from the employment agreement at issue in Newsom insofar as the Loan Agreement was an employee loan for a short, defined period of time, and provided for a remission of the debt over that time period. In contrast, the employment agreement in Newsom was an open-ended, twelve-month-training expense reimbursement requirement, that applied to the terminated employee regardless of his length of service. This distinction, while accurate, is not outcome determinative. The trial court was correct in ruling that Newsom is controlling law in this matter.

In Newsom, this Court ruled that the agreement was void as against public policy because it created liability for an at-will employee.

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Bluebook (online)
206 So. 3d 1215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leprettre-v-rcs-llc-lactapp-2016.