Lori G. McKenzie v. Renberg's Inc., and Robert Renberg

94 F.3d 1478, 1996 U.S. App. LEXIS 23218, 1996 WL 501751
CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 4, 1996
Docket94-5197
StatusPublished
Cited by127 cases

This text of 94 F.3d 1478 (Lori G. McKenzie v. Renberg's Inc., and Robert Renberg) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lori G. McKenzie v. Renberg's Inc., and Robert Renberg, 94 F.3d 1478, 1996 U.S. App. LEXIS 23218, 1996 WL 501751 (10th Cir. 1996).

Opinion

EBEL, Circuit Judge.

Plaintiff-Appellant Lori G. McKenzie brought this action against her former employer, Renberg’s Inc., and its president, Robert Renberg (collectively “defendants”), asserting claims for retaliatory discharge in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 215(a)(3), and wrongful discharge in violation of Oklahoma public policy. The district court dismissed McKenzie’s state law wrongful discharge claim prior to trial under Fed.R.Civ.P. 12(b)(6). McKenzie received a favorable jury verdict on her retaliation claim, but the district court thereafter entered judgment as a matter of law for defendants. McKenzie now appeals these two rulings. 1 We have jurisdiction under 28 U.S.C. § 1291 and we affirm. 2 We hold that McKenzie did not engage in protected activity under § 215(a)(3) when, in her capacity as personnel director, she undertook to advise Renberg’s that its wage and hour policies were in violation of the FLSA.

BACKGROUND

Renberg’s, Inc. (“the company”) hired McKenzie as a receptionist in July 1984. She was promoted to Assistant Personnel Director in October 1984, and in May 1985, she became the company’s Personnel Director. As Personnel Director, McKenzie was responsible for monitoring compliance with state and federal equal employment opportunity laws, wage and hour laws, and other laws regulating the workplace.

In August 1991, a co-worker of McKenzie, Marsha McElroy, attended a seminar on wage and hour laws and returned with various informational materials. McElroy gave these materials to McKenzie, who, after reviewing them, became concerned that certain employees of the company were not receiving proper compensation for working overtime. McKenzie discussed the matter with McElroy, and then decided to disclose her concerns to the company attorney, Steve Andrew. McKenzie and McElroy met with Andrew on September 4, 1991, and later that same day, McKenzie also discussed the wage and hour problem with Robert Renberg (“Renberg”), the company president. Sixteen days later, on September 20, 1991, McKenzie was terminated by Renberg.

Believing she had been retaliated against for reporting the company’s possible wage and horn" violations, McKenzie filed suit in the United States District Court. In her complaint, McKenzie asserted an FLSA retaliatory discharge claim under 29 U.S.C. § 215(a)(3). This statutory provision makes it unlawful for an employer

to discharge or in any other manner discriminate against any employee because such employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to this chapter, or has testified or is about to testify in any such proceeding, or has served or is about to serve on an industry committee.

29 U.S.C. § 215(a)(3). McKenzie also asserted a state law claim for wrongful discharge in violation of Oklahoma public policy, see Burk v. K-Mart Corp., 770 P.2d 24 (Okla.1989). 3 The district court dismissed the Burk public policy claim under Fed.R.Civ.P. 12(b)(6). The FLSA retaliation claim was tried to the jury.

The parties vigorously disputed the facts at trial. McKenzie testified that the defendants were not very open to her concerns about the company’s possible FLSA violations. According to McKenzie’s testimony, *1482 Andrew seemed not to understand her concerns and would not examine the seminar materials she had brought to the September 4, 1991 meeting. McKenzie testified that at one point in the meeting, Andrew drew a line on a legal pad — apparently representing the symbolic line between “right” and “wrong”— and indicated to McKenzie that he was not afraid to cross that line. After the meeting with Andrew, McKenzie spoke with Renberg. McKenzie testified that Renberg also seemed indifferent to the wage and hour problem. She had the impression that Renberg had already spoken to Andrew about the FLSA issue. McKenzie testified that after these meetings she began to feel uneasy and feared for her job.

McKenzie testified that her uneasiness continued during the next few weeks, as Andrew would not return her repeated phone calls. On September 20,1991, Renberg came to McKenzie’s office and fired her. McKenzie testified that Renberg’s only stated reason for firing her was his “loss of confidence” in her. McKenzie later discovered that she had been under investigation by an internal security officer since September 12, 1991, eight days after she first reported the FLSA violations to Andrew. Renberg testified that he had personally requested the investigation of McKenzie, and that McKenzie was the only employee he specifically remembered ever having asked to be investigated. Finally, McKenzie testified that she had received no warnings or complaints from the defendants about her performance, despite a general company policy that required progressive counseling about performance problems before termination.

The defendants disputed much of McKenzie’s testimony at trial. Andrew testified that the company did not have a progressive discipline system in place, nor did it have an employee’s manual at the time of McKenzie’s discharge. In addition, the defendants sought to rebut McKenzie’s claim of retaliation by offering evidence that Marsha McEl-roy, who attended the FLSA seminar and who also raised the possible FLSA violations with Andrew, was not terminated.

Renberg denied that McKenzie’s discharge was in retaliation for her protected FLSA activity. Renberg testified that he fired McKenzie for two legitimate reasons: (1) for disclosing confidential information in her role as personnel director; 4 and (2) for notarizing a “contract” between two company employees for sexual favors. The “contract,” which was entered into by Brenda Jagels, an on-call sales clerk, and David Childers, a company vice-president, provided in relevant part as follows:

AREA OF CONTENTION: Renberg’s Christmas Bonus
TERMS OF THE AGREEMENT: Should Christmas bonuses not be paid in their usual manner to the employees of Ren-berg’s Inc., a company operating in Tulsa, Oklahoma, then David Childers will provide Brenda Jagels with the following:
(1) Fendi Parfum 1.4 oz.
(1) Fendi EDT
(1) Fendi Body Lotion or Creme
(1) Erno Laszlo Eye Creme
However, should Christmas bonuses be paid then Brenda Jagels will provide David Childers with a very special and provocatively intimate evening; time, place and duration to be negotiated.

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Bluebook (online)
94 F.3d 1478, 1996 U.S. App. LEXIS 23218, 1996 WL 501751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lori-g-mckenzie-v-renbergs-inc-and-robert-renberg-ca10-1996.