Lovelady v. Allsup's Convenience Stores, Inc.

304 F. App'x 301
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 23, 2008
Docket08-10662
StatusUnpublished
Cited by5 cases

This text of 304 F. App'x 301 (Lovelady v. Allsup's Convenience Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lovelady v. Allsup's Convenience Stores, Inc., 304 F. App'x 301 (5th Cir. 2008).

Opinion

*303 PER CURIAM: *

Catherine Lovelady, Diana Schumacher, Margie Lewis, and Dawn Hill appeal the grant of summary judgment in favor of Allsup’s Convenience Stores, Inc., Lonnie Allsup, and Barbara Allsup (collectively Allsup’s). The district court ruled that Lovelady’s claims were barred by the applicable statute of limitations and that Lovelady, Schumacher, and Lewis were exempt employees under the Fair Labor Standards Act (FLSA). 1 We affirm.

I

Lovelady, Schumacher, and Lewis sued Allsup’s for unpaid overtime allegedly due under the FLSA. Appellant Hill “opted in” to this matter by filing a Consent to Sue form with the district court. Appellants alleged that Allsup’s misclassified all of its store managers as exempt under the Act.

Allsup’s is a privately held corporation that operates over 300 convenience stores in various locations, including Texas and New Mexico. Each appellant is a store manager at a different Allsup’s convenience store location. Allsup’s classifies its store managers as exempt, salaried employees.

Allsup’s maintains a written job description that lists the duties and responsibilities of its store managers. Those duties and responsibilities include: 1) preparation, analysis, and evaluation of store paperwork; 2) management and supervision of store clerks and assistant managers, including scheduling, training and counseling; 3) ordering all of the store’s merchandise, ensuring accurate inventory counts, and monitoring delivery of the store’s goods and products; 4) management of store operations, such as ensuring that the store meets high standards of general cleanliness, controlling expenses for supplies, and maintaining customer relationships; and 5) maintaining store security by ensuring compliance with cash control procedures, investigating inventory discrepancies, and training employees on security policies and procedures.

Schumacher and Lewis testified that they received a predetermined, weekly salary of at least $455 per week regardless of the number of hours they worked, were ultimately responsible for the day-to-day operation of their respective stores, supervised between four and eight employees, and made recommendations on hiring and firing, which were generally followed by management.

The district court granted summary judgment in favor of Allsup’s, holding that the appellants were exempt employees under the FLSA. The district court also ruled that Lovelady’s claims were barred by the applicable statute of limitations. 2 Lovelady does not appeal this ruling. Accordingly, and because Hill only “opted in” to this matter, we need only consider whether Schumacher and Lewis were exempt employees under the FLSA.

II

This court reviews a grant or denial of summary judgment de novo, applying the same standard as the district court. 3 *304 Summary judgment is appropriate if “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” 4 “Any reasonable inferences are to be drawn in favor of the non-moving party.” 5

III

The FLSA overtime pay requirements do not apply to those employees who work in a “bona fide executive, administrative, or professional capacity” as defined by the Department of Labor (DOL). 6 An “employee employed in a bona fide executive capacity” is an employee: 1) compensated on a salary basis, not less than $455 per week; 2) whose primary duty is management of the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof; 3) who customarily and regularly directs the work of two or more other employees; and 4) who either has the authority to hire or fire other employees or their suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight. 7

A

There is no dispute that Lewis and Schumacher were each compensated on a salary basis in excess of $455 per week. Lewis and Schumacher also testified that their salaries were never reduced for any reason. Nevertheless, Lewis and Schumacher argue that the reduction-of-bonus provisions within Allsup’s’ store managers bonus plan constitutes an impermissible docking of pay and destroys the exempt status of store managers. We disagree.

Deductions or reductions from bonus payments do not affect an employee’s status as an exempt employee so long as the requisite minimum $455 salary is paid. “An employer may provide an exempt employee with additional compensation without losing the exemption or violating the salary basis requirement, if the employment arrangement also includes a guarantee of at least the minimum weekly-required amount paid on a salary basis.” 8 “The prohibition against improper deductions from the guaranteed salary under 29 C.F.R. § 541.602(b) does not extend to such additional compensation provided to exempt employees.” 9 Therefore, Allsup’s’ management bonus policy does not result in impermissible deductions that destroy Lewis’s and Schumacher’s exempt status.

B

Allsup’s also demonstrated that Lewis’s and Schumacher’s primary duty was the management of the enterprise in which they were employed. Generally, “management” activities include:

interviewing, selecting, and training of employees; setting and adjusting their rates of pay and hours of work; directing the work of employees; maintaining production or sales records for use in supervision or control; appraising employees’ productivity and efficiency for *305 the purpose of recommending promotions or other changes in status; handling employee complaints and grievances; disciplining employees; planning the work; determining the techniques to be used; apportioning the work among the employees; determining the type of materials, supplies, machinery, equipment or tools to be used or merchandise to be bought, stocked and sold; controlling the flow and distribution of materials or merchandise and supplies; providing for the safety and security of the employees or the property; planning and controlling the budget; and monitoring or implementing legal compliance measures. 10

Lewis and Schumacher argue that they are not exempt because they were required to perform both exempt and nonexempt work.

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Cite This Page — Counsel Stack

Bluebook (online)
304 F. App'x 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lovelady-v-allsups-convenience-stores-inc-ca5-2008.