Miller v. Farmer Bros.

150 P.3d 598, 136 Wash. App. 650
CourtCourt of Appeals of Washington
DecidedJanuary 16, 2007
DocketNo. 56816-7-I
StatusPublished
Cited by4 cases

This text of 150 P.3d 598 (Miller v. Farmer Bros.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Farmer Bros., 150 P.3d 598, 136 Wash. App. 650 (Wash. Ct. App. 2007).

Opinion

¶1 A class of former employees sued Farmer Brothers Company for overtime pay under the Washington Minimum Wage Act,1 and the trial court granted summary judgment in favor of the class. Farmer Brothers appeals the summary judgment order, and the employees cross-appealed an attorney fee issue. We affirm the summary judgment because the employees are not outside salesmen and must be paid overtime under the Washington Minimum Wage Act. We also affirm the trial court’s application of historical attorney fee rates because there was no abuse of discretion.

Baker, J.

I

¶2 Farmer Brothers is a California corporation with multiple offices in Washington State. The company manufactures, sells, and delivers coffee and related “allied” products to customers. Customers are served by route sales representatives (RSRs). The main duty of an RSR is to deliver required quantities of product, called “par” quantities, to established customers. Although an RSR is called a “sales” position, prior sales experience is not listed among the company’s job qualifications.

¶3 RSRs are assigned established routes with between 70 and 300 customers. The routes are mostly in Washington, although some have stops in Idaho and Oregon. RSRs [654]*654are paid a salary and receive a percentage commission on everything they deliver, even if the “sale” is to an established customer.2 When Farmer Brothers assigns a route, the RSR receives a route card listing all the customers on the route and the par amount of product each customer expects. Route lists are computerized, and each RSR has a hand-held unit that is linked to the home office. They must stock their trucks with enough products to refill each customer’s stock to par level, but they are expected to keep the lowest feasible amount of product on the truck.

¶4 While covering their routes, RSRs are also expected to increase sales to current customers and solicit new customers if they have time. They are told to budget about 20 percent of their day for this purpose. Farmer Brothers instructs them that “[r]egular solicitation can be sandwiched in between customer stops to definite advantage if you have made the time for it.” A half-day on Fridays is set aside for solicitations only, which, according to one RSR, allows a few hours to sell “without the need to stay on top of a route.” But working 12 to 14 hour days with few or no breaks, most RSRs manage to achieve only 8 to 15 solicitations per week. In fact, some experienced RSRs have worked an entire year without adding any new accounts. New accounts are also generated by other employees; Farmer Brothers employs some full-time solicitors and also sets sales quotas for management personnel.3

¶5 A new RSR works as a relief driver. Relief drivers work in the warehouse for an hourly wage, then cover routes for RSRs when needed. When relief drivers cover routes, they are paid a salary but do not receive commissions. They are not expected to make solicitations. Neither regular RSRs nor relief drivers are paid hourly or overtime wages for route work because Farmer Brothers classifies [655]*655them as outside salesmen, an exempt category of employee under wage and hour laws.

¶6 A class consisting of former RSRs and relief drivers, represented by Larry Miller, sued Farmer Brothers for back overtime pay under the Washington Minimum Wage Act.4 Farmer Brothers challenged class certification, and this court remanded for a more adequate statement of the Civil Rule 23 factors.5 After the class was certified and discovery ended, Farmer Brothers moved to limit the damages to hours worked within Washington State. The motion was denied. Both parties agreed that summary judgment was proper because the facts were largely undisputed. Miller prevailed, and damages were stipulated. The trial court awarded attorney fees to the class, using historical rates in effect when the time was originally billed.

II

¶7 This court reviews a summary judgment order de novo, engaging in the same inquiry as the trial court.6 Summary judgment is proper if the court, viewing all facts and reasonable inferences in the light most favorable to the nonmoving party, finds no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.7 A" 'complete failure of proof concerning an essential element of the nonmoving party’s case necessarily renders all other facts immaterial.’ ”8 Issues of statutory [656]*656construction are also reviewed de novo.9 An award of attorney fees is reviewed for manifest abuse of discretion.10

¶8 The Washington Minimum Wage Act protects the health and welfare of citizens and encourages employment opportunities within the state.11 Under the act, employees must be paid per hour and must receive at least the minimum wage.12 For any hours over 40 worked in a week, the employee must, be paid one and one half times the regular rate.13 Certain categories of workers, including outside salesmen, are exempt from the hourly pay and overtime requirement.14 Exempt workers may be employed on a salary basis.15 Exempt status in this case is a legal determination based on the worker’s primary duties; the job title, job description, or perceptions of the employee are not dispositive.16 The employer bears the burden of proving exempt status.17

Outside Salesman Exemption

¶9 An “outside salesman” is defined as any employee:

(1) Who is employed for the purpose of and who is customarily and regularly engaged away from his employer’s place or places of business, as well as on the premises (where the employee regulates his own hours and the employer has no control over the total number of hours worked) in the following alternative activities:
[657]*657(a) In making sales; including any sale, exchange, contract to sell, consignment for sale, shipment for sale or other disposition [and]
(2) Whose hours of work of a nature other than that described in (l)(a), (b), (c) and (d) of this section do not exceed 20 percent of the hours worked in the work week by nonexempt employees of the employer: Provided, That work performed incidental to and in conjunction with the employee’s own outside sales or solicitations, including incidental deliveries and collections, shall not be regarded as nonexempt work; and
(3) Who is compensated by the employer on a guaranteed salary, commission or fee basis and who is advised of his status as “outside salesman.”[18]

The pertinent subsection in this case is (l)(a). Unless Farmer Brothers raises a genuine issue of material fact as to whether RSRs are primarily employed to make sales, any other issue of fact is immaterial.

¶10 There is no reported case in Washington interpreting the outside salesman exemption. Because the federal regulation defining “outside salesman” is similar to the Washington rule,19 we can look to federal law for guidance on the issue.20

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Cite This Page — Counsel Stack

Bluebook (online)
150 P.3d 598, 136 Wash. App. 650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-farmer-bros-washctapp-2007.