Moody v. Royal Wolf Lodge

433 P.3d 1173
CourtAlaska Supreme Court
DecidedDecember 14, 2018
DocketSupreme Court S-16713/S-16733
StatusPublished
Cited by3 cases

This text of 433 P.3d 1173 (Moody v. Royal Wolf Lodge) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moody v. Royal Wolf Lodge, 433 P.3d 1173 (Ala. 2018).

Opinion

MAASSEN, Justice.

*1175 I. INTRODUCTION

This appeal involves a pilot's claim for unpaid overtime compensation. The superior court concluded after a bench trial that the pilot, who flew seasonally for a remote wilderness lodge, was a professional employee and therefore subject to an exemption from the overtime requirements of the Alaska Wage and Hour Act (AWHA). We reversed that decision on appeal, holding that the pilot was not exempt, and remanded the case for a determination of the overtime hours actually worked. 1

On remand the superior court framed the issue as whether the pilot, during his time at the lodge, was "engaged to wait or waiting to be engaged." The superior court applied a multi-factor test and found that the pilot was "waiting to be engaged" and therefore was not entitled to overtime compensation for hours other than those he spent actually performing duties for his employer. The court found that the pilot had worked 6.4 hours of unpaid overtime but declined to award liquidated damages, finding that an exception to the liquidated damages statute applied because the lodge had acted reasonably and in good faith. The court also declined to award attorney's fees to the lodge despite the fact that it had bettered the terms of several offers of judgment.

Both parties appeal. We conclude that the superior court did not err in its legal analysis when determining whether the pilot was entitled to overtime compensation. We also affirm the superior court's decision not to award attorney's fees to the employer. But because the superior court made no findings about the lodge's subjective good faith, we remand the liquidated damages issue to the superior court for further consideration of whether the good-faith exception applies.

II. FACTS AND PROCEEDINGS

A. Facts

Linda and Chris Branham owned and operated Royal Wolf Lodge, a fishing lodge in Katmai National Park that operated seasonally from June to late September. 2 Employees lived there for the season, and because the lodge had no road access they depended on aircraft for materials and supplies. 3

Royal Wolf Lodge employed Jeff Moody as a pilot for six seasons, from 2002 through 2007, to fly the lodge's de Havilland Beaver aircraft. 4 A separate employment agreement covered each year. In January 2008 the Branhams sent Moody a letter informing him that he would not be rehired for the 2008 season.

B. Proceedings

1. Trial before Judge Joannides and Moody I

Moody filed a complaint against the Branhams and Royal Wolf Lodge in May 2008, seeking damages under AWHA for unpaid overtime compensation and liquidated damages in an equal amount. Superior Court Judge Stephanie E. Joannides issued a decision in June 2011 following a bench trial, making specific findings about Moody's job responsibilities and his other activities while at the lodge. She found that Moody was "responsible for preparing the plane for flights," properly loading and unloading it, flying guests to and from the lodge for fishing, and flying in "supplies and other materials," and that he sometimes volunteered for other duties around the lodge. She also found, however, that the time he spent on *1176 tasks "not directly related to" his duties as a pilot "comprised only a small percentage of his time." She found that between flights Moody "was able to visit with other employees and guests while eating, use the internet, watch movies, do laundry, stay in his room, and take naps," though she recognized that the lodge's remote location meant he had to stay nearby.

A determinative issue was whether Moody was a professional employee exempt from AWHA's overtime requirements. 5 Judge Joannides decided he was and therefore was not entitled to overtime compensation. She found that he was, however, entitled to contract damages because his agreed salary was based on a 30-day month and one day off per week, and it was uncontested that he did not take days off in 2006 or 2007. While awarding no overtime, Judge Joannides awarded Moody unpaid wages for July 31 and August 31 of 2006 and 2007 and for the extra day he worked every week.

In Moody I we reversed Judge Joannides's determination that Moody fell under the professional employee exemption. 6 We followed United States Department of Labor advice and federal cases holding that airline pilots do not meet the definition of "professional employees" for the purpose of the exemption because their "primary duty"-piloting an aircraft-does not require specialized academic training. 7 But we affirmed Judge Joannides's factual findings about the days Moody worked and his entitlement to contract damages. 8 We remanded the case "for further proceedings on whether Moody in fact worked overtime as defined by AS 23.10.060 and whether he is entitled to recover compensation for unpaid overtime." 9

2. Remand proceedings before Judge Marston

The case on remand was assigned to Superior Court Judge Erin B. Marston. Following a four-day bench trial in May 2016, Judge Marston issued a written decision, finding that Moody had worked a total of 6.4 hours of uncompensated overtime. To reach this conclusion the judge first had to determine whether Moody was "engaged to wait"-i.e., was entitled to pay while waiting for the lodge to call for his services-or was "waiting to be engaged"-i.e., was on his own time and not entitled to pay until called. Judge Marston noted that "parties are permitted to agree on what constitutes work hours in situations where an employee lives on the work site." He determined, however, that the contracts at issue were "unclear and inconsistent" and reflected "no meeting of the minds" as to job requirements, number of work hours, or hourly rate. Therefore, in order "[t]o determine whether Mr. Moody was engaged to wait, the court must determine whether he was permitted to use his time for his own purposes."

Judge Marston reviewed the factors set out in Owens v. Local No. 169, Association of Western Pulp & Paper Workers , 10 for determining whether an employee is free to engage in personal activities, and found that Moody's job responsibilities left him "free to do whatever he decided to do for much of the day." The judge found that "none of the employment agreements between the parties contemplated on[-]call or standby time[,] ... there were no policies, written or otherwise, that required any of the pilots to be on call[,] ...

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Bluebook (online)
433 P.3d 1173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moody-v-royal-wolf-lodge-alaska-2018.