Pertuit v. La. Sch. Emps. Ret. Sys.

237 So. 3d 636
CourtLouisiana Court of Appeal
DecidedDecember 27, 2017
DocketNO. 17–CA–393
StatusPublished
Cited by1 cases

This text of 237 So. 3d 636 (Pertuit v. La. Sch. Emps. Ret. Sys.) 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
Pertuit v. La. Sch. Emps. Ret. Sys., 237 So. 3d 636 (La. Ct. App. 2017).

Opinion

MURPHY, J.

This case arises from a dispute between plaintiff, Joyle Pertuit, and the Jefferson Parish School Board (the "JPSB") concerning the computation of retirement benefits for Jefferson Parish school bus drivers under La. R.S. 17:495 and La. R.S. 17:497.1 The dispute centers on the JPSB's classification of "operational pay" and *638whether that portion of a school bus driver's "operational pay" that exceeds his actual dollar-for-dollar operating expenses should be reclassified as "earnable compensation" for purposes of calculating a school bus operator's pension contributions. For the following reasons, we affirm the trial court's grant of summary judgment in favor of the JPSB, thereby dismissing Mr. Pertuit's class action suit, with prejudice, finding that no genuine issues of material fact exist and that, as a matter of law, the JPSB's operational pay policy is in compliance with the applicable statutes.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

There are no genuine issues of material fact in dispute. Mr. Pertuit, a retired school bus operator, was employed by the JPSB for over thirty years, and was the owner and operator of the bus he drove. During his employment, as required by La. R.S. 17:496 and La. R.S. 17:497,2 Mr. Pertuit received two forms of compensation: (1) a "salary," which compensated him for the labor of driving his bus, and was based on his years of service driving the school bus and his years of experience; and (2) "operational pay," which was a cents-per-mile rate of compensation for reimbursement of expenses associated with his owning and operating the school bus, and was based on the number of miles he drove.3

As required by La. R.S. 17:497, the JPSB utilizes the "standard mileage rate method" as a means of reimbursing its school bus operators, such as Mr. Pertuit, for their operational expenses.4 The JPSB uses two sub-classifications of operational pay: state operational pay, which is funded by the state; and parish operational pay, which is locally funded.5 The JPSB classified payments made to Mr. Pertuit for the first 50 miles of his daily route as "state operational pay," and payments made to him for every mile driven over 50 miles on his daily route as "parish operational pay."6 Mr. Pertuit's state operational pay *639and his parish operational pay were identified separately on his payroll statements and were paid separately from his salary as mandated by La. R.S. 17:496(F).7 The total amount of operational pay received by Mr. Pertuit for any given payroll period was equal to a combination of his state operational pay plus his parish operational pay. It is undisputed that the total amount of operational pay that Mr. Pertuit received each payroll period exceeded the minimum rate schedule for compensation of operational expenses set forth in La. R.S. 17:497.

As a school bus operator for the JPSB, Mr. Pertuit was a member of the Louisiana School Employees Retirement System ("LSERS"). For each pay period during Mr. Pertuit's employment, the JPSB deducted from his salary an amount equal to Mr. Pertuit's required contributions to the retirement system. LSERS retirement benefits are calculated based on an employee's "earnable compensation," which is defined by La. R.S. 11:1002(12), as follows:

"Earnable compensation" means the full amount earned by an employee for a given pay period. Earnable compensation shall not include operating expenses, the cost of any insurance paid by the employer, or any allowance for expenses authorized and incurred as an incident of employment, nor payments in lieu of unused sick or annual leave. Earnable compensation shall include pay received by school bus drivers for school-related extracurricular activities.

For years, the JPSB reported only a school bus operator's salary to LSERS. However, following its increase of the school bus operators' salary and operational pay, in September 2007 the JPSB began reporting the bus drivers' total operational pay as "earnable compensation" and made pension contributions to LSERS based on this amount. In December 2007, LSERS informed the JPSB that its inclusion of the bus drivers' operational pay as a part of their "earnable compensation" was in violation of La. R.S. 11:1002(12), which specifically excludes any form of operating expenses. Following notification of its error by LSERS, the JPSB advised Mr. Pertuit (as well as all other JPSB school bus operators), that effective January 15, 2008, his operational would be no longer be reported to LSERS as "earnable compensation," and, consequently, no portion of his operational pay would be considered in the calculation of his retirement benefits.8 From January 2008 through the date of his retirement on October 1, 2012, neither Mr. Pertuit's state operational pay nor his parish operational pay were included in the computation of his "earnable compensation" for retirement contribution purposes; the JPSB has made pension contributions to all of its school bus operators solely on the amount of salary paid.9

*640On May 29, 2015, Mr. Pertuit filed the instant class action law suit against the JPSB and LSERS (on behalf of himself and "all other similarly situated persons"), seeking a declaratory judgment in favor of school bus operators that pension contributions are due on all payments made by the JPSB to school bus operators that exceeded the fixed payment schedule set forth in La. R.S. 17:497. Mr. Pertuit avers that the JPSB pays its school bus operators operational pay that exceeds the actual amount needed to compensate operators for the expenses associated with owning and operating their buses. According to Mr. Pertuit, the amount of operational pay that exceeds the operators' actual expenses is, in actuality, "salary" upon which retirement benefits should be calculated. Consequently, Mr. Pertuit's suit seeks a recalculation of his retirement benefits which include his parish operational pay as "salary" and part of his "earnable compensation" for retirement purposes.10

In response, the JPSB filed a motion for summary judgment seeking dismissal of Mr. Pertuit's request for declaratory relief on the basis that, pursuant to La. R.S. 17:81(U), the JPSB is vested with the sole authority to "prescribe the duties and fix the salaries" of its employees, including the salaries of its school bus operators.11 Citing Louisiana Assoc. of Educators v. St. Tammany Parish School Bd ., 430 So.2d 1144, 1149 (La. App. 1 Cir. 1983), the JPSB argued that any decisions it makes pursuant to this statutory authority are presumed by law to be correct and, unless in conflict with or in derogation of applicable state law, a district court lacks a legal basis to interfere with the JPSB's administrative and executive decisions to fix and classify the compensation it pays to its employees.12 The JPSB further argued that because its "operational pay" policy in the instant case complies with the applicable provisions of La. R.S.

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237 So. 3d 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pertuit-v-la-sch-emps-ret-sys-lactapp-2017.