Quaker Oats Co. v. Jewell

818 So. 2d 574, 2002 WL 463578
CourtDistrict Court of Appeal of Florida
DecidedMarch 28, 2002
Docket5D00-3393
StatusPublished
Cited by18 cases

This text of 818 So. 2d 574 (Quaker Oats Co. v. Jewell) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quaker Oats Co. v. Jewell, 818 So. 2d 574, 2002 WL 463578 (Fla. Ct. App. 2002).

Opinion

818 So.2d 574 (2002)

The QUAKER OATS COMPANY, etc., Appellant/Cross-Appellee,
v.
Dwayne JEWELL, et al., Appellees/Cross-Appellants.

No. 5D00-3393.

District Court of Appeal of Florida, Fifth District.

March 28, 2002.
Rehearing Denied June 10, 2002.

*575 Donald C. Works, III, and Juan C. Lopez-Campillo, of Jackson Lewis Schnitzler & Krupman, Orlando, for Appellant/Cross-Appellee.

Edward P. Jordan, II, of Edward P. Jordan, II, P.A., Clermont, for Appellee/Cross-Appellant.

PLEUS, J.

Nine hourly employees ("the Employees") of the Quaker Oats' Gatorade factory in Kissimmee sued their employer in a three-count complaint seeking overtime wages. Count I alleged a violation of section 448.01 claiming overtime pay for work in excess of ten hours per day. Count II alleged a breach of contract and asserted that Quaker Oats failed to pay overtime in accordance with provisions set forth in the company's employment manual.[1]

Quaker Oats is appealing the final judgment entered in favor of the Employees for a total of $103,831.09, as well as a subsequent judgment awarding them $212,520 in attorney's fees. The Employees cross appeal a directed verdict on their statutory wage claim brought under section 448.01.

We deal with the statutory wage claim first. Section 448.01, Florida Statutes (1997) provides:

(1) Ten hours of labor shall be a legal day's work, and when any person employed to perform manual labor of any kind by the day, week, month or year renders 10 hours of labor, he or she shall be considered to have performed a legal day's work, unless a written contract has been signed by the person so employed and the employer, requiring a less or greater number of hours of labor to be performed daily.
(2) Unless such written contract has been made, the person employed shall be entitled to extra pay for all work performed by the requirement of his or her employer in excess of 10 hours' labor daily.

We find that the trial court correctly concluded the statute does not apply to the Employees because they are hourly employees and not employed by the day, week, month or year.[2]

Next, we deal with the challenge to the final judgment in favor of the Employees. Quaker Oats argues the trial court erred in several ways which led to the jury verdict on the breach of contract claim. For simplicity of analysis, we have combined these alleged errors into three. First, *576 Quaker Oats contends the trial court erred as a matter of law by ruling that certain compensation policies contained in employee manuals could constitute part of an employment contract. Second, Quaker Oats claims the trial court erred in its failure to instruct the jury on the law regarding oral contracts.[3] Third, it complains the trial court erred in permitting Employees' counsel to repeatedly and continually, throughout the five-day trial, refer to the Quaker Oats' employment manuals as "contracts."

In support of their breach of contract claim, the Employees attached to the complaint a copy of the 1992 Handbook and the 1997 Handbook. The language of both was incorporated into the complaint by reference.

The 1992 Handbook stated that Quaker Oats would pay overtime to the five day workweek employees at the rate of time and one half for time over eight hours in any one day, or for greater than 40 hours in any one week. In addition, the 1992 manual gave the employer the right to change policy, which it did in 1997.

The 1997 Handbook contains the following:

The work week begins at 11:00 p.m. Sunday. All hours worked on either end of your shift belong to the day in which that shift begins. When the plant is operating under the 7 day work week schedule, check with your Resource for the latest policy and procedure.
Overtime Pay
Your rate at time and one-half (1-½) is paid for all hours worked:
1. During 5 day work week schedule, over eight (8) hours in any one day, or over forty (40) hours in any one week.
2. On Saturday and Sunday, except if Saturday and Sunday is part of your scheduled five (5) day work week.
3. During 7 day work week schedule,[4] check with your Resource for the latest policy and procedure.

Attached to both the 1992 and the 1997 Handbook was a cover letter which states, "This employee handbook does not create any contractual rights for you or the Company." Each of the Employees acknowledged in their "Applications for Hourly Employment with Quaker Oats" that no agreement for employment was valid unless with the express, written approval of the president or chief executive officer of Quaker Oats. The Employees never produced any express, written approval by the president or chief executive officer of Quaker Oats acknowledging that a so-called "contract" exists between Quaker Oats and the Employees.

This case raises the issue of whether policy statements in employment manuals can give rise to enforceable contract rights in Florida. Specifically, do the employee handbooks create a contractual duty on the part of Quaker Oats to pay for certain overtime?

It is well established Florida law that policy statements contained in employment manuals do not give rise to enforceable contract rights in Florida unless they contain specific language which expresses the parties' explicit mutual agreement that the manual constitutes a separate *577 employment contract. This long-standing principle was announced nearly 20 years ago in the seminal case of Muller v. Stromberg Carlson Corp., 427 So.2d 266 (Fla. 2d DCA 1983).

The Muller court was asked to deviate from the Florida case law and in declining, stated that:

Florida law does not reflect those views which appear to be based upon a perception of social and economic policy thought to be beneficial. We would have serious reservations as to the advisability of relaxing the requirements of definiteness in employment contracts considering the concomitant uncertainty which would result in employer/employee relationships.

Muller, 427 So.2d at 270.

Florida's second district rejected Muller's request to transform the employer's policies into binding contracts. The court saw "no justification to depart from long established principles that an employment contract requires definiteness and certainty in its terms." Muller, 427 So.2d at 268. A basic purpose of the law "is to foster certainty in business relationships, not to create uncertainty by establishing ambivalent criteria for the construction of those relationships." Id. at 270. The court reasoned that if company policies "were to govern legal relationships, the law could cease to fulfill" this purpose. Id. The court concluded that Muller's "mere expectations" that he would be given specific salary increases in return for his satisfactory job performance "are insufficient to create a binding term of employment." Id. at 268.

Two years later, Florida's first district also rejected several employees' request to transform their employer's policies into binding contracts. In Bryant v. Shands Teaching Hospital and Clinics, Inc., 479 So.2d 165, 168 (Fla. 1st DCA 1985), the court, citing Muller,

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818 So. 2d 574, 2002 WL 463578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quaker-oats-co-v-jewell-fladistctapp-2002.