Reimer v. Champion Healthcare Corp.

258 F.3d 720, 7 Wage & Hour Cas.2d (BNA) 169, 2001 U.S. App. LEXIS 15780, 2001 WL 793247
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 16, 2001
DocketNos. 00-2413, 00-2426
StatusPublished
Cited by23 cases

This text of 258 F.3d 720 (Reimer v. Champion Healthcare Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reimer v. Champion Healthcare Corp., 258 F.3d 720, 7 Wage & Hour Cas.2d (BNA) 169, 2001 U.S. App. LEXIS 15780, 2001 WL 793247 (8th Cir. 2001).

Opinion

BYE, Circuit Judge.

The appellants, a class of plaintiffs consisting largely of nurses, filed a civil action against their hospital employer, Dakota Heartland Health Systems, for wage claims under the Fair Labor Standards Act, 29 U.S.C. §§ 206 et seq. Following-lengthy pretrial proceedings, the parties filed cross-motions for summary judgment. The district court2 granted summary judgment to Dakota Heartland on the appellants’ substantive claims. The district court also awarded attorney’s fees to the appellants for a wage calculation error that the hospital corrected after the civil action was filed. The attorney’s fee award was based on the “catalyst theory.”

The parties filed cross-appeals. We affirm the district court’s grant of summary judgment on the substantive claims of the case based on its thorough, well-reasoned opinion. We vacate and remand for reconsideration the court’s award of attorney’s fees in light of the Supreme Court’s recent decision in Buckhannon v. W.V. Dept. Health & Human Res., 531 U.S. 1004, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001).

I

The appellants consist of current and former employees of Dakota Heartland Health Systems in Fargo, North Dakota. Most are nurses. During the relevant period, they were scheduled for off-premises “on-call” time. For on-call time, the nurses were paid less than the federal minimum wage by Dakota Heartland. The nurses’ first claim is that their on-call time should have been compensated at the federal minimum wage pursuant to 29 U.S.C. § 206(a).

In resolving this claim, we must examine what on-call time involves. The record shows that when the nurses were on-call, they had a great deal of flexibility in their activities. Their primary requirement was that they had to be reachable by either cellular phone or beeper, or by leaving a phone number where they could be contacted. If called, they had to be able to report to the hospital within 20 minutes. On-call nurses were also prohibited from imbibing alcohol or using mind-altering drugs or medications.

Otherwise, the on-call nurses could do whatever they wished during on-call time. The nurses were not required to be at the hospital, or at their homes. They could play sports, work at home, go shopping, or visit friends and neighbors. The record shows that typically the nurses were not called in more than once per call shift. Between January 1995 and April 1998, only 36 of the 136 plaintiffs were ever called in more than once. When they were called in, their on-call pay ceased, and the nurses began earning their regular hourly rates or overtime.

The second claim involves the precise formula Dakota Heartland used for calculating overtime wages. The nurses claim that it does not comply with the FLSA; Dakota Heartland contends that it does. The underlying dispute is over how to calculate the “regular rate” of pay as the multiplier for overtime pay. The district court considered the parties’ two competing formulas, and found Dakota Heartland’s formula to be the correct one.

The appellees have filed a cross-appeal. First, the appellees dispute a comment that the district court made in footnote 13 of its opinion. See Wisnewski v. Champion Healthcare Corp., No. CIV. A3-96-72, [725]*7252000 WL 1474414, at *8 n. 13 (D.N.D. Jan.ll, 2000). The footnote concerns the possible effect of the outcome of a North Dakota state court action involving a meal break claim asserted by the appellants.

The appellees also cross-appeal the district court’s award of attorney’s fees to the nurses. The fees were based on the “prevailing party” fee-shifting provision of the FLSA, see 29 U.S.C. § 216(b). The claim on which the attorney’s fees were based was effectively resolved before the summary judgment stage. Nonetheless, the court awarded the appellants attorney’s fees under the “catalyst theory” of fee-shifting.

II

We review the district court’s grant of summary judgment de novo. Spinden v. G.S. Roofing Prods. Co., 94 F.3d 421, 429 (8th Cir.1996). The first issue on appeal is the district court’s decision holding that the nurses’ off-premises, on-call time did not constitute hours “worked” for Dakota Heartland. Because the FLSA applies only when the employee is “working” for the employer, this issue determines whether the appellants’ on-call hours were covered by the FLSA, and therefore whether they were entitled to be paid the federal minimum wage by Dakota Heartland, see 29 U.S.C. § 206.

The FLSA does not define when an employee is working for his or her employer. As a result, the burden has fallen largely on the federal courts, as well as the Department of Labor, to develop general criteria for deciding when an employee is working for the purposes of the FLSA. Most importantly, the Supreme Court developed a general approach for cases such as this in its twin decisions of Armour & Co. v. Wantock, 323 U.S. 126, 65 S.Ct. 165, 89 L.Ed. 118 (1944), and Skidmore v. Swift & Co., 323 U.S. 134, 65 S.Ct. 161, 89 L.Ed. 124 (1944). The Court held that an employee’s time is “work” for the purposes of the FLSA if it is spent “predominantly for the benefit of the employer.” Armour, 323 U.S. at 133, 65 S.Ct. 165. The Court noted that in some such cases “[fjacts may show that the [employee] waited to be engaged” and therefore was not working. Skidmore, 323 U.S. at 137-38, 65 S.Ct. 161. The Court stressed that the lower courts should take a “practical approach based on the realities of each case_” Armour, 323 U.S. at 133, 65 S.Ct. 165.

We commend the district court’s practical approach to this issue, and agree with its holding that the appellants’ off-premises, on-call hours were not spent “predominantly for the benefit of the employer.” See Armour, 323 U.S. at 133, 65 S.Ct. 165. As the record makes clear, there were very few restrictions placed on the appellants during their on-call hours. See Cross v. Ark. Forestry Comm’n, 938 F.2d 912, 916 (8th Cir.1991) (evaluating restrictions on employees’ personal activities). Short of drinking alcohol or taking mind-altering drugs, the appellants could pursue a virtually unlimited range of activities in town or at home.

Moreover, it was relatively uncommon for the appellants to be called in more than once during their on-call schedules. As the district court noted, in over a three-year time span, only about a quarter of the appellants were actually called in more than once during their scheduled on-call times. See Wisnewski, 2000 WL 1474414, at *4. This mitigates against a conclusion that the on-call time was spent predominantly for the benefit of Dakota Heartland. Henson v. Pulaski County Sheriff Dep't 6 F.3d 531, 533 (8th Cir.1993).

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Reimer v. Champion Healthcare Corporation
258 F.3d 720 (Eighth Circuit, 2001)

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Bluebook (online)
258 F.3d 720, 7 Wage & Hour Cas.2d (BNA) 169, 2001 U.S. App. LEXIS 15780, 2001 WL 793247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reimer-v-champion-healthcare-corp-ca8-2001.