Robert Niland v. Delta Recycling Corp.

377 F.3d 1244, 9 Wage & Hour Cas.2d (BNA) 1395, 2004 U.S. App. LEXIS 15060, 2004 WL 1627028
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 21, 2004
Docket03-14553
StatusPublished
Cited by11 cases

This text of 377 F.3d 1244 (Robert Niland v. Delta Recycling Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert Niland v. Delta Recycling Corp., 377 F.3d 1244, 9 Wage & Hour Cas.2d (BNA) 1395, 2004 U.S. App. LEXIS 15060, 2004 WL 1627028 (11th Cir. 2004).

Opinion

PER CURIAM:

Robert Niland appeals the district court’s grant of summary judgment to Delta Recycling Corp. (Delta) in his case seeking compensation for back overtime wages under the Fair Labor Standards Act (FLSA), as codified at 29 U.S.C. § 216. Niland argues the district court erred in holding that Delta’s self-audit and payment of back wages were adequately supervised by the Department of Labor (DOL). Niland also argues the district court erred in holding he waived his right to sue when he accepted payment from Delta. We disagree and affirm.

I. BACKGROUND

Niland was a truck driver for Delta. During Niland’s employment, Delta was acquired by Allied Waste North America, Inc. (Allied). After the acquisition, Allied discovered that Delta might not have paid *1246 some of its current and former employees overtime in compliance with the FLSA. Delta contacted the DOL regarding this potential violation. The result was a Compliance Partnership Agreement (Agreement) entered into between the DOL and Delta.

The Agreement contained the following significant provisions: (1) Delta would conduct a voluntary self-audit to determine overtime wage liabilities; (2) the DOL would supervise the payment of any back wages; and (3) although Delta would not be permitted to use DOL Form WH-58 (entitled “Receipt for Payment of Back Wages”), it would be allowed to use the waiver language contained in the form.

During the self-audit, Delta determined it owed back wages to Niland. On May 23, 2002, Delta sent a check along with a letter and receipt to Niland for these wages. 1 The letter was signed by Catharine Elling-sen, who was acting as Delta’s corporate counsel. This letter, the receipt, and the check each indicated that acceptance constituted waiver of any legal claims. Indeed, the receipt specifically included the waiver language from DOL Form WH-58.

Niland called Ellingsen because he believed he was owed more than the check indicated. Ellingsen stated the check was for the correct amount. She then suggested Niland contact Lori Brown, an attorney in the Miami office of the firm that was serving as Delta’s outside counsel. Brown told Niland an investigation had been conducted and that it had confirmed his check was for the correct amount. Neither El-lingsen nor Brown ever instructed Niland to contact the DOL, and Niland did not do so on his own.

Niland eventually decided to cash the check, but a new check had to be issued because the original had expired. The same waiver language was printed on the new check, and Niland endorsed and cashed it on October 25, 2002.

An official DOL record obtained through the Freedom of Information Act indicated the DOL spent a total of one hour supervising the payment of back wages to Delta’s employees. In reliance on this record, the district court denied Delta’s motion for summary judgment. 2 In response, Delta filed a motion for reconsideration. This motion was accompanied by both an affidavit and a letter.

The affidavit was by Alfred Perry, Regional Director for the Southeast Region for the DOL at the time the Agreement was signed and implemented. In it, Perry stated the following: (1) he entered into an agreement with Delta in which he agreed to supervise the payment of back wages to various Delta employees; (2) he spent many hours over several months working on the negotiation and completion of the Delta agreement; (3) he negotiated with Delta that an independent accounting firm would calculate employees’ back wages based on formulas, assumptions, and factors he approved; (4) he reviewed and approved the report of the accounting firm; (5) he negotiated the waiver language included in payments to the employees; and (6) almost all the time he spent on the case was not recorded because it was not his practice to do so.

Also accompanying the motion for reconsideration was a letter from the accounting firm hired by Delta. The letter indicated that some of the time records provided by Delta were illegible and others were unavailable. The letter also noted that it was not always possible to determine the actual *1247 amount of time an employee worked during a given pay period. Finally, the letter observed that there were sometimes discrepancies among the various sources of payroll information.

Upon reconsideration, the district court entered an order granting summary judgment in favor of Delta, from which Niland appeals.

II. DISCUSSION

We review the district court’s grant of summary judgment de novo. Iraola & CIA, S.A. v. Kimberly-Clark Corp., 325 F.3d 1274, 1283 (11th Cir.2003).

Pursuant to 29 U.S.C. § 216(c), the DOL is authorized to supervise payment of back wages owed to employees. Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1353 (11th Cir.1982). 3 If an employee accepts the payment of back wages supervised by the DOL, the employee waives the right to bring suit for unpaid wages and liquidated damages. Id.

The district court concluded (1) the DOL adequately supervised the payment of back wages here, and (2) Niland waived his right to bring suit. Niland argues these rulings constitute error. We disagree.

A. Whether the DOL Adequately Supervised

Niland contends the DOL failed to adequately supervise the payment of back wages.

We are guided here by our decisions in two previous cases. See Lynn’s Food Stores, 679 F.2d at 1352-53; Sneed v. Sneed’s Shipbuilding, Inc., 545 F.2d 537, 538-39 (5th Cir.1977). 4 In Lynn’s Food Stores, we held there was inadequate supervision where the DOL was completely uninvolved in the employer’s attempt to settle a claim for back wages. See 679 F.2d at 1352-53. In contrast, in Sneed, we held there was adequate supervision where a DOL official investigated the claim for back wages, determined the amount owed the employee, presented the check to the employee on the employer’s behalf, and required the employee to sign a receipt waiving his right to sue. See 545 F.2d at 538-39.

In this case, the Perry affidavit demonstrates that, as in Sneed, the DOL played a significant role in both Delta’s self-audit and Delta’s payment of back wages. The affidavit 5 shows the DOL entered into the Agreement with Delta

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Bluebook (online)
377 F.3d 1244, 9 Wage & Hour Cas.2d (BNA) 1395, 2004 U.S. App. LEXIS 15060, 2004 WL 1627028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-niland-v-delta-recycling-corp-ca11-2004.