Rutti v. Lojack Corporation

CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 21, 2009
Docket07-56599
StatusPublished

This text of Rutti v. Lojack Corporation (Rutti v. Lojack Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rutti v. Lojack Corporation, (9th Cir. 2009).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

MIKE RUTTI,  Plaintiff-Appellant, and KEVIN VERMILLION; ISAAC CHARLESWORTH; MURRAY M. MYERS; DAN JOHNSTON; ORLANDO No. 07-56599 JASON WHITE; GICARDO LEAL; PHILIP REDFIELD; JEROME CHARLES  D.C. No. CV-06-00350-DOC WEISS; NICK KAMINSKY; MARCUS E. MCKAY; RICHARD DEMELO; CHRIS OPINION MEACHAM; ESHON D. MITCHELL, Plaintiffs, v. LOJACK CORPORATION, INC., Defendant-Appellee.  Appeal from the United States District Court for the Central District of California David O. Carter, District Judge, Presiding

Argued and Submitted February 4, 2009—Pasadena, California

Filed August 21, 2009

Before: Cynthia Holcomb Hall, Barry G. Silverman and Consuelo M. Callahan, Circuit Judges.

Opinion by Judge Callahan; Partial Concurrence and Partial Dissent by Judge Hall; Partial Concurrence and Partial Dissent by Judge Silverman

11449 RUTTI v. LOJACK CORP. 11453

COUNSEL

Matthew Righetti and John Glugoski (argued) of the Righetti Law Firm of San Francisco, California, for the plaintiffs- appellants.

Peter D. Holbrook, Dan Chammas (argued) and Jennifer Fer- covich of McDermott Will & Emery LLP of Los Angeles, California, for the defendant-appellee. 11454 RUTTI v. LOJACK CORP. OPINION

CALLAHAN, Circuit Judge:

Mike Rutti sought to bring a class action on behalf of all technicians employed by Lojack, Inc. (“Lojack”) to install alarms in customers’ cars. He sought compensation for the time they spent commuting to worksites in Lojack’s vehicles and for time spent on preliminary and postliminary1 activities performed at their homes. The district court granted Lojack summary judgment, holding that Rutti’s commute was not compensable as a matter of law and that the preliminary and postliminary activities were not compensable because they either were not integral to Rutti’s principal activities or con- sumed a de minimis amount of time. We affirm the district court’s denial of compensation for Rutti’s commute and for his preliminary activities. However, we vacate the district court’s grant of summary judgment on Rutti’s postliminary activity of required daily portable data transmissions, and remand the matter to the district court for further proceedings consistent with this opinion. 1 Although not in the dictionary, this word is used in the critical statute, 29 U.S.C. § 254(a)(2). The statute provides that an employer need not pay for: activities which are preliminary to or postliminary to said princi- pal activity or activities, which occur either prior to the time on any particular workday at which such employee commences, or subsequent to the time on any particular workday at which he ceases, such principal activity or activities. There is some inherent ambiguity in this definition. On the one hand, these terms refer to the timing of the activity as either before or after the employee’s primary job functions. On the other hand, the terms appear to be used to distinguish off-the-clock activities for which an employee is not entitled to compensation from “principal activities” for which an employee is entitled to compensation. In this opinion, the terms are used primarily to refer to the timing of the activities in issue. RUTTI v. LOJACK CORP. 11455 I.

A. Facts

Rutti was employed by Lojack as one of its over 450 nationwide technicians who install and repair vehicle recov- ery systems in vehicles. Most, if not all of the installations and repairs are done at the clients’ locations. Rutti was employed to install and repair vehicle recovery systems in Orange County, and required to travel to the job sites in a company-owned vehicle. Rutti was paid by Lojack on an hourly basis for the time period beginning when he arrived at his first job location and ending when he completed his final job installation of the day.

In addition to the time spent commuting, Rutti sought com- pensation for certain “off-the-clock” activities he performed before he left for the first job in the morning and after he returned home following the completion of the last job. Rutti asserted that Lojack required technicians to be “on call” from 8:00 a.m. until 6:00 p.m. Monday through Friday, and from 8:00 a.m. until 5:00 p.m. on Saturdays. During this time, the technicians were required to keep their mobile phones on and answer requests from dispatch to perform additional jobs, but they were permitted to decline the jobs.2 Rutti also alleged that he spent time in the morning receiving assignments for the day, mapping his routes to the assignments, and prioritiz- ing the jobs. This included time spent logging on to a hand- held computer device provided by Lojack that informed him of his jobs for the day.3 In addition, it appears that Rutti may 2 During Rutti’s six years with Lojack, he only received two calls for additional jobs while “on-call.” Rutti accepted one job and declined the other. 3 In the district court, Rutti also sought compensation for time spent washing his work clothes, washing and maintaining the company car, driv- ing to the United Parcel Service, organizing supplies, purchasing and maintaining his work tools, and commuting to and waiting for meetings. The district court held that Rutti was not entitled to compensation for any of these activities and Rutti has not challenged those rulings on appeal. 11456 RUTTI v. LOJACK CORP. have completed some minimal paperwork at home before he left for his first job.

During the day, Rutti recorded information about the instal- lations he performed on a portable data terminal (“PDT”) pro- vided by Lojack. After he returned home in the evening, Rutti was required to upload data about his work to the company. This involved connecting the PDT to a modem, scrolling down a menu on the PDT until he encountered an option labeled “transmit,” and selecting this option to initiate the upload process. The transmissions had to be done at home because it required the use of the modem provided by Lojack. Rutti was required to make sure that the transmission was suc- cessful, and there is evidence in the record that it often took more than one attempt to successfully complete a transmis- sion. Lojack’s Installer Training Manual instructed techni- cians not to transmit their PDT data ten minutes before or after the hour because the corporate computer system is auto- matically reset at those times. The Manual further instructed technicians to wait an hour if they have technical difficulties and that after two unsuccessful attempts they should call the host computer and document the date, time, PDT error mes- sage, number called from, and any specific error message, dial tone, or busy signal heard over the phone line.

B. Procedural History

On April 5, 2006, Rutti filed this putative class action on behalf of himself and similarly-situated technicians asserting that under the Fair Labor Standards Act, 29 U.S.C. §§ 201-19 (“FLSA”), and under California law, Lojack had unlawfully failed to compensate for commuting and “off-the-clock” work. After the parties had engaged in considerable discov- ery, Lojack moved for partial summary judgment and Rutti sought class certification. The district court decided to rule on the motion for partial summary judgment before addressing class certification, citing Wright v. Schock, 742 F.2d 541, 544 (9th Cir. 1984) (“It is reasonable to consider a Rule 56 motion RUTTI v. LOJACK CORP. 11457 first when early resolution of a motion for summary judgment seems likely to protect both the parties and the court from needless and costly further litigation.”).

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