Sanchez v. City of New Orleans

538 So. 2d 709, 1989 La. App. LEXIS 114, 1989 WL 6811
CourtLouisiana Court of Appeal
DecidedJanuary 30, 1989
DocketCA-7040
StatusPublished
Cited by6 cases

This text of 538 So. 2d 709 (Sanchez v. City of New Orleans) 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
Sanchez v. City of New Orleans, 538 So. 2d 709, 1989 La. App. LEXIS 114, 1989 WL 6811 (La. Ct. App. 1989).

Opinion

538 So.2d 709 (1989)

William J. SANCHEZ, et al
v.
CITY OF NEW ORLEANS, et al.

No. CA-7040.

Court of Appeal of Louisiana, Fourth Circuit.

January 30, 1989.
Rehearing Denied March 15, 1989.

*710 Louis L. Robein, Jr., Gardner, Robein & Healey, Metairie, for plaintiffs-appellants.

Ralph D. Dwyer, Jr., New Orleans, for Civil Service Comm'n.

Okla Jones, II, City Atty., Don J. Hernandez, Chief Deputy City Atty., Bruce E. Naccari, Deputy City Atty., Shelley H. Gillon, Michael Tifft, Asst. City Attys., New Orleans, for defendants-appellees.

Before BYRNES, CIACCIO and WARD, JJ.

BYRNES, Judge.

Plaintiff firefighters appeal a judgment finding that new rules and regulations enacted by the New Orleans Civil Service Commission and the City of New Orleans are valid and comply with the provisions of the Fair Labor Standards Act. We affirm.

FACTS

On February 19, 1985 the United States Supreme Court expressly extended coverage of the Fair Labor Standards Act minimum wage provisions to state and local government employees in Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 L.Ed.2d 1016 (1985). In 1985 the United States Congress amended the FLSA to delay compliance to be effective April 15, 1986. The 1985 amendments implemented a special antidiscrimination provision under Sec. 8 to prevent employers from unilaterally reducing wages and other monetary benefits to reduce the financial impact of the federal standard regulations. The 1985 Amendments provide that employees must assert coverage under Sec. 7 of the FLSA of 1938 and show discrimination under Sec. 8 of the 1985 Amendments. Further Sec. 7(k), 29 U.S.C. Sec. 207(k), of the Amended Act permits public employers options of various work cycles.

In 1985, The Civil Service Commission of the City of New Orleans formed a committee to review options for compliance with federal regulations. Based upon its study, the committee chose a 28 work day cycle as the method to comply with federal standards. The new plan eliminated the use of a seven day week first implemented in 1979, which allowed Dutch Days or Kelly Days, a form of compensatory time off with pay. Previously, the firemen worked 60-60-48 cycles and were awarded two hours compensatory time for the 47th and 48th hours in each seven day week, which computed to one day off with pay every three months (quarterly), comprising Dutch Days. By changing to the 28 day cycle, mandatory overtime is not computed until 212 hours worked. Elimination of Dutch Days decreased the amount of compensatory time off with pay by 96 hours a year, but the Commission substituted in its place, overtime pay, in cash, for the same 96 overtime hours. Thus, the Commission opted to compensate the overtime hours in cash rather than by compensatory time. The new plan also eliminated the inclusion of sick leave and annual leave in computing the number of hours worked before overtime pay is calculated in any work period. The new plan did provide a 15% pay raise to firefighters in lieu of any lost benefits.

In its customary manner, the Civil Service Commission posted notice of its October 23, 1985 meeting. No questions were submitted by those in attendance, including *711 Union representatives of Local 632 of the New Orleans Firefighter Association, when the explanation of the Civil Service plan was discussed. A day or two later the City Council ratified the new Civil Services rules to be effective April 13, 1986. Between October, 1985, and April, 1986, the Union expressed concern in letters and meetings with the City and the Civil Service Commission. On April 3, 1986, William Sanchez, Union President, and others on behalf of the firefighters filed a petition for declaratory and injunctive relief. The firefighters sought a declaratory judgment decreeing that the collective bargaining agreement between the City and the Union was binding and that the new Civil Service Commission rules violate provisions of the FLSA and its 1985 Amendments. Plaintiffs also claimed that the new rules produced the unlawful impairment of contractual and vested rights under LSA R.S. 33:1995 and R.S. 33:1996. Plaintiffs asked for reimplementation of the seven day work week, Dutch Days, compliance with LSA R.S. 33:1995 and R.S. 33:1996, full back pay and an equal amount for liquidated damages, attorney's fees and costs.

After trial on June 27, 1986, Judge Connolly ruled in favor of the City and Civil Service Commission, dismissing the firefighters' petition.

ISSUES

On appeal plaintiffs assert:

(1) Coverage under Section 8 of the 1985 FLSA Amendments prohibits a unilateral reduction in wages and fringe benefits as a means of avoiding the financial impact of the FLSA and its amendments;
(2) Under 29 U.S.C. Sec. 201 et seq. of the Fair Labor Standards Act of 1938 and its 1985 Amendments, 28 U.S.C. Sec. 215, the new Civil Service rules cannot contravene provisions of the collective bargaining agreement between the City and Union;
(3) Transitional provisions of the 1985 FLSA Amendments protected plaintiff's contractual compensatory time benefits;
(4) Louisiana state law provides "full pay" to firefighters during sick and annual leave under LSA R.S. 33:1995 and 33:1996; and
(5) The new Civil Service Commission rules cannot retroactively apply to alter or impair obligations of the contract agreement between the City and the Union.

I. COMPLIANCE WITH FLSA 1985 AMENDMENTS

Plaintiffs contend that defendants discriminated against firefighters in violation of FLSA 1985 Amendment Section 8 by unilaterally reducing wages and fringe benefits for the purpose of nullifying FLSA coverage. Defendants claim that they did not enact the new pay plan to discriminate against plaintiffs for the sole purpose of retaliation for asserted coverage of the Fair Labor Standards Act.

In Blanton v. City of Murfreesboro, 856 F.2d 731 (6th Cir.1988), the federal appellate court held that plaintiffs did not have to show that the City intended to discriminate against firefighters to prove a violation of Sec. 8 of the FLSA 1985 Amendments. That court found discrimination where the city had made a downward adjustment of firefighters' base wage rates to offset the costs imposed by FLSA compliance. The Court noted:

An employer has a defense to a unilateral reduction in wage rates only if the employer can prove that employee wages were reduced out of fiscal concerns not attributable to extending the Act's coverage to municipal employees. Public employers may not take such steps, however, solely and directly in response to the extension of the Act's coverage. 856 F.2d at 735 (emphasis added).

Although the Civil Service Commission and City of New Orleans may have avoided a greater financial burden imposed by FLSA wage regulations, defendants had legitimate interests in implementing the new Civil Service rules. The Commission made adjustments to the pay schedule to streamline a pay system that had cumbersome accumulated benefits including compensatory time with pay and overtime calculated to include sick leave and vacation *712 time.

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538 So. 2d 709, 1989 La. App. LEXIS 114, 1989 WL 6811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanchez-v-city-of-new-orleans-lactapp-1989.