Sanchez v. Sundely

CourtDistrict of Columbia Court of Appeals
DecidedSeptember 12, 2024
Docket23-CV-0540
StatusPublished

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Sanchez v. Sundely, (D.C. 2024).

Opinion

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DISTRICT OF COLUMBIA COURT OF APPEALS

No. 23-CV-0540

LEOPOLDO SANCHEZ, et al., APPELLANTS,

v.

SUNDELY LLC, et al., APPELLEES.

Appeal from the Superior Court of the District of Columbia (2019-CA-008020-B)

(Hon. Maurice A. Ross, Trial Judge)

(Submitted May 2, 2024 Decided September 12, 2024)

Mariusz Kurzyna was on the brief for appellants.

Jay S. Weiss was on the brief for appellees.

Before EASTERLY, HOWARD, and SHANKER, Associate Judges.

SHANKER, Associate Judge: Appellants Leopoldo Sanchez and Banny de Leon

Hernandez (collectively the “employees”) sued their employers, appellees Sundely

LLC and Shanfen Lin (collectively the “employers”), in Superior Court, claiming

that the employers underpaid them for work at a restaurant, in violation of certain

wage and labor statutes. The employers had deducted thirty minutes twice a day

from the employees’ wages for breakfast and lunch breaks, but the employees 2

maintained that their breaks lasted only ten to fifteen minutes each. After a bench

trial, the Superior Court entered judgment for the employers, finding that the breaks

lasted at least twenty minutes each. The employees challenge that ruling on appeal

as (1) a clearly erroneous interpretation of the evidence presented at trial that must

be reversed and (2) legally erroneous because the breaks should have been classified

as rest periods, which must be compensated.

We partially agree. We hold that the trial court clearly erred in evaluating the

employees’ credibility but that other evidence could support the trial court’s finding.

Therefore, we vacate the trial court’s judgment and remand for it to reexamine the

evidence. We need not decide whether the breaks should have been classified as rest

periods because the classification of the breaks turns, at least in part, on their length,

which the trial court must determine anew on remand.

I. Background

A. Legal Background

The employees brought claims under three statutes: the D.C. Minimum Wage

Act (“MWA”), D.C. Code §§ 32-1001 to 1015; the D.C. Wage Payment and

Collection Law (“WPCL”), D.C. Code §§ 32-1301 to 1312; and the federal Fair

Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 to 219. The employees alleged 3

that, by not compensating them for their breaks, the employers: (1) failed to pay

them the minimum wage for each hour worked, in violation of the MWA, see D.C.

Code § 32-1003(b); (2) failed to pay them time and a half for hours worked in excess

of forty hours a week, in violation of both the MWA and the FLSA, see id.

§ 32-1003(c); 29 U.S.C. § 207(a)(1); and (3) failed to pay them all wages earned, in

violation of the WPCL, see D.C. Code § 32-1302. Although multiple statutes are

involved, the claims all revolve around the same question: did the employees’ meal

breaks count as working time for which the employers were required to compensate

them?

In order to evaluate whether an activity, or in this case a break, counts as

working time, courts may look to the United States Department of Labor’s

regulations. See Skidmore v. Swift & Co., 323 U.S. 134, 140 (1944) (“We consider

that the rulings, interpretations and opinions of the Administrator under [the FLSA],

while not controlling upon the courts by reason of their authority, do constitute a

body of experience and informed judgment to which courts and litigants may

properly resort for guidance.”). These regulations distinguish between two kinds of

breaks for purposes of working time. First, there are rest periods: breaks lasting

roughly five to twenty minutes. 29 C.F.R. § 785.18. They count as working time,

and employers must compensate employees for these rest periods. Id. Then there

are bona fide meal periods: breaks “[o]rdinarily 30 minutes or more” during which 4

the employee is “completely relieved from duty for the purposes of eating regular

meals.” Id. § 785.19(a). Meal periods do not count as working time and therefore

need not be compensated. Id. Despite these benchmarks, the regulations offer little

clarity about how to treat breaks used for meals that are longer than about twenty

minutes yet shorter than thirty minutes. For purposes of the MWA, these regulations

are binding because the statute instructs courts to construe “what constitutes working

time” “in accordance with” 29 C.F.R. § 785. D.C. Code § 32-1002(10). 1

B. Factual Background

The parties presented the following evidence at a bench trial. The employees

worked for the employers at Jack’s Fresh Salad Bar & Grill as general kitchen

employees. Throughout the employees’ tenure at the restaurant, the employers

deducted an hour of time from their wages each day, which corresponded to a

thirty-minute breakfast break at 10:00 a.m. and a thirty-minute lunch break at 2:00

p.m.

1 We express no view on whether this reference to 29 C.F.R § 785 refers to the regulations as they existed in 2018—when the most recent version of the MWA was enacted, D.C. Code § 32-1002 (last amended by D.C. Law 22-196, § 6(a) in 2018)—or as they existed at the time the action was brought. In this case, the result would be the same because the relevant regulations have not been amended since the MWA’s enactment. 26 Fed. Reg. 190 (1961) (announcing the promulgation of the regulations to be codified in 29 C.F.R. § 785). 5

The employees testified that they typically finished their meals within ten to

fifteen minutes. They grabbed already-prepared food from the buffet and ate it in

the dining room. Accordingly, the employees did not need to wait in line for their

food to be prepared before eating. In addition to eating, the employees would use

the breaks to use the restroom. Mr. Sanchez maintained that he never took a meal

break longer than twenty minutes. Mr. de Leon testified that he took a break longer

than twenty minutes only once, and it was less than thirty minutes. Mr. Sanchez

explained that he ate quickly because “they wouldn’t give [him] the time to take the

30 minutes,” and Mr.

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