Sanchez v. Sundely

District of Columbia Court of Appeals·Decided September 12, 2024·No. 23-CV-0540·Published

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

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

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

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).

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. de Leon represented that it was because he “had to take care of the other customers.” Both employees testified that their supervisor, Tom Yek, could see them while they took their meal breaks because Mr. Yek would stand nearby at the register.

The employees acknowledged that they had signed pay records confirming the total pay received. But in their view, by signing these records they were confirming only that they had received the pay reflected on the document. The records, according to the employees, did not attest to the amount of hours they had actually worked.

The employers sought to impeach Mr. de Leon with an affidavit he had signed, at Mr. Yek’s behest, in which he averred that employees were given

thirty-minute breakfast and lunch breaks. On redirect, Mr. de Leon confirmed that he had understood the document but explained that he signed it because Mr. Yek asked him to. Following this testimony, the trial court observed that “whenever [Mr. de Leon] was given a piece of paper,” whether by his employer or his attorneys, “he signed it.”

Beyond witness testimony, the employees introduced three additional pieces of evidence: pay logs for Mr. Sanchez, pay logs for Mr. de Leon, and Mr. Yek’s deposition transcript. Mr. Yek, the aforementioned supervisor and restaurant manager, had passed away shortly before trial.

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