Smith v. Language Analysis Systems, Inc.

41 Va. Cir. 375, 1997 Va. Cir. LEXIS 38
CourtFairfax County Circuit Court
DecidedFebruary 11, 1997
DocketCase Nos. (Chancery) 146334, (Law) 155873
StatusPublished

This text of 41 Va. Cir. 375 (Smith v. Language Analysis Systems, Inc.) is published on Counsel Stack Legal Research, covering Fairfax County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Language Analysis Systems, Inc., 41 Va. Cir. 375, 1997 Va. Cir. LEXIS 38 (Va. Super. Ct. 1997).

Opinion

By Judge Stanley P. Klein

This case is before the Court on Defendant’s demurrers to both counts of Ms. Smith’s Bill of Complaint and Motion for Judgment. After considering the parties’ oral and written arguments and the cited authorities, the Court sustains both demurrers for the reasons set out herein.

I. Background

Both of Suzanne Smith’s cases1 seek relief stemming from her approximately ten month employment by the defendant, Language Analysis Systems, Inc. (“LAS” or “Defendant”). The crux of Plaintiffs claims is that (1) Defendant violated the Fair Labor Standards Act (“FLSA”) by retaliating against her for her “protected activities” and (2) Defendant wrongfully terminated Plaintiff in contravention of Virginia public policy.

Plaintiff was hired as an administrative assistant by LAS in August of 1995. On January 1,1996, Ms. Smith was promoted to the position of Director of Human Resources. In this position, she was required to handle compensation and overtime issues for Defendant’s employees. Plaintiff claims she soon became concerned when she learned that Defendant had designated all of its [376]*376employees “exempt” from the overtime provisions of the FLSA. Employers are not required to pay overtime pay for hours worked in excess of forty per week for employees who are designated “exempt.” See 29 U.S.C. § 207(a), § 213.

Plaintiff took various actions to further educate herself and her employer. Ms. Smith called the Department of Labor (“DOL”), informally related information, and requested materials. She shared this information with Defendant’s chief executive officer (“CEO”) and conveyed her concern about the company’s compliance with FLSA regulations. When Plaintiffleamed that Defendant proposed limiting employees’ hours to eight a day, Ms. Smith again reiterated her fears. After receiving no encouragement from management, Plaintiff called and explained the situation to Defendant’s attorney.

In May of 1996, Plaintiff alleges that a new employee inquired as to what the overtime pay policy of LAS was. In response, Plaintiff spoke to the CEO again about possible FLSA violations. Ms. Smith claims she was told that the new employee would be “exempt” because LAS did not want to pay overtime to any of its employees. Shortly after this incident, Plaintiff alleges she was fired and management refused to give any reason for her termination. Plaintiff asserts that she only received praise while she was employed by LAS.

In Count I of both lawsuits, Plaintiff claims that Defendant violated the FLSA by firing her for engaging in activities protected by the FLSA. In Count II, Plaintiff alleges that Defendant wrongfully terminated her for her protected FLSA activities. She contends that it is the policy of both the United States and the Commonwealth of Virginia that employees who question their employer’s compliance with the FLSA not be subjected to a retaliatory discharge.

II. Violation of Fair Labor Standards Act

Defendant demurs to Count I in both lawsuits on the basis that Ms. Smith has failed to allege any acts on her part that are protected by the FLSA.2 Under the FLSA:

[i]t shall be unlawful for any person ... to discharge or in any other manner discriminate against any employee because such employee had filed any complaint or instituted or caused to be instituted any proceeding under or related to this chapter, or has testified or is about [377]*377to testify in any such proceeding, or has served or is about to serve on an industry committee.

29 U.S.C. § 215(a)(3) (1996). Based on a plain reading of the statute, Congress protected four specific acts: (1) filing a complaint against an employer, (2) instituting a proceeding against an employer under the FLSA, (3) testifying in any proceeding brought under the FLSA, and (4) serving on an industry committee. Id.

Plaintiff argues that Congress intended to protect activities beyond those listed in the anti-retaliation provision. She relies heavily on the United States Supreme Court’s admonition to courts not to interpret the Fair Labor Standards Act “in a narrow, grudging manner.” Tennessee Coal, Iron & RR v. Muscoda Local No. 123, 321 U.S. 590, 597 (1944).

The federal circuits are split as to whether the legislated protection extends beyond the named activities or is limited to those explicitly set forth in the statute. Both the Third and the Eighth Circuits have ruled that the FLSA protects employees retaliated against when their employer erroneously believed that they had reported FLSA violations. Brock v. Richardson, 812 F.2d 121 (3d Cir. 1987); Saffels v. Rice, 40 F.3d 1546 (8th Cir. 1994). The Court of Appeals for the Tenth Circuit has held that refusing to give up a claim for back pay is protected by the FLSA. Marshall v. Parking Co., 670 F.2d 141 (10th Cir. 1982). The Second Circuit, however, has ruled that complaining to a supervisor is not a protected activity under the statute. Lambert v. Genesee Hosp., 10 F.3d 46 (2d Cir. 1993). Neither the United States Supreme Court nor the Virginia appellate courts have ruled on this issue. In addition, no persuasive authority from the Fourth Circuit was cited by either litigant.

Both parties rely on a Tenth Circuit decision handed down in September of 1996. In McKenzie v. Renberg’s, Inc., 94 F.3d 1478 (10th Cir. 1996), the Court of Appeals affirmed the trial court’s entry of judgment as a matter of law in the employer’s favor. Ms. McKenzie, the personnel director for Renberg’s, alleged she had been fired for discussing her concerns about Renberg’s compliance with the FLSA with a co-worker, the company’s president, and the company’s attorney. Id. at 1481. While acknowledging their liberal interpretation of the FLSA in other cases, the Court nonetheless held that such conduct was not protected by § 215(a)(3) of the Fair Labor Standards Act.

Despite our expansive interpretation of § 215(a)(3), we have never held that an employee is insulated from retaliation for participating in activities which are neither adverse to the company nor supportive of adverse rights under the statute which are asserted against the [378]*378company .... Thus, it is the assertion of statutory rights (i.e., the advocacy

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Bluebook (online)
41 Va. Cir. 375, 1997 Va. Cir. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-language-analysis-systems-inc-vaccfairfax-1997.