IN THE COURT OF APPEALS FOR THE STATE OF WASHINGTON
STEPHEN MYNATT and ANITA C__ cr ELAINE MYNATT, on their own behalf No. 71060-5-1 i—
And on behalf of all others similarly situated, -•-""-opi 35» Appellants/Cross- Respondents, CO vo DIVISION ONE "~^Z
GORDON TRUCKING, INC., a UNPUBLISHED OPINION Washington corporation,
Respondent/Cross- Appellant. ) FILED: July 14, 2014
Spearman, C.J. — The issue in this appeal is whether a trucking
company's pay plan included pay for interstate drivers that is "reasonably
equivalent" to overtime, as required by RCW 49.46.130(2)(f). Stephen and Anita
Mynatt, a married couple, are team long-haul truck drivers employed by Gordon S0;TA E :OFourt Trucking, Inc. (GTI). The Mynatts brought claims against GTI for failure to pay
overtime and three other claims predicated on the overtime claims. While the
lawsuit was pending, the Washington Department of Labor and Industries (L&l)
issued a determination letter that the Mynatts' pay plan included the reasonable No. 71060-5-1/2
equivalent to overtime. The trial court dismissed the Mynatts' claims on summary
judgment. We affirm.
FACTS
GTI is a motor carrier headquartered in Pacific, Washington. The Mynatts
have been employed by GTI as Washington-based team long-haul drivers since
2004 and are dispatched out of its Pacific terminal. The Mynatts are subject to
the Federal Motor Carrier Act, 49 U.S.C. § 3101.
Since 1989, Washington state has authorized motor carriers to
compensate drivers with pay that is "reasonably equivalent" to overtime (REOT)
through non-hourly, piece-rate compensation plans. WAC 296-128-012 (1989); see also Westberrv v. Interstate Distrib. Co., 164 Wn. App. 196, 200, 263 P.3d
1251 (2011). Prior to 2007, L&l interpreted Washington's overtime laws as
applying only to drivers' work performed within the state, id.; former WAC 296- 128-011 (1989). Accordingly, GTI's understanding before 2007 was that it was
not required to pay overtime for out-of-state work, and it told the Mynatts after they were hired that they would not receive overtime pay as long-haul, interstate drivers.1 The Mynatts were paid under GTI's PLUSS plan, a mileage-based plan that pays a certain number of cents per dispatched mile associated with each load. Clerk's Papers (CP) at 144. The miles are computer-generated and reflect "practical miles" from city center to city center, not odometer miles. CP at 64. The
1The terms "long haul drivers" and "interstate drivers" are used interchangeably by the parties and aredistinguished from "intrastate drivers" that are compensated under a mileage- based pay plan and "local drivers" that are compensated hourly. No. 71060-5-1/3
PLUSS plan also pays flat-rate "accessorial pay" for certain non-driving activities
(e.g., loading and unloading). CP at 147, 165, 1309. For short hauls (less than
125 miles), the PLUSS plan pays mileage pay plus an additional $10 to $30.
In March 2007, the Washington Supreme Court held that RCW
49.46.130(1) requires that Washington-based drivers receive overtime pay for all
hours worked over 40 per week, whether those hours are performed in or out of
the state. Bostain v. Food Express, Inc., 159 Wn.2d 700, 710-21, 153 P.3d 846
(2007). L&l amended its regulations to comport with Bostain. Westberrv, 164 Wn. App. at 201. With respect to pay plans in place before March 1, 2007, L&l gave employers of drivers who worked over 40 hours a week, consisting of both in state and out-of-state hours, the opportunity to request formal determinations of
whether the plans included "overtime that was at least reasonably equivalent to
that required by RCW 49.46.130." WAC 296-128-012(3). On January 16, 2009, GTI submitted to L&l a request for a determination that the PLUSS plan satisfied the REOT requirement under RCW 49.46.130.2 GTI followed L&l's Administrative Policy ES.A.8.3 (10/24/08), submitting
estimates of hours worked, compensation, miles driven, and average speed
information for 30 randomly selected drivers (including both of the Mynatts) over
a 26-week period. GTI wrote to L&l:
Gordon Trucking pays its [long] haul drivers an alternative mileage based pay on a weekly basis. Notice to drivers of this pay policy is attached hereto as Exhibit A — Reasonably
2GTI also submitted five other pay plans for approval. Only the PLUSS plan is at issue in this appeal. No. 71060-5-1/4
Equivalent Pay Policy, which was mailed to drivers and published internally. The effective date was January 1, 1998.
CP at 147. Exhibit A, the Reasonably Equivalent Pay Policy (REP Policy), is titled
"Description of Driver Compensation for work performed within the State of
Washington," with an effective date of January 1, 1998. It states:
Mileage Runs:
Drivers working mileage runs receive mileage pay at their applicable mileage pay rate, plus accessorial pay (i.e. loading, unloading, making doubles or breaking doubles), if applicable. The combination of mileage pay and accessorial pay rates include a 20% factor for anticipated overtime up to a workweek of 65 hours. As a result, drivers are paid the reasonable equivalent of overtime, which is already figured into the rate from the first hour worked.
CPat152.
The Mynatts filed suit against GTI on June 2, 2010, alleging, in pertinent
part, claims for (1) failure to pay overtime; (2) failure to pay all wages due; (3)
willful failure to pay all wages due; and (4) violations of Washington's Consumer
Protection Act (the three last claims are the "predicate claims"). They sought
recovery for the period March 30, 2007 through the date of trial.
On December 16, 2010, L&l issued a determination that the PLUSS plan
paid REOT under RCW 49.46.130(2)(f) dating back to July 1, 2005. On January
13, 2012, GTI moved for summary judgment on the Mynatts' overtime and
predicate claims. The trial court denied the motion. The Mynatts then moved for summary judgment on their overtime claims and GTI moved for reconsideration
of the court's denial of GTI's motion for summary judgment. On April 16, 2012,
the trial court entered an order granting GTI's motion for reconsideration and No. 71060-5-1/5
GTI's motion for summary judgment, and denying the Mynatt's cross-motion for
summary judgment. The Mynatts appeal.3
DISCUSSION
This court reviews summary judgment de novo, engaging in the same
inquiry as the trial court. Hiqhline Sch. Dist. No. 401. King County v. Port of
Seattle, 87 Wn.2d 6, 15, 548 P.2d 1085 (1976). Summary judgment is proper
only if there is no genuine issue as to any material fact and the moving party is
entitled to judgment as a matter of law. Bostain, 159 Wn.2d at 850. Facts and
reasonable inferences therefrom are viewed most favorably to the nonmoving
party. Id. Summary judgment is proper if reasonable minds could reach but one
conclusion from the evidence presented, id,
L&l "has the authority to supervise, administer, and enforce all laws
pertaining to employment, including wage and hour laws." Schneider v. Snyder's
Foods. Inc., 116 Wn. App. 706, 717, 66 P.3d 640 (2003) (citing RCW 43.22.270).
Where L&l determines that a compensation plan contains REOT, courts give due
deference to its specialized knowledge and expertise, unless its actions are
"arbitrary, capricious, and contrary to law." id. at 716. An agency action is
3On April 2, 2012, GTI moved to strike the Mynatts' expert's report, which they had submitted in support of theiropposition to GTI's motion for summary judgment. The Mynatts had engaged William Brandt, a forensic economist and accountant, to estimate the amount of unpaid overtime to which they were entitled. The trial court denied GTI's motion on April 16. GTI cross- appeals the denial of its motion to strike, but given our disposition ofthis appeal we do not reach the issue presented in its cross-appeal. GTI does not seek affirmative relief on cross-appeal. Rather, its cross-appeal presents an alternative ground for affirming. GTI argues that Brandt's expert testimony was the only evidence on which they relied to establish the elements of their overtime claims and that such evidence was inadmissible; thus, their claims failed even if L&l's finding was arbitrary and capricious. No. 71060-5-1/6
arbitrary and capricious if it is "'willful and unreasoning, and taken without regard
to the attending facts or circumstances.'" id. (quoting ITT Ravonier, Inc. v.
Dalman, 122 Wn.2d 801, 809, 863 P.2d 64 (1993)). "Where there is room for two
opinions, action is not arbitrary and capricious even though one may believe an
erroneous conclusion has been reached." id. at 717 (internal quotation marks
and citation omitted). An agency's interpretation will be upheld if it is a "plausible
construction of the statute or rule" at issue, id. at 716 (citing Seatoma
Convalescent Ctr. v. Dep't of Soc. & Health Servs.. 82 Wn. App. 495, 518, 919
P.2d 602 (1996)). Courts, however, have the ultimate authority to interpret a
statute, and no deference is due to an agency's interpretation if it conflicts with a
statutory mandate. Bostain. 159 Wn.2d at 716-17.
The statute at issue in this case is RCW 49.46.130, which provides, in
relevant part:
(1) Except as otherwise provided in this section, no employer shall employ any of his or her employees for a work week longer than forty hours unless such employee receives compensation for his or her employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he or she is employed. (2) This section does not apply to:
(f) An individual employed as a truck or bus driver who is subject to the provisions of the Federal Motor CarrierAct (49 U.S.C. Sec. 3101 et seq. and 49 U.S.C. Sec. 10101 et seq.), jf the compensation system under which the truck or bus driver is paid includes overtime pay, reasonably equivalent to that required bv this subsection, for working longer than forty hours per weekf.l No. 71060-5-1/7
(Emphasis added.) L&l promulgated rules to implement RCW 49.46.130 — in
pertinent part, WAC 296-128-011 and WAC 296-128-012. The latter states that,
to meet the "reasonably equivalent" requirement of RCW 49.46.130(2)(f),
... an employer may, with notice to a truck or bus driver subject to the provisions of the Federal Motor Carrier Act, establish a rate of pay that is not on an hourly basis and that includes in the rate of pay compensation for overtime. An employer shall substantiate any deviation from payment on an hourly basis to the satisfaction of the department by using the following formula or an alternative formula that, at a minimum, compensates hours worked in excess of forty hours per week at an overtime rate of pay and distributes the projected overtime pay over the average number of hours projected to be worked.
WAC 296-128-012(1)(a). The rule sets forth a recommended formula "for
establishing a uniform rate of pay to compensate work that is not paid on an
hourly basis and for which compensation for overtime is included."4 WAC 296-
128-012(1 )(b) provides,
In using a formula to determine a rate of pay, the average number of hours projected to be worked and the average number of work units accomplished per week shall reflect the actual number of hours worked and work units projected to be accomplished by persons performing the same type of work over a representative time period within the past two years consisting of at least twenty- six consecutive weeks.
4 The formula first requires a defined work unit (e.g., miles), then takes the average number of work units accomplished per week and divides it by the average number of hours projected to be worked perweek, resulting in a figure that is the average number ofwork units accomplished in an hour. The "weekly base rate" is the number of units per hour, multiplied by 40 (hours), multiplied by the "base rate of pay." The "weekly overtime rate" is the number of units per hour multiplied by the number of hours over 40, multiplied bythe "overtime rate of pay." The "total weekly pay" is the weekly base rate plus the weekly overtime rate. Finally, to determine the "uniform rate of pay" (that is, the rate for which compensation for overtime is included), the total weekly pay is divided by the total weekly work units. WAC 296-128-012 provides an example of a uniform mileage rate, in which a driver working 45 hours per week receives a composite rate of 21.1 cents per mile, of which 20 cents per mile (the "base rate") is meantto compensate the driver for 40 and under hours worked in a week and the remaining 1.1 cents per mile is allocated to compensate the driver for hours worked over 40 spread across all hours worked. No. 71060-5-1/8
Under the "special recordkeeping requirements" provision of WAC 296-
128-011,
(1). . . employers who employ individuals as truck or bus drivers subject to the provisions of the Federal Motor Carrier Act shall maintain records indicating the base rate of pay, the overtime rate of pay, the hours worked by each employee for each type of work, and the formulas and projected work hours used to substantiate any deviation from payment on an hourly basis pursuant to WAC 296-128-012. The records shall indicate the period of time for which the base rate of pay and the overtime rate of pay are in effect.
For the purposes of this section and WAC 296-128-012, "base rate of pay" means the amount of compensation paid per hour or per unit of work in a workweek of forty hours or less. A base rate of pay shall be established in advance of the work performed and may be based on hours or work units such as mileage, performance of specified duties, or a specified percentage of the gross proceeds charged for specified work. A base rate of pay shall not be established that will result in compensation at less than the minimum wage prescribed in RCW 49.46.020. "Overtime rate of pay" means the amount of compensation paid for hours worked in excess of forty hours per week and shall be at least one and one-half times the base rate of pay.
(2) The records required by this section shall be made available by the employer at the request of the department. Any current or past employee may obtain copies of the formula, the base rate of pay, the overtime rate of pay, and that employee's records. Job applicants seeking employment by the employer as truck or bus drivers subject to the provisions of the Federal Motor Carrier Act, may obtain copies of the formula, the base rate of pay, and the overtime rate of pay.
The Mynatts do not dispute that GTI's mileage-based plans, including the
PLUSS plan under which they were paid, were administered uniformly across the
8 No. 71060-5-1/9
nation.5 They also acknowledge that certain aspects of the REP Policy were
applicable to them. For example, they agree they were paid a mileage rate, i.e., a
certain number of cents per mile based on years of experience. They also agree
that, like all other mileage-based drivers, they were paid "accessorial" pay for
non-driving work related activities, id. The point of dispute, however, is whether,
the combination of mileage pay and accessorial pay rates for long haul drivers
included a 20 percent factor for anticipated overtime that resulted in them
receiving REOT.
The Mynatts first argue that their compensation did not include REOT
because GTI failed to comply with the requirements of WAC 296-128-011 or-
012. The former defines "base rate of pay" as "the amount of compensation paid
per hour or per unit of work in a workweek of forty hours or less" and requires
that the "base rate of pay shall be established in advance of the work performed
. . . ." The latter provides that "an employer may, with notice to a truck or bus
driver... establish a rate of pay that is not on an hourly basis and that includes in
the rate of pay compensation for overtime." In addition, WAC 296-128-012 also
recommends a formula "for establishing a uniform rate of pay to compensate
work that is not paid on an hourly basis and for which compensation for overtime
is included."6 The Mynatts contend that GTI failed to establish a base rate of pay
5GTI's Director of Payroll Susan Geving testified that, since at least 1994, GTI's pay plans do not pay Washington-based drivers separate rates for work done interstate and work done intrastate. GTI's Chief Operating Officer (COO) Gordon testified that he believes GTI pays all drivers REOT "[b]ecause our drivers are generally paid the same all across the network... CP at 2389. This testimony was uncontradicted.
6 See note 4, supra. No. 71060-5-1/10
in advance of the work performed and failed to provide advance notice that their
non-hourly compensation, i.e. the mileage rate, included compensation for
overtime.7 As a result, they argue, the mileage rate at which they were
compensated is actually the base rate upon which the overtime rate should be
calculated.
But neither RCW 49.46.130 nor the regulations promulgated to implement
that statute dictate such a result. First, GTI does not claim that it established a
base rate. Rather, its position, in essence, is that the mileage rates were the
drivers' "uniform rate of pay" as used in WAC 296-128-012(1 )(a). In other words,
the drivers' mileage rates had built-in overtime. The Mynatts dispute this claim
because GTI failed to follow the recommended formula set forth in that section to
establish a uniform rate of pay by first establishing a base rate of pay. But the
recommended formula is just that, a recommendation; it is not the exclusive
method for establishing a uniform rate of pay.8 The Mynatts do not identify any
statute, regulation, or rule that prohibits GTI from establishing a uniform rate of
pay in the manner that it did.
7The Mynatts also point out that COO Gordon testified that drivers' base rate ofpay is their mileage rate and that GTI recruiter Patty Schmidt testified thatshe advised applicants that their base rate is their mileage rate. But neither Gordon nor Schmidt were asked whether their understanding of the term "base rate" was the definition ofthat term as it is defined in WAC 296- 128-011(1).
8 WAC 296-128-011(1 )(a) provides in part:
An employer shall substantiate any deviation from payment on an hourly basis to the satisfaction of the department by using the following formula or an alternative formula that, at minimum, compensates hours worked in excess of forty hours per week at an overtime rate of pay and distributes the projected overtime pay over the average number of hours projected to be worked. (Emphasis added.)
10 No. 71060-5-1/11
Second, to the extent it is necessary to establish a base rate of pay under
WAC 296-128-011, utilizing the hourly rates for local drivers as the base rate of
pay for interstate drivers is not contrary to RCW 49.48.030(1 )(2). Under L&l's
construction of that statute prior to Bostain, GTI was not required to calculate a
base rate of pay in advance for interstate drivers. After Bostain, L&l amended its
regulations to permit employers to submit pay plans in place before March 1,
2007 to L&l for a determination whether the pay plans included REOT. It stands
to reason that these pay plans would not include a base rate of pay established
in advance of the work to be performed as required by WAC 296-128-011 (1) or
provide notice to the employee of the uniform rate of pay as required by WAC
296-128-012(1 )(a). Instead, establishing a base rate of pay may be determined
retrospectively, and one method of doing so, adopted by L&l, is utilizing the
hourly rates paid to local drivers as the base rates for interstate drivers.9 Lastly, the Mynatts do not dispute that intrastate mileage-based drivers,
whose pay was configured pursuant to the same formula, received REOT. If the
9 Administrative Policy ES.A.8.3(B)(3)(c)(iii)) provides:
Ifthe company employs truck drivers who are paid under traditional overtime as well as truck drivers who are or will be paid under a compensation system that the company proposes as reasonably equivalent to traditional overtime, then comparison calculations should be based on similarly situated drivers at the company under both payment methods. For example, a company employs both local drivers who are paid hourly under traditional overtime and line haul drivers who are paid on a mileage basis. For purposes of calculations submitted to L&l, the company should compare for each workweek what each line haul driver's gross pay was relative to what the gross pay would have been if each line haul driver was paid hourly, as if a local driver.
CPat318.
11 No. 71060-5-1/12
failure to establish a base rate of pay in advance of the work performed for
intrastate mileage-based drivers did not preclude them from being paid REOT,
then neither does it preclude interstate mileage-based drivers such as the
Mynatts from being paid REOT.
Next, the Mynatts contend that GTI executives testified that the REP
Policy did not apply to work outside Washington and they were unaware mileage
rates included REOT until L&l determined they did. Viewing this testimony in a
light most favorable to the Mynatts, GTI executives testified that they were
unaware long-haul drivers were entitled to overtime and that the Mynatts, in
particular, were told they would not receive overtime compensation. The
executives also testified that GTI did not advise its long-haul drivers that the
mileage rates included REOT and did not advertise that its compensation for long-haul drivers included REOT. The issue is whether this testimony creates a
genuine issue ofmaterial fact regarding whether the Mynatts, in fact, received REOT. We conclude that it does not.
The Mynatts do not dispute that the REP Policy applied to mileage-based intrastate drivers compensated under the PLUSS pay plan and that those drivers
received REOT. GTI executives testified that all mileage-based drivers are
generally paid the same all across the network and that GTI does not pay separate rates for interstate and intrastate work. The Mynatts have produced no
12 No. 71060-5-1/13
evidence to the contrary.10 They contend only that, because GTI failed to
establish a base rate of pay in advance of the work performed, there must be a
separate and distinct pay plan for interstate drivers. But, as noted above, GTI
also did not establish a base rate of pay in advance for intrastate drivers and yet
the Mynatts do not dispute that intrastate drivers received REOT. In light of the
uncontested evidence that the same pay plan applied to both interstate and
intrastate mileage-based drivers and that intrastate drivers received REOT, the
inescapable conclusion is that interstate drivers did as well. GTI executives'
beliefs to the contrary do not create a genuine issue of material fact.
L&l's determination that GTI's pay plans for interstate mileage-based
drivers included REOT is further support for this conclusion. Using the 26 weeks
of sample data submitted by GTI, and applying Administrative Policy
ES.A.8.3(B)(3)(c)(iii), L&l determined that the PLUSS plan paid REOT under RCW 49.46.130(2)(f) and WAC 296-128-012. Its determination letter stated that
the results of GTI's study
showed that the interstate truck drivers in the samples earned more in compensation over the six month period under the compensation system in place than they would have earned by
10 The following exchange occurred below at oral argument on GTI's motion to reconsider the denial of its summary judgment motion and the Mynatts' motion for summary judgment: THE COURT: But [the interstate drivers] were not compensated differently than what's in the 1998 letter. At least we don't have anything that says they were compensated differently as to the mileage they drove, on a mileage basis. [Counsel for the Mynatts]: Well, that is correct. But we also don't have information that goes all the way back to 1998, which is many, many years outside the liability period, more than ten years outside the liability period.
VRP (4/13/2012) at 83.
13 No. 71060-5-1/14
being paid time and one-half the base rate for hours worked in excess of 40 per week, using a base hourly rate of between $12.50 and $16.50 per hour the same rates paid to the company's local drivers of similar experience levels.[11]
CP at 144.
The Mynatts do not challenge the accuracy of GTI's calculations or offer
evidence of a higher hourly rate to which their work should have been compared.
Instead, they contend we should disregard L&l's determination because, in their
view, the determination is based on an administrative rule that is contrary to
RCW 49.46.130.
An agency's rule is invalid if it is not reasonably consistent with the statute
being implemented. Bostain, 159 Wn.2d at 715. The Mynatts argue that
Administrative Policy ES.A.8.3(B)(3)(c) violates RCW 49.46.130(2)(f) because it
permits L&l to compare the sample drivers' wages to local delivery drivers' hourly wages. They contend this violates the statute because, instead of requiring
companies to substantiate their REOT claims based on drivers' "regular rate of
pay" (which they contend was their mileage rate), as required under RCW 49.46.130(1), it allows L&l to use the rate of pay of a "similarly situated" comparator. And here, the Mynatts contend, the comparison was unfair because
11 With regard to the Mynatts, GTI's data showed that Stephen earned an effective hourly rate of between $20.83 and $26.79 for the first 40 hours of work. For the same pay periods, the data showed that he earned a corresponding effective overtime rate of between $31.25 and $40.19. These effective hourly rates were higher than the hourly rate ($14.25), including overtime ($21.37), that GTI paid its hourly drivers with his level ofexperience. Similarly, the data showed that Anita earned an effective hourly rate of between $20.41 and $26.25 for the first 40 hours of work. Forthe same pay periods, the data showed that she earned a corresponding effective overtime rate of between $30.61 and $39.38. These effective hourly rates were higher than the hourly rate ($13.75), including overtime ($20.62), that GTI paid hourly drivers with herlevel of experience.
14 No. 71060-5-1/15
long-haul drivers' pay was compared with the lower rates of local delivery drivers.
The Mynatts note that long-haul drivers are generally paid more than local
delivery drivers because they are away from their homes for periods of 7 to 28
days before returning home for two to three days off, whereas local drivers return
home every night after making short hauls (and are home every weekend. They
point out that GTI executives admitted that long-haul drivers receive greater pay
and that the greater pay is demonstrated by GTI's pay matrices.
GTI does not dispute that long-haul drivers are generally paid more than
local delivery drivers. But RCW 49.46.130(2)(f), which requires compensation
systems for truck drivers to include overtime reasonably equivalent to that
required by that subsection (i.e., "one and one-half times the regular rate at
which" an employee is employed, see RCW 49.46.130(1)), does not specify how
a piece-meal compensation system might be determined to contain REOT. It does not preclude L&l from comparing sample drivers' wages to local delivery
drivers' hourly wages, as L&l did under Administrative Policy ES.A.8.3(B)(3)(c).
Furthermore, there is no evidence in the record to indicate what portion of the
difference in the pay of long-haul drivers versus that of local delivery drivers is
attributable to market factors rather than the overtime component in the long-haul
drivers' mileage-based plans. The Mynatts assume that the entire difference is attributable to market factors, but offer no evidence to support that assumption.
A recent decision from the United States District Court for the Western
District of Washington, Helde v. Knight Transportation, Inc., 982 F. Supp.2d
15 No. 71060-5-1/16
1189, 1201 (2013) is instructive. There, the defendant motor carrier provided
evidence that its mileage-plus compensation system generally resulted in drivers
being paid more than they would have received under an hourly rate plus time-
and-a-half system, id. The plaintiff truck drivers argued that the carrier could not
show it paid REOT because "there was no pre-established 'base rate of pay' to
give meaning to defendant's calculations and/or because defendant failed to
account for the higher hourly rates paid to more experienced drivers." id. As
here, L&l was "willing to accept the hourly rate trucking companies pay their local
or short-haul drivers as the 'base rate of pay' for purposes of evaluating the
reasonable equivalence of a proposed alternative compensation system." id. The
evidence showed that the carrier paid its Washington drivers $12.00 per hour.
The federal district court explained that in the absence of evidence that an
alternative "base rate" was appropriate, the $12.00 rate was an appropriate
starting point for the WAC 296-128-012 calculation. \± It concluded that "[g]iven
the calculations presented and [L&l's] willingness to accept similar compensation
structures as reasonably equivalent under RCW 49.46.130," the drivers failed to
raise a genuine issue of fact regarding their overtime claims, id.
The Mynatts also argue that L&l's determination was arbitrary and
capricious because it ignored GTI's failure to maintain records of actual hours
worked by interstate drivers, in violation of L&l's special recordkeeping
requirements. They contend that GTI's submissions were not accurate because
GTI uses practical miles, which they assert are on average five percent less than
16 No. 71060-5-1/17
actual miles,12 and did not include time spent on certain non-driving activities. We
disagree. Under WAC 296-128-011, employers must maintain records of, among
other things, the hours worked by each employee. WAC 296-128-011(1). They
are required to make such records available to L&l upon request. WAC 296-128-
011(2). Administrative Policy ES.A.8.3(B)(3)(d) states:
Certification of accuracy and validity. An authorized representative of the company must certify under penalty of perjury under the laws of the State of Washington that the data and calculations provided to L&l for review are accurate, and are either complete or are reflective of the actual number of hours worked and work units projected to be accomplished by persons performing the same type of work over the time period for which records are submitted.
Here, GTI apparently did not maintain records of actual hours worked; rather, it
maintained records of practical miles driven and average truck speeds, and the
number of hours worked by drivers was calculated using those records. But GTI
certified that the 26 weeks of data it submitted were accurate, valid, and
"reflective of the actual number of hours worked." RCW 49.46.130 does not set
forth recordkeeping requirements, so there is no obvious conflict with legislative
intent. Nor does Administrative Policy ES.A.8.3(B)(3)(d) conflict with WAC 296-
128-011 by requiring a certified statement of accuracy in satisfaction of the rule.
The Mynatts next contend L&l's determination is arbitrary and capricious
because it is based on erroneous factual support. They contend GTI made a
material misrepresentation when it directed L&l to the REP Policy as evidence
12 The Mynatts tracked their odometer miles and compared them to their "practical miles." They assert that, according to their calculations "practical miles" are on average five percent less than odometer miles.
17 No. 71060-5-1/18
that long-haul drivers' per-unit rate of pay included an overtime component,
because the REP Policy, as the policy itself stated, did not apply to long-haul
drivers. We reject this argument. First, despite the REP Policy's statement that it
applied to work within the state, the Mynatts do not show that there was a
different pay plan or scale applicable to mileage-based work outside of the state
of which L&l should have been aware. Second, as GTI points out, L&l received
the REP Policy and was able to review it.
Finally, the Mynatts argue that L&l's determination was arbitrary and
capricious because, even if the REP Policy applied to out-of-state work, GTI still
failed to pay them REOT for hours worked over 65 a week where the REP Policy
stated that "[t]he combination of mileage pay and accessorial pay rates include a
20% factor for anticipated overtime up to a workweek of 65 hours." CP at 1930.
They point out that in approximately 15% of the weeks during the sample period,
they and other drivers worked over 65 hours a week. We disagree. Under WAC
298-128-012, an employer may use a pay formula that distributes projected
overtime pay "over the average number of hours projected to be worked." While
the evidence submitted to L&l showed that there are weeks in which GTI drivers
work more than 65 hours a week, it also showed that there are weeks in which
drivers work less than 65 or even 40 hours a week. There is no apparent
inconsistency with WAC 298-128-012 if an employer's pay formula accounts for
the projected number of hours to be worked, and the Mynatts do not contend that
WAC 298-128-012 is contrary to RCW 49.46.130(2)(f). Here, the Mynatts were
18 No. 71060-5-1/19
paid for every hour they worked at their mileage rate, including hours worked
above 65 in a week.
In sum, because the Mynatts failed to raise a genuine issue of material
fact regarding whether they were paid REOT, the trial court properly granted
GTI's motion for summary judgment. There was no error.
WaM<^c>y. WE CONCUR:
jL-^o^. tax, J-