v. JP Trucking, Inc

2020 COA 153
Colorado Court of Appeals·Decided November 5, 2020·No. 17CA2384, Gomez·Published

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY

November 5, 2020

2020COA153

No. 17CA2384, Gomez v. JP Trucking, Inc. — Labor and Industry — Wages — Colorado Minimum Wage Order — Fair Labor Standards Act — Exemptions

A division of the court of appeals interprets the “interstate drivers” exemption to the Colorado Wage Order’s overtime requirements harmoniously with the federal Fair Labor Standards Act Motor Carrier Act (MCA) exemption. The division declines to follow the holding in Brunson v. Colorado Cab Co., 2018 COA 17,

¶ 45 (cert. granted June 18, 2018) (cert. dismissed Jan. 29, 2019), which concluded that the interstate drivers exemption applied “only to drivers whose work takes them across state lines.” The trial court correctly found that the employee truck drivers were subject to the MCA exemption, and then correctly applied the Brunson holding pursuant to another division of this court’s remand order.

But, because the division believes Brunson was wrongly decided, it reverses the trial court’s judgment under the Wage Order and remands the case with directions to vacate the damages award.

COLORADO COURT OF APPEALS 2020COA153

Court of Appeals No. 17CA2384 Eagle County District Court No. 16CV30222 Honorable Russell H. Granger, Judge

Leonel Gomez, Francisco Gonzalez, Ebarardo Sanchez, and Nathan Abbott, Plaintiffs-Appellees, v. JP Trucking, Inc., Defendant-Appellant.

JUDGMENT REVERSED AND CASE REMANDED WITH DIRECTIONS

Division VI

Opinion by JUDGE FREYRE

Dunn and Brown, JJ., concur

Announced November 5, 2020

Riley Law LLC, Kelli Riley, Greeley, Colorado, for Plaintiffs-Appellees

Hall and Evans, LLC, Meredith L. McDonald, Paul Yarbrough, Denver, Colorado, for Defendant-Appellant

¶1 In this employment wage dispute, we are asked to address the interplay between provisions of the Fair Labor Standards Act (FLSA) and the Colorado Minimum Wage Order. See Colo. Minimum Wage Order No. 31, 7 Code Colo. Regs. 1103-1 (effective Dec. 30, 2014- Dec. 31, 2015), https://perma.cc/4DFR-69JU (hereinafter Wage Order).1 The FLSA sets federal minimum wage and overtime requirements for certain employees nationwide, while the Wage Order sets the minimum wage and overtime pay requirements for Colorado employees who work in certain industries. As relevant here, both the FLSA and the Wage Order exempt drivers who transport goods in interstate commerce from these requirements. The FLSA’s Motor Carrier Act (MCA) exemption excludes an employee who “in the performance of his duties moves goods in interstate commerce and affects the safe operation of motor vehicles on public highways.” Deherrera v. Decker Truck Line, Inc., 820 F.3d 1147, 1154 (10th Cir. 2016) (quoting Foxworthy v. Hiland Dairy Co., 997 F.2d 670, 672 (10th Cir. 1993)). Similarly, the Wage Order

1 Colorado Minimum Wage Order No. 31 was in effect at the time of the events in this case. Since then, the Colorado Department of Labor and Employment has promulgated subsequent wage orders. See infra note 5.

exempts “interstate drivers” from overtime requirements, see Wage Order § 5 but does not define the term “interstate drivers.” Thus, the question before us is whether an “interstate driver” under the Wage Order carries the same meaning as an employee covered under the MCA exemption.

¶2 Another division of this court considered this question in Brunson v. Colorado Cab Co., 2018 COA 17 (cert. granted June 18, 2018) (cert. dismissed Jan. 29, 2019). It held that the Wage Order’s “interstate driver” exemption applies “only to drivers whose work takes them across state lines,” and in doing so, accorded a narrower meaning (and exemption) to “interstate drivers” than accorded under the MCA exemption. Id. at ¶ 45.

¶3 In this case, defendant, JP Trucking, Inc., appeals the trial court’s judgment in favor of plaintiffs, former employees Leonel Gomez, Francisco Gonzalez, Ebarardo Sanchez, and Nathan Abbott (collectively Employees), following a limited remand ordered by a division of this court for additional factual findings. JP Trucking asks us to reject the Brunson division’s holding and urges us to read “interstate drivers” under the Wage Order harmoniously with the MCA exemption. JP Trucking also challenges the damages

awarded. For the reasons explained below, we agree with JP Trucking on the first issue and respectfully decline to follow Brunson. See Chavez v. Chavez, 2020 COA 70, ¶ 13 (the holding of one division of the court of appeals does not bind another division). Finding Deherrera’s reasoning persuasive, we adopt it and, therefore, reverse the judgment in favor of Employees under the Wage Order and remand the case with directions to enter judgment in favor of JP Trucking. Because we reverse the judgment, we need not address JP Trucking’s remaining contentions.

I. Factual and Procedural Background

¶4 JP Trucking hired Employees as truck drivers. In their complaint, Employees alleged that JP Trucking failed to pay them time and a half as required by the FLSA, 29 U.S.C. §§ 201-219 (2018), and the Wage Order. JP Trucking answered that because Employees were interstate drivers, they were exempt from overtime under the MCA exemption and the Wage Order.

¶5 Following a bench trial, the trial court found for Employees under the FLSA and Wage Order and awarded them damages. JP Trucking appealed. Another division of this court concluded that it could not resolve the appeal without further factual findings. The

division ordered a limited remand, instructing the trial court to make additional findings of fact to redetermine whether Employees were exempt from the FLSA, and to decide whether, in light of Brunson, they were exempt under the Wage Order. Gomez v. JP Trucking, (Colo. App. No. 17CA2384, June 18, 2019) (unpublished order).

¶6 On remand, a different judge entered additional factual findings.2 As relevant here, the trial court found:

 JP Trucking regularly transported items and materials across state lines and within Colorado when the materials were destined for or coming from other states.

 During Employees’ employment, JP Trucking “was involved in interstate commerce and subject to regulation by the U.S. Department of Transportation.”

 JP Trucking “intended to and did comply with U.S.

Department of Transportation regulations, including regulations relating to drivers’ qualifications and limits on drivers’ hours,” during the period at issue.

2 The original trial judge retired before the division ordered the limited remand.

 Interstate trips were “indiscriminately and randomly distributed among its drivers.”  Employees “could have been called upon to travel out-of- state for JP Trucking, or to deliver within the state goods that were in interstate commerce.”  JP Trucking provided Employees with the Federal Motor Carrier Safety Regulations, and Employees agreed to familiarize themselves with them.  JP Trucking’s employment application placed Employees “on notice that they would be subject to investigation, testing and restriction pursuant to the U.S. Department of Transportation regulations.”  JP Trucking’s employment application required Employees to provide prior employment information for JP Trucking’s investigation of their safety performance histories pursuant to the U.S. Department of Transportation’s regulations.  On the part of the application asking “Intrastate Only,” each employee checked the “No” box.

 None of the Employees indicated they were not applying to drive in interstate commerce.

Free access — add to your briefcase to read the full text and ask questions with AI

v. JP Trucking, Inc, 2020 COA 153 (Colo. Ct. App. 2020).

2020 COA 153 (v. JP Trucking, Inc) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

United States v. American Trucking Associations
310 U.S. 534 (Supreme Court, 1940)
Walling v. Jacksonville Paper Co.
317 U.S. 564 (Supreme Court, 1943)
Southland Gasoline Co. v. Bayley
319 U.S. 44 (Supreme Court, 1943)
Levinson v. Spector Motor Service
330 U.S. 649 (Supreme Court, 1947)
Arnold v. Ben Kanowsky, Inc.
361 U.S. 388 (Supreme Court, 1960)
Bruce Foxworthy v. Hiland Dairy Company
997 F.2d 670 (Tenth Circuit, 1993)
Colorado Coffee Bean, LLC v. Peaberry Coffee Inc.
251 P.3d 9 (Colorado Court of Appeals, 2010)
People v. Gallegos
251 P.3d 1056 (Supreme Court of Colorado, 2011)
E-470 Public Highway Authority v. Revenig
140 P.3d 227 (Colorado Court of Appeals, 2006)
Flood v. Mercantile Adjustment Bureau, LLC
176 P.3d 769 (Supreme Court of Colorado, 2008)
Deherrera v. Decker Truck Line, Inc.
820 F.3d 1147 (Tenth Circuit, 2016)
In Re 2015–2016 Jefferson County Grand Jury
2018 CO 9 (Supreme Court of Colorado, 2018)
Brunson v. Colorado Cab Company, LLC
2018 COA 17 (Colorado Court of Appeals, 2018)
Colo. Oil & Gas Conservation Comm'n v. Martinez
2019 CO 3 (Supreme Court of Colorado, 2019)
of Chavez
2020 COA 70 (Colorado Court of Appeals, 2020)
Leonid Burlaka v. Contract Transport Services LL
971 F.3d 718 (Seventh Circuit, 2020)
Chase v. Farmers Insurance Exchange
129 P.3d 1011 (Colorado Court of Appeals, 2004)