Whitehead v. Sparrow Enterprise, Inc.

605 S.E.2d 234, 167 N.C. App. 178, 10 Wage & Hour Cas.2d (BNA) 296, 2004 N.C. App. LEXIS 2183
CourtCourt of Appeals of North Carolina
DecidedDecember 7, 2004
DocketCOA04-208
StatusPublished
Cited by6 cases

This text of 605 S.E.2d 234 (Whitehead v. Sparrow Enterprise, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitehead v. Sparrow Enterprise, Inc., 605 S.E.2d 234, 167 N.C. App. 178, 10 Wage & Hour Cas.2d (BNA) 296, 2004 N.C. App. LEXIS 2183 (N.C. Ct. App. 2004).

Opinion

TYSON, Judge.

Ricky Whitehead (“plaintiff’) on behalf of those similarly situated (collectively, “the class members”) appeal from entry of summary judgment in favor of Sparrow Enterprise, Inc. (“defendant”) after the trial court found no violations of the North Carolina Wage and Hour Act (“the NCWHA”), N.C. Gen. Stat. § 95-25.1 et seq. (2003)). We affirm.

I. Background

Defendant is a temporary employment agency that hires individuals on a daily basis for casual labor. Defendant markets and *180 provides the temporary labor to businesses that periodically need additional workers.

Defendant’s hiring policy is structured on a first come first serve basis. Individuals seeking work must arrive at defendant’s office early in order to be considered available for employment. At their first hiring, the class members are required to sign the “House Rules.” The “House Rules” discloses defendant’s hiring process, the details and rules of employment, hours of operation, the hourly wage, hours worked, and standard deductions which include optional transportation expenses. Plaintiff signed the “House Rules” on 2 January 2001.

Upon arrival in the morning, the class members write their names on a sign-in sheet and wait for an assignment of available jobs. The “House Rules” specifically states such time is not compensable, “Hours worked and pay are determined from the time the worker starts working at the customer’s establishment And (sic) ends when the work is completed at the customer’s establishment.” While waiting, the class members often eat breakfast, read a newspaper, watch television, talk, or sleep.

The class members who are offered work are called to the assignment desk and provided a description of the job and pay. If they accept the position, they are asked whether they have transportation available. If they do not, the class members will ride with either a fellow employee or in defendant’s van. The cost to the class members is $1.00 each way. The “House Rules” explains the transportation program and cost to the participant.

After receiving work assignments, defendant provides general safety equipment like hard hats, boots, and gloves to those employees who would need them. The class members either wait for the van pool or secure their own transportation to the job site. They are allowed to do whatever they want during this period, so long as they arrive at the job site on time. Those who select defendant’s van pool are not given any instructions about the job during the ride. Plaintiffs have the option to be paid at the end of the workday or at a later time.

On 12 June 2002, plaintiff, acting on behalf of himself and the class members, filed a class action complaint under Rule 23 of the North Carolina Rules of Civil Procedure asserting two claims. First, plaintiff argued the wage deductions for the communal transportation were illegal under N.C. Gen. Stat. § 95-25.8. Second, plaintiff argued employees who elect to use the optional transporta *181 tion should be paid for time spent while both waiting for the van and riding to and from the job sites under N.C. Gen. Stat. § 95-25.6. Plaintiff sought redress solely under the NCWHA. Defendant answered on 16 January 2003.

Defendant filed a Motion for Summary Judgment on 16 September 2003. It asserted: (1) plaintiff agreed to both situations by signing enforceable contracts; (2) defendant is exempt from the jurisdiction of the NCWHA; and (3) plaintiff is not an adequate class representative to allow the class action to proceed.

On 21 November 2003, the trial court found the “material facts regarding these claims are not in significant dispute [and] [t]he issue ... is whether or not the undisputed material facts of record establish a violation of the Wage and Hour Act.” The trial court held plaintiff made no showing of a violation of the NCWHA and granted defendant’s motion for summary judgment on both claims. Plaintiff appeals.

II. Issues

The issues on appeal are whether: (1) defendant is exempt from the jurisdiction of the NCWHA; (2) the trial court properly granted summary judgment in favor of defendant on the class members’ transportation deduction claim; and (3) the trial court erred in granting summary judgment in favor of defendant on the class members’ time spent both waiting and traveling claim.

III. Federal Statutes. Regulations, and Cases as Guidance

We note at the outset that the issues before us arise from employment and labor law, a substantive area monopolized by federal statutes, regulations, and case law. Plaintiff’s claims are based on the NCWHA, N.C. Gen. Stat. § 95-25:1 et. seq. The NCWHA is modeled after the Federal Fair Labor Standards Act (“the FLSA”), 29 U.S.C. § 201 et seq. Laborers’ Int’l Union of North America, AFL-CIO v. Case Farms, Inc., 127 N.C. App. 312, 314, 488 S.E.2d 632, 634 (1997). The North Carolina Administrative Code (“the Code”) states that “judicial and administrative interpretations and rulings established under [] federal law” may serve as a guide for interpreting North Carolina laws when our Legislature has adopted provisions of the FLSA. N.C. Admin. Code tit. 13, r. 12.0103 (June 2004).

We are not bound by decisions of Federal circuit courts other than those of the United States Court of Appeals for the Fourth *182 Circuit arising from North Carolina law. Haynes v. State, 16 N.C. App. 407, 409-10, 192 S.E.2d 95, 97 (1972) (citing State v. Barber, 278 N.C. 268, 179 S.E.2d 404 (1971)).

IV. Standard of Review

We review a trial court’s entry of summary judgment de novo. Shroyer v. County of Mecklenburg, 154 N.C. App. 163, 167, 571 S.E.2d 849, 851 (2002) (citing Falk Integrated Tech., Inc. v. Stack, 132 N.C. App. 807, 809, 513 S.E.2d 572, 574 (1999)). Under de novo review, a reviewing court considers the matter anew, and it may substitute its own judgment for that of the trial court. Mann Media, Inc. v. Randolph Cty. Planning Bd., 356 N.C. 1, 13, 565 S.E.2d 9, 17 (2002) (citation omitted).

A grant of summary judgment is proper when: “(1) the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, show that there is no genuine issue as to any material fact; and (2) the moving party is entitled to judgment as a matter of law.” Von Viczay v. Thoms, 140 N.C. App.

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Bluebook (online)
605 S.E.2d 234, 167 N.C. App. 178, 10 Wage & Hour Cas.2d (BNA) 296, 2004 N.C. App. LEXIS 2183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitehead-v-sparrow-enterprise-inc-ncctapp-2004.