Winkle v. Advance Products & Systems, Inc.

721 So. 2d 983, 98 La.App. 3 Cir. 694, 1998 La. App. LEXIS 3003, 1998 WL 749341
CourtLouisiana Court of Appeal
DecidedOctober 28, 1998
Docket98-694
StatusPublished
Cited by19 cases

This text of 721 So. 2d 983 (Winkle v. Advance Products & Systems, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winkle v. Advance Products & Systems, Inc., 721 So. 2d 983, 98 La.App. 3 Cir. 694, 1998 La. App. LEXIS 3003, 1998 WL 749341 (La. Ct. App. 1998).

Opinion

721 So.2d 983 (1998)

Gail A. WINKLE, Plaintiff-Appellee,
v.
ADVANCE PRODUCTS & SYSTEMS, INC., Defendant-Appellant.

No. 98-694.

Court of Appeal of Louisiana, Third Circuit.

October 28, 1998.

*985 Peter C. Piccione, Jr., Lafayette, for Gail A. Winkle.

Bernard Seymour Smith, Lafayette, for Advance Products & Systems, Inc.

Before DECUIR, AMY and PICKETT, JJ.

AMY, Judge.

The plaintiff filed suit against her employer, seeking vacation pay claimed to be due her as "wages," penalty wages, and attorney's fees. Following a bench trial, judgment was rendered for the plaintiff. The defendant appeals, urging error in the lower court's determination. We affirm in part, and reverse in part.

Factual and Procedural Background

The record reveals that the plaintiff, Ms. Gail Winkle, was employed by the defendant, Advance Products & Systems (APS), in their Operations Department from October 19, 1992, until October 27, 1995. She was officially terminated on October 30, 1995, at which time her supervisor, Mr. Rick Lavergne, presented Ms. Winkle with her final paycheck. When Ms. Winkle asked Mr. Lavergne whether that check included any vacation time she claimed due her, he responded negatively.

On February 8, 1996, Ms. Winkle's attorney sent a certified letter to APS, requesting Ms. Winkle's claimed vacation time and penalties as provided by law. When Ms. Winkle did not receive payment from APS, she authorized her attorney to file suit. The instant litigation resulted, with Ms. Winkle claiming vacation pay due her under La.R.S. 23:631, along with penalty wages and attorney's fees under La.R.S. 23:632.

After a bench trial on the matter, the trial court found APS owed Ms. Winkle for her earned, but unused, vacation time, as this was found to constitute an amount due under the terms of employment. The court found APS failed to prove the existence of any policy prohibiting payment upon termination for unused vacation, but even if such a policy existed, the court found it void under La.R.S. 23:634. The trial court also awarded Ms. Winkle penalty wages under La.R.S. 23:632, as it found APS to be in bad faith in its failure to pay her earned vacation pay, and also awarded her attorney's fees under that same statute.

APS appeals from this judgment, urging the following assignments of error:

(1) That the trial court was manifestly erroneous in holding that vacation time for an "at will" employee was a "wage" under La.R.S. 23:631 and in holding that defendant's policy against payment of vacation time upon termination of employment to be against public policy, even if said discharge was for cause.
(2) That the trial court was manifestly erroneous in allowing Marla Ratzlaff to testify as a witness when she had never been named as such until the start of trial.
(3) That the trial court was manifestly erroneous in finding that APS did not have a policy regarding non-payment of vacation time upon discharge or alternatively APS did not present "any evidence"which established "factually and decisively" that plaintiff ever received notice of such policy.
(4) That the trial court was manifestly erroneous in failing to give credit to defendant *986 for the sick time erroneously paid plaintiff.
(5) That the trial court was manifestly erroneous in finding defendant not to be in good faith.
(6) That the trial court was manifestly erroneous in assessing attorney fees against defendant and the amount of same.
(7) That the trial court was manifestly erroneous in failing to compel plaintiff from providing a medical release to obtain the records of the doctors she had gone to during her time of employment with APS.

Discussion of the Merits

Vacation time as "wages" under La.R.S. 23:631

In brief Ms. Winkle urged that this issue has been resolved by the Louisiana Supreme Court in Beard v. Summit Institute for Pulmonary Medicine & Rehabilitation, Inc., 97-1784 (La.3/4/98); 707 So.2d 1233. APS concedes that Beard settles the question that if an employer provides for vacation time, it is violative of La.R.S. 23:634 for the employer to mandate the forfeiture of this time, except possibly in very narrow circumstances. However, APS seeks to distinguish the present case from Beard, as APS allegedly has a policy that precludes post-termination payment for unused vacation time, while the employer in Beard allowed employees to accrue unused vacation time and to be paid for it upon termination of employment.

The threshold question presented for review is whether vacation pay is a "wage," or "an amount then due under the terms of employment" under La.R.S. 23:631(A)(1)(a). That statute provides, in pertinent part:

Upon the discharge of any ... employee..., it shall be the duty of the person employing such ... employee to pay the amount then due under the terms of employment... not later than three days following the date of discharge.

The most recent supreme court case involving this issue is Beard, 97-1784; 707 So.2d 1233. In Beard, the plaintiff, a licensed practical nurse employed by Summit, walked off the job and never returned to work. Summit's personnel policy contained the following provision: "[W]hen an employee walks off the job without cause or voluntar[ily] resigns without notice, he or she is deemed to have abandoned his or her position." Id. at p. 1-2; 1234. Additionally, the policy contained a forfeiture provision, whereby Summit employees would "forfeit all accrued benefits" if they "abandoned their position." Id. at p. 2; 1234. When Ms. Beard requested her accrued vacation pay, Summit refused, claiming she had abandoned her position, and, therefore, forfeited her right to vacation pay under Summit's policy. Id.

In Beard, the court held that "accrued vacation time is an `amount then due under the terms of employment' and constitutes wages under La. R.S. 23:631." Id. at p. 5; 1235. In so holding, the court noted that "every court of appeal that has addressed the issue has held that accrued vacation pay is wages under La. R.S. 23:631." Id. at p. 4-5; 1235 (citations omitted).

The next question presented for review is whether the vacation time at issue has "accrued." "Accrued" means "vested." Black's Law Dictionary 37 (4th ed.1968). "A vested right is defined as that case when `the right to enjoyment, present or prospective, has become the property of some particular person or persons as a present interest.'" Macrellis v. Southwest Louisiana Independence Center, 94-1155, 94-1156, 94-1157, p. 4 (La.App. 3 Cir. 5/3/95); 657 So.2d 135, 137 quoting Berteau v. Wiener Corp., 362 So.2d 806, 808-809(La.App. 4 Cir.), writ denied, 365 So.2d 242 (La.1978). "[W]hen an employer promises a benefit to employees, and employees accept by their actions in meeting the conditions, the result is not a mere gratuity or illusory promise but a vested right in the employee to the promised benefit...." Baudoin v. Vermilion Parish School Bd., 96-1604, p. 5 (La.App. 3 Cir. 4/2/97); 692 So.2d 1316, 1319 (quoting Knecht v. Board of Trustees for State Colleges and Universities and Northwestern State Univ., 591 So.2d 690 (La.1991)), writ denied, 97-1169 (La.6/20/97); 695 So.2d 1358.

The record reveals that APS's vacation policy was that an employee was given one *987

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721 So. 2d 983, 98 La.App. 3 Cir. 694, 1998 La. App. LEXIS 3003, 1998 WL 749341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winkle-v-advance-products-systems-inc-lactapp-1998.