Wright v. Jefferson Roofing, Inc.

590 So. 2d 687, 1991 La. App. LEXIS 2948, 1991 WL 236327
CourtLouisiana Court of Appeal
DecidedNovember 13, 1991
DocketNo. 90-418
StatusPublished
Cited by2 cases

This text of 590 So. 2d 687 (Wright v. Jefferson Roofing, 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
Wright v. Jefferson Roofing, Inc., 590 So. 2d 687, 1991 La. App. LEXIS 2948, 1991 WL 236327 (La. Ct. App. 1991).

Opinion

STOKER, Judge.

The issue here is whether the plaintiffs are entitled to liquidated damages and attorney’s fees. This case involves the Federal Fair Labor Standards Act (FLSA), 29 U.S.C.A. § 201 et seq. We have jurisdiction pursuant to 29 U.S.C.A. § 216(b). John Wright, Macie Hymes, L.J. Jefferson, Phillip Dunn, William Robinson, Anthony Rachal, McKinley Morris, Wilson Murphy, and Roderick Van Brock (plaintiffs) brought suit against Jefferson Roofing, Inc.1 and Jordie Jefferson to recover overtime compensation, liquidated damages, and attorney’s fees.

The plaintiffs complained that, while working for the defendants, the defendants failed to compensate plaintiffs for overtime at the FLSA mandatory rate of not less than one and one-half times the regular rate at which they were employed. Defendants’ payroll policy was to pay an employee for a forty hour workweek. Any hours an employee had in excess of forty were “carried forward” and applied to subsequent pay periods at the regular rate of pay.

During the course of the trial, Jefferson admitted using this system to compensate employees and acknowledged liability for overtime wages. Jefferson had not maintained adequate records so that it was difficult to determine the exact amount of over[690]*690time owed to each plaintiff. However, the parties reached an agreement as to the amount due to each plaintiff. The parties submitted to the trial court the issue of whether the plaintiffs were entitled to liquidated damages and attorney’! fees.

The trial court determined that Jefferson was not in good faith in failing to comply with FLSA and awarded liquidated damages to the plaintiffs. The court also awarded attorney’s fees. The total award is as follows:

NAME LIQUI-WAGES DATED DUE DAMAGES ATTORNEY TOTAL FEES DUE

L.J. JEFFERSON $2,566.00 $2,566.00 $1,708.96 $ 6,840.96

JOHN E. WRIGHT 2,507.00 2,507.00 1,669.67 6,683.67

McKinley morris 400.00 400.00 266.40 1,066.40

WILSON MURPHY 300.00 300.00 199.80 799.80

WILLIAM ROBINSON 2,465.00 2,475.00 1,641.70 6,571.70

MACIE HYMES 2,073.00 2,073.00 1,380.62 5,526.62

PHILLIP DUNN 4,880.00 4,880.00 3,250.08 13,010.08

ANTHONY RACHAL 150.00 150.00 99.90 399.90

RODERICK VAN BROCK 100.00 100.00 66.60 266.60

We amend in part and affirm in part.

Liquidated Damages

FLSA requires employers to pay time and one-half an employee’s regular rate of pay for hours worked in excess of forty in any workweek. 29 U.S.C.A. § 207. Defendants admitted violating FLSA overtime requirements and stipulated to the specific amounts due each plaintiff in overtime compensation. However, defendants contend that they should not be required to pay liquidated damages in addition to the unpaid overtime compensation since they were in good faith in failing to comply with the overtime requirements of FLSA. Additionally, defendants assert that liquidated damages should not be awarded because the effect of such an award would be punitive and financially devastating to the defendants. Alternatively, defendants contend that the amount of liquidated damages awarded by the court is excessive.

29 U.S.C.A. § 216(b) provides in part:

“Any employer who violates the provisions of section 206 or section 207 of this title shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages.”

The duty of the court to award liquidated damages in an amount equal to the unpaid wages due under sections 6 and 7 of FLSA is ministerial, not discretionary, under the terms of section 216. Mireles v. Frio Foods, Inc., 899 F.2d 1407 (5th Cir.1990). However, this, ministerial duty is made discretionary by 29 U.S.C.A. § 260 upon a showing of “good faith” and “reasonable grounds". Míreles, supra, 29 U.S.C.A. § 260 provides:

“In any action commenced prior to or on or after May 14, 1947 to recover unpaid minimum wages, unpaid overtime [691]*691compensation, or liquidated damages, under the Fair Labor Standards Act of 1938, as amended [29 U.S.C.A. § 201 et seq.], if the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and that he had reasonable grounds for believing that his act or omission was not a violation of the Fair Labor Standards Act of 1938, as amended, the court may, in its sound discretion, award no liquidated damages or award any amount thereof not to exceed the amount specified in section 216 of this title.”

To be relieved of liability for liquidated damages, an employer must meet the substantial burden of proving to the court that its acts giving rise to the suit were both in good faith and reasonable. Mireles, supra; Bracellona v. Tiffany English Pub, 697 F.2d 464 (5th Cir.1979); Fountain v. Anacoco Sand & Gravel, Inc., 352 So.2d 410 (La.App. 3d Cir.1977). Wide discretion is given to the trial judge in determining whether the employer is actually in good faith. Fountain, supra.

Defendants attempt to prove “good faith” and “reasonableness” by asserting that their failure to comply with FLSA overtime requirements was not due to a specific intent to violate FLSA but was due to ignorance of the overtime requirements. Defendant Jefferson contends that he is a man of limited education and lacks business expertise. He stated that he did not have a sophisticated bookkeeping system. Instead, he personally recorded each employee’s hours each day on a sheet of paper which he gave to his wife who kept up with the hours and made out the pay checks. Jefferson testified at trial that he had relied on an accountant for business advice, but that he was never informed of the overtime requirements under FLSA.

Jefferson also testified that he never sought approval of his “carry forward” system from the Department of Labor. In fact, Jefferson testified that he never even thought about whether his system of compensation was permissible under FLSA. He explained that he had employed the “carry forward” system with the express approval of his employees.

The trial court, however, found that the defendants intentionally failed to follow FLSA. Specifically, the court concluded that Jefferson’s twenty-five years of work as a roofer for other contractors, and his thirteen years as a contractor himself, indicated that Jefferson knew, understood, and chose to disregard the rights of his employees as granted by FLSA.

Even if we accepted the defendants’ contentions of ignorance of the provisions of FLSA, the jurisprudence does not recognize such ignorance as a defense to the imposition of liquidated damages. Complete ignorance of the possible applicability of FLSA does not shield the employer from liability for liquidated damages. Reeves v. International Telephone & Telegraph Corp., 616 F.2d 1342 (5th Cir.1980); cert. denied 449 U.S. 1077, 101 S.Ct.

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Related

Derouen v. Quintana Petroleum
618 So. 2d 1238 (Louisiana Court of Appeal, 1993)
Wright v. Jefferson Roofing, Inc.
617 So. 2d 174 (Louisiana Court of Appeal, 1993)

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590 So. 2d 687, 1991 La. App. LEXIS 2948, 1991 WL 236327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-jefferson-roofing-inc-lactapp-1991.