Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
By Kevin P. McGowan
Granting a petition filed by U.S. Steel Corp. employees, the U.S. Supreme Court agreed Feb. 19 to review whether workers' time spent putting on and taking off safety equipment falls within a Fair Labor Standards Act provision denying compensation for time spent “changing clothes” (Sandifer v. U.S. Steel Corp., U.S., No. 12-417, cert. granted 2/19/13).
The justices will review a U.S. Court of Appeals for the Seventh Circuit decision holding that under FLSA Section 203(o), U.S. Steel need not pay union-represented steel workers for time spent at the plant changing into and out of work clothes, including personal protective equipment ( 678 F.3d 590, 18 WH Cases2d 1825 (7th Cir. 2012); 91 DLR A-2, 5/10/12).
The appeals court said a district court should have dismissed the workers' FLSA “travel time” claim as well, because changing clothes is not a “principal activity” under the act so employee time spent going back and forth between the locker room and their work stations cannot be compensable either.
In 2009, the U.S. District Court for the Northern District of Indiana had granted summary judgment to U.S. Steel on the employees' “donning and doffing” claim, but ruled the workers could proceed with an FLSA travel time claim (202 DLR A-7, 10/22/09).
The workers urged the justices to resolve a split among federal appeals courts on whether time spent donning and doffing employer-required safety equipment falls within the FLSA's “changing clothes” exclusion from paid working time.
The Seventh Circuit decision directly conflicts with a Ninth Circuit ruling that personal protective equipment is distinct from the “clothes” subject to Section 203(o) and employees therefore may be entitled to compensation for time spent donning and doffing safety gear, the workers said.
In its brief opposing review, U.S. Steel pointed out that in collective bargaining agreements spanning 65 years, the United Steelworkers and U.S. Steel agreed that time workers spend changing into and out of protective clothing is not part of the compensable work day.
The Seventh Circuit therefore correctly ruled under FLSA Section 203(o), which permits employers and unions to agree that time spent changing clothes is not part of employees' working hours, that the workers' statutory claims must be dismissed, U.S. Steel said.
Most of the named plaintiffs were employees of a large U.S. Steel plant in Gary, Ind., while others worked at company plants in Michigan and Indiana. Approximately 800 current and former U.S. Steel employees joined in the FLSA collective action, which sought overtime pay for their alleged significant time spent donning and doffing required personal protective equipment and traveling between their locker rooms and work stations. U.S. Steel compensated workers only for the 40 hours a week spent at their work stations.
The Seventh Circuit decision “exacerbates what was already an entrenched circuit court split” regarding the meaning of “changing clothes” under Section 203(o), meaning that whether the provision applies or employees have triable FLSA claims will depend on their geographic location, the workers said.
The federal district court ruled that under Section 203(o), the plaintiffs lacked an FLSA claim for time spent “changing clothes,” which the court said includes protective gear. But the district court said the FLSA might cover plaintiffs' travel time between locker rooms and work stations.
On an interlocutory appeal, the Seventh Circuit affirmed Section 203(o) barred the donning and doffing claim. But it also decided the plaintiffs lack a travel time claim, since unpaid changing clothes time cannot be deemed a “principal activity” for which employers must compensate the travel to or from such activity.
The Seventh Circuit decided that it did, meaning Section 203(o) excluded the employees' time spent on such activities from FLSA working hours. But the Ninth Circuit in Alvarez v. IBP Inc., 339 F.3d 894, 8 WH Cases2d 1601 (9th Cir. 2003) (151 DLR AA-1, 8/6/03), has ruled that required safety gear is distinct from ordinary work clothes and personal protective equipment therefore does not fall within the Section 203(o) exclusion, the workers said.
Supreme Court review is warranted because the Seventh Circuit decision “exacerbates what was already an entrenched circuit court split” regarding the meaning of “changing clothes” under Section 203(o), the workers said.
The conflict harms both employers and employees, as it means that whether Section 203(o) applies or employees instead have triable FLSA claims will depend on their geographic location, the workers said.
That situation may be compounded by the existence of national collective bargaining agreements, which “may have differing legal consequences at different plants,” the workers said. “These considerations give added force to the need to resolve these circuit conflicts.”
The Seventh Circuit decision also raises, or exacerbates, circuit conflicts regarding whether employees are entitled to compensation for travel time to their work stations after donning required protective gear, even if it constitutes “changing clothes” under Section 203(o), the workers said. This is because putting on required safety gear is a “principal activity” that starts the compensable work day, the workers said.
The Seventh Circuit acknowledged the conflict between its ruling that a travel time claim is precluded because the employees were not paid for their changing time and the Sixth Circuit decision in Franklin v. Kellogg Co., that employees may have an FLSA right to pay for travel time between locker rooms and work stations even if their time spent putting on safety gear is not compensable (168 DLR AA-1, 8/31/10).
But the Supreme Court will not reach the “principal activity” and travel time issues, as the justices expressly limited review to the meaning of “changing clothes” under Section 203(o).
Eric Schnapper of the University of Washington School of Law in Seattle is counsel of record for the petitioners.
The Seventh Circuit and “numerous other circuits that take the same approach” interpreting Section 203(o)'s scope to include protective clothing and gear are “clearly correct,” U.S. Steel said.
Moreover, U.S. Steel said the FLSA question presented is “not of national importance,” as it “affects only a small class of employees who work in a unionized workplace, are regularly required to spend non-de-minimis amounts of time donning and doffing work clothing, and whose [collective bargaining agreement] excludes changing time from the workday.”
The Seventh Circuit noted that petitioners have been paid “a competitive wage” under a labor agreement “aggressively negotiated” by the Steelworkers and that if the plaintiffs won their donning and doffing claims, U.S. Steel and the union might be compelled by market forces to negotiate a lower pay rate to adjust for a lengthened workday, U.S. Steel said.
“The petition for certiorari therefore implicates only whether petitioners may obtain a short-term windfall in the form of supra-competitive compensation beyond what was bargained for by their union,” U.S. Steel said.
Lawrence C. DiNardo of Jones Day in Chicago is counsel of record for U.S. Steel.
By Kevin P. McGowan
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).