Opinion ID: 525079
Heading Depth: 1
Heading Rank: 1

Heading: Interpretation of the FLSA.

Text: 11 Generally, the FLSA requires employers to pay employees for overtime worked. However, section 207(o) allows public employers to provide employees with compensatory time in lieu of overtime in certain situations: 12 (1) Employees of a public agency which is a State, a political subdivision of a State, or an interstate governmental agency may receive, in accordance with this subsection and in lieu of overtime compensation, compensatory time off at a rate not less than one and one-half hours for each hour of employment for which overtime compensation is required by this section. 13 (2) A public agency may provide compensatory time under paragraph (1) only-- 14 (A) pursuant to-- 15 (i) applicable provisions of a collective bargaining agreement, memorandum of understanding, or any other agreement between the public agency and representatives of such employees; or 16 (ii) in the case of employees not covered by subclause (i), an agreement or understanding arrived at between the employer and employee before the performance of the work; 17 .... 18 In the case of employees described in clause (A)(ii) hired prior to April 15, 1986, the regular practice in effect on April 15, 1986, with respect to compensatory time off for such employees in lieu of the receipt of overtime compensation, shall constitute an agreement or understanding under such clause (A)(ii). Except as provided in the previous sentence, the provision of compensatory time off to such employees for hours worked after April 14, 1986, shall be in accordance with this subsection. 19 At issue is the interrelationship between subclauses (i) and (ii). Both subclauses allow an employer to provide compensatory time pursuant to an agreement. However, under subclause (ii), unlike subclause (i), a regular practice in effect on April 15, 1986, constitutes an agreement. See 29 U.S.C. Sec. 207(o)(2). In the instant case, there was no express agreement, but there was a regular practice. Thus, whether the District may use compensatory time depends on which subclause applies. 20 We begin our determination of whether subclause (i) or (ii) applies by focusing on the language of the statute itself. Watt v. Alaska, 451 U.S. 259, 265, 101 S.Ct. 1673, 1677, 68 L.Ed.2d 80 (1981). We find the language of section 207(o)(2) to be ambiguous. Subclause (ii) applies to employees not covered by subclause (i). However, given the wording of subclause (i), it is unclear whether this means employees who do not have a representative, or employees who are not subject to an agreement reached with a representative. 1 21 Because of this ambiguity, we must resort to other sources to determine the proper construction of section 207(o). 2 Initially, we note that the Department of Labor (Department) has promulgated regulations interpreting the section. The Department's interpretation is entitled to substantial deference by the court, United States v. Rutherford, 442 U.S. 544, 553, 99 S.Ct. 2470, 2475, 61 L.Ed.2d 68 (1979); Frontier Airlines, Inc. v. Civil Aeronautics Board, 621 F.2d 369, 372 (10th Cir.1980); Clarkson Construction Co. v. Occupational Safety and Health Review Commission, 531 F.2d 451, 457 (10th Cir.1976), and should be accepted if it is sufficiently reasonable. Blue Cross Association v. Harris, 664 F.2d 806, 810 (10th Cir.1981); Frontier Airlines, 621 F.2d at 372 (citing Train v. Natural Resources Defense Council, Inc., 421 U.S. 60, 75, 95 S.Ct. 1470, 1479, 43 L.Ed.2d 731 (1975)). In fact, the Department's construction of the section, if reasonable, is controlling even if there is an equally reasonable construction which this court would have reached de novo. Blue Cross, 664 F.2d at 810; Clarkson Construction, 531 F.2d at 457. 22 The pertinent regulations are found at 29 C.F.R. Secs. 553.20-553.28. Section 553.23, the most relevant section, provides as follows: 23 (a) General. (1) As a condition for use of compensatory time in lieu of overtime payment in cash, section 7(o)(2)(A) of the Act requires an agreement or understanding reached prior to the performance of work. This can be accomplished pursuant to a collective bargaining agreement, a memorandum of understanding or any other agreement between the public agency and representatives of the employees. If the employees do not have a representative, compensatory time may be used in lieu of cash overtime compensation only if such an agreement or understanding has been arrived at between the public agency and the individual employee before the performance of work. No agreement or understanding is required with respect to employees hired prior to April 15, 1986, who do not have a representative, if the employer had a regular practice in effect on April 15, 1986, of granting compensatory time off in lieu of overtime pay. 24