Opinion ID: 1376298
Heading Depth: 3
Heading Rank: 1

Heading: dayhoff has a cause of action under awha

Text: To determine whether a federal statute preempts state law the sole task of the court is to ascertain the intent of Congress. California Fed. Savings & Loan Ass'n v. Guerra, 479 U.S. 272, 280, 107 S.Ct. 683, 689, 93 L.Ed.2d 613 (1987); Webster v. Bechtel, 621 P.2d 890, 896-97 (Alaska 1980). Federal law can preempt state law in three ways: explicitly, if Congress declares that state law is preempted; implicitly, if Congress enacts comprehensive laws that leave no room for additional state regulation; or if state law actually conflicts with Federal law. Guerra, 479 U.S. at 280-81, 107 S.Ct. at 689. Employment laws, including wage laws, are a local concern traditionally within states' police powers. Webster, 621 P.2d at 898. Accordingly, there is an assumption that the historic powers of states are not superseded unless there is a clear and manifest purpose of Congress to preempt the state law. Pacific Merchant Shipping Ass'n v. Aubry, 918 F.2d 1409, 1416 (9th Cir.1990), cert. denied, ___ U.S. ___, 112 S.Ct. 2956, 119 L.Ed.2d 578 (1992). The principle to be derived from Supreme Court decisions is that federal regulations should not preempt state regulations in absence of persuasive reasons. Webster, 621 P.2d at 898 (quoting Ray v. Atlantic Richfield Co., 435 U.S. 151, 157-58, 98 S.Ct. 988, 994-95, 55 L.Ed.2d 179 (1978)). Temsco does not claim FAA expressly preempts state wage laws. The superior court concluded that FAA implicitly preempts state law as it fully occupies the field of aviation, leaving no room for states to regulate activities that impact aviation. The court also determined the overtime incentive of the AWHA is directly in conflict with the pilot duty and flight time provisions of applicable federal regulations. Dayhoff asserts that FAA and Federal Aviation Regulations (FAR) regulate most areas of aviation but do not address compensation. Since compensation is not mentioned by FAA, it is not comprehensively regulated. FAA does regulate hours of pilots, 14 CFR §§ 135.261-.271 (1992), but flight time limitations are designed to promote flight safety. They are not intended to be wage regulations. Temsco argues the federal government has comprehensively occupied the entire field of aviation including wages and compensation leaving no room for state regulation. Temsco characterizes AWHA as a maximum hour law, since it declares that an employer may not employ an employee for a workweek longer than 40 hours or for more than eight hours a day. AS 23.10.060(a). Temsco asserts that this statute is preempted if applied to pilots who are subject to FAA maximum hour regulations which provide both mandatory rest periods and maximum flight hours. 14 CFR § 127.191 (1992). We find that the superior court erred in concluding that FAA preempted AWHA. AWHA does not regulate maximum hours, rather it provides for mandatory overtime compensation. Webster, 621 P.2d at 900. FAA exclusively occupies most areas of aviation, but does not regulate compensation of pilots. As there is no clear and manifest purpose to comprehensively regulate the field, FAA does not preempt state wage law. The superior court was also mistaken in concluding that AWHA directly conflicts with FAA. There is an actual conflict `where compliance with both federal and state regulations is a physical impossibility ...' or where the state `law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.' Ray v. Atlantic Richfield Co., 435 U.S. 151, 158, 98 S.Ct. 988, 994, 55 L.Ed.2d 179 (1978) (quoting Florida Lime & Avocado Growers, Inc. v. Paul, 373 U.S. 132, 142-43, 83 S.Ct. 1210, 1229, 10 L.Ed.2d 248 (1963) and Hines v. Davidowitz, 312 U.S. 52, 67, 61 S.Ct. 399, 404, 85 L.Ed. 581 (1941)). Neither party argues that it is a practical impossibility to comply with both laws. Dayhoff argues the mandatory overtime required by AWHA is not an obstacle, but actually complements FAA safety regulations by giving employers incentives to limit overtime. Temsco argues that AWHA conflicts with FAA because it is an obstacle to accomplishing federal objectives. Federal law mandates maximum flight hours and mandatory rest periods. 14 CFR § 127.191 (1992). Temsco claims that AWHA creates incentives to keep shorter hours. This puts pressure on employers to keep rest time to the absolute minimum and fly whenever possible, even if safety is compromised. The financial pressures created by AWHA directly conflict with the safety objectives of FAA. We conclude that mandatory overtime compensation does not directly conflict with FAA safety regulations. An employer's economic considerations may often create conflicting pressures with safety regulations. Compensating employees for their overtime may make it more expensive to follow FAA regulations. However, this does not actually conflict with the regulations. Therefore, FAA safety regulations do not preempt AWHA mandatory overtime compensation provisions.
The Commerce Clause states that [c]ongress shall have power ... to regulate commerce with foreign nations, and among the several states... . U.S. Const. art. I, § 8. Regulations which affect interstate commerce are judged by two standards. Regulations which discriminate against out-of-state commerce are judged under a strict scrutiny standard. [1] When the regulation does not so discriminate, the court balances the benefit of the state regulation against the burden on interstate commerce. Minnesota v. Clover Leaf Creamery Co., 449 U.S. 456, 472, 101 S.Ct. 715, 728, 66 L.Ed.2d 659 (1981). The state regulation is valid unless the incidental burden imposed is clearly excessive in relation to the putative local benefits. Pike v. Bruce Church Inc., 397 U.S. 137, 142, 90 S.Ct. 844, 847, 25 L.Ed.2d 174 (1970). As AWHA applies equally and does not discriminate against out-of-state employers, we apply the balancing test. Dayhoff argues the superior court erred by concluding AWHA imposes an undue burden on interstate commerce. The only burden the court identified was that Temsco would be required to maintain separate records for Alaska employees. On the other hand, the purpose of AWHA is to establish minimum wage and overtime compensation standards for workers at levels consistent with their health, efficiency, and general well-being... . AS 23.10.050. This is a traditional area of state police power and the state has a strong interest in the area. Webster, 621 P.2d at 898. Dayhoff claims the burden of keeping separate records for employees who work within the state is not excessive when balanced with the strong state interest of assuring that its citizens receive adequate compensation. Temsco contends that applying AWHA to helicopter pilots of an interstate company would create statewide systems as opposed to a national system of air commerce. Temsco relies upon Southern Pacific Co. v. Arizona, 325 U.S. 761, 65 S.Ct. 1515, 89 L.Ed. 1915 (1945), which found a state law limiting the maximum number of cars on trains invalid. Temsco argues that differing record keeping requirements would be as disruptive to air commerce as differing train length requirements was to rail commerce. Temsco's reliance on Southern Pacific Co. is misplaced. The Supreme Court in Southern Pacific Co. found the state's interest in limiting train size unimportant. It relied on the trial court's finding that shorter trains were no safer than the longer trains prohibited by the Arizona statute. Id. at 779, 65 S.Ct. at 1525. The Court thus concluded that the statute, admittedly obstructive to interstate train operation, and having a seriously adverse effect on transportation efficiency, passes beyond what is plainly essential for safety since it does not appear that it will lessen rather than increase the danger of accident. Id. at 781-82, 65 S.Ct. at 1526. In the present case the State of Alaska has a strong interest in protecting the health, efficiency and general well-being of its work force. The incidental burden on interstate commerce of keeping records is not excessive and does not outweigh the state's valid interest. AWHA does not violate the Commerce Clause.
AWHA exempts an individual employed in a bona fide professional capacity... . AS 23.10.055(9). The test for exemption as a professional employee is derived from 8 AAC 15.910(a)(11). The four part test requires a finding that 1) the employee's primary duty is to perform work requiring knowledge of advanced type, 2) the work requires consistent exercise of discretion, 3) the work must be predominantly intellectual and varied, and 4) the work must be compensated on a fee basis. AWHA is based upon the Fair Labor Standards Act (FLSA) and federal interpretations of FLSA are relevant in interpreting AWHA. McGinnis v. Stevens, 543 P.2d 1221, 1238-39 (Alaska 1975), appeal after remand, 570 P.2d 735 (Alaska 1977). Under federal law, the employer has the burden to prove the exemption is applicable. Reeves v. International Tel. & Tel. Corp., 357 F. Supp. 295, 298 (W.D.La. 1973), aff'd, 616 F.2d 1342 (5th Cir.1980), cert. denied, 449 U.S. 1077, 101 S.Ct. 857, 66 L.Ed.2d 800 (1981). Exemptions are to be narrowly construed against the employer. Id. at 297. If there is a reasonable doubt as to whether an employee meets the criteria for exemption, the employee should be ruled non-exempt. Adam v. United States, 26 Cl. Ct. 782, 786 (Cl. Ct. 1992). All four elements must be met before an employee is found exempt. Id. The parties agree that Dayhoff was a salaried employee, compensated on a fee basis. The parties dispute the level of education required of Dayhoff, what Dayhoff's primary duty was, how to characterize the discretion exercised by Dayhoff, and if the character of work was intellectual or physical. Dayhoff claims the knowledge required to become a commercial pilot is not the type of advanced learning needed to qualify as a professional. Dayhoff also claims his primary duty was not professional because approximately 62% of his time was spent performing non-aviation duties. Even while flying, Dayhoff had no discretion as his actions were controlled by superiors. The only discretion and judgment exercised was in the physical operation of the aircraft. Temsco argues that Dayhoff's primary duty was to be a pilot. He was hired as a pilot and his time was spent flying or waiting to fly. Temsco contends that being a commercial helicopter pilot requires knowledge of an advanced type. Further, Temsco argues that a commercial helicopter pilot is required to consistently exercise discretion and judgment. The applicability of exemptions are questions of fact to be determined considering the individual's duties and other qualifications, and not upon how the employer classified the employee. Reeves, 357 F. Supp. at 302-03. A trial court must make a finding of fact in determining an employee's status. Dalheim v. KDFWTV, 918 F.2d 1220, 1226, 1228 (5th Cir.1990). While both parties moved for summary judgment on this issue, we first review the grant of summary judgment in favor of Temsco. We must view the facts in a light most favorable to Dayhoff. Dayhoff was primarily self-educated. He claims that for approximately 62% of his time he performed non-aviation duties. Dayhoff had no significant authority to control decisions regarding flight assignments or routes. The only discretion Dayhoff exercised was in the physical operation of his aircraft. Viewing the facts in the light most favorable to Dayhoff, Temsco does not meet the burden of showing that the exemption is applicable. Dayhoff can, at most, be classified as a highly trained technician and not as a professional. Next we review the denial of Dayhoff's motion for summary judgment. For this purpose we view the facts in the light most favorable to Temsco. It is undisputed that Dayhoff obtained his commercial helicopter license through self study and obtained his flight instructor certificate after only ten hours of formal instruction. This is not the type of advanced study required to classify an employee as a professional. Further, the discretion exercised by Dayhoff in flying a helicopter is not the type of discretion which characterizes a person as a professional for purposes of this exemption. On the basis of the foregoing we conclude that the FAA does not preempt the AWHA, that the AWHA is not violative of the commerce clause, and that Dayhoff is not a professional for purposes of the AWHA exemption.