Opinion ID: 812901
Heading Depth: 4
Heading Rank: 1

Heading: work week in the case of each employee.

Text: Similar language has appeared in every CBA between USF and Local 355 since the two parties entered into their first CBA in 1957. Only the effective date and dollar amount to be paid have changed. It is undisputed that from at least 1988 through early 2008, USF consistently paid the specified contribution amount for each hour worked up to fifty hours per week per employee, even though each employee’s forty-first through fiftieth hours were generally paid at an overtime rate. In March 2008, following the replacement of a long-time payroll clerk, USF discovered that it may have been contributing more to the Funds than was required by the governing CBA. USF subsequently completed an internal audit and concluded that it had mistakenly contributed too much to both the Health Fund and the Pension Fund for the period from January 2006 through March 2008. As relevant to this appeal, USF determined that it had made contributions to the Health Fund for hours paid at the overtime rate even though USF believed the governing CBA only required contributions for hours paid at the straight-time rate. USF halted the allegedly mistaken contributions in March 2008 and has not resumed those contributions to date. U.S. FOODSERVICE v. TRUCK DRIVERS & HELPERS 5 On September 26, 2008, USF notified the Funds of the alleged overpayments and requested a refund of the relevant amounts. With respect to the contributions in dispute here, USF argued that it made payments to the Health Fund for hours paid at the overtime rate even though the governing CBA required contributions only for each straight time hour or fraction thereof. USF interpreted straight time hour to include only hours paid at the straight-time rate, not hours paid at the overtime rate. On January 5, 2009, the Funds, acting through counsel, responded to USF and formally determined that no overpayments were made, and that [USF] has correctly paid employee benefit contributions for its employees in accordance with the [CBA] to which it is signatory. The straight time modifier, the Funds stated, indicates that contributions for each employee’s first fifty hours of work each week are owed at the applicable contribution rate and not at any premium contribution rate regardless of the rate of pay earned by the company’s employee for the particular hour. The Funds further explained: To interpret the CBA as limiting contributions to the Health Fund for hours worked by employees to forty (40) hours per week because U.S. Foodservice was paying its employees time and one half for hours in excess of forty (40) per week is contrary to the terms of the CBA which requires contributions on up to fifty (50) hours [per week]. The Funds thus declined to return any of the requested contributions.