Opinion ID: 2205569
Heading Depth: 1
Heading Rank: 4

Heading: Are the Sergeants Exempt From the Overtime Provisions of the FLSA?

Text: The FLSA directs which employees are entitled to overtime compensation. 29 U.S.C. § 207(a)(1). The overtime provisions of the FLSA do not apply to an employee employed in bona fide executive, administrative, or professional capacity. Id. § 213(a)(1). Congress delegated the responsibility to define these terms to the Secretary of Labor. Id. Under the rules promulgated by the Secretary, three tests must be satisfied for an executive, administrative, or professional employee to be exempt: a duties test (29 C.F.R. § 541.1-.2); a salary-level test (29 C.F.R. § 541.1(f), 541.2(e)(1)); and a salary-basis test (29 C.F.R. § 541.118). Certain sergeants claim there is ongoing liability for overtime under the FLSA because they do not perform executive or administrative duties pursuant to the duties test. The resolution of whether the sergeants are exempt from the overtime provisions requires us to examine the duties test. The regulations contain a short test and long test to determine whether an employee is employed in an executive or administrative capacity under the duties test. See 29 C.F.R. § 541.1-.2. The short test applies if an employer compensates an employee on a salary basis at a rate not less than $250 per week. Id. § 541.1(f), 541.2(e)(1). Because the sergeants receive over $250 per week compensation on a salary basis, the short test applies.
The district court concluded the sergeants serving as assistant district commanders/road sergeants, vehicle theft sergeants, and sergeants assigned to capitol security are exempt from the overtime provisions of the FLSA due to the act's executive exemption. To be exempt under the short test, the employer must show the employee's primary duty consists of the management of the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof, and includes the customary and regular direction of the work of two or more other employees. 29 C.F.R. § 541.1(f). Other regulations further define the exemption. For instance, 29 C.F.R. § 541.104 defines a customarily recognized department or subdivision. It provides: The phrase a customarily recognized department or subdivision is intended to distinguish between a mere collection of men assigned from time to time to a specific job or series of jobs and a unit with permanent status and function. In order properly to classify an individual as an executive he must be more than merely a supervisor of two or more employees; nor is it sufficient that he merely participates in the management of the unit. He must be in charge of and have as his primary duty the management of a recognized unit which has a continuing function. Id. § 541.104(a). 29 C.F.R. § 1.102 further defines the term management. According to the regulation, the following types of work are consistent with managerial responsibilities: Interviewing, selecting, and training of employees; setting and adjusting their rates of pay and hours of work; directing their work; maintaining their production or sales records for use in supervision or control; appraising their productivity and efficiency for the purpose of recommending promotions or other changes in their status; handling their complaints and grievances and disciplining them when necessary; planning the work; determining the techniques to be used; apportioning the work among the workers; determining the type of materials, supplies, machinery or tools to be used or merchandise to be bought, stocked and sold; controlling the flow and distribution of materials or merchandise and supplies; providing for the safety of the men and the property. Id. § 541.102(b). 29 C.F.R. § 541.103 defines primary duty. The regulation begins by stating, [A] determination of whether an employee has management as his primary duty must be based on all the facts in a particular case. Id. § 541.103. In an ordinary case, a good rule of thumb is that primary duty means a major part or over fifty percent of the employee's time is spent in management. Id. Although time is a relevant factor, an employee's primary duty can be management, even if the employee spends less than fifty percent of his or her time in management. Auer v. Robbins, 65 F.3d 702, 713 (8th Cir.1995). The factors we need to consider in deciding whether a sergeant's primary duty is management if the sergeant spends less than fifty percent of the sergeant's time performing managerial duties are: 1. The relative importance of the managerial duties as compared with other types of duties; 2. The frequency with which the employee exercises discretionary powers; 3. The employee's relative freedom from supervision; 4. The relationship between the employee's salary and the wage paid to other employees for the kind of nonexempt work performed by the supervisor. Id. at 712; 29 C.F.R. § 541.103. Lastly, 29 C.F.R § 541.115 explains the concept of the working foreman. It provides: (a) The primary purpose of the exclusionary language placing a limitation on the amount of nonexempt work is to distinguish between the bona fide executive and the working foreman or working supervisor who regularly performs production work or other work which is unrelated or only remotely related to his supervisory activities. (The term working foreman is used in this subpart in the sense indicated in the text and should not be construed to mean only one who performs work similar to that performed by his subordinates.) (b) One type of working foreman or working supervisor most commonly found in industry works alongside his subordinates. Such employees, sometimes known as strawbosses, or gang or group leaders perform the same kind of work as that performed by their subordinates, and also carry on supervisory functions. Clearly, the work of the same nature as that performed by the employees' subordinates must be counted as nonexempt work and if the amount of such work performed is substantial the exemption does not apply. (Substantial, as used in this section, means more than twenty percent. See discussion of the twenty-percent limitation on nonexempt work in § 541.112.) Id. § 541.115. With these legal principles in mind, we now turn to the specific issues raised by the sergeants to determine if substantial evidence supports the district court's findings regarding the executive exemption.
The State employs the majority of the sergeants in these job positions. The district court found these sergeants are exempt, because management constitutes the position's primary duty, and the position entails supervising at least two employees. Although the district court acknowledged some of the duties these sergeants perform overlap with the troopers' duties, there are additional duties completely separate and distinct from those of the troopers. These administrative duties include tasks such as setting work schedules, performing building maintenance duties, and clerical duties. The sergeants also review the troopers' reports, take charge of crime scenes, give considerable input in the promotions of the troopers, train subordinates, and make arrangements pertaining to special assignments. The district court found these sergeants also perform executive-type functions such as being immediate supervisors to the troopers in the chain of command. Troopers look to these sergeants for guidance and direction. Sergeants employed in this position also ensure their area of assignment is patrolled and secured. They schedule work assignments, set duty schedules, oversee incoming calls, and are accountable for all assets and facilities. They forward police reports and evidence to the proper jurisdictions. Pursuant to the Department rules associated with discipline, these sergeants have several disciplinary duties. Significantly, these sergeants are responsible for the entire district when the district commander is not on duty. Additionally, the assistant district commander acts as the district supervisor at times when the lieutenant district commander is unavailable. In conclusion, the district court found in its consideration of the totality of the circumstances, these sergeants' duties are akin to management and supervisory positions and they, therefore, are exempt from the overtime provisions of the FLSA due to their executive status. These sergeants argue the trial court made no finding with respect to how much time they spend on management or supervisory duties. They further argue, if an employee performs twenty percent of his or her time in non-exempt work, it is considered substantial. See 29 C.F.R. § 541.1(e). They also assert fifty to seventy percent of these sergeants' time is spent doing routine patrol and only twenty-five to thirty percent is spent doing duties that could be considered managerial. Finally, they argue that many of the duties the district court characterized as managerial duties are actually clerical duties such as answering the phone and greeting walk ins. Although these sergeants emphasize the percentage of time they spend performing regular trooper duties as compared to the time they spend performing supervisory functions, this is not the determinative factor in the court's analysis. See Auer, 65 F.3d at 712. Our determination must be based on all the facts in a particular case and the application of the four-prong test articulated in Auer to decide whether management is the employees' primary duty when these sergeants spend less than fifty percent of their time on managerial duties. Id. Substantial evidence supports the district court's findings that the sergeants employed as assistant district commanders/road sergeants are exempt executives. The patrol's performance plan lists these sergeants' responsibilities to include supervising, assigning duties, controlling, organizing, and planning field deployment, and maintaining proficiency in work-related discipline to assure accountability in conformance with the patrol regulations. These sergeants spend their patrol time doing management duties such as meeting with troopers, riding with troopers, and notably, training troopers to do a better job in their law enforcement functions. A summary of activity reports for the patrol shows these sergeants spend only 26.71% of their time patrolling, compared with troopers, who spend 67.86% of their time on routine patrols. These sergeants average 1.4 citizen contacts per duty day, while troopers average 6.55 citizen contacts per day. These sergeants are the ranking officer at any accident or arrest scene. These sergeants' rate of pay is more than the troopers' rate of pay. This differential in pay shows the Department is paying for more than the value of basic patrol services. Based on the foregoing, we affirm the district court's decision as to these sergeants.
The district court found the duties of the vehicle theft sergeants include assisting the lieutenant in administrative, investigative, and technical operations. The district court also found the position supervises the troopers by overseeing field investigations, evaluating performance, interviewing, evaluating needs, and coordinating activities. Finally, the district court found, except for performing undercover investigations, the duties of vehicle theft sergeants are exclusively managerial. These sergeants argue the trial court failed to make any finding with respect to the amount of time spent on these duties or that these duties are primary. Our review of the record indicates there is substantial evidence to support the district court's finding that these sergeants' primary duty is management under the four factors set forth in Auer, 65 F.3d at 712. State patrol regulations provide this sergeant is the immediate supervisor of the vehicle theft troopers. In order to supervise the troopers properly, these sergeants by necessity must oversee field investigations, evaluate performance, evaluate needs, and coordinate activities. The duties primarily consist of managerial duties. These sergeants also argue they are working foremen. As to these sergeants' working-foremen argument, some courts have held the working-foremen regulation is not applicable when the short test is used, as in this case. See, e.g., Hays v. City of Pauls Valley, 74 F.3d 1002, 1007-08 (10th Cir.1996) (holding an employee qualifying under the short test is not entitled to a working-foremen instruction because that provision is inapplicable to the short test). We need not make that determination because substantial evidence supports the conclusion the managerial duties performed by these sergeants require they have more discretion and responsibility over their subordinates than those of working foremen under 29 C.F.R § 541.115. Therefore, we affirm the district court's decision as to these sergeants.
There are two sergeants working in this assignment. The district court found these two sergeants perform the same supervisory duties as assistant district supervisors. Therefore, the trial court found these sergeants to be exempt from the overtime provisions of the FLSA due to its executive exemption. These sergeants argue they only spend twenty percent of their time doing supervisory duties. The time spent is not the determinative factor. See Auer, 65 F.3d at 712. The record supports the finding these sergeants perform the same managerial duties as assistant district supervisors. Substantial evidence supports the district court's finding that these sergeants are exempt executives under the factors set forth in Auer. Id. These sergeants also argue they are working foremen. Substantial evidence supports the conclusion these sergeants have more discretion and responsibility over their subordinates than those of working foremen under 29 C.F.R. § 541.115. Therefore, we affirm the district court's decision as to these sergeants.
The district court concluded the sergeants assigned to the governor's detail, sergeants serving as planning and training officers, sergeants serving as air wing administration officers, sergeants serving as public information officers, computerization and technology sergeants, sergeants serving as technical accident investigation coordinators, and the internal affairs officer are exempt from the overtime provisions of the FLSA due to the act's administrative exemption. To be exempt under the short test, the employer must show the employee's primary duty consists of the performance of [office or non-manual work directly related to management policies or general business operations of his employer], which includes work requiring the exercise of discretion and independent judgment. Auer, 65 F.3d at 719-20 (citing 29 C.F.R. § 541.2(e)(2)); accord Shockley v. City of Newport News, 997 F.2d 18, 28 (4th Cir.1993). Administrative duties include advising the management, planning, negotiation, representing the company, purchasing, promoting sales, and business research and control. Auer, 65 F.3d at 720 (citing 29 C.F.R. § 541.205(b)). An employee's primary duty is that which is of principal importance to the employer, rather than collateral tasks which may take up more than fifty percent of his or her time. Spinden v. GS Roofing Prods. Co., 94 F.3d 421, 427 (8th Cir.1996) (quoting Reich v. Wyoming, 993 F.2d 739, 742 (10th Cir.1993)). The regulations define the phrase `the exercise of discretion and independent judgment' to mean that the person `has the authority or power to make an independent choice, free from immediate direction or supervision and with respect to matters of significance.' See Robinson-Smith v. Gov't Employees Ins. Co., 323 F.Supp.2d 12, 20 (D.D.C.2004) (quoting 29 C.F.R. § 541.207(a)). The exercise of discretion and independent judgment `involves the comparison and the evaluation of possible courses of conduct and acting or making a decision after the various possibilities have been considered.' Id. (quoting 29 C.F.R. § 541.207(a)). The regulations caution that an employee is not exercising discretion and independent judgment when that employee merely applies his knowledge in following prescribed procedures or determining which procedure to follow even if there is some leeway in reaching a conclusion. Id. (citing 29 C.F.R. § 541.207(c)(1)). The district court examined each classification of sergeants to determine if the State proved certain sergeants were administratively exempt. We now examine each category to determine if substantial evidence supports the district court's findings.
There are four sergeants assigned to the governor's detail. The district court found the primary duty of these sergeants is maintaining security for the governor, lieutenant governor, and the first lady. These sergeants make travel arrangements, plan security for trips and at events, coordinate with other agencies to ensure security for the governor, and provide transportation. The district court found the sergeants use their sole discretion and independent judgment on how to implement security for a trip and concluded these sergeants are exempt from the overtime provisions due to the administrative exemption. These sergeants argue they are merely using their technical knowledge in providing security and are not exempt. Our review of the record reveals these sergeants provide protection, which requires them to assess the location and the security risks, determine the most effective plan for protection, and coordinate security with local law enforcement personnel. These duties include more than applying their knowledge in following prescribed procedures. These duties require these sergeants to exercise a great deal of discretion and independent judgment to complete their tasks successfully. At any given moment, these sergeants may be required to make a decision to protect the life or safety of the governor, lieutenant governor, and the first lady. The decisions made by these sergeants in providing security are their primary duty requiring the exercise of discretion and independent judgment.
The district court concluded the sergeant in this job position is required to (1) review, research and organize state patrol policies; (2) coordinate continuing training for all state patrol officers; (3) set the training agendas; and (4) research new technologies and policies the state patrol may use to improve law enforcement activities. The record confirms the sergeant in this position is required to exercise discretion and independent judgment to perform his or her duties. This sergeant must review a myriad of resources and choose the applicable policies, training, and technologies the state patrol needs to improve law enforcement activities. This sergeant is not merely applying his or her knowledge in following prescribed procedures or determining which procedure to follow. Substantial evidence supports this sergeant is exempt as an administrator.
The state patrol air wing owns nine aircraft that it uses for law enforcement purposes. The district court found and substantial evidence supports these sergeants supervise anything that has to do with pilots or aircrafts. The specific duties they perform are (1) ensuring the pilots maintain proper licensing, training, and compliance with other FAA requirements; (2) determining a pilot's fitness for flying; (3) inspecting aircrafts to determine their flight worthiness; (4) approving expenses needed to maintain the aircraft; and (5) exercising administrative and operational supervision over the trooper pilots and other personnel assigned to aircraft operations. These duties require these sergeants to advise management, plan, purchase, and conduct research. In exercising these duties, by necessity, these sergeants must use their discretion and independent judgment. The district court was correct in determining these sergeants are administratively exempt.
The district court found these sergeants' duties include maintaining media relations for the state patrol's divisions, coordinating activities necessary in order to provide the media with accurate information, scheduling training, providing guidance to other personnel on how to respond to the media, and maintaining the state patrol's website. These sergeants do not challenge these factual findings, but argue they are not exempt because they are not using discretion and independent judgment in performing these tasks. The record supports that to perform this job, these sergeants must be able to think on their feet and exercise independent judgment in responding to the media on matters of interest to the state patrol. Substantial evidence supports the conclusion these sergeants compare, consider, and evaluate different courses of conduct before acting or making a decision in performing these tasks. This evidence qualifies these sergeants as being administratively exempt.
The district court found this sergeant installs computers and acts as a troubleshooter throughout the state for the patrol's computer system. This sergeant is responsible for maintaining the overall efficiency of the patrol's computer system. This sergeant is neither a programmer nor a system analyst. The sergeant does not dispute this finding, but argues only programmers and system analysts are exempt under the FLSA. See 29 U.S.C. § 213(a)(17); 29 C.F.R. § 541.303 (1993). Although an employee may be exempt as a programmer or system analyst under § 213(a)(17), such a finding does not preclude an employee who works with a company's computer system from being exempt under § 213(a)(1)'s administrative exemption. Section 213(a) separates each listed exemption by the word or. See 29 U.S.C. § 213(a). Thus, the exemptions are not mutually exclusive. The record confirms the performance plan applicable to this sergeant requires the sergeant to (1) install, configure, and test software programs, (2) setup, configure, and maintain all division computer systems as needed; (3) monitor systems; (4) initiate any corrective measures needed to keep the facilities running efficiently; and (5) maintain software and application packages. These duties constitute non-manual work directly related to the general business operations of the patrol. See 29 C.F.R. § 541.206 (providing that the employee must have as his primary duty non-manual work directly related to management policies or general business operations of his employer to be considered exempt under the administrative exemption). In performing these tasks, the sergeant does not merely follow manuals, but exercises discretion and independent judgment to complete each task. Substantial evidence supports the district court's findings as to this sergeant.
The district court found the sergeants serving as technical accident investigation coordinators are administratively exempt. In doing so, the district court found a technical accident investigator coordinator (1) regularly researches and trains to stay current with new developments in the field; (2) maintains and monitors accident reports and records; (3) conducts meetings relating to technical investigations; (4) trains troopers; (5) conducts reviews of all investigations; (6) coordinates the activity of the field coordinators; and (7) ensures investigation techniques are correct and uniform in application. Our review of the record verifies substantial evidence in the record supports the district court's determination, because these findings are consistent with the responsibilities and standards under the state patrol's performance plan applicable to sergeants serving as technical accident investigation coordinators. This position requires the sergeant to apply specialized knowledge, discretion, and independent judgment to a technical accident investigation. A sergeant in this position is responsible for management, planning, and representing the patrol's general business operation regarding technical accident investigations. The record is more than sufficient to establish these sergeants are administratively exempt.
The internal affairs bureau is a two-officer unit, comprised of a lieutenant and a sergeant. The bureau's purpose is to conduct investigations of alleged violations of Department rules to ensure officers receive fair hearings and to see complaints are resolved properly and quickly. This sergeant has sole control and direction of all bureau investigations. The district court ruled this position was exempt based on the administrative exemption. The sergeant in this position argues this position serves only an investigative function and does not require the use of discretion or independent judgment. The sergeant simply gathers facts but does not make recommendations. We disagree with the sergeant's arguments because the record reveals this sergeant has sole control and direction of all bureau investigations assigned to the sergeant. This sergeant includes in his or her final reports to the Commissioner whether the person under investigation complied with Department policies and recommends appropriate discipline based on similar discipline given other persons for the same or similar violations. Although this sergeant performs the actual investigation, this sergeant also analyzes the data collected in the investigation and makes recommendations that ensure the patrol operates in accordance with its stated goals and objectives. Auer, 65 F.3d at 721. For these reasons, substantial evidence supports the district court's conclusion that this position is administratively exempt.
The district court found the sergeants serving as motor carrier safety assistance program (MCSAP) coordinators and safety education sergeants exempt under the executive and administrative exemptions. The regulations allow a combination exemption based on administrative and management responsibilities when an employee's primary duty is neither management nor administration. Auer, 65 F.3d at 722 (citing 29 C.F.R. § 541.600(d)). To prove the combination exemption, the employer cannot rely on a combination of the short tests, but must show the employee qualifies on a combination of the long tests. Shockley, 997 F.2d at 29. The district court did not make any findings necessary for the application of a combination exemption under the long tests. If, however, the findings support the application of either the executive or the administrative exemption under the short tests, we can determine whether these positions are exempt without remanding the case to the district court for further consideration. Auer, 65 F.3d at 722.
A lieutenant or sergeant fills the MCSAP position. The district court found the lieutenant's position was exempt due to its executive and administrative status. Therefore, the district court concluded the sergeant's position was likewise exempt. The district court, however, only found the lieutenant position to be administratively exempt. Because the district court only made findings of fact as to the administrative exemption, we will only review this position as to that exemption. Our examination of the record confirms the sergeant in this position coordinates a federally funded program of the federal highway administration known as the MCSAP. The program's purpose is to concentrate enforcement efforts on drivers of large commercial vehicles. Although the MCSAP sergeant has patrol duties, substantial evidence supports the district court's findings that the primary duties of an MCSAP sergeant is to write training manuals, schedule training sessions, review trooper reports, put together operational plans, develop reporting mechanisms with the federal agency, plan special enforcement projects, and make sure the patrol complies with the requirements of the program. These duties are non-manual administrative duties that require the exercise of discretion and independent judgment. Thus, this sergeant's position qualifies for the administrative exemption.
The district court found the primary focus of the safety education program is to provide information to the public through presentations for the purpose of creating greater awareness for safety. As part of this program, the safety education officers speak to schools and other groups concerning issues relating to public safety. This position oversees the safety education efforts of other officers and provides input for evaluations of other safety education officers' performance. We believe substantial evidence supports these findings. To perform these tasks, the sergeant must use discretion and independent judgment. Making recommendations, evaluating other officers, planning presentations, and training are all non-manual tasks directly related to management policies or general business operations of the patrol. Substantial evidence supports the district court's finding these sergeants are exempt administrators.