Document: 508 U.S. 22 113 S.Ct. 1905 123 L.Ed.2d 584 Lynwood MOREAU, etc., et al., Petitioners,v.Johnny KLEVENHAGEN, Sheriff, Harris County, Texas, al. No. 92-1. Argued March 1, 1993. Decided May 3, Syllabus * Under subsection 7(o)(2)(A) of the Fair Labor Standards Act (FLSA or Act), a state local government agency may provide its employees compensatory time off, "comp time," instead generally mandated overtime pay, so long as, inter alia, it is done pursuant to "(i) applicable provisions collective bargaining agreement any other . between and representatives such ." "(ii) in case not covered by subclause (i), an arrived at employer employee before performance work. Department (DOL) regulations that, where have designated representative, comp must be that representative agency, 29 CFR § 553.23(b); according Secretary Labor, question whether "representative" governed law practices, 52 Fed.Reg. 2014-2015. Petitioners are group deputy sheriffs Texas County who sought, unsuccessfully, negotiate FLSA way their union representative. Petitioners' employment terms conditions set forth individual form agreements, which incorporate reference County's providing deputies shall receive for filed this suit alleging, among things, they were "covered" (i) virtue representation, therefore was precluded from agreements under (ii). The District Court disagreed, relying on conclusion prohibits public sector, entered summary judgment County. Appeals affirmed. Held: Because petitioners "employees (i)," (ii) authorized challenged litigation. phrase (i)" most sensibly read as referring with authority agree "applicable agreement" authorizing time. This reading accords significance both focus word "agreement" "employees" (ii); true 7(o)'s hierarchy, favors over limiting use latter cases former unavailable; consistent DOL regulations, interpreted reasonably. Although 553.23(b), isolation, would support petitioners' view selection representative—even one without lawful bargain—is sufficient bring within (i)'s scope, interpretation prohibit entirely substantial portion sector inconsistent Secretary's statement determination matter. clarification establishes when identify condition necessary coverage, refer only those agreements. In case, lower courts found entering into employer. Accordingly, did authority. Pp. ____. 956 F.2d 516 (CA5 1992), STEVENS, J., delivered opinion unanimous Court. Michael T. Leibig, Washington, DC, petitioners. Harold M. Streicher, Houston, TX, respondents. Justice STEVENS 1 Act) requires employers pay work rate half times employees' regular wages.1 1985, Congress amended limited exception rule governmental agencies. Amendments 1985 (1985 Amendments), compensate extra off certain circumstances.2 State take advantage mance work; 2 "(B) if has accrued excess limit prescribed paragraph (3). 3 "In described clause (A)(ii) hired prior April 15, 1986, practice effect respect lieu receipt compensation, constitute understanding (A)(ii). Except provided previous sentence, provision hours worked after 14, accordance subsection." 4 text provides framework our entire analysis, we quote relevant outset. Subsection states: 5 "(2) A [in pay] — 6 "(A) 7 agreement, memorandum understanding, employees; 8 9 narrow dispositive here meaning (ii), second subclause. 10 enacted 1938 establish nationwide minimum wage maximum standards. Section encourages compliance standards paid time-and-one-half basis all 40 per week.3 11 19664 19745 extended coverage employers, gave rise series questioning power regulate compensation employees.6 Following decision Garcia v. San Antonio Metropolitan Transit Authority, 469 528, 105 1005, 83 1016 (1985), upholding power, announced hold effective 1985.7 12 response announcement, Houses held hearings considered legislation designed ameliorate burdens associated changes practices. projected "financial costs coming FLSA—particularly provisions"—were specifically identified matter grave concern many States localities. S.Rep. 99-159, p. (1985). statutory issue product deliberations. 13 Report recommending enactment Amendments, Senate Committee Human Resources explained new 7(o) allow met: premium less than one-half hour work, reached Id., 10-11. With nature raised stated: "Where recognized employer, either through type agreement." 10. 14 House Education could made available. See H.Rep. 99-331, 20 On requirement, expressed similar Committee's: selected need formal agent employees, Ibid. 15 Where Reports differ description who, once designated, require While refers "recognized" states "need agent." Supra page. Conference does comment difference, see H.R.Conf.Rep. 99-357, finally do adopt precise language Report. 16 addressed, however, implementing promulgated express legislative direction Amendments.8 regulation seems patterned Report, "the agent."9 At same time, concerns Missouri about impact no enter enforceable explained: 17 "The believes proposed accurately reflects requirement CBA [collective agreement], employees. recognizes there wide variety pertinent area. It Department's intention purposes section determined practices." 2014-2015 (1987). (Emphasis added). II 18 Petitioner Moreau president Deputy Sheriffs Union, representing approximately 400 action against sheriff, respondent Klevenhagen. For several years, Union represented various matters, processing grievances handling workers' claims, but prohibited collective-bargaining County.10 included signed each employee. These work.11 19 alia,12 violated paying rather absent substitution. contended (or pre-existing practice)13 court assumed designation normally hence render inapplicable, went cannot apply States, like sector. Merritt Klevenhagen, Civ. Action 88-1298 (SD Tex., Sept. 5, 1990), reprinted App. Pet. Cert. 19a-20a. Reaching result alternate route, also reasoned because " 'recognized' grounded history Amendments. 6, 21a. 21 affirmed, relied slightly different reasoning. seemed Eleventh Circuit Dillard Harris, 885 1549 (1989), cert. denied, 498 878, 111 210, 112 170 (1990), words "not covered" absence 516, 519-520 1992). theory, fact means can never making available alternative vehicle conflict Circuits scope coverage,14 granted certiorari. 504 ----, 51, 121 (1992). III 23 Respondents find statute perfectly clear. view, plainly authorizes whenever successfully negotiated (i). Petitioners, hand, contend ambiguity itself justifies resort these secondary sources unequivocally preclude We begin analysis text. 24 least proposition dispute. Subclause "in (i)." Our task, therefore, class task complicated purport define category suggests would. Instead, describes agreements—those (a) bargained (b) authorize 25 shift subject susceptible just meaning: bound agreement. construction, cover designate unable reach whatever reason; remain "uncovered" 26 unsatisfactory. First, while subclauses will bear advanced respondents, say other. Purely grammar, (ii)' remains unmodified "agreement," might easily comprehend International Assn. Fire Fighters, Local 2203 West Adams Dist., 877 814, 816-817, n. (CA10 1989). 27 Second, respondents' difficult reconcile general structure 7(o). Assuming theory leaves choose proceed deal directly basis. If free course (as likely would), then decline inapplicable (ii).15 permissive 7(o), odds here. supra, Had intended open-ended authorization surely said more simply, forgoing elaborate purports restrict Respondents' broad some tension well-established "exemptions [FLSA] narrowly construed." See, e.g., Mitchell Kentucky Finance Co., 359 290, 295-296, 79 756, 759-760, 815 (1959). 28 equally implausible deem select ability kind possibility reaching logically applicable. words, must, minimum, conceivably contemplated plausible is, neither extreme alternatives above. Rather, hierarchy embodied unavailable.16 30 intermediate even bargain employer—is ____, 9. So interpreted, convinces us agreements.17 31 Thus, lawfully collectively behalf—under statute, regulation, status purposes. construe harmony, further argument entitled special deference. 32 33 34 ordered. syllabus constitutes part been prepared Reporter Decisions convenience reader. United Detroit Lumber 200 321, 337, 282, 287, 50 L.Ed. 499. Stat. 1063, amended, U.S.C. 207(a). 99 790, codified 207(o). provides: "§ 207. Maximum hours. "(1) Employees State, political subdivision interstate receive, required section. (1) perfor- 1966, §§ 102(a) (b), 80 830, 203(d) (r). 1974, 6(a)(1) (6), 88 58, 60, (x). Maryland Wirtz, 392 183, 2017, 1020 (1968); Fry 421 542, 95 1792, 44 363 (1975); National League Cities Usery, 426 833, 96 2465, 49 245 (1976); delay enforcement activities until October 1985; date later November 1985. 203. "(b) Agreement concerning oral written Any Act." 553.23(b) As "Tex.Rev.Civ.Stat.Ann. art. 5154c labor organization unless adopted Police Employee Relations Act. Act; thus, article Union." 519 1992) clarify "Texas bilateral city agent, labeled something else. law, 520 (emphasis original). way. pp. 3-4, 18a. premised normal assumption correctly construed rules law. Bishop Wood, 341, 346, 10, 2074, 2078, 48 684 (1976) (citing cases). Merritt, 88-1298, 2, 17a. two additional claims: failed include longevity calculations, excluded nonmandated firearms qualification calculation number worked. affirmed remanded proceedings claim. F.2d, 520-523. Neither claim today. sought "regular 1986," date, later. Like practice" option 207(o)(2); supra. forms them 814 1989) (employees upon representative); Abbott Virginia Beach, 879 132 (CA4 representative), 493 1051, 110 854, 107 848 (1990); (CA11 entry regarding time), Nevada Highway Patrol Nevada, 899 (CA9 1990) bargaining). discussion division Courts Appeals, Note, Public Sector Compensatory Time Exception Act: Trying Compensate Congress's Lack Clarity, 75 Minn.L.Rev. 1807 (1991). Indeed, party permitted construction. 11, silent subject, prohibiting altogether, "covered read, understand impose burden all, mandating benefits offers "only" Congress. Once engage bargaining, reaches free, course, forgo altogether; chooses, precisely position FLSA. fear themselves dealing employee, should his her own Brief Association Counties Amici Curiae 17. Unless designations practices," designees "representatives"

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