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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
print version appearing in the North Carolina Reports and North Carolina Court of Appeals Reports, the latest print version is to be considered authoritative.
ROY C. HYMAN, on behalf of himself and all other similarly
situated persons, Plaintiff, v. EFFICIENCY, INC., d/b/a TROJAN
LABOR, Defendant
NO. COA04-246
Filed: 7 December 2004
1. Employer and Employee--wage withholding--transportation deduction--specific
authorization
A de novo review revealed that the trial court did not err by granting summary judgment
in favor of defendant temporary employment agency after the trial court found no violations of
the North Carolina Wage and Hour Act under N.C.G.S. § 95-25.8 and N.C. Admin. Code tit. 13,
r. 12.0305 based on defendant withholding class members' wages to pay for an optional
transportation service to and from job sites, because: (1) defendant's daily log complies with the
requirements of N.C.G.S. § 95-25.8(2)(a) as a specific authorization since the log provides class
members with advance notice of the specific deduction amount, and the deductions for
transportation expenses are not automatic and are conditioned upon the class members
specifically requesting use of the van pool each morning; (2) defendant's daily log specific
authorization form satisfied the formatting and content requirements under N.C. Admin. Code tit.
13, r. 12.0305(b) since the daily log is written, signed by the class members on or before the
payday for the pay period for which the deduction is made, includes the date signed, and states
the reason for the deduction; (3) while administrative opinion letters from the North Carolina
Department of Labor are not binding on the Court of Appeals, they are recognized as evidence of
defendant's good faith to comply with the statute; and (4) the optional transportation service
offered to the class members is neither an incident of nor necessary to the employment, and it is
not primarily for the benefit of defendant who hired from its locale even though the trip the class
members pay for is between defendant's home office and the job sites.
2. Employer and Employee--wage withholding--waiting and traveling to work
A de novo review revealed that the trial court did not err by granting summary judgment
in favor of defendant temporary employment agency based on class members not being entitled
to compensation under N.C.G.S. § 95-25.6 for time spent waiting for and traveling on
defendant's optional transportation service, because: (1) plaintiff testified that defendant never
told him that hours worked included wait time or travel time to and from the job site, and the
employment contract does not provide for the compensation the class members seek; (2) the class
members' wait or travel time is not a principal activity requiring compensation, but instead is
preliminary and postliminary activity since the class members' idle time either before or after the
workday is personal; and (3) the receipt of general protective equipment does not make travel
time compensable under 29 C.F.R. § 785.38.
Appeal by plaintiff from order entered 21 November 2003 by
Judge Donald W. Stephens in Wake County Superior Court. Heard in
the Court of Appeals 14 October 2004.
Law Offices of Robert J. Willis, by Robert J. Willis, for
plaintiff-appellant.
Cranfill, Sumner & Hartzog, L.L.P., by M. Robin Davis and
Alycia S. Levy, for defendant-appellee.
TYSON, Judge.
Roy C. Hyman (plaintiff), on behalf of those similarly
situated (collectively, the class members) appeal entry of
summary judgment in favor of Efficiency, Inc., d/b/a Trojan Labor
(defendant) after the trial court found no violations of the
North Carolina Wage and Hour Act (the NCWHA), N.C. Gen. Stat. §
95-25.1 et seq. We affirm.
I. Background
Defendant is a temporary employment agency that hires
individuals on a daily basis for casual labor. Defendant markets
and provides the temporary labor to businesses that periodically
need additional workers.
Defendant's hiring policy is structured on a first come first
serve basis. The class members arrive at defendant's office early
in the morning to receive available employment. Upon arrival, the
class members receive a time ticket indicating their place in line
for job assignments. The time between receiving a number in line
and departure to job sites is considered unpaid personal time.
After receiving assignments, the class members may either
transport themselves to the job sites or participate in defendant's
van pool. Defendant deducts $2.00 each way from a participant's
paycheck for optional van transportation. With their initial
employment application, all the class members sign authorization
forms that disclose the optional transportation program and related
expenses. Each morning, the class members interested in using thevan pool sign an additional form authorizing a wage deduction from
their paycheck. The class members are not paid while waiting for
the van pool at either defendant's office or for return from the
job site.
Plaintiff filed a complaint in state court on 26 April 2002.
Defendant removed the case to federal court alleging federal
question subject matter jurisdiction under the Federal Fair Labor
Standards Act (the FLSA), 29 U.S.C. § 201 et seq. On 25
September 2002, the federal court granted plaintiff's motion to
remand to state court as the claims were based solely under
substantive state law.
On 24 February 2003, the trial court granted plaintiff's
uncontested motion to file an amended complaint. This complaint
alleged two class action claims under the NCWHA. First, plaintiff
alleged defendant withheld illegal wage deductions. Second,
defendant failed to honor an express agreement to pay plaintiff for
all daily wages due. On 11 April 2003 and 3 June 2003, plaintiff
moved for and was granted class certification of two classes of
plaintiffs: (1) the transportation deduction class; and (2) the
waiting to work class. Defendant answered on 16 June 2003.
Defendant moved for summary judgment, or in the alternative
for partial summary judgment, on 28 August 2003. The motion
alleged: (1) plaintiff failed to state a claim upon which relief
could be granted under the NCWHA and N.C. Gen. Stat. § 95-25.1 et
seq.; (2) plaintiff's claims under the NCWHA and N.C. Gen. Stat. §
95-25.1 et seq. are preempted by the FLSA; (3) plaintiff was paid
the agreed upon wage for hours worked under the FLSA; and (4)defendant's wage deduction authorization forms fully complied with
the NCWHA, specifically N.C. Gen. Stat. § 95-28.8(2).
On 21 November 2003, the trial court found the material facts
regarding these claims are not in significant dispute [and] [t]he
issue . . . is whether or not the undisputed material facts of
record establish a violation of the Wage and Hour Act. The trial
court found plaintiff failed to show a violation of the NCWHA and
granted defendant's motion for summary judgment. Plaintiff
appeals.
II. Issues
The issues on appeal are whether the trial court properly
granted: (1) summary judgment in favor of defendant on plaintiff's
transportation deduction claim; and (2) summary judgment in favor
of defendant on plaintiff's waiting to work claim.
III. Federal Statutes, Regulations, and Cases as Guidance
The issues before us arise from Employment and Labor Law, an
area substantively monopolized by federal law. Plaintiff's claims
are based on the NCWHA, N.C. Gen. Stat. § 95-25.1 et. seq. The
NCWHA is modeled after the FLSA. Laborers' Int'l Union of North
America, AFL-CIO v. Case Farms, Inc., 127 N.C. App. 312, 314, 488
S.E.2d 632, 634 (1997). The North Carolina Administrative Code
(the Code) provides that judicial and administrative
interpretations and rulings established under [] federal law may
guide us when interpreting North Carolina laws that are identical
to provisions of the FLSA. N.C. Admin. Code tit. 13, r. 12.0103
(June 2004). We are not bound by decisions of Federal circuit courts other
than those of the United States Court of Appeals for the Fourth
Circuit arising from North Carolina law. Haynes v. State, 16 N.C.
App. 407, 409-10, 192 S.E.2d 95, 97 (1972) (citing State v. Barber,
278 N.C. 268, 179 S.E.2d 404 (1971)).
IV. Standard of Review
We review a trial court's entry of summary judgment
de novo.
Shroyer v. County of Mecklenburg, 154 N.C. App. 163, 167, 571
S.E.2d 849, 851 (2002) (citing
Falk Integrated Tech., Inc. v.
Stack, 132 N.C. App. 807, 809, 513 S.E.2d 572, 574 (1999)). Under
de novo review, a reviewing court considers the matter anew, and it
may substitute its own judgment for that of the trial court.
Mann
Media, Inc. v. Randolph Cty. Planning Bd., 356 N.C. 1, 13, 565
S.E.2d 9, 17 (2002) (citation omitted).
Summary judgment is proper when: (1) the pleadings,
depositions, answers to interrogatories, and admissions on file,
together with the affidavits, show that there is no genuine issue
as to any material fact; and (2) the moving party is entitled to
judgment as a matter of law.
Von Viczay v. Thoms, 140 N.C. App.
737, 738, 538 S.E.2d 629, 630 (2000) (quotation omitted),
aff'd per
curiam, 353 N.C. 445, 545 S.E.2d 210 (2001). The moving party has
the burden of showing there is no genuine issue of material fact
and that it is entitled to judgment as a matter of law.
Garner v.
Rentenbach Constructors, Inc., 350 N.C. 567, 572, 515 S.E.2d 438,
441 (1999). The evidence must be viewed in the light most
favorable to the non-moving party and all inferences from thatevidence must be drawn against the moving party and in favor of the
non-moving party.
Id.
After reviewing the record and considering the parties' oral
arguments, we conclude no genuine issues of material fact exist.
We review the trial court's conclusions of law.
V. Transportation Deduction Claim
[1] Plaintiff asserts defendant failed to comply with the
North Carolina statutes and the Code, which provide when and how
employers may deduct wages from employees' paychecks. We disagree.
A. Blanket and Specific Authorizations of Wage Withholding
N.C. Gen. Stat. § 95-25.1 et seq. comprise the NCWHA. N.C.
Gen. Stat. § 95-25.8 (2003) addresses wage withholding, which
states:
An employer may withhold or divert any portion
of an employee's wages when:
(1) The employer is required or empowered to
do so by State or federal law, or
(2) The employer has a written authorization
from the employee which is signed on or
before the payday for the pay period from
which the deduction is to be made
indicating the reason for the deduction.
Two types of authorization are permitted:
(a) When the amount or rate of the
proposed deduction is known and
agreed upon in advance, the
authorization shall specify the
dollar amount or percentage of wages
which shall be deducted from one or
more paychecks, provided that if the
deduction is for the convenience of
the employee, the employee shall be
given a reasonable opportunity to
withdraw the authorization;
(b) When the amount of the proposed
deduction is not known and agreed
upon in advance, the authorizationneed not specify a dollar amount
which can be deducted from one or
more paychecks, provided that the
employee receives advance notice of
the specific amount of any proposed
deduction and is given a reasonable
opportunity to withdraw the
authorization before the deduction
is made.
The statute offers employers two options of written authorization
to deduct wages. First, N.C. Gen. Stat. § 95-25.8(2)(a) addresses
deductions of a known sum of money, a specific authorization.
N.C. Admin. Code tit. 13, r. 12.0305 (June 2004). Employees who
agree to specific authorizations must receive from their employers
an opportunity to withdraw the authorization before the deduction
is made, if the deduction is for the convenience of the employee
. . . . N.C. Gen. Stat. § 95-25.8(2)(a). Second, N.C. Gen. Stat.
§ 95-25.8(2)(b) refers to a blanket authorization, one made for an
unknown amount of money. N.C. Admin. Code tit. 13, r. 12.0305.
Before a deduction may be completed under a blanket authorization,
the employee must receive notice of the specific amount and a
reasonable opportunity to withdraw the authorization. N.C. Gen.
Stat. § 95-25.8(2)(b).
The Code requires wage deduction authorizations to be: (1)
written; (2) signed by the employee on or before the payday for the
pay period for which the deduction is made; (3) show the date of
signing by the employee; and (4) state the reason for the
deduction. N.C. Admin. Code tit. 13, r. 12.0305(b). A specific
authorization must provide the exact dollar amount or percentage of
wages withheld. Id. Before wages may be deducted under a blanket
authorization, the employee must be provided: (1) advance noticeof the specific amount of the proposed deduction; and (2) a
reasonable opportunity of at least three calendar days from the
employer's notice of the amount to withdraw the authorization.
N.C. Admin. Code tit. 13, r. 12.0305(d).
Defendant's policy requires each individual hired to read and
sign an employment contract that includes a provision entitled,
Acknowledgment of Transportation Expense and Request to Deduct
Transportation Expenses from Wages, which states:
I HEREBY ACKNOWLEDGE that to be eligible for
employment with THE COMPANY that I provide my
own transportation to a job site. If I am
unable to provide my own transportation to a
job site, I request THE COMPANY to arrange
such transportation for me. I acknowledge
that such transportation is for my benefit,
and that without THE COMPANY arranging the
transportation to the job site, I would not be
able to accept employment with THE COMPANY.
If THE COMPANY or another employee provides
transportation for me, or if I am advanced
funds to provide for my own transportation, I
hereby request and authorize THE COMPANY to
deduct the actual and reasonable cost, not to
exceed specific state law, of that
transportation from my wages.
This provision authorizes defendant to withhold wages for the
class members use of the van pool. It does not specify a dollar
amount for the van pool service and is a blanket authorization
under N.C. Gen. Stat. § 95-25.8(2)(b). If this were the only wage
deduction authorization form, defendant must provide the class
members: (1) advance notice of the specific amount of the proposed
deduction; and (2) a reasonable opportunity of at least three
calendar days from the employer's notice of the amount to withdraw
the authorization. N.C. Admin. Code tit. 13, r. 12.0305(d). In addition to the employment contract blanket authorization,
defendant presents another form to the class members every day.
Each work morning, defendant offers the class members
transportation to the job sites. Those interested sign a daily log
which includes the following language:
I HEREBY ACKNOWLEDGE that I am accepting
transportation from a co-employee in order to
report to my assigned work site. If I did not
accept such transportation, I would be unable
to report to the job site assigned, or I would
have to use public transportation, if
available. I further acknowledge that my
share of the cost of transportation shall be
$4.00 per round trip, and I agree that this
amount is reasonable. Trojan Labor does not
set this fee and will not receive any part of
the $4.00 cost of transportation. I
acknowledge that the cost of transportation
reimbursement amount will be credited in full
to the co-employee who provides transportation
for me to the job site. For each day that I
accept as described herein, I agree that
Trojan Labor provided transportation to me. I
acknowledge and agree that this deduction of
the transportation reimbursement from my
paycheck by Trojan Labor is reasonable and is
an accommodation to me.
I ACKNOWLEDGE AND AGREE that I have a choice
to accept the transportation from my co-
employee and pay to him/her as explained
herein the cost of transportation fee of $4.00
or travel to the job site on public
transportation. With full knowledge that I
have such a choice, I have elected to accept
transportation from my co-employee and to
reimburse him/her the cost of transportation
as described herein. As a result of this
election, I WAIVE any right to bring any
action against Trojan Labor under State or
Federal law relating to the cost of
transportation to a job site.
This daily log authorizes defendant to withhold wages for the
class members use of the van pool. Unlike the blanket
authorization above, the daily log provides the class membersadvance notice of the specific deduction amount, $2.00 each way,
and qualifies as a specific authorization under N.C. Gen. Stat. §
95-25.8(2)(a). We further note the deductions for transportation
expenses are not automatic. They are conditioned upon the class
members specifically requesting use of the van pool each morning.
Only then are wages withheld. The class members receive frequent
and sufficient notice of the cost to use defendant's van pool. We
hold the daily log complies with the requirements of N.C. Gen.
Stat. § 95-25.8(2)(a) as a specific authorization.
Defendant's daily log specific authorization form satisfies
the Code's formatting and content requirements. The daily log is
written, signed by the class members on or before the payday for
the pay period for which the deduction is made, includes the date
signed, and states the reason for the deduction. N.C. Admin. Code
tit. 13, r. 12.0305(b).
On 3 July 2003, defense counsel requested and received an
opinion letter from the North Carolina Department of Labor (the
NCDOL) concerning defendant's two authorization forms. In that
opinion letter, the NCDOL concluded defendant's daily log form
satisfied the statutory and regulatory guidelines concerning wage
withholding under a specific authorization. It also determined
defendant's employment contract was a blanket authorization under
N.C. Gen. Stat. § 95-25.8(2)(b). Accordingly, defendant would need
to provide the class members both advance notice of the specific
deduction amount and at least three calendar days from the date of
the notice of the deduction to withdraw the authorization. N.C.
Gen. Stat. § 95-25.8(2)(b); N.C. Admin. Code tit. 13, r.12.0305(d). The opinion letter also reiterated that defendant need
not provide both a specific and blanket authorization form.
While administrative opinion letters are not binding on this
Court, we recognize it as evidence of defendant's good faith to
comply with the statute. Brooks, Comr. of Labor v. Grading Co.,
303 N.C. 573, 581, 281 S.E.2d 24, 29 (1981) (although not binding,
interpretations of a statute by the agency created to administer
that statute are provided some deference by appellate courts)
(citing In re Appeal of North Carolina Savings and Loan League, 302
N.C. 458, 466, 276 S.E.2d 404, 410 (1981)).
Defendant's daily log satisfies the requirements of both N.C.
Gen. Stat. § 95-25.8(2)(a) and N.C. Admin. Code tit. 13, r.
12.0305(b) as a specific authorization. We decline to consider
whether defendant's employment contract meets the statutory and
Code requirements as a blanket authorization.
This portion of plaintiff's assignment of error is overruled.
B. Incident of and Necessary to Employment
Plaintiff contends the optional transportation services
offered by defendant to the class members are a benefit to
defendant and thus are considered neither wages nor deductible. We
disagree.
An employer is allowed to count as wages the reasonable cost
'of furnishing [an] employee with board, lodging, or other
facilities, if such board, lodging, or other facilities are
customarily furnished by such employer to his employees.' Arriaga
v. Florida Pacific Farms, L.L.C., 305 F.3d 1228, 1236 (2002)
(quoting 29 U.S.C. § 203(m)).
The employer may then deduct thereasonable cost from the employee's paycheck, even if the net sum
is below the minimum wage.
29 C.F.R. § 531.27 (2004).
The United
States Department of Labor (the USDOL) defines other facilities
as
[m]eals furnished at company restaurants or
cafeterias or by hospitals, hotels, or
restaurants to their employees; meals,
dormitory rooms, and tuition furnished by a
college to its student employees; housing
furnished for dwelling purposes; general
merchandise furnished at company stores and
commissaries (including articles of food,
clothing, and household effects); fuel
(including coal, kerosene, firewood, and
lumber slabs), electricity, water, and gas
furnished for the noncommercial personal use
of the employee; transportation furnished
employees between their homes and work where
the travel time does not constitute hours
worked compensable under the Act and the
transportation is not an incident of and
necessary to the employment.
29 C.F.R.
§
531.32(a) (2004) (emphasis supplied). If the
facilities provided are primarily for the benefit of the
employer, the cost may not be included in computing wages and the
employer must reimburse the expense up to the point the FLSA
minimum wage provisions have been met. Arriaga, at 1241-42; 29
C.F.R.
§
531.3(d)(1) (2004). We must decide whether the optional
transportation service offered to the class members is an incident
of and necessary to the employment and primarily for the benefit
of defendant. 29 C.F.R.
§
531.32(a).
Plaintiff cites Arriaga as authority to show the
transportation service was an incident of and necessary to
defendant's business and primarily for defendant's own benefit.
305 F.3d at 1228
. There, domestic agricultural employers hired
nonimmigrant aliens from Mexico as farm laborers to work on aseasonal basis. Id. at 1232. Laborers who passed the interview
process paid their own passage to the United States, visa costs,
and various recruiting fees. Id. at 1234. After deducting these
expenses from wages earned, the net income fell below the minimum
wage. Id. at 1231-32.
The Eleventh Circuit held the transportation costs were an
incident of and necessary to the employment and the employers must
reimburse the laborers for expenses paid in coming to the
employment. Id. at 1242. The court noted the key factor was
transportation costs that were an inevitable and inescapable
consequence of having foreign . . . workers employed in the United
States. Id. The court carefully distinguished that situation from
one where an employer hires from its locale. Id. Further, the
court distinguished between costs arising from the employment
itself and those that would arise in the course of ordinary life
by interpreting other facilities as meaning employment-related
costs . . . that would arise as a normal living expense. Id. at
1242-43.
We find Arriaga persuasive, but not as plaintiff argues. The
paramount distinction between the case at bar and Arriaga is
exactly what the court discussed. In Arriaga, transportation
expenses were both inevitable under the program employers used to
recruit and hire foreign workers and is substantially different
from normal commuting costs. Here, defendant's transportation
service is one of several options the class members may utilize in
traveling to and from job sites after defendant hired from its
locale. Id. at 1242. The class members may
use their ownvehicle, ride public transportation, walk, car pool with another
driver, or sign up for defendant's optional transportation service.
The choices facing the class members are the same encountered by
each worker every day and are not unique to defendant's business.
It is immaterial that the trip the class members pay for is between
defendant's home office and the job sites.
We find the optional transportation offered by defendant falls
within the category of other facilities. Id. at 1242-43.
Defendant properly deducts the associated transportation cost from
the class members' paychecks.
Plaintiff has failed to show and we find no evidence in the
record that a genuine issue of material fact exists or defendant
improperly withheld wages from the class members. Defendant's
authorization form satisfies the requirements of both N.C. Gen.
Stat. § 95-25.8 and N.C. Admin. Code tit. 13, r. 12.0305. The
class members receive sufficient notice of the transportation
option, its cost, the process of electing to use the van pool, and
the subsequent wage withholding. This assignment of error is
overruled.
VI. Time Spent Waiting and Traveling to and from Work
[2] Plaintiff contends that time spent waiting and traveling
between defendant's office and the job sites is compensable under
N.C. Gen. Stat. § 95-25.6 (2003), which states, [e]very employer
shall pay every employee all wages and tips accruing to the
employee on the regular payday. Pay periods may be daily, weekly,
bi-weekly, semi-monthly, or monthly. Wages based upon bonuses,commissions, or other forms of calculation may be paid as
infrequently as annually if prescribed in advance. We disagree.
A. N.C. Gen. Stat. § 95-25.6
Plaintiff argues defendant is breaching an express oral if
not written contract between the parties requiring defendant to
pay the class members in accordance with the FLSA, which triggers
the requirements of N.C. Gen. Stat. § 95-25.6. Plaintiff concedes
defendant's employment contract specifically addresses this issue
in defendant's favor. However, plaintiff requests this Court to
look[] beyond the language contained in the [contract] to federal
statutes, regulations, and case law, to find waiting and traveling
time compensable under these circumstances.
The applicable provision of defendant's employment contract
states, Once you have been given a time ticket, you are completely
relieved of duty and are free to use the time between being
assigned a time ticket and the time the job starts effectively and
for your own purposes.
The record indicates the class members are informed they will
only be compensated for time spent working at the job site. A copy
of defendant's employment contract with plaintiff's signature is
included in the record on appeal. Plaintiff also testified
defendant never told him hours worked included wait time or
travel time to and from the job site.
The employment contract does not provide for the compensation
the class members seek. Plaintiff admitted that he agreed to and
understood this policy. This agreement bears his signature. We
find no violation of N.C. Gen. Stat. § 95-25.6. We now considerwhether federal law requires defendant to compensate the class
members for time spent waiting for and traveling to work.
B. The Portal to Portal Act
The Portal to Portal Act, 29 U.S.C. § 254, does not require
employers to pay employees for the following activities:
(1) walking, riding, or traveling to and from
the actual place of performance of the
principal activity or activities which such
employee is employed to perform, and
(2) activities which are preliminary to or
postliminary to said principal activity or
activities, which occur either prior to the
time on any particular workday at which such
employee commences or subsequent to the time
on any particular workday at which he ceases,
such principal activity or activities.
29 U.S.C. § 254(a) (2003) (emphasis supplied). The issue before us
is whether the class members' wait or travel time is a principal
activity and compensable. We hold that it is not.
Employers must compensate employees for time spent waiting and
traveling when it is part of a principal activity of the employee,
but not if it is a preliminary or postliminary activity. Vega v.
Gasper, 36 F.3d 417, 425 (5th Cir. 1994) (citing The Portal to
Portal Act, 29 U.S.C. § 254 ). Principal activity is integral
and indispensable to the employer's business. Karr v. City of
Beaumont, Tex., 950 F. Supp. 1317, 1322 (E.D.Tex. 1997) (citing
Truslow v. Spotsylvania County Sheriff, 783 F. Supp. 274, 277 (E.D.
Va. 1992) (citing 29 U.S.C. § 254(a)(2), (b)), aff'd, 993 F.2d 1539
(4th Cir. 1993) (per curiam)). They include duties 'performed as
part of the regular work of the employees in the ordinary course of
business[,] work [that] is necessary to the business . . . . [and
also] primarily for the benefit of the employer.' Vega, 36 F.3dat 424 (quoting Dunlop v. City Electric, Inc., 527 F.2d 394, 401
(5th Cir. 1976)).
Preliminary activities are those engaged in by an employee
before the commencement of his 'principal' activity or activities
. . . . 29 C.F.R. § 790.7(b) (2004). '[P]ostliminary activity'
means an activity engaged in by an employee after the completion of
his 'principal' activity or activities . . . . Id. Preliminary
and postliminary activities are spent primarily for the employees'
own interests, completed at the employees' convenience, and not
necessary to the employer's business. Jerzak v. City of South
Bend, 996 F. Supp. 840, 848 (N.D.Ind. 1998).
1. Waiting Time
Plaintiff asserts that he and the class members should be
compensated for waiting time after receiving job assignments and
physically commencing work at the job sites and after stopping work
and returning to defendant's office. We consider two factors in
determining whether plaintiff's waiting time is a principal
activity, compensable under The Portal to Portal Act. The first
issue is whether the time spent is predominantly to benefit the
employer and integral to the job. Preston v. Settle Down
Enterprises, Inc., 90 F. Supp. 2d 1267, 1278-79 (N.D.Ga. 2000)
(citations omitted); Vega, 36 F.3d at 425 (citing Mireles v. Frio
Foods, Inc., 899 F.2d 1407, 1411 (5th Cir. 1990)). The second
issue is whether the employee is able to use the time for their own
personal activities. Vega, 36 F.3d at 426 (citing Mireles, 899
F.2d at 1413.)
Defendant provides temporary labor to its customers on an as-
needed basis. Customers request defendant's services when extra
help is needed on any variety of construction projects. Defendant
hires enough workers on a daily basis to satisfy customers'
demands. Workers receive assignments only if work is available on
that particular day, on a first come first serve basis. Defendant
does not require individuals to wait for customers to request labor
services.
After receiving a work assignment, the class members elect how
to travel from defendant's office to the job site. They can use
their own vehicle, ride public transportation, walk, car pool with
another driver, or sign up for defendant's optional transportation
service. Defendant neither restricts the class members' activities
while they wait for the ride nor while in transit. They are free
to do as they please. At the end of the work day, the class
members have the option of either returning to the office to get
their paycheck that night or at a later date.
Based on this evidence, we hold the class members' time spent
waiting is preliminary and postliminary activity and
noncompensable. The class members' principal activity, that which
defendant hired them for, was to perform work at customers' job
sites on a daily basis. Temporary labor is the entire scope of
defendant's business. Customers pay for that service, which begins
upon arrival at the job site and stops at the end of the work day.
The class members' idle time either before or after the workday is
personal. Many spend waiting time reading the newspaper,
sleeping,drinking coffee, eating meals, watching television, or socializing
with other waiting workers.
The amount of time the class members spend waiting directly
correlates to their choice of transportation. They are free to
spend that time as they wish. It is neither beneficial nor
indispensable to
defendant's business. We decline to extend hours
worked to include the class members' waiting time prior to arrival
at or after leaving the job site at the end of the day.
2. Travel Time
Travel time is only compensable under The Portal to Portal Act
if it is a principal activity of the employee. 29 U.S.C. § 254.
Normal commuting from home to work and back is considered ordinary
travel and not a principal activity absent a contract stating
otherwise. 29 U.S.C. § 254; 29 C.F.R. §§ 785.34, 785.35 (2004).
Travel from an employer's campus to the actual place of
performance is noncompensable. 29 C.F.R. § 790.7(e) (2004).
However, travel between job sites after work has begun for the day
is compensable. Wirtz v. Sherman Enterprises, Inc., 229 F. Supp.
746, 753 (1964) (emphasis supplied); 29 C.F.R. § 785.38 (2004).
Plaintiff relies heavily on Preston, 90 F. Supp. 2d 1267, to
support its argument that travel time to and from the job sites is
compensable as a principal activity. In Preston, the defendant
provided temporary labor to customers on a daily basis. Id. at
1272. Laborers hired were furnished transportation from the
defendant's office to the job sites. Id. at 1273. The court
analyzed the issue by reviewing 29 C.F.R. § 785.38, which states in
part: Time spent by an employee in travel as part of
his principal activity, such as travel from
job site to job site during the workday, must
be counted as hours worked. Where an employee
is required to report at a meeting place to
receive instructions or to perform other work
there, or to pick up and to carry tools, the
travel from the designated place to the work
place is part of the day's work, and must be
counted as hours worked regardless of
contract, custom, or practice.
Based on this regulation, the court considered three important
factors: (1) whether workers were required to meet at the
defendant's office before going to the job site; (2) whether
workers performed labor before going to the job site; and (3)
whether workers picked up and carried tools to the job site.
Preston, 90 F. Supp. 2d at 1280-81. Factors two and three did not
apply in Preston. Id. at 1280. However, the court ruled on factor
one that arriving at a business on one's own initiative seeking
employment is not the same as an employer requiring an employee to
report at a meeting place. Id. at 1280-81. Thus, hours worked
did not begin accruing until after arrival at the job site.
Applying the same analysis here, we find identical answers to
factors one and two. First, defendant does not require employees
to report at its office at a certain time. Rather, it established
the policy for laborers to follow if they are interested in seeking
employment from defendant on a daily basis. Second, the class
members do not perform any work either at defendant's office, or
while in transit to the job sites. Third, unlike Preston, the
record indicates that the class members are provided personal
protective equipment after receiving an assignment and beforereporting to the job site. We address factor three, the picking up
and carrying of tools to the job site.
In Crenshaw v. Quarles Drilling Corp., 798 F.2d 1345 (10th
Cir. 1986) and D A & S Oil Well Servicing, Inc. v. Mitchell, 262
F.2d 552 (10th Cir. 1958), the courts found travel time compensable
as an indispensable part of the employees' jobs. Employer-
defendants in both cases required their employees to transport
specialized equipment necessary to service oil wells. Crenshaw,
798 F.2d at 1346; D A & S Oil Well Servicing, Inc., 262 F.2d at
553-54. In an unpublished opinion, the District Court for the
Eastern District of Kentucky held that in situations where
employees are transporting specialized equipment to the job site,
it can be concluded that the transportation of specialized
equipment, provided by the employer, is work in and of itself.
Spencer v. Auditor of Public Accounts, No. 88-54, 1990 U.S. Dist.
Lexis 1076 (E.D.Ky. Jan. 30, 1990).
The USDOL addressed this issue in 29 C.F.R. § 790.7, its own
expansive interpretation of preliminary and postliminary
activities. The regulation distinguished between an employee
transporting heavy equipment and ordinary hand tools. 29 C.F.R. §
790.7(d) (2004). In considering heavy equipment, the regulation
states the employee's travel is not segreable from the
simultaneous performance of his assigned work (the carrying of the
equipment, etc.) . . . . and does not fall under the
noncompensable travel outlined by The Portal to Portal Act. Id.
We agree with this distinction between the transportation of
specialized and heavy equipment and the non-unique protectiveequipment issued to the class members by defendant. The record
indicates the class members receive hard hats, boots, and gloves.
These implements are not specialized and are used in a wide
variety of manual labor jobs. It is a different situation from an
employee transporting specialized vehicles, tools, or heavy
equipment necessary to perform specialized work. The receipt of
general protective equipment does not make travel time compensable
under 29 C.F.R. § 785.38. If its issuance constituted the
beginning of hours worked, employers would wait until employees
arrived at the job site before distributing the protective gear.
The Fifth Circuit encountered the issue of compensable travel
time in Vega, 36 F.3d 417. The defendant, a farm laborer
contractor, provided its employee-laborers transportation, for a
fee, to and from the farm sites. Id. at 423. The court held the
traveling time was preliminary and postliminary activity and not
compensable. Id. at 425. It based its decision on factors present
in the case at bar. First, the laborers performed no work prior to
getting on the bus in the morning. Id. Second, the defendant
offered the transportation as an option to the workers and did not
require its usage. Id. Third, not all of the laborers elected to
use the transportation. Id. The court concluded the travel from
the defendant's office to the farm sites was an an extended home-
to-work-and-back commute. Id.
These factors, together with our analysis of Preston, compels
us to hold that the class members' travel time is a preliminary and
postliminary activity and is noncompensable. This assignment of
error is overruled.
VII. Conclusion
Defendant complies with N.C. Gen. Stat. § 95-25.8 and N.C.
Admin. Code tit. 13, r. 12.0305 in withholding the class members'
wages to pay for an optional transportation service to and from job
sites. The class members are not due compensation for time spent
waiting for and traveling on defendant's optional transportation
service under N.C. Gen. Stat. § 95-25.6. The trial court's grant
of summary judgment for defendant is affirmed.
Affirmed.
Judges BRYANT and LEVINSON concur.
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