Hill v. Garda CL Nw., Inc.
Hill v. Garda CL Nw., Inc.
Opinion
*556 ¶ 1 Garda CL Northwest Inc. operates an armored transportation service and requires its drivers and messengers to remain constantly vigilant while *557 working. Specifically, Garda requires those employees to maintain vigilance when they take lunch breaks while on the job. The Court of Appeals ruled that this constant vigilance policy deprived the employees of a meaningful meal period, as guaranteed under WAC 296-126-092. That court also ruled that this policy violated the Washington Minimum Wage Act (MWA), chapter 49.46 RCW.
¶ 2 Under Washington law, an employer who violates the MWA owes its employees double exemplary damages unless certain exceptions apply. RCW 49.52.050, .070. One exception is for wage claims over which the employer and employees have a " 'bona fide' " or " 'fairly debatable' " dispute, meaning a dispute that is both objectively and subjectively reasonable.
E.g.,
Wash. State Nurses Ass'n v
.
Sacred Heart Med. Ctr.,
¶ 3 We hold that Garda has failed to prove a bona fide dispute based on waiver. We also hold that aggrieved workers may recover both double exemplary damages under RCW 49.52.070 and prejudgment interest under RCW 19.52.010 for the same wage violation. We therefore reverse and remand to the Court of Appeals for further proceedings consistent with this opinion.
*558 FACTS AND PROCEDURAL BACKGROUND
¶ 4 Garda operates an armored transportation service delivering currency and other valuables throughout Washington State. Typically, two Garda employees, a driver and a messenger, guard these valuables during transport. To ensure the safety of those employees and their cargo, Garda requires its drivers and messengers to remain vigilant at *210 all times-even when they take rest breaks and meal periods. 2 Opening Br. of Appellant Garda at 7 ("acknowledg[ing] that because of the nature of the work-transporting Liability [ (valuables) ] in an armored truck and carrying firearms-its crew must exercise some level of alertness at all times outside a Garda facility").
¶ 5 Plaintiffs Lawrence Hill, Adam Wise, and Robert Miller are former Garda drivers and messengers. They argue that Garda's policy of prohibiting drivers and messengers from taking vigilance-free rest breaks and meal periods violates WAC 296-126-092 (guaranteeing workers rest breaks and meal periods) and RCW 49.46.020 of the MWA (entitling employees to compensation for all hours worked). Clerk's Papers (CP) at 2753-61, 3304-08. They filed a lawsuit on behalf of themselves and a class of similarly situated Washington drivers and messengers for compensation for these missed rest breaks and meal periods. CP at 3-8. They requested compensatory damages under RCW 49.46.040, exemplary double damages under RCW 49.52.070, and prejudgment interest under RCW 19.52.010.
¶ 6 The trial court certified the plaintiff class (hereafter "Plaintiffs"). CP at 932-34. It then ruled that
*559
WAC 296-126-092 granted Plaintiffs the right to vigilance-free rest breaks and meal periods, CP at 3352-53, and that this was made especially clear by the 2011 decision in
Pellino v
.
Brink's Inc.,
¶ 7 The Plaintiffs sought double damages pursuant to RCW 49.52.050 and .070. Those statutes say that employers who intentionally underpay employees must pay exemplary double damages. Garda opposed double damages. Garda argued that there was a bona fide dispute over the workers' entitlement to vigilance-free rest breaks and meal periods for four reasons 3 and that such a dispute constitutes a defense to double damages under RCW 49.52.050 and .070. Garda also argued that even if there were no bona fide dispute, the workers knowingly submitted to the violation-another statutory defense to double damages. CP at 3447-48.
¶ 8 The trial court rejected Garda's arguments and granted the Plaintiffs prejudgment interest and double damages for their missed rest breaks and meal periods, starting two weeks from the date that Pellino was issued. CP at 3810, 3821. The trial court held that Garda did not have the requisite intent to deprive the workers of their rest breaks and meal periods earlier because prior to Pellino it was fairly debatable whether WAC 296-126-092 required vigilance-free rest breaks and meal periods. CP at 3811.
*560 ¶ 9 Garda appealed several issues concerning liability. 4 It also appealed the award of double damages but only as to the meal period violations (not the rest break violations). Lastly, Garda appealed the Plaintiffs' recovery of both prejudgment interest and double damages for the same violations.
*211
¶ 10 The Court of Appeals affirmed the trial court's rulings on liability.
Hillv.Garda CL Nw., Inc.,
¶ 11 Garda petitioned this court for review and the Plaintiffs cross-petitioned. We denied Garda's petition but granted Plaintiffs' cross-petition on the issues of double damages and prejudgment interest.
Hill v
.
Garda CL Nw., Inc.,
*561 ANALYSIS
I. Garda Failed To Carry Its Burden of Showing the Statutory Bona Fide Dispute Defense to Double Damages Based on Waiver
A. Under RCW 49.52.052 and .070, an Employer Is Liable for Double Damages for Wage Violations Unless It Carries the Burden of Showing That a Statutory Defense Applied
¶ 12 The trial court's decision that Garda violated WAC 296-126-092 and is liable to the Plaintiffs for wage violations under the MWA is not before this court. The question for us relates solely to Garda's liability for double exemplary damages under RCW 49.52.050 and .070.
¶ 13 Under those statutes, an employer who "pay[s] any employee a lower wage than the wage such employer is obligated to pay such employee" "shall be liable ... to judgment for twice the amount of the wages unlawfully ... withheld by way of exemplary damages, together with costs of suit and a reasonable sum for attorney's fees" if the employer withheld the wages (1) "[w]ilfully and [ (2) ] with intent to deprive the employee of any part of his or her wages" and (3) the employee did not "knowingly submit[ ] to such violations." RCW 49.52.050(2), .070.
¶ 14 The standard for proving willfulness is low-our cases hold that an employer's failure to pay will be deemed willful unless it was a result of " ' "carelessness or err[or]." ' "
Wash. State Nurses Ass'n,
¶ 15 Under our prior decisions, the burden is on the employer to show the existence of such a bona fide dispute.
Wash. State Nurses Ass'n,
¶ 16 And under our prior decisions, a bona fide dispute has both an objective and a subjective component. The employer must have a " 'genuine belief" in the dispute at the time of the wage violation.
See
Chelan County,
¶ 17 Thus, despite the statute's focus on the employer's intent, our decisions state that whether an employer acts "[w]ilfully and with intent to deprive" within the meaning of RCW 49.52.050(2) is really a two-part test with an objective and subjective component. The subjective, genuine belief component is a question of fact that we generally review under the substantial evidence standard.
Schilling,
*563 B. Garda Failed To Carry Its Burden of Showing the Statutory Bona Fide Dispute Defense to Double Damages Based on Collective Waiver
1. The Trial Court Rejected All Four Bona Fide Disputes Proposed by Garda
¶ 18 At trial, Garda argued that there was a bona fide dispute about whether the Plaintiffs were entitled to vigilance-free meal periods because it questioned
(1) whether Plaintiffs' meal and rest break claims were preempted by the Federal Aviation Administration Authorization Act ("[FAAAA]"); (2) whether Plaintiffs' meal break claims were preempted by Section 301 of the Labor Management Relations Act ("LMRA"), ... (3) whether Plaintiffs waived their meal break claims by individually signing acknowledgment forms stating that the employee individually agreed to the terms of the applicable Labor Agreements[, and (4) ] whether the Labor Agreements are the type of "CBAs" [Department of Labor & Industries administrative policy] ES.C.6 § 15 is intend[ed] to address [ (given that this court questioned the characterization of the plaintiffs' labor agreements as CBAs in Hill v . Garda CL Nw., Inc.,179 Wash.2d 47 , 50 n.1,308 P.3d 635 (2013) ].
CP at 3437, 3444. The trial court rejected Garda's claims of a bona fide dispute on all four grounds. CP at 3817-19. With regard to question 1, it found that Garda did not " 'genuinely believe[ ]' " in the FAAAA preemption argument at the time of the wage violation. CP at 3811, 3819. This ruling on question 1 is a factual conclusion. With regard to questions 2 and 3, it rejected Garda's LMRA preemption and individual waiver arguments as objectively unreasonable. CP at 3817-19. The trial court ruled that Garda's LMRA preemption argument was "meritless" because the law was clear that the LMRA does not apply to claims based solely on state statutory and regulatory requirements. CP at 3818-19. As for Garda's argument that the Plaintiffs had individually waived their meal periods when they signed acknowledgements *564 agreeing to be bound by the terms of their respective CBAs, the trial court ruled that that argument was unreasonable because the CBAs on which Garda's individual waiver arguments were predicated did not purport to waive the " 'on-duty' meal breaks" that the Plaintiffs were seeking to enforce. CP at 3818. These rulings on questions 2 and 3 are legal conclusions. Finally, the trial court did not provide a reason for rejecting Garda's fourth claim that the labor agreements signed by the workers were not the type of CBAs that are subject to provision 15 of the Department of Labor and Industries' Employment Standard ES.C.6 (2005), which bars waiver of meal period rights in CBAs. Because it made no factual finding on that point, we treat its decision on question 4 as a legal one, not a factual one.
2. The Court of Appeals Reversed Based on the Bona Fide Dispute Summarized at (4), Above: Whether a CBA Can Waive the State Law Right to Meal Breaks
¶ 19 The Court of Appeals reversed, finding that Garda did have a bona fide dispute
*213
about whether the Plaintiffs waived their state law meal break right in their CBAs-the dispute described as number 4, above. Specifically, that court held that it was fairly debatable whether the Plaintiffs had waived their meal period rights because "the state of the law was not clear" about whether meal period rights could be waived in a CBA, noting specifically that "Garda's interpretation of the Policy [ (Employment Standard ES.C.6 (2005) ) ] on this point was not unreasonable."
Hill,
¶ 20 There was no bona fide dispute about whether the Plaintiffs waived their right to a paid, on duty meal period. Indeed, even Garda acknowledges that the Plaintiffs retained the right to a paid, on duty meal period. Instead, Garda argued that the Plaintiffs waived their right to off duty meal periods and that they received their on duty meal periods. E.g., Garda's Reply to Answer & Cross Pet. for Review at 1-2 ("Garda argued below, as it has consistently throughout this litigation, that the Drivers intentionally and knowingly waived off-duty meal periods either in the agreements negotiated by the Drivers Associations or by individually signing the acknowledgments of the same. ... Garda also argued that there was no wage violation because the Drivers were paid for such on-duty meal breaks." (emphasis added) ).
¶ 21 Based on that argument, Garda concludes that because the Plaintiffs were paid for a full day, including the time during which they ate while working, they were given and paid for "on duty" meal periods as required by WAC 296-126-092. E.g., Suppl. Br. of Pet'r/Cross Resp't Garda, f/k/a AT Systems Inc. at 3 ("Garda maintains that each relevant CBA clause confirmed showed [sic] that the Drivers agreed-and chose-to work [through] meal periods and receive pay. In other words, they agreed to waive the unpaid off-duty meal period requirement contemplated by WAC 296-126-092.").
¶ 22 But that's not what an "on duty" meal period, as contemplated by WAC 296-126-092, is. An "on duty" meal period is one during which the employee is relieved of all work duties-the employee need only remain "on the premises *566 or at a prescribed work site in the interest of the employer." WAC 296-126-092(1). 5
¶ 23 It is undisputed that Garda failed to provide the Plaintiffs with that type of work-free, "on duty" meal period. And it is precisely that type of work-free, "on duty" meal period on which the Plaintiffs base their claims in this case: the Plaintiffs explicitly claimed that they were deprived of such "on duty" meal periods.
¶ 24 Because there was no argument that the Plaintiffs waived "on duty" (as opposed to "off duty") meal periods in their CBAs, Garda's assertion of a bona fide dispute based on collective waiver was objectively unreasonable. We therefore reverse the Court of Appeals on the bona fide dispute question (4). 6
¶ 25 Thus, even without focusing on the specific language of the Plaintiffs' CBAs, we hold that Garda failed to establish a bona fide dispute based on collective waiver because Garda never actually argued there was waiver of the particular type of rights the Plaintiffs sought to enforce here, that is, "on duty" meal periods.
4. The Plaintiffs' CBAs Support Their Undisputed Assertion That They Did Not Waive Their "On Duty" Meal Periods in Those Agreements
¶ 26 The specific language of the Plaintiffs' CBAs, however, provides further support for *214 our conclusion that there was no bona fide dispute based on waiver. As detailed below, each of the Plaintiffs' 18 CBAs contained one of three general meal period clauses, all reaffirming that the Plaintiffs had not waived "on duty" meal periods. *567 ¶ 27 The first type of meal period clause stated that driving routes would be scheduled without a designated, prescheduled lunch break and explained that the employees would instead be provided a paid, on duty lunch break. Eight CBAs contained one of three variations of that clause:
1. Street and ATM (automated teller machines) routes will be scheduled without a designated lunch break; thus employees will not be docked for same. In the event a truck crew on a Street or ATM route wishes to schedule a nonpaid lunch break, they must notify their supervisor. (CP at 390 (2004-09 Mt. Vernon Labor Agreement), 454 (2004-08 Seattle Labor Agreement), 536 (2005-08 Tacoma Labor Agreement).)
2. Street routes as well as ATM routes will be scheduled without a designated lunch break thus employees will not be docked for same. In the event a truck crew on a street or ATM route wishes to schedule a nonpaid lunch break, they must notify their supervisor. (CP at 497 (2007 Spokane Work Rules).)
3. Street routes will be scheduled without a designated lunch break; thus employees will not be docked for same. In the event a truck crew on a street route wishes to schedule a nonpaid lunch break, they must notify their supervisor. (CP at 578 (2009 Wenatchee Labor Agreement), 622 (2006-09 Yakima Labor Agreement), 433 (2006-09 Pasco Labor Agreement), 7 1513 (2006-09 Wenatchee labor agreement).)
¶ 28 The second type of meal period clause guaranteed the employees a paid on duty meal period and stated that if the employees wanted an unpaid off duty meal period instead, then the employees must make arrangements with their supervisor. Seven of the Plaintiffs' CBAs contained that clause:
*568 The Employees hereto agree to an on-duty meal period. Employees may have an off duty meal period if they make arrangements with their supervisor in advance of the need or provided the supervisor with a written request to renounce the on-duty meal period in exchange for an off-duty meal period.
CP at 413 (2009-12 Mt. Vernon Labor Agreement), 478 (2008-11 Seattle Labor Agreement), 516 (2008-11 Spokane Labor Agreement), 558 (2009-12 Tacoma Labor Agreement); 1140 (2013-16 Mt. Vernon Labor Agreement), 4239 (2013-16 Seattle Labor Agreement), 1669-70 (2011-14 Spokane Labor Agreement).
¶ 29 The third type of meal period clause purported to waive all meal period rights but then indicated that the employees still had a right to a paid, on duty meal period. Three of their CBAs contained that clause:
The Employees hereto waive any meal period(s) to which they would be otherwise entitled. Employees will be paid at their regular hourly rate to work through any such meal period(s). Notwithstanding this waiver, employees may eat meals within their vehicles while on route so long as they can do so in a safe manner. Employees may take an unpaid off-duty meal period if they make arrangements with their supervisor at least one day in advance of the need or provide their supervisor with a written request to renounce the on-duty meal period in exchange for an off-duty meal period.
CP at 1163 (2010-13 Pasco labor agreement), 601 (2010 Wenatchee Labor Agreement), 646 (2010-13 Yakima Labor Agreement).
¶ 30 Thus, none of the Plaintiffs' 18 CBAs actually waived their right to an on duty meal period, which is the right the Plaintiffs seek to enforce in this lawsuit.
*215 ¶ 31 Garda has therefore failed to carry its burden of showing a bona fide dispute on waiver.
*569 5. The LMRA Does Not Bar This Court from Reading the Parties' CBAs, Nor Does It Preempt the Plaintiffs' State Law Claim
¶ 32 Garda argues that it is impermissible for this court to interpret the language of those agreements, despite the fact that Garda is the party that raised their language as a basis for its bona fide dispute defense. Garda claims that this court is barred from referring to that language because section 301 of the LMRA,
¶ 33 Garda is incorrect. Because Garda raised the language and characterizes it as supporting its argument, this court has a duty to read that language and decide whether Garda is correct about that characterization. As the Ninth Circuit summarized of the holdings of the relevant United States Supreme Court decisions on this point,
[I]n order for complete preemption to apply, "the need to interpret the CBA must inhere in the nature of the plaintiff's claim. If the claim is plainly based on state law, § 301 pre-emption is not mandated simply because the defendant refers to the CBA in mounting a defense." [ Cramer v. Consol. Freightways, Inc.,255 F.3d 683 , 691 (9th Cir. 2001) ; see also Gregory v. SCIE, LLC,317 F.3d 1050 , 1052 (9th Cir. 2003) ; Humble v. Boeing Co.,305 F.3d 1004 , 1008 (9th Cir. 2002).]
Valles v. Ivy Hill Corp.,
¶ 34 Garda also argues that if we choose to spend too much time addressing the language of the CBAs that it raised, then the Plaintiffs' claim must be considered fully preempted. This reflects a misunderstanding of the reach of
*570
LMRA preemption. As the Court of Appeals said in its discussion of that issue, and in reliance on controlling United States Supreme Court law, "[S]ection 301 preemption does not apply to every dispute between an employer and a union employee. '[I]t would be inconsistent with congressional intent under [section 301] to pre-empt state rules that proscribe conduct, or establish rights and obligations,
independent of a labor contract.
' "
Hill,
¶ 35 This holding remains good law, and the WAC on which the Plaintiffs rely is a state rule that prescribes rights "independent of a labor contract."
¶ 36 Garda argues one final aspect of LMRA preemption. It contends that "the Plaintiffs' claims stem from negotiable rights, which they have waived in their CBAs."
¶ 37 But a CBA cannot waive the employees' right to the protection of even a negotiable state law right unless it does so in "clear and unmistakable language." As the Ninth Circuit recently explained, in a passage relying solely on controlling United States Supreme Court law:
*216 *571 Finally, we have held that "§ 301 does not permit parties to waive, in a [CBA], nonnegotiable state rights" conferred on individual employees. Balcorta [ v . Twentieth Century-Fox Film Corp.,208 F.3d 1102 , 1111 (9th Cir. 2000) ]. As the Supreme Court has repeatedly emphasized, "Congress is understood to have legislated against a backdrop of generally applicable [state] labor standards." Livadas,512 U.S. at 123 n. 17,114 S.Ct. 2068 . Section 301 must not be construed to give employers and unions the power to displace state regulatory laws. See Cramer,255 F.3d at 697 ; Humble,305 F.3d at 1009 ; Associated Builders & Contractors, Inc. [v. Local 302 Int'l Bhd. of Elec. Workers ], 109 F.3d [1353, 1357-58, amended and superseded on reh'g,1997 WL 236296 (9th Cir. 1997) ]. Where, however, under state law waiver of state rights may be permissible, "the CBA must include 'clear and unmistakable' language waiving the covered employee's state right 'for a court even to consider whether it could be given effect.' " See Cramer,255 F.3d at 692 (quoting Livadas,512 U.S. at 125 ,114 S.Ct. 2068 ).
Valles,
¶ 38 Thus, even if Washington's state law meal period protection is considered collectively negotiable-a question we do not reach-the language in the Plaintiffs' CBAs on which Garda relies certainly did not waive that protection in clear and unmistakable language. As discussed above, the agreements did not waive the protection of true on duty meal periods at all. Instead, as Garda acknowledges, the CBAs retained the protection of true on duty meal periods. Thus, it was unreasonable for Garda to claim a bona fide dispute based on waiver. 8
*572 C. Garda's "Knowing[ ] Submi[ssion]" Defense and Its Other Bona Fide Dispute Defenses Should Be Addressed on Remand
¶ 39 Given our limited grant of review, we remand to the Court of Appeals to address Garda's remaining statutory defenses to double damages, including whether there was a bona fide dispute based on FAAAA preemption and whether the Plaintiffs knowingly submitted to Garda's meal period violation. RAP 13.7(b) ;
Hill,
II. Workers May Recover Both Double Exemplary Damages under RCW 49.52.070 and Prejudgment Interest under RCW 19.52.010 for the Same Wage Violation
¶ 40 The trial judge awarded the Plaintiffs back wages from 2006 to 2015 for the vigilance-free meal periods and rest breaks of which they were deprived. CP at 3808, 3814-17. It also awarded double exemplary damages from 2011
9
to 2015. CP at 3821. Finally, it awarded prejudgment interest, but only on the back wages, not on the double exemplary damages. CP at 3822. Garda does not dispute the Plaintiffs' ability to recover prejudgment interest for the type of wage claims raised here.
See
Stevens v
.
Brink's Home Sec., Inc.,
¶ 42 To answer this question, we must consider whether the harms compensated by RCW 49.52.070, the double damages statute, and RCW 19.52.010, the prejudgment interest statute, overlap.
¶ 43 They do not. RCW 49.52.070 awards employees "twice the amount of the wages unlawfully rebated or withheld by way of
exemplary
damages" when the employer withholds such wages willfully and with intent to deprive. (Emphasis added.) "Exemplary damages" are synonymous with punitive damages. BLACK'S LAW DICTIONARY 692 (10th ed. 2014) (equating "exemplary damages" with "punitive damages"). Exemplary damages under RCW 49.52.070 are therefore designed to "punish and deter" an employer's blameworthy conduct, not to compensate the worker for harm caused by such conduct.
Morgan,
141 Wash. App. at 161-62,
¶ 44 By contrast, prejudgment interest under RCW 19.52.010 is designed to repay the plaintiff for the " 'use value' " of the money that the plaintiff never received.
Hansen,
¶ 45 Because the compensatory function of prejudgment interest and the punitive function of exemplary damages are different, there is no bar on awarding both for the same underlying wage violation.
¶ 46 Garda's reliance on federal cases applying the federal double liquidated damages provision of the Fair Labor Standards Act of 1938 (FLSA),
¶ 47 The federal provision was enacted in 1938
10
-a year before Washington adopted our double damages provision.
11
The federal provision entitles the plaintiff to double damages "as
liquidated
damages" when the employer violates certain federal wage and hour laws.
*218 By contrast, RCW 49.52.070, which was enacted a year later, contains different language. It restricts the recovery of double damages to instances where the employer unlawfully collects or receives a rebate of wages or unlawfully withholds wages "[w]ilfully and with intent to deprive the employee of any part of his or her *575 wages." RCW 49.52.070, .050(2). In those limited instances, RCW 49.52.070 authorizes double damages to be awarded "by way of exemplary damages ." 13
¶ 48 This distinction between double damages as "
exemplary
damages" under RCW 49.52.070 and double damages as "
liquidated
damages" under
¶ 49 Unlike Washington's prejudgment interest law which uses "liquidated damages" to refer to readily calculable damages, the FLSA uses "liquidated damages" as an approximation for actual damages where the damages are "too obscure and difficult of proof" to calculate.
Overnight Motor Transp. Co. v
.
Missel,
¶ 50 No such "interest on interest" problem results under RCW 49.52.070 because our state double damages statute is designed to "punish and deter" employers from unlawfully demanding a rebate in wages or unlawfully withholding wages willfully and with an intent to deprive.
¶ 51 The Court of Appeals' reliance on
Ventoza v
.
Anderson,
*219
¶ 52 As the Ninth Circuit acknowledged,
Blake
"never held" that prejudgment interest is unavailable on the
compensatory
portion of a damages award.
¶ 53 We hold that RCW 49.52.070 does not bar recovery of prejudgment interest on the compensatory portion of the Plaintiffs' damages award.
CONCLUSION
¶ 54 Garda failed to prove a bona fide dispute based on the purported waiver of Plaintiffs' state law right to on duty meal breaks in their CBAs. In addition, the Plaintiffs can recover both double exemplary damages under RCW 49.52.070 plus prejudgment interest under RCW 19.52.010 for the same wage violation. We therefore reverse and remand to the Court of Appeals for further proceedings consistent with this opinion.
WE CONCUR:
Madsen, J.
Stephens, J.
Wiggins, J.
González, J.
Yu, J.
JOHNSON, J. (concurring in part/dissenting in part)
*578 ¶ 55 While the majority correctly concludes that, in general, a plaintiff may recover both prejudgment interest under ROW 19.52.010 and double damages under ROW 49.52.070, on the facts of this case, Garda CL Northwest Inc. did not willfully withhold wages and thus double damages are inappropriate.
¶ 56 Garda and its employees entered a collective bargaining agreement (CBA) establishing working conditions justified by the nature of the employment: an armored truck service where employees are armed and transporting valuable cargo. Given the nature of their occupation, Garda employees must be alert and attentive the entire time they are at work.
¶ 57 The language in the CBAs is clear: "Employees hereto waive any meal period(s) to which they would otherwise be entitled" (Clerk's Papers (CP) at 601 (2010 Wenatchee Labor Agreement), 646 (2010-13 Yakima Labor Agreement) ) and truck routes "will be scheduled without a designated lunch break" (CP at 390 (2004-09 Mt. Vernon Labor Agreement), 433 (2006-09 Pasco Labor Agreement), 497 (2007 Spokane Work Rules), 536 (2005-08 Tacoma Labor Agreement), 578 (2009 Wenatchee Labor Agreement), 622 (2006-09 Yakima Labor Agreement) ). Even though Garda was ultimately held liable for unpaid wages, it was not unreasonable for Garda to perceive this language as a clear waiver of employees' meal periods and not merely an agreement to on-duty meal periods. Because liability for wages is not at issue, whether these words constituted actual waiver is not at issue. Instead, the focus is on Garda's state of mind and whether its actions were willful for purposes of double damages.
*220 ¶ 58 Even in the few CBAs stating, "Employees hereto agree to an on-duty meal period," that language cannot be read out of context. CP at 202 (2004-08 Seattle labor agreement), 558 (2009-12 Tacoma Labor Agreement). The employee handbook explicitly states that drivers must *579 remain "alert at all times" while working. CP at 1791, 1792. Drivers also testified that constant alertness was part of the job. Even some of the CBAs recognize that the requirement of constant alertness dovetails with employees' breaks. CP at 601 (2010 Wenatchee Labor Agreement). Considering the CBAs, the employee handbook, and driver testimony, there should be no question that drivers understood the need for a constant state of vigilance when they agreed to work for Garda. Thus, it was not unreasonable for Garda to interpret this section of the CBA as an agreement to work through meal periods.
¶ 59 In holding that Garda willfully withheld wages, the majority fails to recognize our precedent in
Champagne v
.
Thurston County
,
¶ 60 Until today, under certain circumstances, employers and employees could waive statutorily required rest and lunch breaks as long as an employment agreement existed that provides adequate compensation for forgoing what the statute otherwise required.
Iverson v
.
Snohomish County,
¶ 61 That Garda followed the terms of the CBA is sufficient to negate a finding of willfulness; the Court of Appeals should be affirmed.
Fairhurst, C.J.
Owens, J.
Wash. State Nurses Ass'n,
Garda disputed whether all drivers and messengers really followed that policy. Clerk's Papers (CP) at 3172-3302 (containing logs of certain employees' social media access). The trial court resolved that dispute by ruling that some employees may have engaged in personal activities during their breaks, but the "[e]mployees were never relieved of the obligations to guard the truck and/or the liability and to maintain constant vigilance." CP at 3812.
Garda argued it had a bona fide dispute based on (1) federal preemption under the Federal Aviation Administration Authorization Act of 1994 (FAAAA),
Garda appealed liability under WAC 296-126-092, raising questions regarding (1) the meaning of WAC 296-126-092 and whether it required vigilance-free rest breaks and meal periods, (2) the waivability of meal period rights by CB As, and (3) federal preemption under the FAAAA, the LMRA, and section 7 of the National Labor Relations Act of 1935,
Regardless of whether it might have been debatable before the Pellino decision whether the meal periods the Plaintiffs received qualified as an "on duty" meal period, that debate is not relevant here because the trial court awarded double damages starting after the Pellino decision.
Given our limited resolution of this case, we do not address whether the Court of Appeals also erred in concluding that the law was unclear as to the waivability of meal period rights in CBAs.
The court's photocopy of the 2006-09 Pasco labor agreement is striated and therefore difficult to read, but the parties seem to agree that it contains language consistent with the 2009 Wenatchee and 2006-09 Yakima labor agreements. Opening Br. of Appellant Garda, App. at a; Pls.'/Cross-Pet'rs' Suppl. Br. at 11 n.6.
Contrary to the dissent's concerns, our holding in this case does not disturb our rulings in
Champagne v
.
Thurston County,
The year of the Pellino decision.
Laws of 1939, ch. 195, § 3.
Section 216(b) provides in pertinent part:
Any employer who violates the provisions of section 206 [ (titled "Minimum wage") ] or section 207 [ (titled "Maximum hours") ] of this title shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages. ... The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney's fee to be paid by the defendant, and costs of the action.
RCW 49.52.070 provides:
Any employer and any officer, vice principal or agent of any employer who shall violate any of the provisions of RCW 49.52.050 (1) [ (rebate of wages) ] and (2) [ (willful and intentional deprivation) ] shall be liable in a civil action by the aggrieved employee or his or her assignee to judgment for twice the amount of the wages unlawfully rebated or withheld by way of exemplary damages, together with costs of suit and a reasonable sum for attorney's fees: PROVIDED, HOWEVER, That the benefits of this section shall not be available to any employee who has knowingly submitted to such violations.
(Emphasis added.) Like its federal counterpart, RCW 49.52.070 has remained substantially the same since its enactment in 1939. Compare RCW 49.52.070, with Laws of 1939, ch. 195, § 3.
That referenced portion of section 299 states that "[i]nterest is not recoverable in statutory actions for double or treble damages." 15 Am. Jur. Damages § 299.
Reference
- Full Case Name
- Lawrence HILL, Adam Wise, and Robert Miller, on Their Own Behalves and on Behalf of All Persons Similarly Situated, Respondents/Cross-Petitioners, v. GARDA CL NORTHWEST, INC., F/K/A at Systems, Inc. a Washington Corporation, Petitioner/Cross-Respondent.
- Cited By
- 18 cases
- Status
- Published