Kennedy v. Commonwealth Edison Co.

• Decision Date: 02 June 2005
• Docket Number: No. 03-2971.,03-2971.
• Citation: 410 F.3d 365
• Parties: Terry J. KENNEDY, et al., Plaintiffs-Appellants, v. COMMONWEALTH EDISON CO., Defendant-Appellee.
• Court: U.S. Court of Appeals — Seventh Circuit

Page 365

410 F.3d 365

Terry J. KENNEDY, et al., Plaintiffs-Appellants, v. COMMONWEALTH EDISON CO., Defendant-Appellee.

No. 03-2971.

United States Court of Appeals, Seventh Circuit.

Argued April 16, 2004.

Decided June 2, 2005.

Dorothy A. O'Brien (argued), Marlita A. Greve, O'Brien & Greve, Davenport, IA, for Plaintiffs-Appellants.

Douglas A. Graham (argued), Chicago, IL, for Defendant-Appellee.

Before EASTERBROOK, RIPPLE, and WOOD, Circuit Judges.

WOOD, Circuit Judge.

Although the Fair Labor Standards Act (FLSA) guarantees overtime compensation for many workers, its protections do not extend to everyone. In this case, 55 employees of Commonwealth Edison ("ComEd") claim that ComEd classified them on the wrong side of the line—namely, as administrative employees who fall within an exemption to the FLSA's overtime promise. See 29 U.S.C. § 213(a)(1). In a series of rulings, the district court ultimately concluded that ComEd had met its burden of demonstrating for purposes of summary judgment that the employees were correctly classified, both for purposes of the FLSA and for a closely related claim under the Illinois Minimum Wage Law (IMWL), 820 ILCS 105/4a. The employees appealed, and we affirm.

I

We begin with an introduction to the parties. The 55 plaintiffs are employed at five nuclear power plants now operated by Exelon Generation Company, LLC ("Exelon Generation"). Plaintiffs fall into five different groups: 42 are Work Planners; three are Lead Work Planners; four are First Line Supervisors; three are Supply Analysts; and three are Staff Specialists (two in the Engineering Department and one in the Chemistry Department). We save for later a more detailed discussion of what these jobs entailed.

The identity of the defendant, or defendants, caused us some trouble at oral argument. The caption of the case names only Commonwealth Edison Company, but the lawyer who appeared on ComEd's behalf listed himself as counsel with Exelon Business Services Company. This prompted us to ask what the relationship was between Exelon Business Services (obviously not an outside law firm) and ComEd, and whether ComEd was still a proper party in the case. The parties responded with post-argument briefs, in which they explained that ComEd is still a separate corporate entity, though now a subsidiary of Exelon Corporation ("Exelon"). ComEd is the only defendant ever served in this case and it has admitted that it employed the plaintiffs at the time the case began in May 2000. On October 20, 2000, ComEd's parent, Unicom Corporation, merged with Exelon, which is when ComEd became Exelon's subsidiary. Shortly after the merger, Exelon took a number of steps to restructure its businesses. As part of that process, ComEd transferred its five nuclear plants to Exelon Generation, a different wholly-owned subsidiary of Exelon. That transfer was effective January 1, 2001, at which time the plaintiffs' employer changed from ComEd to Exelon Generation. ComEd itself, no longer in the power generation business, became a subsidiary of Exelon Energy Delivery Company, LLC, which is a wholly-owned subsidiary of Exelon. Yet another subsidiary of Exelon, Exelon Business Services Company ("Business Services") provides legal services (among other things) to the various members of the Exelon family. The parties dispute the significance of the fact that the plaintiffs never took steps formally to add Exelon Generation as a party defendant to the case. Plaintiffs argue that, given the way the litigation has proceeded, Exelon Generation is a de facto defendant, and that it would be a mere formality to add it as a party on remand; ComEd concedes that the case is alive against it for any salary claims before January 1, 2001, but it implies that plaintiffs have no claim against Exelon Generation. While it seems fairly clear that Business Services has been representing whichever member of the corporate family was the employer, we need not explore the intricacies of this situation in detail. Given our disposition of the merits, it can wait for another day.

Exelon proclaims on its website that it "operates the largest nuclear fleet in the United States, the third largest commercial nuclear fleet in the world, and is generating nuclear energy more efficiently than ever." See http://www.exeloncorp.com/corporate/about/a_over- view.shtml. The five nuclear power plants at which the plaintiffs worked are part of that "fleet." Because their appeal turns on an appreciation of what exactly it was that they did for ComEd (and now for Exelon Generation), we must identify the duties and responsibilities of each position.

Work Planners. Forty-two of the plaintiffs held the job title of "Work Planner." Work Planners are essentially problem solvers. Whether in the electrical area, the mechanical area, or the instrument area, a Work Planner's primary duty is to prepare and create a "work package." If something at the plant needs to be repaired, if something needs to be inspected, or if equipment needs to be modified, the Work Planner is responsible for devising the solution to the problem. He or she first studies the problem and decides what kind of labor, materials, and equipment will be needed for the project. The Planner may study a computer database to find out what has been done before on similar problems, to see what parts are available, and to review repair procedures. The Planner may also make a visual inspection of the problem area to verify the exact nature of the problem and to assess the situation personally. Once the Planner has written up the proposed work package, she submits it to another Work Planner for technical review. Further review after that step is also possible.

Lead Work Planners. Three of the plaintiffs held the title of "Lead Work Planner." These employees are essentially middlemen between the Planners and the higher-ups. They review the Planners' work packages, conduct spot-checks to make sure the Planners' work is adequate, and often write work packages themselves. Lead Planners must keep those working under them on task, conforming to a strict schedule dictated by ComEd's Work Control Department. To keep her group on schedule, the Lead Planner must assess the efficiency of various possible approaches and determine which Planner has the time and experience necessary to handle a particular assignment. The Lead Planner coordinates with other departments, anticipating and removing any roadblocks that could slow her team down. The Lead Planner also provides information to her supervisor, discussing the Planners' progress and assessing the feasibility of staying on schedule.

First Line Supervisors. Four plaintiffs held the title of "First Line Supervisor." These Supervisors instruct and oversee the crew of workers that carries out the work packages the Work Planners design. This requires the Supervisor to understand the work package, explain what needs to be accomplished to the workers, and choose the workers who are best suited for each task. The Supervisor advises her team throughout the project. If an unanticipated problem arises, the Supervisor discusses the problem with a Work Planner. In these discussions, the Supervisors will often offer their opinion as to how best to remedy the concern. After completing a work package, the Supervisor is responsible for debriefing her work crew on their performance.

Supply Analysts. Three of the plaintiffs held the title of "Supply Analyst." Essentially buyers for the corporation Supply Analysts locate replacement parts for needed repairs. Given the complexity of a nuclear power plant, this can be a difficult task. Frequently the proper part is no longer manufactured, requiring the Supply Analyst to search a computer database, vendor catalogs, and her own past experience to find a safe substitute that will meet ComEd's exacting standards. Supply Analysts often check each other's work in an attempt to ensure that they have found the optimum replacement.

Staff Specialists. The remaining three plaintiffs were classified as "Staff Specialists." Two worked in the Engineering Department, and one in the Chemistry Department. These Specialists focus on keeping the ComEd plants compliant with the Nuclear Regulatory Commission's guidelines. The Chemistry Specialist coordinates training for employees, tests machinery to check for possible equipment failures, and makes suggestions for improvements in the department's procedures and protocols. The Engineering Specialists do not coordinate training, but, apart from that task, their duties are substantively the same as those of the Chemistry Specialist. If the Specialists believe that they have discovered a problem, they consult a guidebook that explains the corrective procedures to follow. After consulting the guidebook, the Specialists draft a report detailing their concerns and recommending a solution.

II

Under the FLSA, 29 U.S.C. § 201, et seq., employers must pay overtime to employees working on an hourly basis. If such an employee works more than 40 hours in a week, she must receive at least one and a half times her regular wage for every extra hour worked. See 29 U.S.C. § 207(a)(1). Critically for our purposes, however, there is a significant exception to this rule: it does not apply to individuals "employed in a bona fide executive, administrative, or professional capacity." 29 U.S.C. § 213(a)(1). The FLSA does not define "executive, administrative, or professional capacity"; instead, it expressly delegates that task to the Secretary of Labor who may "from time to time" alter the definitions. See 29 U.S.C. § 213(a)(1).

From "time to time" has proved to be fairly infrequent. A few days after oral argument in this case, the Secretary issued a comprehensive set of new regulations, see 69 Fed.Reg. 22,260 (April 23, 2004), but it had been some time since the last changes. The FLSA's duties test, which determines which jobs qualify for exempt status, had...