Moore v. Imperial Hotels Corp., 97-593
| Decision Date | 20 October 1998 |
| Docket Number | No. 97-593,97-593 |
| Citation | 967 P.2d 382,1998 MT 248,291 Mont. 164 |
| Court | Montana Supreme Court |
| Parties | , 4 Wage & Hour Cas.2d (BNA) 1748, 1998 MT 248 Linda Lee MOORE and H. Gary Moore, Plaintiffs and Appellants, v. IMPERIAL HOTELS CORPORATION, Defendant and Respondent. |
Jack E. Sands, Billings, for Appellants.
John O. Mudd, Lucy T. France; Garlington, Lohn & Robinson, Missoula, for Respondent.
¶1 Linda Lee Moore (Linda) and H. Gary Moore (Gary) (collectively the Moores) brought an action against their former employer, Imperial Hotels Corporation(Imperial), alleging that Imperial wrongfully discharged them and violated several of Montana's wage and hour laws. The Thirteenth Judicial District Court, Yellowstone County, entered judgment on a jury verdict in favor of Imperial on all claims. The Moores appealed. We affirm.
¶2 The following issues are presented on appeal:
¶3 1. Did the District Court err in ruling that the Moores' wage and hour claims were governed by federal law rather than state law?
¶4 2. Did the District Court err in refusing the Moores' Proposed Instructions 16, 21A, and 29, regarding the following: sleeping hours for employees who are required to be on duty 24 hours or more, the elements of wrongful discharge, and Imperial's burden of proving mitigation of damages?
¶5 Imperial is a Delaware corporation which operates the Econo Lodge, a motel located in Billings, Montana. Carol Kensa (Ms. Kensa) is a District Manager employed by Imperial to oversee five Econo Lodges in Montana and Idaho. In January 1994, Ms. Kensa placed an advertisement in the Bozeman, Montana newspaper seeking qualified persons to manage the Econo Lodge in Billings. The Moores answered the advertisement and Ms. Kensa selected them to participate in Imperial's training program.
¶6 The Moores each signed a Management Training Program Agreement whereby they agreed that they were not employees of Imperial; that they were not guaranteed employment by Imperial at the conclusion of the training program; and that the training program would be in effect six days a week for as many weeks as needed. In turn, Imperial agreed to provide the Moores an opportunity to experience and learn the duties of an Imperial Inn Manager; living accommodations during the training program; and living expenses during the training program at the rate of $18 per person per day. From January 20, 1994, until February 15, 1994, the Moores were trainees under the tutelage of Bob and Ethel Darnell, managers of the Econo Lodge in Bozeman.
¶7 On February 16, 1994, after the Moores' completion of the training program, Ms. Kensa hired Linda to be the resident manager of the Econo Lodge in Billings, and hired Gary to be a field employee. It was understood that Linda was a salaried employee responsible for the general operations of the motel, and Gary was an hourly employee responsible for maintenance and front desk tasks. Part of the Moores' compensation included living in the on-site apartment adjacent to the motel office.
¶8 The Moores each signed an employment agreement with Imperial. Gary's employment agreement provided that he would be paid at the rate of $5 per hour, that his hours would be flexible and irregular, and that he would not work more than 40 hours per week without the approval of Ms. Kensa. The hours-per-week work restriction imposed on Gary reflected a company policy designed to prevent favoritism on the part of a motel manager toward his or her spouse. In addition to signing employment agreements, Linda and Gary signed a document entitled "Employment Acknowledgment Form" in which they acknowledged that their employment with Imperial was "at will," and could be terminated at any time. On this form the Moores also acknowledged that they had received the company handbook, and that they were obligated to comply with the policies contained therein. Additionally, Linda signed an untitled document in which she acknowledged receipt of the Imperial Inns Operating Manual and agreed to adhere to its policies and procedures.
¶9 In April 1994, the Billings Econo Lodge was inspected by a representative from the local field office of the United States Department of Labor (USDL) for compliance with all federal employment standards. At this time, Gary told the inspector that he was working overtime but only being paid for 40 hours per week. The inspector noted that there was no record of Gary working overtime. When the inspector asked why the Moores did not report Gary's overtime hours, Gary said he thought he would be fired for doing so. The inspector informed the Moores that they must report Gary's overtime hours in order to be compensated for them. In his final report, the inspector stated that Imperial had committed no violations. Despite the inspectors directive, the Moores did not report Gary's alleged overtime hours. As manager of the motel, Linda was responsible for reporting to Imperial the overtime hours worked by all employees at the Billings Econo Lodge. Linda reported to Imperial that Gary did not work overtime hours at the motel.
¶10 On August 8, 1994, the Moores' employment with Imperial was terminated. Ms ¶11 Ms. Kensa testified that her decision to fire the Moores was the result of several incidents. She testified that the Moores developed an "I don't care" attitude. Linda had been warned about her failure to conduct employee scheduling and vacation scheduling according to company procedure. She had also been warned about her failure to follow directions regarding company property. Ms. Kensa warned Gary in response to Linda's complaint that Gary was not "pulling his weight" around the motel. Ms. Kensa had received reports that Gary was physically abusing Linda. The final incident contributing to the Moores' termination involved a missing swimming pool cover. During the Moores' employment, Imperial removed the swimming pool from the Billings Econo Lodge. Ms. Kensa specifically instructed the Moores to store the pool equipment for a time until it could be transported to the Twin Falls Econo Lodge. When Ms. Kensa later asked about the pool cover, the Moores said they did not know where it was and acted as if it were unimportant. It appeared to Ms. Kensa that the Moores did not care that a large, expensive piece of pool equipment was missing.
Kensa informed the Moores that they were being fired due to their "lack of control" in managing the motel. Ms. Kensa also referred to the Moores' apparent dissatisfaction with Imperial, and Imperial's mutual dissatisfaction with the Moores. Ms. Kensa told the Moores to vacate the apartment within 24 hours so that she could manage the motel until a replacement could be found.
¶12 Soon after their termination, the Moores filed a claim with the USDL alleging that Imperial had violated the federal Fair Labor Standards Act (FLSA) by failing to pay them wages during their training period at the Bozeman Econo Lodge, and by failing to pay Gary overtime compensation while he was employed at the Billings Econo Lodge. The Moores' complaint was assigned to the same USDL inspector that previously had spoken with the Moores in April. The inspector conducted an interview with the Moores. With respect to the wage claim, the Moores claimed they each worked sixteen hours a day during training, with only a short break for meals, for which they did not receive compensation. With respect to the hour claim, Gary stated that he was the Maintenance Manager for the Billings Econo Lodge; that he supervised eight employees; and that he also managed the desk as needed. Gary claimed that he worked 120 hours per week during his employment with Imperial, but never received overtime compensation. Gary stated that he believed Imperial's failure to pay overtime compensation was a "nationwide policy" of the corporation.
¶13 The inspector telephoned Ms. Kensa about the Moores' wage and hour claims. Ms. Kensa refuted the Moores' claims that they worked sixteen hours a day during training and that Gary worked 120 hours per week during his employment at the Billings Econo Lodge. Imperial's personnel director, Ms. Michelle Alarcon, informed the inspector of the Management Training Program Agreements that the Moores had signed, and stated that Imperial's training program fully complied with the law. On September 5, 1994, the inspector reported that the Moores' complaints could not be substantiated, and concluded that Imperial had committed no violations.
¶14 On October 31, 1994, the Moores filed a complaint in state court alleging that Imperial had wrongfully discharged them and had violated Montana's wage, minimum wage, and overtime compensation statutes, §§ 39-3-204, -404, and -405, MCA, respectively. Regarding the wrongful discharge claim, the Moores alleged that they were fired without good cause, or in the alternative, that they were fired in retaliation for challenging Imperial's wage and hour policies. The Moores' wage and hour claims reflected the same complaints that they had previously lodged with the USDL.
¶15 A jury trial was held January 22, 1996. After hearing all the evidence, including testimony from the Moores and thirteen other witnesses, the jury found that the Moores were not employees during their training period with Imperial and were not entitled to wages during that time. The jury also found that Gary did not work overtime during his employment with Imperial and was not entitled to overtime compensation.
Lastly, the jury found that Imperial did not wrongfully discharge the Moores. Additional facts will be provided as necessary to dispose of the issues raised.
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