Schaefer v. Indiana Michigan Power Co.

• Decision Date: 26 February 2002
• Docket Number: Case No. 1:00-CV-559.
• Citation: 197 F.Supp.2d 935
• Parties: Michael L. SCHAEFER, Plaintiff, v. INDIANA MICHIGAN POWER COMPANY, d/b/a American Electric Power, Defendant.
• Court: U.S. District Court — Western District of Michigan

197 F.Supp.2d 935

Michael L. SCHAEFER, Plaintiff, v. INDIANA MICHIGAN POWER COMPANY, d/b/a American Electric Power, Defendant.

Case No. 1:00-CV-559.

United States District Court, W.D. Michigan, Southern Division.

February 26, 2002.

Stephen D. Turner, Grand Rapids, MI, for Plaintiff.

Joseph J. Vogan, Elizabeth Wells Skaggs, Grand Rapids, MI, for Defendant.

OPINION

QUIST, District Judge.

Plaintiff, Michael L. Schaefer ("Schaefer"), has sued his employer, Indiana Michigan Power Company, d/b/a American Electric Power ("AEP"), alleging that AEP has violated the Fair Labor Standards Act (the "FLSA"), 29 U.S.C. §§ 201 to 219, by failing to pay Schaefer for overtime work at 1-1/2 times his normal hourly rate as required by 29 U.S.C. § 207(a)(1). AEP contends that Schaefer is an exempt employee under the FLSA's exemptions for "administrative" and "professional" employees. In addition, AEP contends that it acted in good faith in determining that Schaefer was an exempt employee. Now before the Court are the parties' cross motions for summary judgment.

I. Facts

Schaefer is employed by AEP as an environmental specialist¹ in the Environmental Department at AEP's Cook Nuclear Plant (the "Plant") in Bridgman, Michigan. Schaefer began his employment with AEP in 1987 as a radiation protection ("RP") technician, junior. During his tenure with AEP, Schaefer was promoted to radiation protection technician, engineering technologist, and radioactive material specialist. Schaefer's current position is classified by AEP as an exempt position.² Schaefer is paid a salary of $67,000 per year. Schaefer's direct supervisor is Jeff Long ("Long"), who is also classified as an exempt employee.

Schaefer's primary job responsibility is to oversee the shipment of low-level radioactive materials and waste from the Plant to third-party processors. Some examples of the types of materials shipped include chemistry samples, radioactive oil samples, and laundry such as protective clothing. (Long Dep. at 34-35, Pl.'s Br. Supp. Ex. 3; Schaefer Dep. at 217, Def.'s Br. Supp. Ex. B.) Because he is responsible for overseeing shipment of radioactive waste and materials, Schaefer is required to be certified as a qualified shipper pursuant to 49 C.F.R. § 172(h).

The job description for Schaefer's position identifies the overall job functions as follows:

[S]upervise the transfer, packaging and transport of radioactive waste and radioactive material, consistent with Technical Specifications, Department of Transportation (DOT) regulations, Nuclear Regulatory Commission (NRC) regulations and State and Burial Site regulations. Provide for training and retraining in DOT, NRC and Burial Site requirements and plant instructions, operating procedures for the transfer, packaging and transport of radioactive waste and radioactive material.

(Position Description, Def.'s Br. Supp. Ex. G.)

With regard to actual shipments of materials, Schaefer is often involved in the process from beginning to end, including: selecting the transporter and waste processing facility to receive the material; scheduling the shipment; determining the type and method of packaging to be used; preparing the shipping documents, such as manifests; reviewing packaging surveys prepared by RP technicians; inspecting the truck to ensure that it complies with applicable regulations; verifying that the transporter has a license to receive the type and quantity of radioactive materials being shipped; inspecting the shipping container or package; ensuring that the load is properly braced and blocked; and ensuring that the truck contains the proper radioactive signage. (Schaefer Dep. at 61-62, 148, 186, 194-95.)

In addition to coordination and oversight of shipments, Schaefer is responsible for preparing and reviewing various reports, such as "condition evaluation reports," laboratory reports, and scaling factor reports. (Id. at 154-55, 217.) One of Schaefer's duties is writing, updating, and revising procedures relating to the handling and processing of radioactive materials. (Id. at 189.) Although Schaefer has only written (co-authored) one new procedure, he has corrected or revised approximately seventy existing procedures. (Id. at 319.) Schaefer has also prepared "position papers," which are short statements of consensus of the environmental department "defend[ing] some of the procedures . . . in place." (Id. at 289.) Schaefer also performs "benchmarking" as part of his duties, a process by which he obtains information or recommendations from other nuclear facilities regarding radioactive waste disposal practices or procedures. Schaefer reviews that information, determines the alternatives that are suitable and most appropriate for implementation at the Cook facility, and makes a recommendation from among the competing alternatives. (Id. at 158.)

Schaefer's educational background includes an Associates of Applied Science Degree in nuclear power technology. (Id. at 74.) Schaefer has also received training while at AEP on various topics such as "Radiation Effects on the Cell," "Acute Exposure Effects," "Shielding of Alpha," and "Ionization Chamber Detectors." (Schaefer Training History, Def.'s Br. Supp. Ex. C.) Some of the training is administered through brief lectures in a classroom-type setting, while other training is administered through handouts. Schaefer also participates in some off-site training. For example, he completed a week-long course in "radwaste packaging, transportation and disposal" at Hilton Head, South Carolina as part of a recertification that is required for his job. (Schaefer Dep. at 134-35.)

During his employment, Schaefer has worked more than forty hours but has not been paid one and one-half times his normal rate of compensation. Schaefer contends that he is entitled to overtime compensation for this work. AEP denies that Schaefer is entitled to overtime compensation because his position comes within one of the exemptions under the FLSA.

II. Summary Judgment Standard

Summary judgment is appropriate if there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law. Fed. R.Civ.P. 56. Material facts are facts which are defined by substantive law and are necessary to apply the law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). A dispute is genuine if a reasonable jury could return judgment for the non-moving party. Id.

The court must draw all inferences in a light most favorable to the non-moving party, but may grant summary judgment when "the record taken as a whole could not lead a rational trier of fact to find for the non-moving party." Agristor Financial Corp. v. Van Sickle, 967 F.2d 233, 236 (6th Cir.1992) (quoting Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986)).

III. Discussion

Schaefer contends that he is entitled to summary judgment on the issue of liability because AEP cannot establish any of the exemptions. Schaefer also contends that he is entitled to summary judgment on the issue of liquidated damages. AEP contends that it is entitled to summary judgment because there is no genuine issue of material fact that Schaefer's position is covered by the administrative and/or professional exemption. AEP also contends that it acted in good faith in classifying Schaefer's position as exempt and is entitled to summary judgment on the issues of bad faith and willfulness. As set forth below, the Court concludes that Schaefer's position falls within the administrative exemption and that AEP is entitled to summary judgment on Schaefer's claim.

Pursuant to section 7(a)(1) of the FLSA, an employer must compensate an employee who works more than forty hours per week "at a rate not less than one and one-half times the regular rate at which he is employed." 29 U.S.C. § 207(a)(1). The FLSA provides an exemption from this requirement for "any employee employed in a bona fide executive, administrative, or professional capacity" as those terms are defined in the Secretary of Labor's regulations. 29 U.S.C. § 213(a)(1). An employer relying on an exemption has the burden of proving that the employee is properly classified under the exemption. Mich. Ass'n of Governmental Employees v. Mich. Dep't of Corr., 992 F.2d 82, 83 (6th Cir.1993). The employer bears not only the burden of proof, but it must also show that the employee meets every aspect of the definition for an exempt employee. Corning Glass Works v. Brennan, 417 U.S. 188, 196-97, 94 S.Ct. 2223, 2229, 41 L.Ed.2d 1 (1974).³ The exemptions from the FLSA's coverage must be narrowly construed against the employers seeking to assert them. Arnold v. Ben Kanowsky, Inc., 361 U.S. 388, 392, 80 S.Ct. 453, 456, 4 L.Ed.2d 393 (1960). The question of how an employee spends his time is a question of fact, while the question of whether his activities fall within an exemption is a question of law. Reich v. Wyoming, 993 F.2d 739, 741 (10th Cir.1993).

The regulations issued by the DOL prescribe various tests for determining whether an employee is covered by an exemption. An employer seeking to establish an exemption must show that the circumstances of the employee's position satisfy either the "long test," which consists of five parts, see 29 C.F.R. §§ 541.2(a)-(e), 541.3(a)-(e), or, if the employee earns more than $250 per week, a three-part "short test," see 29 C.F.R. §§ 541.2(e)(2), 541.3(e). Because it is undisputed that Schaefer earns more than $250 per week, the short test applies in this case. Under the short test for the administrative exemption, the employer must prove that: (1) the plaintiff is paid on a salary basis; (2) the plaintiff's primary job duties consist of "office or non-manual work directly related to management policies or general business operations of [the] employer or [the] employer's customers"; and (3) the plaintiff's job duties...