# Petition for Writ of Certiorari — IBP, Inc. v. Alvarez

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2005
- **Citation:** 546 U.S. 21

## Text

FILED |

031238 FEB 26 2004

IN THE

Supreme Court of the Anited States

IBP, INC.,
Petitioner,
Vv.

GABRIEL ALVAREZ, individually and as a class representative;
RANULFO GUTIERREZ, individually and as a class
representative; PEDRO HERNANDEZ, individually and as a
class representative; MARIA MARTINEZ; RAMON MORENO;
ISMAEL RODRIQUEZ,

Respondents.

On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit

PETITION FOR A WRIT OF CERTIORARI ©

WILLIAM A. Norris CARTER G. PHILLIPS*
JOEL M. COHN JOSEPH R. GUERRA
REX S. HEINKE REBECCA K. WOOD
L. RACHEL HELYAR SIDLEY AUSTIN BROWN
AKIN GUMP STRAUSS & Woop LLP

HAUER & FELD LLP 1501 K Street, NW
2029 Century Park East Washington, DC 20005
Suite 2400 (202) 736-8000

Los Angeles, CA 90067
(310) 229-1000

Counsel for Petitioner

February 26, 2004 * Counsel of Record

TA ETE
WILSON-EPES PRINTING Co., INC. — (202) 789-0096 -— WASHINGTON, D.C. 20001

ST Se NOE

QUESTIONS PRESENTED

Section 4(a) of the Portal-to-Portal Act of 1947 provides an
exception to an employer’s obligation to pay wages under the
Fair Labor Standards Act of 1938 (“FLSA”), for time an
employee spends “walking . . . to and from the actual place of
performance of the principal activity or activities which such
employee is employed to perform” and for “activities which
are preliminary or postliminary to said principal activity.” 29
U.S.C. § 254(a). Section 3(0) of the FLSA expressly
excludes from payment “any time spent in changing
clothes... at the beginning or end of each workday which
was excluded from measured working time during the week
involved by the express terms of or by custom or practice
under a bona fide collective-bargaining agreement.” /d.
§ 203(0).

The questions presented are:

(1) Whether walking that occurs between compensable
clothes-changing time and the time employees arrive at or
depart from their actual work stations constitutes non-
compensable “walking ... to and from the actual place of
performance of the principal activity” within the meaning of
Section 4(a).

(2) Whether, after United States v. Mead, 533 U.S. 218
(2001), deference is due the Department of Labor’s
interpretation of the term “clothes” in Section 3(0), when that
interpretation is embodied in an opinion letter issued by the
Administrator of the Department’s Wage and Hour Division,
who is charged with administering and enforcing the FLSA,
when Congress has provided that third parties may rely on
such opinion letters, and when the opinion letter itself restores
the agency’s prior position?

(i)

il
STATEMENT REQUIRED BY RULES 14.1 AND 29.6

Pursuant to Supreme Court Rule 14.1, petitioner states that
all parties to the proceeding in the court whose judgment is
sought to be reviewed are included in the caption. Petitioner

notes that IBP, inc., is currently known as Tyson Fresh Meats,
Inc.

Pursuant to Supreme Court Rule 29.6, petitioner states that
IBP, inc., currently known as Tyson Fresh Meats, Inc., is a
subsidiary of Tyson Foods, Inc. (NYSE: TSN).

tents ee

TABLE OF CONTENTS

QUESTIONS PRESENTED.............ccccccrcossocscoscssresserseees

STATEMENT REQUIRED BY RULES 14.1 AND
Iii sbsinantnstedaeeeniassenintnatnennnsenenccncenscessccccesseveesecesceescstess

TABLE OF AUTHORITIES .............cccccccccecceeeceeeeeeeneees
ee IEP cxcncesccnceccesccsscssesesscesvensessescsee seseeneennes
IEEE IIE aciisretnenesnsncnessesccsccecsessesecseessessceescesessocoee
RELEVANT STATUTORY PROVISIONS................0..

STATEMENT OF THE CASE.................scccsccssocsssseseseees

A. The Fair Labor Standards Act, the Portal-to-
Portal Act, and the Department of Labor ...........

B. Factual Background ............00..cscccsscccsscessesesseosees
C. The Decision of the Court of Appeals................

REASONS FOR GRANTING THE PETITION..............

1. THERE IS AN ACKNOWLEDGED AND
INTOLERABLE CONFLICT AMONG THE
COURTS OF APPEALS REGARDING THE
COMPENSABILITY OF “WALKING TIME”
UNDER THE PORTAL ACT ..........ccccccccccceeeeeeeees

A. There Is An Acknowledged Conflict Among
The Courts Of Appeals About When Workers
Are Entitled To “Walking Time” Compen-
sation Under The Portal Act .............ccccccceceeeeees

B. Whether Employers Are Required To Com-
pensate Employees For “Walking Time” Is
Recurring And Important...................cc00ccceeeeeees

(iti)

iv
TABLE OF CONTENTS—continued

C. The Ninth Circuit Erred In Holding That The
“Walking Time” Here Was Compensable..........

ll. THIS COURT SHOULD GRANT THE
PETITION TO PROVIDE MUCH NEEDED
GUIDANCE CONCERNING THE DEFER-
ENCE DUE LESS FORMAL AGENCY INTER-
PRETATIONS OF AMBIGUOUS STATUTORY

A. There Is Significant Confusion In The Courts
Of Appeals About The Extent Of Deference
Due “Less Formal” Department Of Labor
Statutory Interpretations ...............c.cccccccccccseeeeeeee

B. The Degree Of Agency Deference Due “Less
Formal” Agency Interpretations Is Recurring
CO iccssceeresiinititiniienininatiatasitclestatieiaitaeasineai

C. The Ninth Circuit Erred In Utterly Disregard-
ing The Agency’s Interpretation.........................

SO aaa variasntnensnecenamneenatetintemiabaciasintiiiiiieestiiiatds

Page
17

~

Vv
TABLE OF AUTHORITIES
CASES Page
Alaska Dep't of Envtl. Conservation v. EPA, —

U.S. —, 124 S. Ct. 983 (2004)... cee eeeeeeenees 20
Anderson v. Mt. Clemens Pottery Co., 328 U.S.

FE ectrnsemectenmnintmeneemmeemnen 4
Arcadi v. Nestle Food Corp., 38 F.3d 672 (2d Cir.

FE nseeeseremesssnssemnmmannennnmneanenemmenemen 9
Barnhart v. Walton, 535 U.S. 212 (2002)....... 10, 20, 24
Bejil v. Ethicon, Inc., 269 F.3d 477 (Sth Cir.

Sie csserenannssenennememnemmemenemmmnennensmnnee 8, 18
Chevron U.S.A. Inc. v. Natural Res. Def. Council,

Inc., 467 U.S. 837 (19B4).......ccccccceceeeeeeees 3, 19,23, 24
Christensen v. Harris County, 529 U.S. 576

ee ncsntenccsnensnensneamnnnpumemmnenanngenesnmacansion 19
De Asencio v. Tyson Foods, Inc., 342 F.3d 301

oe 16

Herman v. Fabri-Centers of Am., Inc., 308 F.3d _
580 (6th Cir. 2002), cert. denied, 537 U.S. 1245

Houston Police Officers’ Union v. City of
Houston, Tex., 330 F.3d 298 (Sth Cir.), cert.
denied, 124 S. Ct. 300 (2003) ........ccccccceceeeeeeeees 21,22

Krzalaic v. Republic Title Co., 314 F.3d 875 (7th
Cir. 2002), cert. denied, 123 S. Ct. 2641

Matz v. Household Int'l Tax Reduction Inv. Plan,
265 F.3d 572 (7th Cir. 2001), cert. denied, 535

a 21
Nardone v. General Motors, Inc., 207 F. Supp.

ee 18
NationsBank of N.C., N.A. v. Variable Annuity

Life Ins. Co., 513 U.S. 251 (1995)... ccccccceeeeedee 22

Reich v. IBP, Inc., 38 F.3d 1123 (10th Cir.

vi
TABLE OF AUTHORITIES—continued

Page
Saunders v. John Morrell & Co., No. C88-4143,

1991 WL 529542 (N.D. lowa Dec. 24, 1991)..... 18
Skidmore v. Swift & Co., 323 U.S. 134 (1944)....... 3, 23
Smiley v. Citibank (S.D.), N.A., 517 U.S. 735

ication teaninin ddan iaicininc alae 24, 26
Steiner v. Mitchell, 350 U.S. 247 (1956)............ 4,6, 11,

13, 15
Tennessee Coal, lron & R.R. Co. v. Muscoda

Local No. 123, 321 U.S. 590 (1944) 000. 4
Tum v. Barber Foods, Inc., 331 F.3d 1 (1st Cir.

2003), pet. for reh'g and reh'g en bance filed,

Nos. 02-1679, -1739 (Ist Cir. June 17, 2003),

briefing ordered, Nos. 02-1679, -1739 (ist Cir.

June 26, 2003 and Aug. 18, 2003)............ 3, 12, 14, 17
Turner v. City of Phila., 96 F. Supp. 2d 460, aff'd,

262 F.3d 222 (3d Cir. 2001) .............cccccecccceccceeeee 9
United States v. Mead, 533 U.S. 218 (2001)......... 10, 18,

19, 23, 24

STATUTES AND REGULATIONS

FEE Cee ee RR eT EE 3
TEITTTTITIT I cesonteetiebetainintitmatittilasintaiasipeetteadianeaiall Ss
EEE 2, 5, 23
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Es an ee 10
Ee aera ee 4
Ee aT 2,4, 15

I siieaitrtai cin tarncasiainidinseseniahcetiidiinlatniiads 2, 5,7

8 ee eee 2, 6, 23

a iitartaiecerinsinittaiininnianiiniinmiadiae 2, 6, 23
eee 2,14

I TTT chiar tiiaai laminated, 2,14

§ 790.17(d) ..ecceene Laieciiiennensdabieaiin 2, 6

cll

Vil
TABLE OF AUTHORITIES—continued

29 C.F.R. § 1910. 1030(b)........cccccccceeeeeeeeereeeenenennens

LEGISLATIVE HISTORY

93 Cong. Rec. 2082 (1947) .......ccccccecceeeeneeeeennnennees
ea
0, ~

SCHOLARLY AUTHORITIES

Robert A. Anthony, Keeping Chevron Pure, 5
Green Bag 371 (Summer 2002) ...............::eee00e
Kenneth Culp Davis & Richard J. Pierce, Jr.,
Administrative Law Treatise (4th ed. 2003

+i. >

BAIRD. ) 32.e00ecececcecccecssesensesesocsvsscsscsscesssssecssonecsonssess 21, 25

William S. Jordan, United States v. Mead:
Complicating the Delegation Dance, 3\ Envtl.
L. Rep. 11425 (2001).............c.c.ececeesersererrerseesseees

Thomas W. Merrill & Kristin E. Hickman,
Chevron's Domain, 89 Geo. L.J. 833 (2001).......

Thomas W. Merrill & Kathryn Tongue Watts,
Agency Rules With The Force Of Law: The
Original Convention, 116 Harv. L. Rev. 467
a

Joseph E. Tilson et al., Litigating Lawsuits Under
the FLSA—The Fastest Growing Area of
Employment Litigation, 697 PLI/Lit. 649 (Oct.-
Dare, FID cccscscccscancesenssnsctnnesssemnensmnesmsenesesnsensnenees

IN THE

Supreme Court of the United States

No. 03-

IBP, INC.,
Petitioner,
Vv.

GABRIEL ALVAREZ, individually and as a class representative;
RANULFO GUTIERREZ, individualiy and as a class
representative; PEDRO HERNANDEZ, individually and as a
class representative; MARIA MARTINEZ; RAMON MORENO;
ISMAEL RODRIQUEZ,
Respondents.

On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit

Oe eh ee “~~ 2

PETITION FOR A WRIT OF CERTIORARI

ee

Petitioner IBP, inc. respectfully petitions for a writ of
certiorari to review the judgment of the United States Court of
Appeals for the Ninth Circuit in this case.

OPINIONS BELOW

The order of the court of appeals denying IBP’s petition for
rehearing and suggestion of rehearing en banc was entered on
November 28, 2003, is unreported, and is reprinted in the
Appendix to this Petition (“Pet. App.”) at 83a-84a. The
underlying opinion of the court of appeals was entered on
August 5, 2003, is reported at 339 F.3d 894 (9th Cir. 2003),
and is reprinted in the Pet. App. at la-34a. The findings of

2

fact and conclusions of law of the United States District Court
for the Eastern District of Washington were entered on
September 14, 2001, are unreported, and are repriitec in the
Pet. App. at 35a-82a.,

JURISDICTION

The opinion of the court of appeals was entered on August
5, 2003, and the order of the court of appeals denying IBP’s
petition for rehearing and Suggestion of rehearing en banc
was entered on November 28, 2003. This Court has
jurisdiction pursuant to 28 U.S.C. § 1254(1).

RELEVANT STATUTORY PROVISIONS

This petition involves the following provisions of the Fair
Labor Standards Act of 1938 and the Portal-to-Portal Act of
1947: 29 U.S.C. §§ 203(0), 204(a), 251, 254(a), 259: see also
29 C.F.R. §§ 790.1(b), 790.6(b), 790.7(e)-(g), 790.17(d),
1910.1030(b). The pertinent text of these provisions is set
forth in the Pet. App. at 85a-93a.

STATEMENT OF THE CASE

As the Secretary of Labor explained in her amicus brief to
the Ninth Circuit below, this case presents fundamental
questions concerning the compensability of certain pre- and
post-shift activities under the Fair Labor Standards Act of
nat (“FLSA”) and the Portal-to-Portal Act of 1947 (“Portal

ct”).

First, the Ninth Circuit ruled that Section 4(a) of the Portal
Act, which excludes from compensa.ion the time employees
spend “walking ... to and from” their actual work stations,
does not apply to such walking if it occurs between
compensable clothes-changing time and the actual work
Station. In so ruling, the Ninth Circuit created a square
conflict with the First and Tenth C ircuits, which reached
precisely the opposite conclusion on this important issue. See
Pet. App. 19a (acknowledging contrary interpretation of the
First Circuit). Second, the Ninth Circuit ruled that certain

ds Le

3

attire worn in the meat packing industry does not constitute
“clothes” within the meaning of Section 3(0) of the FLSA,
which excludes from compensation “any time spent changing
clothes . . . at the beginning or end of each workday” in
unionized facilities in certain circumstances. In so ruling, the
Ninth Circuit ignored a contrary decision of the Fifth Circuit,
and refused to afford either Chevron or even Skidmore
deference to an opinion letter in which the Department of
Labor concluded that the items of attire in question are
“clothes” under Section 3(e)- See Chevron U.S.A. Inc. v.
Natural Res. Def. Council, Inc., 467 U.S. 837 (1984);
Skidmore v. Swift & Co., 323 U.S. 134 (1944). The decision
below thus adds to the widespread confusion in the lower
courts concerning (a) when agency pronouncements that are
not the product of notice-and-comment rulemaking or formal
agency adjudications are legally binding and (b) the degree of
deference that attaches to non-binding agency pronounce-
ments. Accordingly, this case provides the Court an
opportunity to supply much needed guidance on these critical
and frequently recurring questions of administrative law.

A. The Fair Labor Standards Act, the Portal-to-
Portal Act, and the Department of Labor

Some familiarity with the FLSA and the Portal Act, as well
as the Department of Labor’s role in administering those
statutes, is necessary to place the questions presented in their
proper context. In 1938, Congress enacted the FLSA to
establish, inter alia, employment compensation standards.
See 29 U.S.C. §§ 202, 206, 207. That Act requires employers
to “record, credit, and compensate employees for all of the
time which the employer requires or permits employees to
work.” Tum v. Barber Foods, Inc., 331 F.3d 1, 5 (1st Cir.
2003) (citing 29 U.S.C. § 201 ef seq.), pet. for reh’g and
reh’g en banc filed, Nos. 02-1679, -1739 (Ist Cir. June 17,
2003), briefing ordered, Nos. 02-1679, -1739 (Ist Cir. June
26, 2003 and Aug. 18, 2003). Work is generally defined as
“physical or mental exertion (whether burdensome or not)

4

controlled or required by the employer and _ pursued
necessarily and primarily for the benefit of the employer and
his business.” Tennessee Coal, Iron & R.R. Co. v. Muscoda
Local No. 123, 321 U.S. 590, 598 (1944). Employers who
violate the FLSA’s requirements may face liability and
liquidated damages. See 29 U.S.C. § 216(b).

In Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680
(1946), this Court adopted a broad interpretation of the
compensation due employees with respect to certain collateral

we —work activities. In particular, the Court held that pottery plant

employees were entitled to compensation for the “30
seconds” to “8 minutes” of walking time from the plant
entrance to their work stations as well as for “various
preliminary duties, such as putting on aprons and overalls,
removing shirts, taping or greasing their arms, [and] putting
on finger cots.” /d. at 682-83, 690. In the wake of Anderson,
there was a “vast flood of litigation” involving “vast alleged
liability.’ 93 Cong. Rec. 2087, 2089 (1947); id. at 2082
(noting the “immensity of the [litigation] problem’”’).

Congress responded to Anderson and the litigation it
spawned by enacting the Portal Act. As this Court has
recognized, the Portal Act “was designed primarily to meet an
‘existing emergency’ resulting from claims which, if allowed
in accordance with Anderson . .. would have created ‘wholly
unexpected liabilities, immense in amount and retroactive in
operation.”” Steiner v. Mitchell, 350 U.S. 247, 253 (1956)
(citation omitted) (quoting 29 U.S.C. § 251(a)). Congress
identified a litany of harms that can attend uncertainty and
overbreadth in the area of employee compensation for
“walking time,” including: financial ruin for employers,
gross inequity of competitive conditions, and windfall
payments to employees. 29 U.S.C. §25I(a). Congress
enacted the Portal Act (1) to “relieve” these pressures, (2) to
“protect the right of collective bargaining,” and (3) “to define
and limit the jurisdiction of the courts.” /d. § 251(b).

5

This case raises issues that implicate provisions of the
FLSA and the Portal Act. First, Section 4 of the Portal Act
excludes certain “walking time” from the FLSA’s
compensation requirements. Section 4 provides that:

no employer shall be subject to liability or punishment
under the [FLSA] . .. on account of the failure of such
employer to pay ... for...

(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 empioyee commences, or
subsequent to the time on any particular workday at
which he ceases, such principal activity or activities.

Id. § 254(a).

Second, in 1949, Congress added Section 3(0) to the FLSA,
which provides:

[iJn determining . . . the hours for which an employee is
employed, there shall be excluded any time spent in
changing clothes ... at the beginning or end of each
workday which was excluded from measured working
time during the week involved by the express terms of or
by custom or practice under a bona fide collective-
bargaining agreement applicable to the particular
employee.
Id. § 203(0) (emphasis added).
Congress also created the Department’s Wage and Hour
Division. The Administrator of the Division, who is

“appointed by the President, by and with the advice and
consent of the Senate,” id. § 204(a), is charged with the

6

“administration and enforcement” of the FLSA, 29 C.F.R.
§ 790. 1(b). Under the FLSA, “any written administrative
regulation, order, ruling,” approval, or interpretation” by the
Administrator may be relied on by third parties as a good-
faith defense against FLSA liability. 29 U.S.C. § 259.

B. Factual Background

|. IBP, inc., currently known as Tyson Fresh Meats, Inc.
(referred to herein as “IBP”), is the world’s largest supplier of
premium beef and pork, and related products. See Pet. App.
2a. Headquartered in Dakota Dunes, South Dakota, IBP
employs approximately 41,000 people. Respondents are
unionized production workers at IBP’s Pasco, Washington
meat processing facility.

Production workers are *equired to wear various items,
which they must don prior to arriving at their work stations.
These items include a sanitary outer garment, a plastic
hardhat, a hair net, ear plugs, a face shield, goggles, gloves,
liquid-repelling sleeves, apron and leggings, safety boots or
shoes, and a weight belt. See Pet. App. 3a-4a & n.2, 39a-40a.
Moreover, “knife users” may wear additional items such as
mesh metal aprons, leggings, vests, sleeves, and gloves, as
well as plexiglass arm guards and Kevlar gloves. See id. at 4a
n.2, 39a-40a. Although, for a time, collective-bargaining
agreements governing IBP’s employees expressly included
compensation for “clothes changing” time at the beginning
and end of the shift, the agreements negotiated in 1982, 1986,
and 1992, as well as the current agreement, exclude “clothes

‘In its 1949 FLSA amendments, Congress also ratified any then-
effective “‘order, regulation, or interpretation of the Administrator,”
unless inconsistent with the FLSA, until modified by the Administrator.
Steiner v. Mitchell, 350 U.S. 247, 255 n.8 (1956) (quoting 29 U.S.C. § 208
note).

>“The term ‘ruling’ commonly refers to an interpretation made by an
agency ‘as a consequence of individual requests for rulings upon
particular questions,”” i.e., “[o}pinion letters.” 29 C.F.R. § 790.17(d).

ee ee ee

aba

7

changing time.” /d. at 4a n.3, 37a-38a. Employees must be at
their work station on the production line at the time the first
product arrives at their station. See id. at 3a.

2. In 1999, respondents filed a class action suit against
IBP in the United States District Court for the Eastern District
of Washington charging that certain of IBP’s compensation
practices violated the Portal Act and FLSA. _ First,
respondents sought pay for time spent walking to their Pasco
plant work stations after donning their work attire before the
beginning of the work shifts, and time spent walking from
their work stations before doffing that attire after the end of
the work shifts. See 29 U.S.C. § 254(a). Second, respondents
sought pay for the time spent actually donning and doffing
their attire. Petitioner defended its practices on the grounds
that Sections 4 and 3(0) excluded the time spent on both of
these activities from the FLSA’s compensation requirements.”
After.a bench trial, the District Court ruled for respondents on
the walking time component of this petition and also
determined that donning and doffing certain of the attire
detailed above was compensable. See Pet. App. 35a-82a.

On appeal to the Ninth Circuit, the Secretary of Labor filed
an amicus brief. On the Section 4 issue, the Secretary argued
that time spent walking from the locker to the work station
and back is compensable as being all in a day’s work. With
respect to the threshold question whether the attire worn by
meat-packing employees constitutes “clothes” within the
meaning of Section 3(0)’s exclusion, the Secretary explained
that the Administrator had issued an Opinion Letter to a third
party interpreting Section 3(0) to apply to certain protective
clothing worn by meatpacking employees like the plaintiffs in
this case. In particular, the Opinion Letter supported IBP’s
position and rejected the conclusion that “[S]ection 3(0) does

‘In addition, respondents’ complaint, and the opinions below,
addressed several other FLSA and State law issues that are not the subject
of this petition.

8

not apply to the putting on [or] taking off . . . of the protective
safety equipment typically worn in the meat packing industry,
such as mesh aprons, plastic belly guards, mesh sleeves or
plastic arm guards, wrist wraps, mesh gloves, rubber gloves,
polar sleeves, rubber boots, shin guards, and weight belts.”
Id. at 94a.

In her amicus brief, the Secretary explained that the 2002
Opinion Letter overrode a contrary interpretation adopted for
the first time in 1997. In the 2002 Opinion Letter, the
Administrator reasoned that the 1997 interpretation had
“never previously been put forward by the Administrator” and
was ut of keeping with the historical treatment of Section
3(0) by both “a number of regional and district officials” as
well as “the Office of the Solicitor.” Pet. App. 94a. The
1997 opinion, moreover, “confined its reasoning to a single
sentence,” simply stating without explanation the legal
conclusion that “‘clothes’ has a ‘plain meaning’ which
excludes: (i) ‘protective’ articles that (ii) may be ‘cumber-
some in nature’ and (111) are “worn over ... apparel.’” /d. at
98a (ellipses in original). Based upon a “careful review of the
interpretation of [S]ection 3(0),” including “a reexamination
of the statute and legislative history,” a review of “the history
and purpose” of the provision, and consideration of an OSHA
regulation that includes protective gear as a subset of clothing
(see 29 C.F.R. § 1910.1030(b)), the Administrator restored
the position to which the agency had long adhered prior to the
1997 opinion. Pet App. 96a-100a. This interpretation, the
Administrator explained, reaffirms that a “function” of
Section 3(0) is “to allow companies and unions to agree to
treat as non-compensable clothes-changing activities that
otherwise would be compensable under the Portal Act.” /d. at
97a-98a."

* Of course, such agreements can be embodied not only in a collective
bargaining agreement, but in a custom or practice that can arise in a
variety of ways under a collective bargaining agreement. See, e.g., Bejil v.
Ethicon, Inc., 269 F.3d 477, 480 (Sth Cir. 2001) (per curiam) (bargaining

9
C. The Decision of the Court of Appeals

The United States Court of Appeals for the Ninth Circuit
affirmed the District Court in relevant part. First, as to the
Section 4 “walking time” issue, the Ninth Circuit agreed with
the District Court that the workday includes “‘the reasonable
walking time from the locker to work station and back . . . for
employees required to don and doff compensable personal
protective equipment.” Pet. App. 18a (ellipses in original).
Acknowledging that the First Circuit had reached a contrary
conclusion, the Ninth Circuit reasoned that “[t]here is nothing
in the statute or regulations that would lead to the conclusion
that a workday may be commenced, then stopped while the
employee is walking to his station, then recommenced when
the walking is done.” /d. at 19a; id. at 19a n.10 (“But see Tum
v. Barber Foods, Inc., 331 F.3d | (ist Cir. 2003)").

Second, as to the Section 3(0) clothes-changing exclusion,
29 U.S.C. § 203(0), the Ninth Circuit affirmed the District
Court’s interpretation that Section 3(0) did not exclude the
“time spent putting on personal protective equipment” from
compensation requirements. Pet. App. 17a. Notwithstanding
the careful consideration reflected in the 2002 Opinion Letter,
the Ninth Circuit rejected the Administrator's interpretation
as a “new, inconsistent interpretation” and, without further
analysis, accorded the letter no deference. See id. at 17a n.9.

Treating Section 3(0)’s exclusion as an exemption, the
panel relied heavily upon the general notion that exemptions
are not permitted “‘except [in contexts] plainly and
unmistakably within the[] [given exemption’s] terms and
spirit.” Pet. App. 16a (quoting K/em v. County of Santa
Clara, 208 F.3d 1085, 1089 (9th Cir. 2000)) (alterations and

history); Arcadi v. Nestle Food Corp., 38 F.3d 672, 674-75 (2d Cir. 1994)
(union-employer “understanding™); Turner v. City of Phila., 96 F. Supp.
2d 460, 463 (E.D. Pa. 2000) (“acquiescence without formal negotiation”),
aff'd, 262 F.3d 222 (3d Cir. 2001).

10

emphases in original).° The panel concluded that there was
no such “plain and clear § 3(0) fit” for respondents’ protective
gear. /d. Finally, the court observed that specialized
protective gear is “different in kind from typical clothing” in
the sense that the “admonition to wear warm clothing, for
example, does not usually conjure up images of donning a
bullet-proof vest or an environmens, spacesuit.” /d. The
Ninth Circuit thus concluded that “from both a regulatory and
common sense perspective, ‘changing clothes’ means
something different from ‘donning required specialized
personal protective equipment” and IBP was therefore not
entitled to Section 3(0)’s exclusion. /d. at |6a-17a.

REASONS FOR GRANTING THE PETITION

This case presents two fundamental and recurring questions
of federal law. First, at least three courts of appeals have
issued conflicting decisions on the scope of the Portal Act’s
“walking time” provision. Review by this Court is thus
plainly warranted to provide uniformity on an issue that has
profound implications for the economy as a whole.

Second, there is widespread confusion in the courts of
appeals concerning (a) the circumstances in which agency
pronouncements that are not the product of notice-and-
comment rulemaking or formal adjudications—such as the
Department of Labor Opinion Letter at issue in this case—are
entitled to Chevron deference, and (b) what deference, if any,
attaches to non-binding agency pronouncements, particularly
where, as here, the agency overturns a recent, and aberrant,
interpretation. Indeed, the lower courts have expressed
considerable frustration in attempting to apply this Court's
decisions in United States v. Mead, 533 U.S. 218 (2001), and
Barnhart v. Walton, 535 U.S. 212 (2002), to less formal

* Section 3(0) is contained in the definitions section of the FLSA. By
contrast, exemptions from the Act's overtime and minimum wage
requirements are set forth in Section 13 of the FLSA. 29 U.S.C. § 213.

agency pronouncements. This case thus affords the Court an
opportunity to provide much needed guidance on these
critical and frequently recurring questions of administrative
law.

I. THERE IS AN ACKNOWLEDGED AND INTOL-
ERABLE CONFLICT AMONG THE COURTS OF
APPEALS REGARDING THE COMPENSABIL-
ITY OF “WALKING TIME” UNDER THE
PORTAL ACT.

There is an acknowledged and irreconcilable conflict
among the courts of appeals on the fundamental issue whether
employees are entitled to compensation under the Portal Act
for “walking time” between arguably compensable pre- and
post-shift clothes changing and the actual work station. This
Court has long recognized its “importan{t]” role in
interpreting the Portal Act, especially where, as here, there is
“a conflict between the circuits on the subject.” Steiner v.
Mitchell, 350 U.S. 247, 248 (1956). Because, as Congress
itself expressly found, a breathtaking array of harms can
attend uncertainty and overbreadth concerning the
compensability of “walking time,” the Court should decide
this important yet unresolved issue of statutory interpretation.

A. There Is An Acknowledged Conflict Among The
Courts Of Appeals About When Workers Are
Entitled To “Walking Time” Compensation
Under The Portal Act.

The decision below creates a conflict over whether Section
4(a) requires employers to compensate employees for all
walking time that occurs between an employee's actual work
station and pre- and post-shift activities, such as clothes
changing, which might be deemed compensable if they are
found to be “integral and indispensable” to the employee's
principal work activity. The Ninth Circuit answered that
question in the affirmative. It reasoned that, because the
donning of protective attire is an integral and indispensable

12

preliminary work activity, it is therefore a “principal [work]
activity,” such that “[aJll activities performed thereafter—
such as ‘walking’—thus occur during the ‘principal’ workday
and are compensable.” Pet. App. 18a (quoting Steiner, 350
U.S. at 252-53).

By contrast, as the Ninth Circuit acknowledged, the First
Circuit squarely rejected the very reasoning the Ninth Circuit
adopted. The First Circuit concluded that, even if clothes
donning and doffing is an integral part of the employees’
principal activity, walking that occurs after such donning (but
prior to arrival at the work station) and before such doffing
(after departure from the work station) is not compensable.
Tum v. Barber Foods, Inc., 331 F.3d 1, 6 (1st Cir. 2003). The
Tenth Circuit has likewise held that even where the donning
and doffing of personal protective equipment at a similar IBP
facility “was a compensable work activity,” employees were
not entitled to compensation for post-donning and pre-doffing
walking time. Reich v. IBP, Inc., 38 F.3d 1123, 1127 (10th
Cir. 1994).

More specifically, the courts of appeals disagree about
whether the right to compensation can start and stop during
the day. On the one hand, the Ninth Circuit found “nothing in
the statute or regulations that would lead to the conclusion
that a workday may be commenced, then stopped while the
employee is walking to his station, then recommenced when
the walking is done.” Pet. App. 19a. By contrast, as the
Tenth Circuit described it, even compensable clothes
changing is not the “first and last principal activit[y] of the
workday which would commence and toll the running of the
timeclock” such that all walking time between clothes
changing and the work station is compensable. Reich, 38
F.3d at 1127. The First Circuit implicitly adopted the Tenth
Circuit’s reasoning by ruling that, even where clothes
changing is integral to the employee's principal activity,
walking time to and from the work station may be excluded.
Tum, 331 F.3d at 6.

13

At the heart of this disagreement is the Ninth Circuit's
misunderstanding of this Court's decision in Steiner. There,
the Court held that:

activities performed either before or after the regular
work shift, on or off the production line, are
compensable under the portal-to-portal provisions of the
Fair Labor Standards Act if those activities are [1] an
integral and indispensable part of the principal activities
for which the covered workmen are employed and [2]
are not specifically excluded by Section 4(a)(1).

350 U.S. at 256 (emphasis added). The “integral and
indispensable” activities at issue in Steiner were “changing
clothes at the beginning of the shift and showering at the
end.” /d. at 248. Because there was no claim in Steiner that
walking to and from the actual work station was itself an
“integral and indispensable” activity, there was no need to
exclude such walking time from the category of compensable
“indispensable” activities. Accordingly, Steiner's reference
to activities “not specifically excluded by Section 4(a)(1)” can
only be understood as a clarification that an “integral and
indispensable”—and therefore compensable—activity does
not render compensable all walking that occurs between that
“integral and indispensable” activity and the work station.

Indeed, the Department of Labor has made this very point.
In provisions directly addressing preliminary and
postliminary activities, the Department has appended the
following footnote:

Washing up after work, like the changing of clothes,
may in certain situations be so directly related to the
specific work the employee is employed to perform that
it would be regarded as an integral part of the
employee’s ‘principal activity’. See colloquy between
Senators Cooper and McGrath, 93 Cong. Rec. 2297-
2298. This does not necessarily mean, however, that
travel between the washroom or clothes-changing place

14

and the actual place of performance of the specific work
the employee is employed to perform, would be excluded
from the type of travel to which 4(a)[(1)] refers.

29 C.F.R. § 790.7(g) n.49 (citation omitted; emphasis and
alteration added). Like this Court’s decision in Steiner—
which also relied extensively on colloquies between Senators
McGrath and Cooper—the Department’s adoption of this
explanation makes clear that a compensable “integral and
indispensable” activity does not render compensable all time
spent walking between that activity and the actual work
station. See Tum, 331 F.3d at 6 (relying on this provision to
reach a result contrary to that of the court below).°

Accordingly, there is a well-developed, clear, and
irreconcilable conflict among the courts of appeals about the
applicability of Section 4 to walking time that occurs between
the work station and compensable clothes-changing activity.
That conflict plainly warrants this Court's review.

* This conclusion is further buttressed by the use of the phrase “actual
place of performance” in Section 4(a)(1), which “emphasizes that the
ordinary travel at the beginning and end of the workday . . . includes the
employee’s travel on the employer's premises until he reaches his
workbench or other place where he commences the performance of the
principal activity.” 29 C.F.R. § 790.7(e); see id § 790.7(f) (walking
“between the plant gate and the employee's lathe, workbench or other
actual place of performance of his principal activity” generally is
exempted under Section 4(a)). In addition, where, as here, “an employee
is required to report at the actual place of performance of his principal
activity at a certain specific time, his ‘workday’ commences at the time he
reports there for work in accordance with the employer's requirement.”
Id. § 790.6(b). Here, employees must report to their work stations on the
production line at the time the first meat arrives at their own stations for
processing. See Pet. App. 3a-4a.

15

B. Whether Employers Are Required To Compen-
sate Employees For “Walking Time” Is Recur-

ring And Important.

The conflict created by the courts of appeals presents a core
and recurring issue with profound implications for the
Nation’s economy as a whole. Accordingly, it should be
answered definitively now.

This Court has long recognized “the importance of the
interpretation of the portal-to-portal provisions in_ the
administration of the Fair Labor Standards Act.” Steiner, 350
U.S. at 248. Indeed, in enacting the Portal Act, Congress
found that uncertainty and overbreadth in the interpretation of
the FLSA causes numerous significant harms to the national
economy. As the text of the statute itself recites, these harms
include: (1)the “financial ruin of many employers” and
“serious[] impair[ment of] the capital resources of many
others”; (2) “seriously impair[ing]” “the credit of many
employers”; (3) “extended and continuous uncertainty on the
part of industry”; (4)“gross inequity of competitive
conditions between employers and between industries”;
(5) “windfall payments” to employees for “activities
performed by them without any expectation of reward beyond
that included in their agreed rates of pay”; (6) “interfere[nce]
with” “voluntary collective bargaining” and the creation of
“industrial disputes between employees and employers and
between employees and employees”; (7) courts nationwide
“be[ing] burdened with excessive and needless litigation”;
(8) the Public Treasury “be[ing] deprived of large sums of
revenues”; (9)the cost of goods and services to the
government “be[ing] unreasonably increased,” including
“serious[]” increases in the “cost of war contracts”; and
(10) “serious and adverse effects upon the revenues of
Federal, State, and local governments.” 29 U.S.C. § 251(a).
The Ninth Circuit’s broad reading of Section 4 and the
existing uncertainty in the courts of appeals gives rise to
many, if not all, of the same concerns.

16

Commentators have noted, for example “the dramatic
increase in the use of FLSA class actions,” such as the lawsuit
here. Joseph E. Tilson et al., Litigating Lawsuits Under The
FLSA— The Fastest Growing Area Of Employment Litigation,
697 PLI/Lit. 649, 657 (Oct.-Nov. 2003). This litigation
explosion threatens to tax judicial resources and threatens
employers with massive and unexpected liabilities—two of
the very evils the Portal Act was meant to prevent.
“Although, in the typical case, each individual's claim .. . is
generally small, when plaintiffs join together . . . the resulting
damages (and attorneys’ fees) can be immense.” /d. at 655.
Indeed, “(t]he aggregation of claims, particularly as class
actions, profoundly affects the substantive rights of the parties
to [a] litigation. Notably, aggregation affects the dynamics
for discovery, trial, negotiation and settlement, and can bring
hydraulic pressure to bear on defendants. The more
aggregation, the greater the effect on the litigation.” De
Asencio v. Tyson Foods, Inc., 342 F.3d 301, 310 (3d Cir.
2003) (discussing both FLSA opt-in and Rule 23 opt-out
state-law classes in clothes-changing case).

Similarly, the split of authority among the circuits creates
unfair disparities in competitive conditions that can harm not
only employers, but also workers in particular regions of the
country. This very case creates the anomalous result that
employees at the same company may be entitled to different
“walking time” compensation depending upon the circuit in
which their work facility is located. Compare Pet. App. 17a-
19a (“walking time” compensable for workers at IBP facility
in the Ninth Circuit), and Reich, 38 F.3d at 1127 (“‘walk{ing]
time’ not compensable for workers at IBP facility in the
Tenth Circuit), This disparity creates incentives for
companies to relocate jobs to States outside the Ninth Circuit,
and thus threatens to impose job losses and gains not based on
market considerations but on the non-uniform application of
federal law. Indeed, many other industries that involve work
requiring use of protective gear ave affected by these

ere ee ee ee ee ee ee oe

17

anomalous results, including, for example, the poultry-
processing, pharmaceutical, medical equipment, oil and gas
processing, biotechnology, and other manufacturing
industries. In sum, the proper interpretation of Section 4(a)
should be answered definitively for the benefit of all
employers and employees nationwide.

C. The Ninth Circuit Erred In Holding That The
“Walking Time” Here Was Compensable.

Finally, the Court should grant review to correct the Ninth
Circuit’s erroneous interpretation of the Portal Act. Not only
does the decision below misread this Court’s decision in
Steiner and ignore Labor Department guidance, but also it is
not faithful to the purpose of the Portal Act, which was to
minimize mandatory compensation for pre- and _ post-shift
walking time. Indeed, as the First Circuit has recognized,
“Congress did not intend for most types of walking to be
compensable.” Tum, 331 F.3d at 6; see also id. (“By
stretching the traditional understanding of primary activity to
cover donning and doffing in very limited circumstances,
Congress was not creating an avenue to circumvent” Section

4(a)).

Moreover, as the First Circuit points out, the rule adopted
by the Ninth Circuit below leads to “nonsensical” results. /d.
In some facilities, for example, employees walk between
several gear distribution locations before arriving at their
work station. Under the Ninth Circuit’s decision, employers
can seek to avoid or minimize compensable walking time “by
placing all of the items at one location instead of at a few
locations” or by placing changing locations closer to work
stations. /d. These decisions would not be driven by any
legitimate interest in efficiency, but rather by an artificial
effort to avoid liability for walking time that Congress never
intended to make compensable.

For all of these reasons, the Court should grant the petition
to correct the Ninth Circuit’s error, to answer this important

18

and recurring question of federal law, and to end the
irreconcilable conflict among the courts of appeals.

il. THIS COURT SHOULD GRANT THE PETITION
TO PROVIDE MUCH NEEDED GUIDANCE
CONCERNING THE DEFERENCE DUE LESS
FORMAL AGENCY INTERPRETATIONS OF
AMBIGUOUS STATUTORY TERMS.

The Ninth Circuit’s decision also creates a conflict among
the circuits concerning the proper interpretation of the term
“clothes” in Section 3(0). The Fifth Circuit rejected as
“nonsensical” the claim that “sanitary garments ... are not
‘clothes’ under § 203(0).” Bejil v. Ethicon, Inc., 269 F.3d
477, 480 n.3 (Sth Cir. 2001) (per curiam); see also Saunders
v. John Morrell & Co., No. C88-4143, 1991 WL 529542. at
*1, *4 (N.D. lowa Dec. 24, 1991) (Section 203(0) applies to
exclude time spent by meatpacking employees in changing
into and out of “steel-mesh gloves, synthetic-mesh gloves,
goggles, helmets, arm guards, belly guards, knife and cut
resistant gloves, knife guards, steel-toed shoes, rubber boots,
rubber gloves, rubber aprons, and steel-mesh aprons”);
Nardone v. General Motors, Inc., 207 F. Supp. 336, 338, 340
(D.N.J. 1962) (time spent by metal finishers in changing into
and out of “coveralls, gloves, aprons, goggles and hoods”
excluded from compensation by Section 203(0)).

The Ninth Circuit, by contrast, concluded that certain attire
worn in the meat-packing industry falls outside the ambit of
the term “clothes.” Pet. App. 16a-17a & n.9. Although the
agency charged with administering and enforcing the FLSA
has issued an Opinion Letter that interprets this very term to
encompass the attire at issue in this case, the Ninth Circuit
flatly dismissed the agency’s interpretation as a “new” and
“inconsistent” view that was entitled to no deference. /d. at
17a n.9. This decision thus provides an opportunity to resolve
the decisional conflict concerning Section 3(0) and for the
Court to clear up significant confusion in the circuits in the
wake of United States v. Mead, 533 U.S. 218 (2001), about

. —

19

the appropriate degree of deference due agency
interpretations that (i) are the result of less formal processes
than formal notice-and-comment rulemaking and (11) restore a
prior agency position.

A. There Is Significant Confusion In The Courts Of
Appeals About The Extent Of Deference Due
“Less Formal” Department Of Labor Statutory
Interpretations.

—

The Ninth Circuit’s refusal to defer to an agency opinion
letter implicates a key open question concerning the degree of
deference due agency interpretations that are not the product
of notice-and-comment rulemaking or formal adjudications.
The considerable confusion, and unusual expressions of
frustration, that this question has occasioned in the lower
courts demonstrates the pressing need for guidance from this
Court.

1. Prior to the decision in United States v. Mead, 533
U.S. 218 (2001), this Court stated in Christensen v. Harris
County, 529 U.S. 576 (2000), that agency “[i}nterpret.cions
such as those in opinion letters—like interpretations
contained in policy statements, agency manuals, and
enforcement guidelines, all of which lack the force of law—
do not warrant Chevron-style deference,” id. at 587—i.e., the
legally binding effect given to formal and non-arbitrary
interpretations of ambiguous statutory provisions by the
agency charged with administering those provisions. See
Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467
U.S. 837, 844 (1984). In Mead, however, the Court appeared
to retreat from Christensen’s broad statement, explaining that
Chevron deference may still apply to less formal agency
statutory interpretations “when it appears that Congress
delegated authority to the agency generally to make rules
carrying out the force of law”—a showing that may be made
“in a variety of ways.” 533 U.S. at 226-27.

20

Shortly thereafter, in Barnhart v. Walton, 535 U.S. 212
(2002), the Court confirmed its apparent departure from the
stark language of Christensen, observing that even where an
“gency “reached its interpretation through means less formal
than ‘notice and comment’ rulemaking,” this “does not
automatically deprive that interpretation of the judicial
deference otherwise its due” under Chevron. Id. at 221. “If
this Court’s opinion in Christensen . .. suggested an absolute
rule to the contrary, our later opinion in... Mead . . . denied
the suggestion.” /d. at 222 (citations omitted).’ The Court
went on to state that:

the intérstitial nature of the legal question, the related
expertise of the Agency, the importance of the question
to administration of the statute, the complexity of that
administration, and the careful consideration the Agency
has given the question over a long period of time all
indicate that Chevron provides the appropriate legal lens
through which to view the legality of the Agency
interpretation here at issue.

Id. Put another way, whether Chevron deference is due
“depends in significant part upon the interpretive method used
and the nature of the question at issue.” /d.

Thus, while the Court has clearly stated that some set of
agency interpretations derived from less formal means are
entitled to Chevron deference, and has specifically left open
the possibility that agency opinion letters may qualify for
such treatment, it remains entirely unclear which “less
formal” interpretations are entitled to such deference. Indeed,

’ The Court again confirmed its full retreat from Christensen in Alaska
Department of Environmental Conservation vy. EPA, where it
conspicuously omitted “opinion letters” from its quotation of Christensen:
“Interpretations such as those in ... policy statements, agency manuals,
and enforcement guidelines, all of which lack the force of law—do not
warrant Chevron-style deference.’” U.S. —, 124 S. Ct. 983, 1001
(2004) (ellipses in original).

21

numerous courts and commentators have openly sought
clarification of the “important questions [left] unanswered”
by Mead and Barnhart. Kenneth Culp Davis & Richard J.
Pierce, Jr., Administrative Law Treatise § 3.5, at 5, 10 (4th ed.
2003 Supp.); see, e.g., Robert A. Anthony, Keeping Chevron
Pure, 5 Green Bag 371, 371 (Summer 2002) (Barnhart has
“sow[n] the seeds of grievous confusion in the law of
Chevron deference”). As Judge Richard Posner put it,
although Barnhart suggests “a merger between Chevron
deference and Skidmore’s . . . approach” of varying deference
according to the circumstances, after Barnhart, all that is
clear is that Chevron deference may be due where there is
“something more formal, more deliberative, than a simple
announcement.” Arzalaic v. Republic Title Co., 314 F.3d
875, 879, 881 (7th Cir. 2002), cert. denied, 123 S. Ct. 2641
(2003). Exactly what that “something” may be, however,
remains elusive. “After Mead, it is possible to know only that
... less formal pronouncements like interpretive rules and
informal adjudications may or may not be entitled to Chevron
deference.” Davis & Pierce, Jr., supra, § 3.5, at 6-7; see Matz
v. Household Int'l Tax Reduction Inv. Plan, 265 F.3d 572,
575 (7th Cir. 2001) (although Mead indicated “that Chevron
deference may apply to interpretations developed from less
formal rulemaking procedures, it did not expressly outline
when this would be the case”), cert. denied, 535 U.S. 954
(2003).

2. In particular, there is considerable confusion in the
lower courts concerning the degree of deference due the very
type of agency proneuncement that was at issue in
Christensen and is again at issue here—a Labor Department
opinion letter. As Judge Edith Jones observed on behalf of
the Fifth Circuit, “reliance on Christensen wholly to forestall
our deferring to these authorities is ... misplaced” after
Barnhart and Mead. Houston Police Officers’ Union v. City
of Houston, Tex., 330 F.3d 298, 304 n.7 (Sth Cir.), cert.
denied, 124 S. Ct. 300 (2003). But the court also recognized:

22

“Nor is it clear, after ... Mead ... whether these
pronouncements are sufficiently authoritative to merit
Chevron deference.” /d. at 304-05 (citation omitted).
Similarly, a recent opinion from the Sixth Circuit reflects the
confusion over what level of deference applies to these
interpretations. See Herman v. Fabri-Centers of Am., Inc.,
308 F.3d 580, 592 (6th Cir. 2002) (acknowledging the “great
deference” generally accorded the officers and agency
charged with statutory enforcement, but merely noting “([t]he
informative nature” of the Administrator’s opinion letters and
stating “we would hold as we do even in the absence of such
opinion letters”), cert. denied, 537 U.S. 1245 (2003).

Much of this confusion arises from the fact that, while
Mead requires courts to focus on Congress’s intent in
delegating power to the agency to determine whether an
agency's action has the force of law, it “[uJnfortunately[] . . .
provides incomplete guidance about how courts should
undertake this inquiry.” Thomas W. Merrill & Kathryn
Tongue Watts, Agency Rules With The Force Of Law: The
Original Convention, 116 Harv. L. Rev. 467, 470 (2002). In
particular, neither Mead nor any subsequent case answers the
fundamental question: “what language must Congress use to
indicate that an agency has been given power to make rules
with the force of law?” /d. at 591.

Because there is a clear and significant need for an
elaboration of Mead’s standards generally, and in particular
their application to the recurring question of the deference
due a Department of Labor opinion letter, this Court should
grant the petition and rule that the power Congress bestowed
on the Administrator with respect to opinion letters entitles
such letters to Chevron deference. The opinion letters of the
Administrator are equivalent to the opinion letters of the
Comptroller of the Currency, whose “deliberative
conclusions” concerning the meaning of a banking statute
were entitled to Chevron deference. NationsBank of N.C.,
N.A. v. Variable Annuity Life Ins. Co., 513 U.S. 251, 257

23

(1995) (internal quotation marks omitted). Just as the
Comptroller has “personal authority’ under the National
Bank Act,” and “‘is charged with the enforcement of banking
laws,” Mead, 533 U.S. at 231 & n.13, so too here, the
Administrater is appointed by the President, confirmed by the
Senate, and is charged with “administration and enforcement”
of the FLSA, 29 U.S.C. § 204(a); see 29 C.F.R. § 790.1(b).
Moreover, in stark contrast to the United States Customs
Service tariff classification rulings at issue in Mead, Congress
intended the opinion letters at issue here to have the force of
law in the sense that they may be relied on by third parties as
a good-faith defense against FLSA liability. See 29 U.S.C.
§ 259%(a). Cf. Mead, 533 U.S. at 223, 231-32, 233 (finding
“no indication that Congress meant to delegate authority to
Customs to issue classification rulings with the force of law”
where, for example, the rulings “make[] it clear that a letter’s
binding character as a ruling stops short of third parties,” and
“*no other person should rely on the ruling letter or assume
that the principles of that ruling will be applied in connection
with any [other] transaction’).

3. The current uncertainty about when Chevron
deference applies necessarily implicates the degree of
deference owed agency interpretations that reflect a
considered change in position, as was true of the opinion
letter at issue here. Before Mead and Barnhart, agency
consistency was analyzed differently depending upon whether
the agency’s interpretation was entitled to Chevron deference,
or to the less robust deference described in Skidmore v. Swift
& Co., 323 U.S. 134 (1944). Thus, the deference due under
Skidmore varied according to Justice Jackson’s familiar host
of factors which included, among other things, the
“consistency with earlier and later pronouncements.” /d. at
140. Conversely, Chevron recognized that an agency may
have a range of reasonable choices “not instantly carved in
stone,” but subject to reconsideration “on a continuing basis.”
467 U.S. at 863-84. Under Chevron, therefore, it is “entirely

24

appropriate” for an agency’s interpretation to change,
considering that agencies are part of the “political branch of
the Government” tasked with “resolving the competing
interests which Congress itself either inadvertently did not
resolve, or intentionally left to be resolved by the agency
charged with the administration of the statute in light of
everyday realities.” /d. at 865-66; see Smiley v. Citibank
(S.D.), N.A., 517 U.S. 735, 742 (1996) (“the whole point of
Chevron is to leave the discretion provided by the ambiguities
of a statute with the implementing agency” provided its
changes are not “[s}udden and unexplained”).

Barnhart suggests, however, that an agency’s consistency
may be a consideration in determining whether Chevron
deference is due at all. Emphasizing that “the Agency’s
interpretation is one of long standing,” the Court in Barnhart
suggested that this “careful consideration the agency has
given over a long period” contributed to “indicate that
Chevron” applied. 535 U.S. at 221-22; see also Mead, 533
U.S. at 247, 249-50 (Scalia, J., dissenting) (“Skidmore
deference gives the agency’s current position some vague and
uncertain amount of respect, but it does not, like Chevron,
leave the matter within the control of the Executive Branch
for the future.”) (emphasis added; emphasis in original
omitted). Indeed, Judge Posner has interpreted Barnhart to
suggest “a merger between Chevron deference and
Skidmore’s,” \eaving the lower courts in a “thicket” of
unanswered questions. Krzalaic, 314 F.3d at 879, 881.

This case thus presents an opportunity to resolve the current
confusion. The lower court simply rejected the
Administrator’s Opinion Letter because it reflected a change
in position from a prior interpretation adopted in 1997. if, as
petitioner contends, the Administrator’s opinion letters are
entitled to Chevron deference, the lower court’s action was
plainly erroneous. Alternatively, if, as Barnhart suggests,
agency consistency is a factor in determining whether
Chevron deference applies, the Administrator’s thoughtful

25

and _ well-reasoned decision to repudiate a_ recent
interpretation, and reinstitute a prior position of far longer
standing, affords this Court an opportunity to answer the
many questions that Barnhart raised in this area.

B. The Degree Of Agency Deference Due “Less
Formal” Agency Interpretations Is Recurring
And Important.

That the degree of deference due “less formal” agency
interpretations of statutory terms is an important and recurring
question is self-evident. Indeed, it implicates a core question
of administrative law: in what circumstances must courts
defer to an agency’s interpretation of ambiguous statutory
provisions. As is apparent from the above discussion,
confusion about the degree of deference due the Department
of Labor’s opinion letters alone presents an important,
recurring and unanswered question.

The need for guidance on the degree of deference due a
variety of “less formal” agency determinations also
reverberates through a number of agency contexts. As one
leading commentator explains, the “[c]ircuit courts are
struggling in their efforts to apply . . . Chevron to a variety of
types of agency pronouncements.” Davis & Pierce, Jr., supra,
§ 3.5, at 10. Described another way, the Court’s recent cases
“leave[] us searching for the tests that might determine which
informal adjudications qualify for Chevron deference,” but
“{ujnfortunately, we have no idea” what appropriate
lawmaking procedures might be. William S. Jordon, United
States v. Mead: Complicating the Delegation Dance, 3}\
Envtl. L. Rep. 11425, 11428-29 (2001).

Accordingly, the Court should grant certiorari to provide
additional direction to the courts of appeals for determining
whether, in general, “less formal” agency interpretations such
as Opinion letters are entitled to Chevron deference and, in
particular, whether the Administrator’s opinion letters are so
entitled.

26

C. The Ninth Circuit Erred In Utterly Disregarding
The Agency’s Interpretation.

In all events, the Ninth Circuit below erred by rejecting out
of hand the agency’s “new” interpretation. If Chevron
applies, the Ninth Circuit erred in disregarding the agency's
view where the agency did not succumb to the “pitfalls” of
agency change (such as making “[s]udden and unexplained
change”), given that “the whole point of Chevron is to leave
the discretion provided by the ambiguities of a statute with
the implementing agency.” Smiley, 517 U.S. at 742. If
Skidmore applies, the Ninth Circuit erred by “ignor[ing] the
agency interpretation.” Thomas W. Merrill & Kristin E.
Hickman, Chevron's Domain, 89 Geo. L.J. 833, 855 (2001).
The Ninth Circuit failed to “assess that interpretation against
multiple factors and determine what weight [it] should be
given” in a “nuanced, context-sensitive rubric” /d. at 836,
855. Thus, to the extent Chevron does not apply, this case
presents an opportunity for the Court to clarify that, even
under Skidmore, courts cannot refuse to defer to a well-
reasoned change in an administrative interpretation simply
because the new interpretation represents a change in agency
position.

27

CONCLUSION

The petition for a writ of certiorari should be granted.

Respectfully submitted,

WILLIAM A. Norris CARTER G. PHILLIPS*
JOEL M. COHN JOSEPH R. GUERRA
Rex S. HEINKE REBECCA K. Woop
L. RACHEL HELYAR SIDLEY AUSTIN BROWN
AKI'\ GUMP STRAUSS & Woop LLP

HAVER & FELD LLP 1501 K Street, NW
2029 Century Park East Washington, DC 20005
Suite 2400 (202) 736-8000
Los Angeles, CA 90067
(310) 229-1000

Counsel for Petitioner

February 26, 2004 * Counsel of Record

APPENDICES

la
APPENDIX A

UNITED STATES COURT OF APPEALS,
NINTH CIRCUIT

Nos. 02-35042, 02-35110.

GABRIEL ALVAREZ, individually and as class representative;
RANULFO GUTIERREZ, individually and as _ class
representative; PEDRO HERNANDEZ, individually and as
class representative; MARIA MARTINEZ; RAMON MORENO;
ISMAEL RODRIQUEZ,

Plaintiffs-Appellees,

Vv.

IBP, INC., a Delaware corporation,
Defendant-Appellant.

GABRIEL ALVAREZ, individually and as class representative;
RANULFO GUTIERREZ, individually and as_ class
representative; PEDRO HERNANDEZ, individually and as
class representative; MARIA MARTINEZ; RAMON MORENO;
ISMAEL RODRIQUEZ,

Plaintiffs-Appellants,

Vv.

IBP, INC., a Delaware corporation,
Defendant Appellee.

Argued and Submitted April 8, 2003.
Filed Aug. 5, 2003

Appeal from the United States District Court for the
Eastern District of Washington; Robert H. Whaley,
United States District Judge, Presiding. D.C. No. CV-98-
05005-RHW.

2a

Before D.W. NELSON, THOMAS, Circuit sudges, and
ILLSTON, District Judge.’

THOMAS, Circuit Judge. —

Perhaps the packing plant employees in Pasco, Washing-
ton, should have heeded Henry David Thoreau’s warning to
“beware of all enterprises that require new clothes.” The
central dispute in this class action lawsuit is whether IBP, Inc.
(“IBP”) should be required to compensate its employees for
the time it takes to change into required specialized protective
clothing and safety gear. Under the circumstances presented
by this case, we conclude that it must. We affirm in part and
reverse in part.

From the time that publication of Upton Sinclair’s novel
The Jungle provoked President Theodore Roosevelt to secure
passage of the Meat Inspection Act of 1906, the meat packing
industry has been one of the most regulated businesses in the
United States. This is not only a product of concerns over
food purity. According to the United States Department of
Labor’s Bureau of Labor Statistics, employment at a packing
plant is still one of the most dangerous jobs in America, with
multiple thousands of workers injured on the job every year.
See U.S. Dep’t of Labor, Bureau of Labor Statistics, /ndustry
Injury and Illness Data (2002), at http://www.bls.gov/iif/
oshsum.htm.

IBP, Inc. is the world’s largest producer of fresh beef, pork,
and related products. Headquartered in Dakota Dunes, South
Dakota, IBP operates a number of meat processing plants
throughout the American West and Midwest. Through meat-
related innovation and gradual corporate acquisition, IBP has
built a substantial food empire, reaping over $13 billion in

' The Honorable Susan Y. Illston, United States District Judge for the
Northern District of California, sitting by designation.

3a

sales in 1999 alone.

Among IBP’s many meat processing facilities is a “kill and
processing plant” in Pasco, Washington (“the Pasco plant”).
As the moniker suggests, the Pasco plant includes slaughter
and processing work sections, both of which play a direct role
in the carcass “disassembly process.” The disassembly of a
beef carcass takes two-to-three days. After the animal is
killed, the carcass moves along a series of chains in the
slaughter division, eventually coming to rest in a cooled
storage facility. After remaining in storage for at least
twenty-four but no more than forty-eight hours, the carcass is
transported across a group of chains and belts in the
processing division, where processing employees cut, trim,
and divide the carcass into a variety of pieces.

The Pasco plant divides its slaughter and processing staffs
into separate work crews, assigning these crews to work
shifts. Pasco plant production line employees, who are
represented by Teamsters Local Union No. 556 and who are
covered by a collective bargaining agreement, are required to
be at their work stations and prepared to work as the first
piece of meat comes across the production line. However,
before they are able to assume their work stations all Pasco
plant employees must complete a number of preliminary
tasks, and before employees may leave the Pasco plant at the
end of a shift, most of these preliminary tasks must be
completed in inverse form. Each Pasco plant job classifica-
tion has specific tool, supply, walk-time, and gear require-
ments, so each employee’s preliminary and postliminary
duties are somewhat distinct; still, for all Pasco plant
production line employees, a general pattern obtains: At the
start of a shift, Pasco plant employees must gather their
assigned equipment, don that equipment in one of the Pasco
plant’s four locker rooms, and prepare work-related tools
before venturing to the slaughter or processing floors. At
the end of every shift, employees must clean, restore, and

4a

replace their tools and equipment, storing all of it at the Pasco
plant itself.”

Until July of 1998, the Pasco plant’s shifts ran eight hours,
the first four-hour block of which was split by a paid fifteen-
minute rest-break, and the two four-hour spans of which were
divided by a thirty-minute unpaid meal break.’ In July of
1998, IBP restructured its shift time to include four minutes
of so-called “clothes” time, thereby reducing the overall work
time to seven hours and fifty-six minutes. In the fall of 1999,
the Pasco plant reduced its shift time to seven hours and fifty-

? The record is replete with lists of outer garments and protective
equipment the Pasco plant employees must don and doff. The district
court’s findings of fact on this point are thorough. In sum, all employees
must wear a sanitary outer garment that is provided and washed each night
by IBP; all employees must wear some form of a plastic hardhat, a hair
net, and ear plugs, and all employees—save “gutter” employees in the
slaughter division—must wear a face shield or safety goggles; all
employees wear some sort of glove, with most processing employees
using a number of sets per day of grip-facilitative and warmth-providing
“yellow cotton gloves,” and with some slaughter employees donning these
yellow gloves and/or plastic or rubber gloves for enhanced grip and
protection against blood and water saturation; all employees wear liquid-
repelling sleeves, aprons, and leggings; all employees wear safety
boots/shoes, all of which must be wiped/hosed after the end of a shift;
and many employees opt to wear weight-lifting-type belts to prevent back
injury. In addition, so-called “knife users” don an assortment of
protective gear on their hands, arms, legs, and torsos; this gear often
constitutes chain-link (i.¢., “mesh”) metal aprons, leggings, vests, sleeves,
and gloves, and plexiglass arm guards, Kevlar gloves (that is, “can’t cut”
or “Polar” gloves), and puncture-resistant protective sleeves.

>In the early 1970’s, the Pasco plant’s first proprietor, Columbia
Foods, entered a collective bargaining agreement with the union in which
employees were allotted thirty minutes per week for “clothes changing.”
In 1976, IBP purchased the Pasco plant from Columbia Foods, and
included a similar “clothes changing” provision in the 1979 iteration of
the bargaining agreement. In the 1982, 1986, 1992, and current_ versions
of the collective bargaining agreement, however, “clothes changing time”
was negotiated but excluded.

Sa

one minutes. Long-running litigation between IBP and the
United States Department of Labor (hereinafter “USDOL”) in
the 1990s spurred much of IBP’s shift-time reduction. In the
course of that litigation, damage and wage issues comparable
to those raised in this case were decided, but the litigation
focused singularly on IBP’s non-unionized plants. See Reich
v. IBP, Inc., 38 F.3d 1123, 1127 (10th Cir.1994) (holding IBP
liable for unpaid pre-shift and post-shift donning, doffing, and
cleaning of special packinghouse industry safety equipment
and for time spent between waiting to pick up and return
knives).* .

Once a shift begins, the Pasco plant employees’ time is
strictly regulated and monitored. As a rule, employee rest or
meal-break time begins as soon as the last piece of meat
passes on the production line, and, as a rule, employees must
be completely prepared to resume work as soon as the break
period ends. When departing the processing and slaughter
floors—whether to go to the cafeteria or to the restroom>—
employees are permitted to leave only hats, hairnets, goggles,
earplugs, and boots in place; outer garments, protective gear,
gloves, scabbards, and chains must be removed. For many
Pasco plant employees, the operation of IBP’s mandatory
donning and doffing rules necessarily impinges—if not
more—their unpaid thirty-minute meal break time.

* Apparently as a consequence of IBP’s decision to relocate its knife
distribution areas and to reposition sinks along its production line, IBP
and USDOL agreed to lower an initial fourteen-minute figure to four
minutes in 1998. In April 1998, the Department of Labor filed 2 second
complaint against IBP, seeking back pay for post-Reich FLSA violations
at IBP’s non-unionized plants. See Herman v. IBP, 98-CV-2163-JWL
(D.Kan.).

* IBP “strongly encourages” its employees to use the restroom only
during unpaid meal break time, expressly limiting non-break-time
restroom use to situations of emergency. “Such emergencies,” IBP
instructs its employees, “should seldom occur.”

6a

To help monitor employee arrival and departure times, IBP
instituted a mandatory, computerized “swipe card” system at
the Pasco plant. IBP does not use the data its swipe card
system gathers in calculating employee pay. Instead, IBP
pays its Pasco plant employees according to a “gang time
pay” model, which bases employee remuneration entirely on
the times during which employees are actually cutting and
bagging meat. Under this “gang time” framework, the period
in which IBP considers its employees to be performing
compensable work commences with the processing of the
first piece of meat and ends with the processing of the last,

notably excluding any time spent abiding the Pasco plant’s -

required pre or post-shift routines.

In 1999, believing parts of IBP’s compensation practices to
be unlawful, the Pasco plant’s slaughter and processing
employees brought this class action suit under § 16(b) of the
Fair Labor Standards Act (“FLSA”), see 29 U.S.C. § 216(b)
(1999), and related provisions of Washington’s Minimum
Wage Act (“WMWA”) in United States District Court for the
Eastern District of Washington. Three aspects of their work-
day animated plaintiffs’ claim: (1) the pre-shift donning of
protective gear and the preparation of work-related tools,
including the attendant waiting and walking; (2) the requisite
donning and doffing of protective gear during the thirty-
minute unpaid mea!-break; and (3) the post-shift doffing,
cleaning, and storing of protective gear and tools.

In response to plaintiffs’ complaint, IBP promptly filed a
motion for summary judgment with the district court, raising
a series of interrelated state and federal defenses to plaintiffs’
claims. Rejecting IBP’s Labor Management Relations Act
preemption theory, the district court granted in part and
denied in part IBP’s first summary judgment motion.

Just over a year later, the district court denied another of
IBP’s motions for summary judgment, concluding that
Washington state courts were “likely” to adopt a per-hour

a tt ee ns

7a

standard of minimum wage compliance under the WMWA
because (1) the Washington legislature refused to incorporate
correlative FLSA language, thereby refusing to adopt FLSA’s
uniform application of the workweek standard, and (2) the
Washington Supreme Court had condoned the use of a per-
hour method in Seattle Professional Engineering Employees
Association v. Boeing Co., 139 Wash.2d 824, 991 P.2d 1126
(2000), placing that court’s imprimatur on a non-workweek
approach in certain contexts.

A month later, the district court issued a multi-part order,
excluding plaintiffs from the ambit of the Revised Code of
Washington § 49.46.130(2)(g)(ii)’s exemption of “agricul-
tural workers” from Washington’s forty-hour week rule,
finding IBP’s potentially willful violation of plaintiffs’ rights
preclusive of summary judgment on plaintiffs’ exemplary
damage claim, declaring IBP’s putative good faith too dubi-
ous to allow summary judgment, and rejecting IBP’s efforts
to import the holding of Reich, 38 F.3d at 1123, wholesale
regarding what activities are and are not compensable. A
twenty-day bench trial followed.

In spring of 2001, plaintiffs filed a particularized motion
for reconsideration, targeting the district court’s grant of
IBP’s motion for summary judgment on their separate
Washington Administrative Code § 296-126-092 (1999) rest-
break claim. Citing the Washington Court of Appeals’ loca-
tion of an implied cause of action for such claims in Wingert
v. Yellow Freight Systems, Inc., 104 Wash.App. 583, 13 P.3d
677 (2001), aff'd, 146 Wash.2d 841, 50 P.3d 256 (2002), the
district court granted plaintiffs’ motion to reconsider and
reversed its prior implied right of action decision.

Soon thereafter, the district court conducted a hearing on
trial objections, and, weeks later, the district court memorial-
ized its myriad conclusions in another multi-part order. In
pertinent part, the district court permitted plaintiffs to recover
pay on their state meal-break claim for each minute of break

8a

time lost up to ten minutes, granting a full thirty-minute
award to those losing any more than ten minutes; endeavored
to calculate damages along the narrowest and most accurate
job categories possible; found plaintiffs’ trial testimony
adequate to establish what equipment in addition to IBP’s
job-specific lists was “integral and indispensable” to particu-
lar job classifications; and, for most Pasco employees,
declared the first “compensable activity” to be the donning of
protective gear and the last compensable activity to be the
doffing of that gear, thus including in the district court’s
aggregate “compensable” period time spent walking to and
from locker room and work station, time spent donning and
doffing gear in order to comply with IBP’s meal and rest-
break exit and entry requirements, and time devoted to
waiting for, preparing, handling, replacing, and washing
“compensable” equipment.

To similar effect, on September 14, 2001, the district court
issued thorough findings of fact and conclusions of law. On
plaintiffs’ federal law claims, the district court applied 29
U.S.C. § 255(a)’s three-year statute of limitations, also
finding that the representative evidence adduced by the
plaintiffs adequately and accurately supported a damage
award for all plaintiffs, notwithstanding somewhat discrepant
job-specific donning and doffing rates, and concluding that
FLSA required compensation® for all of plaintiffs’ work
time—e.g., donning, doffing, and cleaning of “integral and
indispensable” protective gear; waiting and some walking
time during the workday—both during pre-shift and post-shift
times and during the thirty-minute meal-break.

in contrast, as non-compensable “work,” the district court listed
donning and doffing of mon-protective gear (¢.g., hard-hats, frocks, ear
plugs, safety goggles, and hair nets as non-protective gear), finding it
concomitantly less-than-integral to the job and demanding of only de
minimis time.

ee eet eon

9a

On plaintiffs’ state law claims, the district court again
rejected IBP’s preemption theses, determining IBP to have
infringed plaintiffs’ right to be paid for all hours worked
under Revised Washington Code §§ 49.46.020 and 49.46.030
(I 999), and finding IBP to have violated plaintiffs’ state law
rights vis-a-vis meal-break time and second rest-break time,
paralleling FLSA in assigning damages for the state meal-
break claim.

The district court also rejected IBP’s state-law and FLSA-
based defenses. On the former, the district court determined
that the Washington Supreme Court’s decision in Jnniss v.
Tandy Corp., 141 Wash.2d 517, 7 P.3d 807 (2000) (En Banc),
did not mandate adoption of the workweek standard as a
matter of state law for hourly employees. On the latter, the
district court found that 29 U.S.C. § 203(0) (1999), which
excludes “clothes changing” and “washing” time from com-
pensable time when these activities are the subject of
collective bargaining, offered IBP no relief because
§ 203(0)’s “changing clothes” and “washing” exclusions did
not reach donning, doffing, and cleaning of specifically
protective, non-clothing-like gear; that IBP lacked “good
faith”; and that the Portal-to-Portal Act did not operate to
plaintiffs’ disadvantage because the donning, doffing, and
cleaning of protective gear was “integral and indispensable”
to their jobs, fulfilling mutual obligations of employer and
employee. Walking and waiting time, the district court
continued, occurred during the principal workday and was
thus compensable.

For IBP’s FLSA and state-law violations, the district court
awarded plaintiffs liquidated damages, a measure of “double”
(i.e., exemplary) damages with regard to plaintiffs’ state
meal-break claims, and prejudgment interest. Over the next
few months, the district court denied plaintiffs’ motion for
injunctive relief, conducted a hearing on plaintiffs’ motion for
fees and sanctions, and memorialized its fee hearing decisions

10a

i oing Order.’ In its fee Order, the district court
re om ay dn Rules of Civil Procedure 52 and 59
motions and denied plaintiffs’ motion to strike certain aspects
of the record. Both IBP and plaintiffs filed timely notices of
appeal. We have jurisdiction under 28 U.S.C. § 1291.

It is axiomatic, under the FLSA, that employers must pay
employees for all “hours worked.” See 29 U.S.C. §§ 206, ne
(1999); Turner v. City of Philadelphia, 262 F.3d 222, 224 (
Cir.2001). The threshold question in this case is whether the
activities cited by the plaintiffs—donning and doffing,
waiting and walking—constitute “work” under the FLSA. We
agree with the district court that, under the facts presented by

this case, they do.

“Work,” the Supreme Court has long noted, is “physical or
mental exertion (whether burdensome or not) controlled or
required by the employer and pursued any
primarily for the benefit of the employer. See Tenn. Coal,
Iron & R. Co. v. Muscoda Local No. 123, 321 U.S. 590, 598,
64 S.Ct. 698, 88 L.Ed. 949 (1944). Definitionally incorpora-
tive, Muscoda’s “work” term includes even non-exertional
acts. See Armour & Co. v. Wantock, 323 U.S. 126, 133, 65
S.Ct. 165, 89 L.Ed. 118 (1944) (noting that even hs iS

ine qua non of “work” because “an employer . . .
ae a Am to do nothing, or to do nothing but wait for
something to happen’’).

laintiffs’ donning and doffing, as well as the attendant
aan and ain constitute “work” under Muscoda and
Armour’s catholic definition: “pursued necessarily and pri-
marily for the benefit of the employer,” Muscoda, 321 US. at
598, 64 S.Ct. 698, these tasks are activity, burdensome or not,

’ Neither party has challenged any aspect of the district court's fee
decision.

performed pursuant to IBP’s mandate for IBP’s benefit as an
employer. 323 U.S. at 133, 65 S.Ct. 165, 321 US. at 598, 64
S.Ct. 698. The activities, therefore, constitute “work.”

That such activity is “work” as a threshold matter does not
mean without more that the activity is necessarily com-
pensable. The Portal-to-Portal Act of 1947 relieves an
employer of responsibility for compensating employees for
“activities which are preliminary or postliminary to [the]
principal activity or activities” of a given job. 29 U.S.C.
§ 254(a) (1999). Not all “preliminary or postliminary”
activities can go uncompensated, however. “[A]ctivities
performed either before or after the regular work shift,” the
Supreme Court has noted, are compensable “if those activities
are an integral and indispensable part of the principal
activities.” Steiner v. Mitchell, 350 U.S. 247, 256, 76 S.Ct.
330, 100 L.Ed. 267 (1956); see also Mitchell v. King Packing
Co., 350 U.S. 260, 261, 76 S.Ct. 337, 100 L.Ed. 282
(1956); 29 C.F.R. § 790.7(h) (1999) (“[A]n activity which
is a ‘preliminary’ or ‘postliminary’ activity under one set
of circumstances may be a principal activity under other
conditions.”).

The Supreme Court’s approach to this “principal,” “inte-
gral and indispensable” duty question is context-specific. To
be “integral and indispensable,” an activity must be necessary
to the principal work performed and done for the benefit of
the employer. See Barrentine v. Arkansas-Best Freight Sys.,
Inc., 750 F.2d 47, 50 (8th Cir.1984), cert. denied, 471 US.
1054, 105 S.Ct. 2116, 85 L.Ed.2d 480 (1985); Dunlop v. City
Elec., Inc., 527 F.2d 394, 398 (Sth Cir.1976). Plaintiffs’
donning and doffing of job-related protective gear satisfies
Steiner’s bipartite “integral and indispensable” test.

First, because the donning and doffing of this gear on the
Pasco plant’s “premises is required by law, by rules of [TBP],
[and] by the nature of the work,” see 29 C.F.R. § 790.8(c)
n.65 (1999), this donning and doffing is “necessary” to the

12a

“principal” work performed. From sanitary aprons to metal-
mesh gear, IBP “by rule ],” éd., mandates the donning and
doffing of clothes and gear at various intervals throughout the
workday, requiring employees to wait for and to retrieve that
gear in particular areas at particular times on the Pasco plant’s
premises. See Steiner, 350 U.S. at 256, 76 S.Ct. 330. United
States Department of Agriculture sanitation standards and
Occupational Safety and Health Administration (hereinafter
“OSHA”) industry standards bolster this “by rule” con-
clusion, demanding maintenance of sanitary conditions, 9
C.F.R. § 308.3, and the provision of protective equipment at
the Pasco plant “wherever[ }[ ] necessary by reason of
hazards or processes of [work] environment.” 29 C.F.R.
§ 1910.132(a) (1999).

Second, it is beyond cavil that the donning, doffing,
washing, and retrieving of protective gear is, at both broad
and basic levels, done for the benefit of IBP. See generally
United Transp. Union Local 1745 v. City of Albuquerque, 178
F.3d 1109, 1116 (10th Cir.1999). These plaintiff-performed
activities allow IBP to satisfy its requirements under the law,
see 9 C.F.R. § 308.3 (1999); 29 C.F.R. § 1910.132(a) (1999),
and these activities prevent unnecessary workplace injury and
contamination, both of which would inevitably impede IBP’s
“disassembly” process. Under Steiner, plaintiffs’ donning,
doffing, and cleaning activities are “integral and indispensa-
ble” to Pasco’s “principal” activity.

This “integral and indispensable” conclusion extends to
donning, doffing, and cleaning of non-unique gear (e.g.,
hardhats) and unique gear (e.g., Kevlar gloves) alike. Little
time may be required to don safety glasses and the use of
safety goggles is undoubtedly pervasive in industrial work.
But ease of donning and ubiquity of use do not make the
donning of such equipment any less “integral and
indispensable” as that term is defined in Steiner. Safety
goggles are, like metal-mesh leggings, required by IBP, ane

13a

they are, like metal-mesh leggi
, -mi eggings, necessary to th -
re of the principal work. Both os “Seen oa
ispensable” under Steiner’s exception to the Portal-to-

Portal Act’s bar to c . eee
nary activity. ompensation of preliminary or postlimi-

However, we agree with the distri
ever, e district court’s alt i
ee to why the time spent donning and A cams
protective gear such as hardhats and safi s
not compensable: The time it takes en rae
pe to perform th
2 nag wap protective gear is de minimis ah
pohineny As a general rule,” we have noted, “employees
= rot recover for otherwise compensable time if it is de
anon “as 4 United States, 738 F.2d 1057, 1061-62
. “When the matter in issue conc
oot ong or minutes of work beyond i ae
g hours,” the Supreme Court has ob
( observed, “such
mony we t ea for] [s]plit-second absurdities are
Ctualities or working conditions or b
policy of the [FLSA].” Anderson v. M cota
. Mt. Clemens Pott
328 U.S. 680, 692, 66 S.Ct. 1187, 90 | 1940). Aa
» 692, ‘Ct. 1187, 90 L.Ed. 1515 (1946). A
Ay there posited > an alternative man to in
7 onning and doffing non-unique i
ae although essential to the job[ ] and aad te Ge
employer, is at once so insubstantial and so difficult to

monitor that it “is de minimi ”
ashe t S$ de minimis as a matter of law.” 38 F.3d at -

We agree with this conclusi
on, hoth as a matter of logi
ron as a matter of law. While we do not suggest that the
- pe 7" + is “trifl[ing],” see Mt. Clemens, 328
S. J Ct. 1187, we do believe that neith
: 1187, . er FLSA
— nor “the actualities of plaintiffs’ working conditions
sored a for the time spent performing these
s. Accordingly, donning and doffin i
% » do g of all protect
ed ~ integral and indispensable to “the sstastand estietiien
r which [the plaintiffs] are employed,” Steiner, 350 U.S at

14a

256, 76 S.Ct. 330, and generally compensable. However, the
specific tasks of donning and doffing of non-unique
protective gear such as hardhats and safety goggles is
noncompensable as de minimis. Lindow, 738 F.2d at 1061.

In sum, we agree with the district court’s conclusion, but
for different reasons in part. In this context, “donning and
doffing” and “waiting and walking” constitute compensable
work activities except for the de minimis time associated with
the donning and doffing of non-unique protective gear.

The FLSA contains an exception for “any time spent in
changing clothes” that .vas excluded from compensation
under “the express terms of or by custom or practice under
a bona fide collective-bargaining agreement.” 29 U.S.C.
§ 203(0) (1999) (hereinafter “§ 3(0)”). IBP argues that, even
if compensable in a general sense, the time employees spend
donning and doffing protective gear is non-compensable
under the “changing clothes or washing” exclusion.

Section 3(0) reads in pertinent part:

Hours Worked.—In determining for the purposes of
sections 206 and 207 . . . the hours for which an
employee is employed, there shall be excluded any time
spent in changing clothes or washing at the beginning or
end of each workday which was excluded from
measured working time during the week involved by the
express terms of or by custom or practice under a bona
fide collective-bargaining agreement applicable to the
particular employee.

Id.

Distilled to its essence, this case requires us to decide
whether putting on and taking off protective gear constitutes
“changing clothes” as that phrase is used in the statute.
Neither § 3(0) nor its legislative history defines the phrase,

15a

and no case law assesses the precise question we address
here. See, ¢.g., Nguyen v. Excel Corp., 197 F.3d 200, 203
(Sth Cir.1999) (noting that plaintiffs raised a similar § 3(0)
safety gear claim but not reaching the issue). In light of this
doctrinal, statutory, and legislative lacunae, we give the
relevant language its “ordinary, contemporary, common
meaning.” United States v. Akirtobi, 159 F.3d 401, 403 (9th
“ ce. + amaaage arog marks omitted) (quoting Perrin
v. United States, U.S. 37, 42, Ct.

anten 2, 100 S.Ct. 311, 62 L.Ed.2d

The parties posit various dictionary definitions and
regulatory references, mostly confined to discussing the
etymology of the word “clothes” and, in particular, its
commonly understood meaning during the year in which
§ 3(0) was adopted. IBP argues that “clothes” must mean
‘whatever is worn as covering for the human body,” citing
Webster's New International Dictionary of the “English
Language 507 (2d ed. unabridged 1939). IBP’s construction
would embrace any conceivable matter that might adorn
the human body, including metal-mesh leggings, armor
spacesuits, not gear, or mascot costumes. Citing the came
oo — plaintiffs contend that the meaning of

e word is limited 7
wile to covering worn “for decency or

. Viewed in statutory context, it is evident that the phrase

changing clothes” was not employed in the expansive
fashion urged by IBP. First, FLSA exemptions, the Supreme
Court has long counseled, “are to be narrowly construed
against the employers seeking to assert them.” Arnold v. Ben
Kanowsky, Inc., 361 U.S. 388, 392, 80 S.Ct. 453, 4 L.Ed.2d
393 (1960) (citing Mitchell v. Kentucky Fin. Co, 359 US
290, 295, 79 S.Ct. 756, 3 L.Ed.2d 815 (1959)); see also Auer
v. Robbins, 519 U.S. 452, 462, 117 S.Ct. 905, 137 L.Ed.2d 79
(1997). Following the Supreme Court’s lead, we have also
read FLSA exemptions—such as § 3(0)—tightly, refusing to

l6a

apply FLSA exemptions “except [in contexts] plainly and
unmistakably within the[ ] [given exemption’s] terms and
spirit.” Klem v. County of Santa Clara, 208 F.3d 1085,
1089 (9th Cir.2000) (internal punctuation omitted; emphasis
added); see also Do v. Ocean Peace, Inc., 279 F.3d 688, 691
(9th Cir.2002); Dole v. W. Extension Irr. Dist., 909 F.2d 349,
351 (9th Cir.1990). The protective gear at issue does not
“plainly and unmistakably” fit within § 3(0)’s “clothing”
term. Absent such a plain and clear § 3(0) fit, Arnold requires
that we construe § 3(0)’s against the employer seeking to
assert it. 361 U.S. at 392, 80 S.Ct. 453. Thus, the exemption

must be construed against IBP.

Second, and perhaps more importantly, specialized
protective gear is different in kind from typical clothing. The
admonition to wear warm clothing, for example, does not
usually conjure up images of donning a bullet-proof vest or
an environmental spacesuit. Rather, personal protective
equipment generally refers to materials worn by an individual
to provide a barrier against exposure to workplace hazards.
OSHA has recognized the difference in its regulations
defining “personal protective equipment”:

Personal Protective Equipment is specialized clothing or
equipment worn by an employee for protection against a
hazard. General work clothes (e.g. uniforms, pants,

shirts or blouses) not intended to function as protection
against a hazard are not considered to be personal

protective equipment.
29 C.F.R. § 1910.1030(b) (1999).

Of course, this OSHA definition was promulgated in a
different context. Nonetheless, it provides a useful analytic
distinction.® It also underscores the fact that, from both a

Sin the context of § 3(0), the distinction makes particular sense
because the section makes the time spent “changing clothes” the proper
subject of collective bargaining, whereas it would not be in the interest of

17a

regulatory and common sen
9 se perspective, “changi
powers means something different from “donning ct
> eer oe protective equipment.” In short. the
court correctly interpreted the “changi

. . . on | c
exception in § 3(0) as not including the time nt cians
personal protective equipment.’ aint

IV

IBP also disputes the distri
istrict court’s view of t

mae, work day. It claims that the district court a.
sane that the compensable work day began with the

act of compensable work. Specificall

' ; y, IBP ar
ge ge not paid for the time spent vine . no
asco plant stations after donnin

et equipment. Under § 4 of the Seahaniaaes tn.
— —_ receive compensation only for “hours worked ”
| tee oe “spony. during the “workday.” 29 U S.C

( ; See also S.Rep. No. 80-48. at 48 947)
(defining “workday” as the period “between the pone rig

public policy to allow disincenti
tives for employers and empl
government-mandated personal protective equipment. wesc

9
Appearing as an amicus curiae, the United State
, s Secretary
— pee with IBP’s definition of the “changing we ha room
jer a 8 a os covers the donning and doffing of the protective
istrator of the Departme on —s opinion letter, in fact, the admin-
§ 3e)'s clethinn tore ont of Labor’s Wage and Hour Division Stated that
worn by meat pare i - Protective safety equipment typically
1997 opinion letter = emproyees.” This position directly conflicts with a
concluded that the ‘ 7. pe same Division, in which the administrator
encompass protecti pen meaning of ‘clothes’ in section 3(0) does not
reaffirmed oo 197 safety equipment.” A January 15, 2001, letter
directed, “[aJn a cy conclusion. As the Supreme Court has
eundiion eth Oe a Interpretation of a relevant provision which
has Giteenee eee a s earlier interpretation is entitled to considerably
Fonseca, 480 U.S. 421 “446 0 30 07 $ Ct 120 pon Pe tpn
. ier ° . ’ At. 7, J
and we reject the Secretary’s new, inconsistent te a —_—

18a

ment . . . and the termination . . . of the principal activity . . .
which such employee was employed to perform”); 29 C.F.R.
§ 790.6(b) (1999) (noting that the “workday” includes “all
time within that period whether or not the employee engages
in work throughout all of that period”); cf id. §§ 785.16(a),
785.19 (1999). Under § 4, employees have no right to receive
overtime compensation for activities that are “preliminary to
or postliminary to [a job’s] principal activity or activities,” 29
U.S.C. § 254(a) (1999), unless those preliminary or postlimi-
nary activities are “integral and indispensable [to][ ] the
principal activities for which [the employees] are
employed.” Steiner, 350 U.S. at 256, 76 S.Ct. 330; 29 U.S.C.
§ 254(a) (1999).

The district court properly reasoned that the workday
commenced with the performance of a preliminary activity
that was “integral and indispensable” to the work, and the
district court also properly determined that any activity
occurring thereafter in the scope and course of employment
was compensable. Thus, the district court included “the
reasonable walking time from the locker to work station
and back . . . for employees required to don and doff com-
pensable personal protective equipment” in its “compensable”
time measure.

Steiner compels this conclusion. Steiner's “principal
activity” term expressly “embraces all activities . . . integral
and indispensable” thereto, preliminary or otherwise, 350
U.S. at 252-53, 76 S.Ct. 330 (internal quotation marks
omitted); the retrieval and donning of protective equipment
are “integral and indispensable” preliminary activities, and, as
such, are “embrace[d]” by plaintiffs’ “principal [work]
activity.” Jd. All activities performed thereafter—such as
“walking”—thus occur during the “principal” workday and
are compensable. /d.; see also 29 C.F.R. § 790.6(b) (1999).

IBP contends that § 254(a)(1) is a “stand alone” provision
excluding from compensability any and all “walking, riding,

19a

or traveling to and from the actual place of performance of
the principal activity” without regard for the “principal
activity itself. 29 U.S.C. § 254(a)(1) (1999), + cam
Steiner eschews such a construction and directs us to
“embrace” within the “principal activity” all “integral and
indispensable” activities thereto. 350 U.S. at 252-53 76 S.Ct
330. There is nothing in the statute or regulations that would
lead to the conclusion that a workday may be commenced
then stopped while the employee is walking to his station,
then recommenced when the walking is done.'° Plaintiffs
were required to obtain their protective gear from their
lockers and to be present at their work stations as the first
piece of meat arrived; they obviously could not have worked
without walking between these places. The district court

correctly held that Pasco plant w i
( ork time was conti
the sum of discrete periods. —"

V

IBP contends that it is shielded from liability by FLSA’s
good faith defense provisions. See 29 U.S.C. §§ 259, 260
(1999). One of these provisions, § 259, “was designed to
protect employers from liability if they took certain actions
on the basis of an interpretation of the law by a government
ony. even if the agency’s interpretation later turned out to

> wrong.” EEOC v. Home Ins. Co., 672 F.2d 252. 263 (2d
Cir.1982). In pertinent part, § 259 reads: )

[NJo employer shall be subject te any liabili

punishment for or on sein of the diene ot the
employer to pay . . . overtime compensation under the
[FLSA] re he pleads and proves that the act or
omission complained of was in good faith in conformity
with and in reliance on any written administrative

10
Pe... see Tum v. Barber Foods, Inc., 331 F.3d 1 (Ist Cir.2003)

ing under the facts of that case that such activity was not
compensable as part of the workday). :

20a

regulation, order, ruling, approval, or interpretation, of
(the relevant USDOL administrator], or any administra-
tive practice or enforcement policy of such agency. ...

29 U.S.C. § 259(a) (1999).

To be insulated from liability under § 259’s good faith
exception, an employer must “show it acted in (1) good faith,
(2) conformity with, and (3) reliance on the DOL’s
regulations or the Administrator’s Opinion Letter.” Frank v.
McQuigg, 950 F.2d 590, 598 (9th Cir.1991). This test has
both objective and subjective components, asking how a
“reasonably prudent [person] would have acted under the
same or similar circumstances” and requiring “that the
employer have honesty of intention and no knowledge of
circumstances which ought to put him upon inquiry.” Id.
(quoting 29 C.F.R. § 790.15(a) (1900)) (internal punctuation
omitted). Section 259’s test also places on employers “an
affirmative duty to inquire about uncertain [FLSA] coverage
issues,” see Keeley v. Loomis Fargo & Co., 183 F.3d 257,
271 (3d Cir.1999) (citing 29 C.F.R. § 790.15(b)), putting “the
risk of a close [good faith] case on the employer.” Reich, 38
F.3d at 1127; see also 29 C.F.R. § 790.15(d) n. 99 (1999)
(“It is not intended that this [good faith] defense [ ] apply
where an employer had knowledge of conflicting rules and
chose to act in accordance with the one most favorable to
him.”) (quoting 93 Cong. Rec. 4390 (1947)). The employer
bears the burden of proof to establish this exception.

IBP argues that its position (1) was supported by the
USDOL’s 1990s litigation strategy because that litigation
focused on non-unionized plants and, in so focusing,
demonstrated an administrative practice and enforcement
policy treating unionized plants as exempt from such
litigation under § 3(0), and (2) is bolstered by the supposed
good faith it demonstrated in studying and implementing a
four-minute compliance plan.

2la

The good faith provisions of § 259 do not embrace IBP’s
conduct. To come within the exception’s reach, an em-
ployer’s acts “must have been taken in reliance on [an]
administrative ruling or interpretation.” Home Ins. Co.. 672
Ho at 264. By their plain terms, court decisions agency
litigation Positions and self-initiated activities are not
administrative rulings or interpretations.” The only agenc
action upon which IBP relies is the enforcement iin
putatively evident in the USDOL’s 1990s litigation strate :
Despite IBP’s contentions to the contrary, however Reich
expressed no opinion regarding the § 3(0) “clothing” issue
and, in Reich, the Tenth Circuit even hinted that IBP’s broad
clothing” definition is untenable. 38 F.3d at 1127. As the
gs court rightly noted, the Reich litigation provided

‘nothing upon which to rely other than its assumptions

about what cl ;
under 3(0).” clothes changing and washing were including

P on _ moreover, litigating positions are regarded quite
ns sa al the law than an “administrative ruling or
yoy - — aa e.g., Bowen v. Georgetown Univ. Hosp.,
Peat ; , 212, 109 S.Ct. 468, 102 L.Ed.2d 493 (1988);
- rce Invs., Inc. v. U.S. Army Corps of Eng'rs, 151 F.3d
162, 1165 (9th Cir.1998). There is a sound basis for the
distinction. As the Supreme Court has explained, “Congress
has delegated to the administrative official and not to
appellate counsel the responsibility for elaborating and
a Statutory commands.” I/nvestment Co. Inst. v
Camp, 401 US. 617, 628, 91 S.Ct. 1091, 28 L.Ed2d 367
a ). Administrative agency constructions of governing
lutes are the product of deliberation and analysis by the
entity charged with application of the statute. Agenc
positions developed in litigation, by contrast, are not of ru
— gpa they are specifically tailored to help obtain a
avo le outcome in a pending controversy in which the
agency is involved. Concessions or settlements within the
course of the administrative litigation also may be made for a

22a

variety of quite justifiable reasons; however, the contextual
underpinnings are dissimilar from agency rule-making.

IBP’s four-minute compliance plan, moreover, merely
embodies an effort to overcome a settlement impasse in a
non-§ 3(0) context, offering no conclusion regarding IBP’s
supposed § 3(0) defense or its otherwise FLSA-violative
conduct. Under the facts presented by this case, the district
court did not err in rejecting IBP’s good faith theory.

Vi

If a particular employer’s conduct embodies “willful
violation” of FLSA, 29 U.S.C. § 255(a) permits extension of
the FLSA’s standard two-year statute of limitations to a three-
year period. McLaughlin v. Richland Shoe Co., 486 U.S. 128,
135, 108 S.Ct. 1677, 100 L.Ed.2d 115 (1988); see 29 U.S.C.
§ 255(a) (1999). The determination of willfulness is a mixed
question of law and fact, see Reich v. Monfort, 144 F.3d
1329, 1334 (10th Cir.1998), and we review mixed questions
de novo and the factual findings underpinning the
determination for clear error. See Rios v. Rocha, 299 F.3d
796, 799 n. 4 (2002). The district court did not err in
applying § 255’s three-year statute of limitations to plaintiffs’
FLSA claims. Cf, Reich v. Monfort, 144 F.3d at 1334-35.

For § 255’s extension to obtain, an employer need not
knowingly have violated the FLSA; rather, the three-year
term can apply where an employer disregarded the very
“possibility” that it was violating the statute, Herman v. RSR
Sec. Servs. Ltd., 172 F.3d 132, 141 (2d Cir.1999), although
we will not presume that conduct was willful in the absence
of evidence. Cox v. Brookshire Grocery Co., 919 F.2d 354,

356 (Sth Cir.1990).

To prove a particular FLSAgviolation willful under § 255,
the Supreme Court has, in general, required eviderice of an
employer’s “kn{owing] or [ ] reckless disregard for the matter
of whether its conduct was prohibited by the statute.”

23a

pone Shoe, 486 U.S. at 133, 108 S.Ct. 1677 (citing Trans

orld Airlines, Inc. v. Thurston, 469 US. 111, 125-30, 105

— ee 83 L.Ed.2d 523 (1985)). We agree with the district

pe te —— that “the proof demonstrate[s] [that IBP}

a y isregarded the possibility that [it] was violating
LSA.” Herman, 172 F.3d at 141 (emphasis added)

An examination of the record veri
ex erifies the propri

oe court’s conclusion. IBP was on no >
aa requirements, yet took no affirmative action to

ure compliance with them. To the contrary, IBP’s actions
may o properly be characterized as attempts to evade
= lance, or to minimize the actions necessary to
re lieve compliance. IBP “could easily have inquired into”
meaning of the relevant FLSA terms and the type of
: ri necessary to comply therewith. Herman, 172 F.3d at

. It failed to do so. The district court appropriately

lied § 255° - imitati
~ § sag three-year statute of limitations to IBP’s

Vil

The district court did not err in awarding li uidat

ed
— under the FLSA, a decision we satay tee > of
oe See Local 246 Util. Workers Union v. S. Cal
Edison Co.. 83 F.3d 292, 298 (9th Cir.1996). For violations of
LSA’s minimum and overtime wage provisions
employers “shall be liable to the . . . employees affected in
the amount of te Overtime compensation, as the case may be
> : an additional equal amount as liquidated damages.” 29
S.C. § 216(b) (1999); see Overnight Motor Transp. Co. v
Missel, 316 U.S. 572, 583-84, 62 S.Ct. 1216, 86 L.Ed 1682
(1942) (observing that FLSA liquidated damages are not

i
Cc .
ry 7 ml s pr say a roy International Union
Local . Coun San Diego, 3d 1346 (9th Cir.1994), j
inapposite because i i dun
— : the record in that case did not reflect any knowing or

24a

penalties exacted by law, but, rather, compensation to the
employee occasioned by the delay in receiving wages due).
Under 29 U.S.C. § 260, courts need not award liquidated
damages in every instance; instead, courts retain discretion to
withhold a liquidated damages award, or to award less than
the statutory liquidated damages total, where an employer
shows that, “despite the failure to pay appropriate wages, the
employer acted in subjective ‘good faith’ and had objectively
‘reasonable grounds’ for believing that the acts or omissions
giving rise to the failure did not violate the FLSA.” Herman,
172 F.3d at 142; see 29 C.F.R. § 790.17(i) n.110 (1999)
(observing that an employer’s inability to satisfy § 259 does
not preclude a court from finding that the employer met
§ 260’s terms).'”

To satisfy § 260, a FLSA-liable employer bears the “diffi-
cult” burden of proving both subjective good faith and
objective reasonableness, “with double damages being the
norm and single damages the exception.” Herman, 172 F.3d
at 142 (citing Reich v. S. New Eng. Telecomm. Corp., 121
F.3d 58, 71 (2d Cir.1997)); see also Dole v. Elliott Travel
& Tours, 942 F.2d 962, 968 (6th Cir.1991). Where the
employer “fails to carry that burden,” we have noted,
“liquidated damages are mandatory.” Local 246, 83 F.3d at
297 (citations omitted).

IBP “failed to take the steps necessary to ensure[its] [ |
practices complied with [FLSA].” Herman, 172 F.3d at 142.

'? Section 260 provides in relevant part:
In any action . . . to recover unpaid minimum wages, unpaid
overtime compensation, or liquidated damages, under the [FLSA], if
the employer shows to the satisfaction of the court that the act or
omission giving rise to such action was in good faith and that he had
reasonable grounds for believing that his act or omission was not a
violation of the [FLSA], the court may, in its sound discretion,
award no liquidated damages or award any amount thereof. . . .

29 U.S.C. § 260 (1999).

25a

Mistaking ex post ex i j
t explanation and justification for the
necessary affirmative “steps” to ensure compliance, IBP

ier pe oe Instead, it reiterates the value of its
oe pe of USDOL litigation Strategy, and of its four-
aa p lance plan. IBP’s efforts do not constitute

dence of taking the steps necessary to ensure FLSA

Fey “ry and, without such evidence, we cannot Say that
court abused its discretion in awarding liqui
damages. See Cox, 919 F 2d at Ne
Cox, ; 357 (“{Even findi
-- employer did not act willfully does not mar ne
of liquidated damages.”) (citation omitted).

Vill

ona court rejected IBP’s contention"? that it was
1p from the State of Washington’s overti
provisions because j ithi r pin
—_ use it fell within the “agricultural worker”
ption to those Provisions, which provides that the
Overtime provisions do not apply to:

individual{s] employed (i) on a f, i
arm, in the employ of
- ype in connection with the cultivation of the Soil
ha connection with raising or harvesting an
agricultural or horticultural commodity, including nies

, ,' j issue by raising it only i
pretrial motion for summary judgment. In generally, we a te tea

summary
my 1359 (9th Cir.1987), but i
» Judgment was entered fler i i
poem dag after a bench trial and the issue on appeal is
14 . ° P

oe panes. aa s baseline overtime-wage Provision, Wash. Rev.Code

_ ( ), reads in pertinent part: “[N]o employer shall . lo

me 's employees for a work week longer than forty hours unless sac,

ee mye compensation for employment in excess of the hours
spec at @ rate not less than one and one-half times the regular

26a

ing, shearing, feeding, caring for, — oe
management of livestock, bees, poultry, = pes e
animals and wildlife, or in the employ of the oped
tenant or other operator of a farm in connection oo -
operation, management, conservation, improvem ad -
maintenance of such farm and its tools and equips *
or (i) in Packing, Pe rket or to°a carrie for

ivering to storage, 0
ratrancver. Fa to amet any agricultural or ee
commodity; or (iii) commercial canning, anager =
freezing, or any other commercial processing, Ang
respect to services performed in connection y to
cultivation, raising, harvesting, and npg - —
or in connection with any agricultural - 0 “~ +
commodity after its delivery to a termina! mar

distribution for consumption. . . .

Wash. Rev.Code § 49.46.130(2)(g) (1999).

As the district court observed, “[t}his subsection =
applies to farm employment, and under no oO Cc =
IBP’s plant be deemed a farm.” However, the distric . :
acknowledged that some of the language in the subsec on
could be subject to a broader construction. However, .
the statutory context, the consistent ae ge : be
section by the Washington Department 0 nap Bac
Industries (“WDLI”), and Washington case law, ; e as
court concluded that the agricultural exemption di re wy
to the Pasco plant workers. Rather, the distric
concluded that, for purposes of applying the yo
“(t]he bright line is when an agricultural aged a ~
marketed, ie, conveyed by someone who rai ..
someone who did not.” (Emphasis in district = or »
Given the statutory and regulatory context, as we . He

principles of statutory construction governing this - ee
announced by the Washington Supreme Court, t A aa
court did not err in assessing how the Washington Sup

Court would decide the issue.

27a

Under Washington law, statutory “meaning is [to be]
discerned from all that the Legislature has said in the statute
and related statutes which disclose legislative intent about the
provision in question.” Dep't of Ecology v. Campbell &
Gwinn, L.L.C., 146 Wash.2d 1, 43 P.3d 4, 10 (2002) (En
Banc). In particular, the Washington Supreme Court has
directed courts construing the WMWA to heed the “terms and
spirit” of the Act overall and of the individual exemption at
issue. Drinkwitz v. Alliant Techsystems, Inc., 140 Wash.2d
291, 996 P.2d 582, 587 (2000). The “spirit” of Washington’s
labor code is plainly employee-protective. Washington’s
“long and proud history of being a pioneer in the protection
of employee rights,” id. at 586, has, through the years,
manifest in “a strong policy in favor of payment of wages due
employees [and in] a comprehensive [statutory] scheme to
ensure [such] payment.” Jnt'l Ass'n of Fire Fighters, Local
46 v. City of Everett, 146 Wash.2d 29, 42 P.3d 1265, 1267
(2002) (second alteration in original; internal quotation marks
omitted). The “spirit” of Revised Code of Washington
§ 49.46.130(2)(g), in turn, is substantially narrower than IBP
Suggests, aiming to exclude from WMWA’s protections only
those individuals employed in agriculture or horticulture
during the relatively short harvest season. As in the FLSA
context, we must construe exemptions to the WMWA
narrowly such that only contexts “plainly and unmistakably
consistent with the terms and spirit of the legislation” fit
therein. Jd. The individual plaintiffs do not “plainly and
unmistakably” fall within § 49.46.130(2)(g)’s ambit.

To the extent that the statute contains ambiguity, we agree
with the district court that the Washington Supreme Court
would likely afford deference to the state agency’s inter-
pretation. Under Washington law, deference is owed the state
agency interpretation of a state statute that the agency
enforces, “if the law being interpreted is within [that]
agency’s expertise.” Budget Rent A Car Corp. v. Wash.
Dep't of Licensing, 144 Wash.2d 889, 31 P.3d 1174, 1180

28a

(2001) (En Banc). In this case, the district court attached
significance to the WDLI policy that the agricultural worker
exemption does not apply to employees in commercial
processing of any agricultural commodities grown or raised
by another. Several WDLI officials testified as to this policy,
and a 1997 enforcement letter from WDLI declares that the
statutory exemption “should be strictly and narrowly
construed to exempt” only workers performing labor
“immediately necessary to complete the successful operation
of the agricultural/horticultural enterprise.” Although this
policy interpretation does not bind us, it provides an
additional persuasive indication of how the Washington
Supreme Court likely would decide the question.

Thus, in view of the principles of statutory construction
applicable under Washington law, the district court did not err
in determining that the Washington Supreme Court would
likely hold that the agricultural exemption is inapplicable to

the IBP packing plant employees."
IX

The .Washington Minimum Wage Act, like the FLSA,
requires employers to compensate employees at, at least, a
minimum wage rate. See Wash. Rev.Code § 49.46.020
(1999). Some courts have held that, under the FLSA, an
employee’s right to recover minimum wage accrues each
workweek, not by individual hour. See Dove v. Coupe, 759
F.2d 167, 172 (D.C.Cir.1985); see also 29 U.S.C. § 206(a)
(1999) (“Every employer shall pay [a minimum wage] to
each of his employees who in any workweek is engaged in

'S We need not address whether federal law preempts application of
Washington state law in this case, for IBP did not properly raise this
preemption argument on appeal. See Devereaux v. Abbey, 263 F.3d 1070,
1079 (9th Cir.2001) (“As a general matter, *[w]e review only issues which
are argued specifically and distinctly in a party’s opening brief.’”’)
(citation omitted, alteration in original).

29a

commerce or in the production of goods for commerce. . . .”)
We must determine whether the WMWA similarl rovid .
only a right to minimum wages based on a aie *k
standard or whether, in contrast, employees retain a aia

right to minimum wage under Washington law. skeos

Washington state courts have i
yet to determine wheth
— like plaintiffs, have a per-hour or a ro
— right to minimum wage. See Seattle Prof’l Eng'g
6 4 — hee n (“SPEEA”) v. Boeing Co., 92 Wash.App
. .2d 204, 225 (1998) (express! si “ad .
y refusing to “ad
whether compliance with the WMWA should i ccteeten
ey : grog basis”), as amended by 92 Wash.App
2d 204 (1998) (same). The district court
j ; strict court
concluded that Washington courts were “likely” to adopt ie
per-hour standard for hourly employees. We agree.

Pe og = = rales bases for its conclusion.
which is contained in the inna ees af ‘oe BA
Second, the district court drew significance from the fa t
that, in SPEEA, the trial court used a per-hour measure me
the Washington Supreme Court refused to criticize this aspect
of the trial court’s methodology. Third, it deferred > te
WDLI interpretation that, for hourly workers, the WDLI

employs the per-hour standard fi mi
or determ ni
wage compliance. ining minimum

We believe the district court’s analysis ji
Regulations interpreting the WMWA an dealt oitin te
this regard. Repeatedly listing “hourly” employment 4 a
gon employment type, these regulations permit use of
the work-week measure only for particular employment
nape See, e.g., Wash. Admin. Code § 296-128-550
= 999); id. § 296-126-021 (1999); id. § 296-126-010 (1999)

ere the Washington legislature disposed to apply the
workweek measure to hourly employees, it could have done
SO as expressly as it did vis-a-vis other employment types

30a

And were the workweek measure to be generally and
necessarily applicable, the Washington legislature’s specifica-
tion of the workweek standard for, e.g., commissioned
employees would be both extraneous and redundant.

Given this statutory and regulatory background, the district
court quite reasonably predicted that the Washington
Supreme Court would construe the WMWA as using a per-

hour standard for hourly employees.

X

In unequivocal terms, Wash. nee tn § rye ate
ires that “fe]mployees shall be allowed a meal pe

at least 30 Pan Wash. Admin. Code § 296-126-092(1)
(1999). Such “meal period{s]” are to “commence[ | no less
than two hours nor more than five hours from the beginning
of [an employee’s] shift,” and such meal periods “shall be
on the employer’s time—i.e., shall be paid— when the
employee is required by the employer to remain on duty pe
the premises or at the prescribed work site in the interest 0
the employer.” /d.

WDLI, appearing as an amicus curiae, asserts that Wash.
Admin.Code § 296-126-092 evinces a “clear, ‘bright-line
standard”: it requires employers to provide meal-breaks of at
least 30 minutes,” and it demands that employers interrupting
meal-breaks “pay for the entire meal break, regardless of the
length and the number of the work-interruptions or
curtailments.” Cf. Brennan v. Elmer's Disposal Serv., Inc.,
510 F.2d 84, 88 (9th Cir.1975) (“An employee cannot be
docked for lunch breaks during which he is required to
continue with any duties related to his work.”). The district
court construed this provision as compensating a particular
employee only for minutes lost if that employee lost less than
or as many as ten minutes of his or her meal-break time to
work duty, and awarding compensation for the full thirty-
minute term only where an employee lost more than ten

3la

minutes of his or her meal-break time to work duty. Cf. 29
C.F.R. §§ 785.18 & 785.19 (1999) (permitting employers to
reduce meal-breaks to twenty minutes under “special
conditions”; specifying the thirty-minute rule as one that need
only “ordinarily” be followed); S. New Eng. Telecomm.
Corp., 121 F.3d at 63-65 (applying § 785.19 in a “practical
manner”); see also Roy v. County of Lexington, 141 F.3d 533,
544-45 (4th Cir.1998) (adopting a “predominant benefit” test
in assessing meal-break claims under FLSA).

Although perhaps consistent with the FLSA, the district
court’s interpretation conflicts with the terms of the manda-
tory language of Wash. Admin. Code § 296-126-092. Unlike
the correlative FLSA provisions, which permit truncation of
the thirty-minute period in certain contexts, see 29 C.F.R.
§§ 785.18 & 785.19 (1999), neither Wash. Admin. Code
§ 296-126-092 nor its interpretative guides permit any
mitigation of the section’s mandatory thirty-minute duty-free
directive. See Wash. Admin. Code § 296-126-092(1) (ex-
pressly noting that employees “shall be allowed” a thirty-
minute meal-break); see also Wash. State Liquor Control Bd.
v. Wash. State Pers. Bd., 88 Wash.2d 368, 561 P.2d 195, 200
(1977) (En Banc) (“[A]s a general rule, the use of the word
‘shall’ in a statute is imperative and operates to create a
duty. ...”). Without reference to or acceptance of the kind of
“special circumstances” posited in 29 C.F.R. § 785.19, Wash.
Admin. Code § 296-126-092(1) requires “a meal period of at
least 30 minutes.” /d. No intrusions on this thirty-minute
period are condoned or even acknowledged; indeed, WDLI’s
most recent evaluation of this provision notes that “{i]f the
meal period should be interrupted due to the employee’s
performing a task . . . [t]he entire meal period must be
paid without regard to the number of interruptions.” Wash.
State Dep’t of Labor and Indus., Administrative Policy
ES.C.6 (2002), available at http://www.lni.wa.gov/scs/work
standards/policies /esc6.htm.

32a

The plain words of the statute buttress WDLI’s interpreta-
tion, and we owe WDLI’s construction deference under
Washington law. Wash. State Liquor Control Bd., 561 P.2d
at 200 (“The construction of a rule by the agency which
promulgated it is entitled to great weight.”); Drinkwitz, 996
P.2d at 591 (discussing Washington’s “long and proud history
of being a pioneer in the protection of employee rights ).
Under Wash. Admin. Code § 296-126-092, plaintiffs are
owed compensation for the full thirty-minute period where
IBP has intruded upon or infringed the pom ee —

inute term to any extent. We thus reverse the district court s
prs to Art its Wash. Admin. Code § 296-126-092
award, and we remand for recalculation of damages consis-
tent with this full thirty-minute remuneration approach.

XI

As the Supreme Court noted in Mt. Clemens, a court may
“award damages to [an] employee, even though the [award]
be only approximate.” 328 U.S. at 688, 66 S.Ct. 1187.
Heeding Mt. Clemens “approximate” term, the Tenth Circuit,
in Reich, affirmed a damage award based on “reasonable
time” measures where “differences in personal routines
occurred at the end of [a] shift.” 38 F.3d at 1127.

Charting a similar course, the district court attached “the
compensable time for each activity [ ] [to] the basis of a
reasonable time, rather than the actual time required for each
activity.” The use of reasonable time in this instance was
within the district court’s discretion. Mt. Clemens, 328 U.S.
at 687-88, 66 S.Ct. 1187; see Reich, 38 F.3d at | 127; Skipper
v. Superior Dairies, Inc., 512 F.2d 409, 420 (Sth Cir.1975).

First, we respectfully disagree with the plaintiffs’ read of
the district court’s damage and time analyses. The district
court did not make “actual” time findings only to disregard
them, and district court did not rely on a misconception of the
concept of “work.” We do not disagree wi

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385014_0745%3A02. Public record. Not legal advice.
