Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: February 6, 2014
The Firm
201-896-4100 info@sh-law.comU.S. businesses started the October 2013 Supreme Court Term with a key victory for employers. Earlier this month, the justices unanimously ruled that U.S. Steel Corp. did not have to pay unionized employees for time spent changing in and out of protective gear under the terms of a collective bargaining agreement.
Under the Fair labor Standard Act (FLSA), the clock starts running on employee compensation when the worker engages in a “principal activity.” Accordingly, courts have held that workers must be compensated for the time they spend donning and doffing required uniforms and safety gear, unless it is de minimis.
However, the rules are different for unionized employees. Under section 203(o) of the FLSA, an employer is not required to compensate a worker for time spent “changing clothes” (even if it is a principal activity) if that time is expressly excluded from compensable time under a bona fide collective bargaining agreement.
The decision in Sandifer v. U.S. Steel Corp. resolves a circuit split regarding how to resolve the two provisions of the FLSA. The justices ultimately concluded that the majority of the protective gear at issue in the case fell under the definition of “clothes” in Section 203(o) and, therefore, the time was not compensable.
“Dictionaries from the era of [Section] 203(o)’s enactment indicate that ‘clothes’ denotes items that are both designed and used to cover the body and are commonly regarded as articles of dress,” Justice Antonin Scalia wrote. “[N]othing in the text or context of [Section] 203(o) suggests anything other than the ordinary meaning of ‘clothes.’ ”
Scalia further noted that there was “no basis for the proposition that the unmodified term ‘clothes’ somehow omits protective clothing.” With regard to safety gear such as glasses and earplugs, Scalia conceded that they were not typically viewed as clothes.
However, the justices concluded that a decision treating these types of protective items differently would create confusion for courts down the road. It is unlikely that Congress intended to “convert federal judges into time-study professionals,” Scalia wrote.
If you have any questions about this case or would like to discuss how it may impact your company’s wage and hour policies, please contact me, Christine Vanek, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena

When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo

For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan

As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer

In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!