Fourth Circuit Court of Appeals Extinguishes VA Battalion Chiefs OT Claims

In an important and highly anticipated decision, the United States Court of Appeals for the Fourth Circuit upheld a 2019 federal court decision denying FLSA overtime for seven Chesapeake, Virginia Battalion Chiefs without the need of a trial. While this decision, which was handed down unanimously by a three-judge panel last Friday, only applies to a small handful of battalion chiefs in one Virginia city, it will undoubtedly impact overtime eligibility for shift commanders across the country. Here is a quick run-down of the issues, the rulings, and why they are so important.

In order to correctly classify any first responder, regardless of his or her rank, as an overtime “white-collar” executive employee, the employer must satisfy several criteria. Key to this analysis is proving that the first responder’s primary duty is acting as a manager of the organization and not as a first responder. This fact is critical since Department of Labor (DOL) regulations prohibit classifying any first responder as an overtime exempt “white-collar” employee.

The heart of the Chesapeake Battalion Chief’s claims centered around their first responder status. Initially, the battalion chiefs claimed they were entitled to overtime because they were first responders. However, their argument eventually expanded to include who should make the determination of whether a fire officer is a first responder or a high-level manager when the parties disagree on the facts necessary to reach that conclusion.

On August 24, 2018 a group of seven Chesapeake battalion chiefs filed a lawsuit in federal court challenging the city’s classification as overtime exempt employees. The chiefs made several rather common claims regarding their responsibilities, duties, and functions within the fire department. Specifically, the chiefs alleged that as first responders, they did not have the ability to respond to emergency calls at their discretion, were required to follow many of the same rules and requirements as the city’s non-exempt firefighters and officers (physical fitness, training, certifications), and had no authority to establish written policies or to discipline employees. The city countered that the battalion chiefs possessed a significant amount of discretion and authority and that they met the various requirements on the FLSA’s “white-collar” overtime exemptions. For more on the chief’s allegations including a copy of the initial complaint, click here.

Fast forward to June 18, 2019. U.S. Magistrate Judge Lawrence R. Leonard dismissed the battalion chiefs’ claims in a somewhat unusual fashion. Magistrate Lawrence was able to conclude “as a matter of law” [which means that no reasonable jury could have found otherwise] that these battalion chiefs met the “white-collar” overtime exemptions and were thus ineligible for any FLSA overtime. In particular, Magistrate Leonard found that since these battalion chiefs “do not directly fight fires or engage in hands-on on-scene emergency response” they do not meet the requirements necessary to be considered a “first responder” under Department of Labor (DOL) regulations. For more on the magistrate’s decision, click here.

The battalion chiefs appealed this ruling to the U.S. Court of Appeals for the Fourth Circuit. The primary argument advanced by attorney’s representing the battalion chiefs related to the dismissal of the chief’s claims absent a trail. Basically, they argued questions related to whether the battalion chiefs were first responder or high-level management officials are best determined by a jury through a trial. A trial would allow for witnesses to testify under oath and have evidence presented by both sides. The jury could make a factual determination, based on this evidence and testimony as to the battalion chief’s FLSA status.  

However, the Fourth Circuit didn’t share this opinion. The fourth circuit affirmed the lower court’s decision, thus dismissing the battalion chief’s claims without a trial. Whether one agrees with the courts’ decisions (i.e. lack of a trial) is rather irrelevant at this point. This decision may even result in a chilling effect on current and future litigation surrounding “white-collar” overtime exempt shift commanders, regardless of their rank. Meanwhile, management sided attorneys will be praising the decisions as embodying the true intent of the DOL’s First Responder regulations. Only time will tell.

Here is a copy of the Fourth Circuits ruling.