In the Matter of Minnesota Living Assistance, A17-1821

Published: March 5, 2019, 4 p.m.

b'Minnesota Living Assistance, Inc., d/b/a Baywood Home Care employed home health aides. The employees worked 24-hour shifts in client homes. During the relevant time period, the employees worked more than 48 hours per week, and Baywood paid them a daily rate of $165 or $170. In 2014, the Minnesota Department of Labor and Industry received a complaint that Baywood was not paying overtime as required by the Minnesota Fair Labor Standards Act (MFLSA), Minn. Stat. \\xa7\\xa7 177.21\\u2013.35 (2018). The Department conducted an investigation and concluded that Baywood had violated Minn. Stat. \\xa7 177.25 by failing to pay overtime wages for work performed \\u201cin excess of 48 hours in a workweek.\\u201d The Department issued a compliance order, which required the payment of back wages and liquidated damages. Following contested case proceedings, the Commissioner of Labor and Industry granted the Department\\u2019s motion for summary disposition with respect to Baywood\\u2019s failure to pay overtime wages.\\n\\nThe court of appeals reversed and remanded. The court of appeals concluded that \\u201cgenuine issues of material fact preclude a grant of summary disposition.\\u201d The court of appeals also concluded that the Commissioner\\u2019s determination that \\u201csplit-day pay plans and daily overtime are not permitted under the MFLSA\\u201d was \\u201cbased on an invalid, unpromulgated rule.\\u201d\\n\\nOn appeal to the supreme court, the issues presented are: (1) whether there is a genuine issue of material fact with regard to how the Baywood employees were paid; and (2) whether Baywood\\u2019s wage-payment plan violates the overtime requirements of the MFLSA. (Minnesota Department of Labor and Industry)'