A federal jury found that East Penn Manufacturing, one of the world’s largest battery manufacturers, violated federal law by failing to compensate employees for time spent on pre- and post-shift activities.

The jury awarded back wages of more than $22 million to the Department of Labor (DOL) on behalf of more than 7,500 employees working for East Penn.

It is the largest award under the Fair Labor Standards Act (FLSA) to date.

The lawsuit focused on whether certain tasks, such as changing into uniforms, donning personal protective equipment, and showering after shifts, were considered “integral and indispensable” to the employees’ work.

A 30-day trial ended when the jury found that the battery manufacturer was required to pay the affected workers for all of their working time, resulting in overtime violations. Typically, East Penn paid workers only for their 8-hour scheduled shift. The employer did not pay for additional time employees needed to put on and remove protective equipment and to shower to avoid the dangers of lead exposure and other hazards.

In evidence

The verdict ends a trial in response to the department’s March 2018 complaint against East Penn in federal district court. During the trial, the DOL presented the following evidence:

Testimony from employees confirming they and other co-workers performed unpaid work.
A witness who had performed a time study and provided testimony on the estimated time employees spent on this work.
Employer time records that showed East Penn did not pay employees based on their actual clock-in and clock-out times. The records showed how the company would consistently adjust times to pay employees only for their scheduled shift.

“Decades of settled law states that employers must pay employees for all hours worked, and this includes the time employees spend changing into and out of uniforms and showering where such activities, as here, were necessary and indispensable to their work,” said Solicitor of Labor Seema Nanda in a statement.

The DOJ further intends to ask the courts to award an equal amount in liquidated damages, an additional penalty available under the FLSA.

The jury verdict followed a 2021 summary judgment for the DOL. The court based that ruling, in part, on the fact that East Penn did not dispute employee testimony regarding time spent putting on and taking off protective gear outside their 8-hour shifts.

In a statement, East Penn asserted that “the jury found that East Penn did not act in a knowing or reckless disregard of the law” and that the company “stands behind the time paid to employees to put on and take off uniforms and to shower. The company believes it provided proper compensation for these activities and was fair in determining the reasonable time required to perform them.” The DOL had been seeking over $214 million in back wages.

Integral and indispensable

The FLSA states that employers are not obligated to pay for preliminary or post-work activities unless they are essential to the principal activities of the job. However, the interpretation of what tasks qualify as “integral and indispensable” has led to legal disputes, including cases involving bag checks and security screenings.

This case serves as a reminder that even short pre- and post-shift activities can lead to substantial liability. To mitigate risk, review the practices in your workplace.