Summary
In Wall, the Court found that the accrued sick time was substantially similar to accrued vacation pay and constituted wages and an "amount then due" under La. R.S. 23:631.
Summary of this case from Calamia v. Core Labs., LPOpinion
NO. 2016 CW 0487
06-29-2016
DOROTHY WALL v. ASCENSION CREDIT UNION
In Re: Dorothy Wall, applying for supervisory writs, 23rd Judicial District Court, Parish of Ascension, No. 113399. BEFORE: WHIPPLE, C.J., GUIDRY, PETTIGREW, THERIOT AND CHUTZ, JJ.
WRIT GRANTED WITH ORDER. The March 8, 2016 judgment of the district court which denied the motion for summary judgment filed by plaintiff, Dorothy Wall, is reversed. There is no dispute herein that the payment for the accrued Reserve Sick Bank time to plaintiff was not paid by defendant within fifteen days following the date of her discharge. La. R.S. 23:631. Pursuant to La. R.S. 23:632, an employer who fails or refuses to comply with the provisions of La. R.S. 23:631, unless such dispute over the amount of wages due was in good faith, shall be liable to the employee for penalty wages. The Reserve Sick Bank time accrued by plaintiff, Dorothy Wall, during her employment with defendant, Ascension Credit Union, constitutes wages pursuant to La. R.S. 23:631 and 23:632. Such accrued time is substantially similar to accrued vacation pay and accrued paid days off, and accordingly, constitutes an amount then due pursuant to La. R.S. 23:631. See Beard v. Summit Institute of Pulmonary Medicine and Rehabilitation, Inc., 97-1784 (La. 3/4/98), 707 So.2d 1233, 1235; and Davis v. St. Francisville Country Manor, L.L.C., 2013-0190 (La. App. 1st Cir. 11/1/13), 136 So.3d 20. The policy of defendant, Ascension Credit Union, which sought to divest plaintiff of her accrued Reserve Sick Bank time upon termination for cause, is invalid pursuant to La. R.S. 23:634. See Wyatt v. Avoyelles Parish School Board, 2001-3180, 2002-0131, 2002-0259 (La. 12/4/02), 831 So.2d 906, which held that La. R.S. 23:634 does not prevent an employer from restricting an employee's right to accrue annual leave or vacation pay, but rather, the statute generally provides that an employer must compensate an employee upon his resignation for any unused vacation pay that the employer's stated policy has allowed him to accrue. See also Davis, supra. Moreover, reliance on an unlawful company policy does not constitute a good faith non-arbitrary defense to liability for unpaid wages. Beard, supra. This Court further finds that the affidavit of plaintiff, Dorothy Wall, was uncontroverted as to her demand for payment, and established that oral demand was made by plaintiff on February 19, 2015, which constituted sufficient demand pursuant to La. R.S. 23:632. See Jones v. LeBlanc, 263 So.2d 119 (La. App. 1st Cir. 1972); and Kern v. River City Ford, Inc., 98-0407 (La. App. 1st Cir. 2/19/99), 754 So.2d 978, 984. The finding of liability for the penalty wages by defendant further subjects defendant to liability for attorneys' fees. See La. R.S. 23:632(C); Pace v. Parker Drilling Co. and Subsidiaries, 382 So.2d 988 (La. App. 1st Cir. 1980), writ denied, 383 So.2d 1016 (La. 3/21/80). For the foregoing reasons, plaintiff, Dorothy Wall, has met her burden of proving that no genuine issue of material fact exists, and as a matter of law, she is entitled to the penalty wages and attorneys' fees provided by La. R.S. 23:632. Judgment is rendered in favor of plaintiff, Dorothy Wall, and against defendant, Ascension Credit Union, for penalty wages and attorneys' fees pursuant to La. R.S. 23:632 as a result of the untimely payment of plaintiff's accrued Reserve Sick Bank time. This matter is remanded to the district court for a determination of the amount of penalty wages and attorneys' fees to be awarded to plaintiff.
VGW
JMG
WRC
Theriot, J., concurs and would grant the writ.
Pettigrew, J., dissents and would deny the writ. COURT OF APPEAL, FIRST CIRCUIT /s/_________
DEPUTY CLERK OF COURT
FOR THE COURT