Appearances:
Mr. Dan Steffenson, Attorney
For the Prosecuting Party
Mr. James T. Calmes, III, Attorney
For the Respondent
Before:
Richard T. Stansell-Gamm
Administrative Law Judge
RECOMMENDED DECISION AND ORDER
This action arises under the employee protection provisions of Section 405 of the Surface Transportation Assistance Act ("STAA" or "Act") of 1982, as amended and re-codified, Title 49 United States Code, Section 31105, and the corresponding agency regulations, Title 29, Code of Federal Regulations ("C.F.R."), Part 1978. Section 405 of the STAA provides for employee protection from employer discrimination because the employee has engaged in a protected activity, consisting of either reporting violations of commercial motor vehicle safety rules or refusing to operate a vehicle when the operation would violate these rules.
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On December 16, 2002, Mr. Bryant filed a discrimination complaint under the Act, alleging the Respondent, Mendenhall Acquisition Corp., d/b/a Bearden Trucking ("Bearden Trucking"), terminated his employment in retaliation for his compliance with the federal hours of service regulation. Following an investigation, on May 9, 2003, the Regional Administrator, Occupational Safety and Health Administration ("OSHA"), United States Department of Labor ("DOL"), informed Bearden Trucking that he had a reasonable belief that Bearden Trucking had violated the Act. Specifically, Bearden Trucking terminated Mr. Bryant on November 27, 2002 because he refused a dispatch on the basis that he needed a federally mandated eight hour rest break. In light of the discrimination violation, the Regional Administrator directed Bearden Trucking to pay Mr. Bryant $18,582.05 as compensation for lost wages between his termination date and an April 4, 2003 declination of an offer to return to work as a driver with Bearden Trucking.
On November 26, 2002, at 10:30 p.m., while under contract with the Respondent, Bearden Trucking, as an owner-operator, Mr. Bryant had completed approximately eleven hours of duty and driving when he received a request from the Respondent to take another load. The load required Mr. Bryant to leave about six hours later at 4:30 a.m on November 27, 2002. Because that departure would violate the DOT (U.S. Department of Transportation) hours of service regulations, Mr. Bryant refused to take the load. On November 27, 2002, Bearden Trucking terminated his contract.
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Mr. Bryant has established all three elements of a prima facie case of retaliatory discrimination. First, Mr. Bryant's refusal to drive a load in the early morning of November 27, 2002 due to his hours of service limitation was a protected activity. Mr. Mendenhall's admission that Mr. Bryant's refusal to drive was the "straw" that prompted his termination decision establishes the second requisite causation element. Third, Mr. Mendenhall's termination of Mr. Bryant's contract was an adverse action.
Mr. Mendenhall's purported other motives for his termination decision fail to insulate him from liability for the adverse action. According to Mr. Mendenhall, he planned to terminate his business relationship with Mr. Bryant because he was not as productive as other drivers, refused to drive on Sundays, and had proven to be unreliable. These stated motives are inconsistent with other facts in the record. Notably, Mr. Bryant never received any complaints about his availability or reliability. In fact, on occasions, Mr. Bryant put in more hours than other drivers. His unavailability in November for two weeks was caused by legitimate family and health emergencies. Additionally, Mr. Bryant's refusal to drive on Sunday was consistent with the acknowledged agreement between Mr. Bryant and Mr. Mendenhall that he would not be required to work on Sunday.
Even if the stated motives were legitimate, they do not alter the outcome of the discrimination analysis because Mr. Mendenhall has indicated that the November 26, 2002 refusal to drive was the event that caused him to terminate Mr. Bryant when he did. In other words, even in the presence of other motives, the principle event that caused Mr. Bryant's termination was his refusal to take the November 27, 2002 trip to Georgia.
Due to the contract termination based on retaliatory discrimination, Mr. Bryant eventually lost his truck and ability to drive as an owner-operator. Mr. Bryant attempted to mitigate his damages but he eventually had to take lower paying work as a local driver. As result, Mr. Bryant seeks back and differential pay of $14,533.24, plus interest. He also requests continuing weekly payments of $226.54 as front pay for "a reasonable period of time" based on his reduced earning capacity. Although the Respondent has offered him another position, that wage is lower than the amount he presently earns and the amount he earned as an owner-operator working for Bearden Trucking. Mr. Bryant is not interested in reinstatement.
The Respondent did not terminate Mr. Bryant's contract because he raised a safety concern. Bearden Trucking terminated Mr. Bryant's contract for failure to perform his duties. Mr. Bryant's reliance on one sentence in Mr. Mendenhall's six page written statement to Mr. Boyd falls well below the requisite standard to impose liability on Bearden Trucking.
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The evidence in the record fails to corroborate or substantiate Mr. Bryant's testimony that Mr. Mendenhall told him that he was terminated due to his refusal to take a load. Instead, since his first written response to the complaint, Mr. Mendenhall has been consistent in his stated reasons for terminating the contract with Mr. Bryant. Mr. Bryant had become an undependable driver who declined to work on the weekends. As a result, he was no longer a productive driver for Bearden Trucking.
Even if liability is imposed on Bearden Trucking, Mr. Bryant failed to fully mitigate his damages. Mr. Bryant is a qualified and experienced driver. Considering the high demand for drivers, he should have had no problem finding a new driving position with comparable pay. Instead of fully attempting to obtain re-employment, Mr. Bryant imposed numerous work conditions, such as no Sunday driving, which eliminated many job opportunities.
SUMMARY OF EVIDENCE
For the Prosecuting Party
Sworn Testimony of Mr. Domico Romerio Bryant (TR, pages 19 to 89)
[Direct examination and ALJ examination] After high school, Mr. Bryant spent five to six years gaining experience driving trucks. During that period, he drove a school bus, flatbed truck, over-the-road truck, and a cement mixer. In May 2001, he started working for Bearden Trucking as a local tractor-trailer driver. At that time, he was paid an hourly wage of $11 and earned between $750 and $1,100 a week. Later, the company changed the compensation plan to a flat rate per stop. Under this system, he received about $450 to $650 a week. During this period of employment, Mr. Bryant had an agreement with Mr. Mendenhall that he would not work on Sundays in order that he might attend church. On occasions, he would accept a driving assignment that began late Sunday afternoon or early evening.
In February 2002, Mr Bryant purchased his own truck. After receiving his licenses, in March 2002, Mr. Bryant began working for Bearden Trucking as an owner-operator. In June 2002, Mr. Bryant went to work for another trucking company, Palmetto State Transportation. Mr. Bryant still didn't work Sundays. In early August 2002, Mr. Bryant returned to Bearden Trucking because he was losing money with the other company. Mr. Mendenhall agreed he could return.
Bearden Trucking runs a seven day a week operation which means Mr. Bryant's on-duty limit was 70 hours in eight days. Mr. Bryant recorded his hours in a log book and provided a copy of the entries to Bearden Trucking. He never received any feedback about his time logs.
During his last months with Bearden Trucking, in October and November 2002, Mr. Bryant refused loads on a few occasions due to DOT hours of service limitations. On one occasion, Mr. Craig Salvo asked him to take a load. When Mr. Bryant refused because he was out of DOT driving hours, he called Mr. Mendenhall. Mr. Mendenhall told Mr. Bryant that if he was out of hours, Mr. Mendenhall would find another driver.
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Mr. Bryant received no verbal or written warnings from Bearden Trucking about poor performance. He was never informed that his performance was being reviewed. Since his return to Bearden Trucking in August 2002, Mr. Bryant had been asked to drive over his hours limitation more than ten times.
In the early morning of November 26, 2002, in Lebanon, Indiana, while Mr. Bryant was sleeping in the truck cab, he was awoken at 3:00 a.m. due to a loading problem. At 4:30 a.m., as he departed, Mr. Bryant called Mr. Mendenhall and informed him about the departure delay due to the need to reload the truck. Mr. Bryant then drove 30 minutes and stopped in Blacklands, Indiana to sleep. When woke up at 10:30 a.m. he called Mr. Salvo and told him that he would call later in the day upon his arrival in Greenville, South Carolina. In Corbin, Kentucky, Mr. Bryant experienced a traffic delay, stopped for fuel and took a one hour break. At that location, around 4:00 p.m., he called Mr. Mendenhall to tell him his anticipated arrival time was 10:30 p.m. Mr. Mendenhall replied that he had better hurry up and sleep because he was being dispatched at 3:00 a.m. for a 6:00 a.m. delivery in Smyrna, Georgia. Mr. Bryant told Mr. Mendenhall that for safety reasons he would not be able to take that load because it would put him over his hours of service. Mr. Mendenhall eventually said okay. Mr. Bryant arrived in Greenville, South Carolina at 10:30 p.m.
The next morning, the Wednesday before Thanksgiving, Mr. Bryant called Mr. Mendenhall to determine whether a settlement check could be picked up that day or on Friday. At that time, Mr. Mendenhall told Mr. Bryant that his contract was terminated. When Mr. Bryant asked why, Mr. Mendenhall replied that it was because he refused the load. Mr. Bryant specifically asked Mr. Mendenhall whether he was terminating the contract because he refused a load that would put him over his hours. Mr. Mendenhall said yes.
That same day, after picking up his wife, Mr. Bryant went to Mr. Mendenhall's office. Mr. Mendenhall repeated that the contract was terminated because Mr. Bryant had refused to take the load to Atlanta. A few days later, Mr. Bryant returned to the office about a settlement check. Mr. Mendenhall told him that under the contract Bearden Trucking had 15 days to settle and could hold the last settlement check up to 90 days. Mr. Bryant received a settlement payment two weeks later and did not receive the last settlement check until January 2003.
April 4, 200316 Mr. Bryant declines Bearden Trucking's offer of reinstatement as a company driver because he believes he will earn more as a company driver for Hardaway Concrete.
March 30, 2003 through July 5, 2003 Mr. Bryant earns $12 an hour, plus benefits, as a driver for Hardaway Concrete. For each overtime hour, Mr. Bryant receives $18. When working in the range of mid-30 hours a week, Mr. Bryant earns an average gross pay of $403. During the weeks he operated 56 or more hours, Mr. Bryant's average gross income is $830.
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From March 30, 2003 through April 27, 2003, the Greenville Sunday newspaper want ads contains multiple job opportunities for local truck drivers.
Next, both parties agree that the weekly portion of Mr. Bryant's monthly $1,800 truck payment should then be deducted from his average weekly receipts. This computation produces a weekly income figure of $738 ($1,153 - 415), which Mr. Bryant maintains represents his average weekly income. However, while some of its suggested additional expenses are speculative, I do agree with Bearden Trucking that Mr. Bryant's proposed weekly figure does not accurately reflect his total expenses as an owner-operator. Notably, Mr. Bryant has not included deductions for expendable items, such as tires and his annual licensing fees. Additionally, Mr. Bryant has not factored in other expenses, related to taxes, associated with his unique self-employment status that further reduce his owner-operator weekly income. As specifically mentioned in his contract with Bearden Trucking (PX 3), as an independent contractor, Mr. Bryant was liable for self-employment taxes which include a) medicare, social security, state, and federal taxes that would have been otherwise withheld from his paycheck as an employee, and, b) the employer's share of social security and medicare taxes.29
1The following notations appear in this decision to identify evidence: PX - prosecuting party exhibit; RX - respondent exhibit; ALJ - administrative law judge exhibit; and, TR - transcript.
2Opening statement (TR, pages 6 and 7) and closing brief, dated October 3, 2003.
3Opening and closing statements (TR, pages 8 and 242 to 248).
4During another portion of his testimony, Mr. Bryant indicated he received 82 cents a mile (TR, pages 77 and 78). His settlement statements with Bearden Trucking reflect a rate of 82 cents a mile (PX 7 and PX 8).
5A weekly deduction of $82.63 for "CS" started in the third pay period. Since I do not know the meaning of "CS," I have not included that figure as a part of the required deductions.
8Since the entry for a bill payment of $951.81 is not in the weekly summary, I have not included that check noted in the PX 8 summary for Mr. Bryant.
9I have not included the total payments to B.L. Enterprises and Mr. Jones Patrick because their disbursements did not cover the same period. I've excluded Piggyback Service Company because that owner-operator appears to have frequently provided more than one truck. Finally, I did not include the unidentified bill payment entry for Mr. Oxindine.
10See PX 8 for disbursements to Piggyback Service Company.
11As I informed the parties at the hearing, I take judicial notice of the applicable DOT regulations establishing the hours of service limitations for drivers (TR, pages 57 and 58).
13I note that 49 C.F.R. §§ 395.1 (b) and 395.2 permit a driver to exceed the 10 hours driving maximum limit by up to 2 hours to complete a trip if he encounters unexpected, adverse driving conditions, such as unusual traffic.
14Concerning witness credibility, all factual findings, including credibility findings must be supported by substantial evidence in the record as a whole. NLRB v. Cutting, Inc. 791 F.2d 659, 667 (7th Cir. 1983).
15Correspondingly, within this context, Mr. Mendenhall's version of the Wednesday morning telephone conservation seems highly unlikely. Mr. Bryant called to find out when he could pick up his settlement check. Mr. Mendenhall told him he could pick it on Friday. Next, Mr. Mendenhall told Mr. Bryant his contract is terminated. Then, apparently, Mr. Bryant and Mr. Mendenhall said "goodbye."
16Neither party has presented evidence of the exact date of Mr. Bryant's declination. However, in his May 9, 2003 decision letter, the Regional Administrator states the offer was made on April 4, 2003,which is consistent with the evidence before me that the offer and refusal occurred in early April 2003.
17The decisions by the Secretary, U.S. Department of Labor, and the Administrative Review Board concerning STAA complaints are identified by year (1995 STA 34), case type (1995 STA 34), and case number (1995 STA 34) and are available at http://www.oalj.dol.gov/LIBWHIST.HTM.
18The remaining portion of his answer stressed the reasons for the termination presented earlier in the written statement.
19This comparison still has a deficiency because the record does not contain evidence of the value of Mr. Bryant's fringe benefits as a company driver, such as sick and vacation leave. The practical value of these benefits is demonstrated by Mr. Bryant's experience in November 2002. As an independent driver, Mr. Bryant did not have any paid leave benefits. As a result, when he took time off in November 2002 and didn't drive, Mr. Bryant received nothing.
21Mr. Bryant's collection of fifteen settlement statements (PX 6) which shows a total mileage of 27,197, does not include the summary for the week ending September 1, 2002. Consequently, I rely on the employer's mileage of 28,772 set out in RX 4.
25The total mileage in the fifteen weekly summaries submitted by Mr. Bryant is 27,197. The total associated fuel charges for that mileage was $6,063. As a result, Mr. Bryant's fuel costs were about $0.223 a mile ($6,063/27,197) and his fuel cost for the mileage run this week was about $351(1,575 x 0.223).
26Bearden Trucking applied a $5 handling charge for each fuel stop. On average, $150 in fuel charges represented one fuel charge. See charged handling fee for weeks ending 8/18/02 and 9/15/02.
27Between October 27, 2002 and November 3, 2002, Mr. Bryant was not on-duty any day (RX 6).
28This last week only represents half a week of employment since Mr. Bryant's contract was terminated effective November 27, 2002.
29Neither Mr. Bryant nor Bearden Trucking submitted a copy of Mr. Bryant's 2002 federal tax return. In declaring his income as an independent contractor in 2002, Mr. Bryant would have attached to his federal tax return Schedule C, Profit and Loss, Business, and Schedule SE, Self-Employment Tax. At this time, I take judicial notice under Schedule SE, the self-employment tax is 15.3% of net income.
39$532.66 + 78.55. Since Mr. Bryant did not produce any income for the week ending 2/14/03, I have added the $78.55 fuel charge for that week with the fuel charge for 2/7/03.
41Because Mr. Bryant did not provide the number of miles that he drove, I am unable to further reduce the net receipt figure for the business expense associated with expendable items.
47Mr. Bryant had a guaranteed gross income of $384 based on 32 hours of duty.
48 Starting this week, an additional $82.63 was deducted from Mr. Bryant's paycheck for "CS." Since "CS" is not identified, I have not included that deduction. As a result, from this week on, this net income figure is greater than Mr. Bryant's actual paycheck by $82.63.
50Likewise, since Mr. Bryant has found better employment in terms of weekly disposable income, Bearden Trucking's liability for back pay also ceases as of April 1, 2003.