The recent U.S. Supreme Court decision in Integrity Staffing Solutions v. Busk is a blow to hourly employees nationwide.
The employees at issue in Integrity Staffing were employed to retrieve products and package them for delivery to Amazon customers. These employees claimed that they were entitled to be paid for the time spent undergoing security screenings before leaving the warehouse each day. They estimated that these screenings took about 25 minutes each day, or about 2 + hours per week.
The Court analyzed this case under the Portal-to-Portal Act, which exempts employers from paying employees for activities that are preliminary and postliminary to the “principal activity or activities.” It found that the screenings were not the employees’ “principal activities” because Integrity Staffing had not hired them to undergo security screenings. Moreover, it found that the screenings were not “integral and indispensable” to the employees’ work as warehouse workers because they could perform their jobs, retrieving packages, without the screenings. The Court rejected the test used by the Ninth Circuit – whether an employer “required” a particular activity – in determining whether such activity was compensable under the federal wage and hour laws. The Court stated that that standard would be too broad and would run contrary to the intent of the Portal-to-Portal Act.
This decision is clearly a significant victory for employers, who now have clear guidance that in the vast majority of cases, the time an employee spends undergoing security screening is not compensable under federal law. But employers should still proceed carefully – particularly if their screenings result in employees waiting significant amounts of time. The Court alluded to the fact that requiring employees to wait a significant amount of time for security screening could trigger union demands to be paid for such time.