Judge Arthur D. Spatt
Hoops, employed by Keyspan Energy and National Grid USA, is covered by a union collective bargaining agreement (CBA). His 2010 suit charged the company with overtime violations under the Fair Labor Standards Act (FLSA) due to the failure of the company’s “Smart Time” payroll program to account for shift differentials when calculating overtime pay. The court held Hoops’ FLSA claims preempted by the Labor Management Relations Act (LMRA). Before it could adjudicate his right to overtime under the FLSA, the court had to determine what shift differentials to his straight time wage rate Hoops was entitled to—a right arising from the CBA and subject to its grievance procedures. Although Hoop’s amended complaint clarified his shift differentials, the court dismissed his FLSA claims as premature. Because Hoops’ entitlement to unpaid overtime under the FLSA hinged on his contractual right to night shift differentials to his straight-time wage rate, the court could not adjudicate Hoops’ FLSA claim absent a ruling on the contract claim. Hoops’ contractual right under the CBA to receive night differentials was a threshold question that must be pursued through the CBA dispute resolution procedures.
