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Holmes v. Tradigrain, Inc.

Citations: 411 So. 2d 1132; 25 Wage & Hour Cas. (BNA) 958Docket: 12548

Court: Louisiana Court of Appeal; February 8, 1982; Louisiana; State Appellate Court

Narrative Opinion Summary

In this case, a former employee filed suit against her employer, Tradigrain, Inc., seeking recovery of unpaid wages, penalties, and attorney fees under Louisiana Revised Statutes 23:631-32. The employee, who had resigned shortly after being hired, was not paid within the statutory period, prompting her to demand payment. Despite receiving incomplete tax forms, Tradigrain delayed payment until after being served with a petition. The court found Tradigrain negligent and arbitrary in its failure to pay the employee timely, awarding her $1,288.63 for unpaid wages and penalties, including attorney fees. The judgment was affirmed, with the court emphasizing Tradigrain's duty to pay the wages regardless of the incomplete paperwork and noting that the employer could have withheld taxes as if no exemptions were claimed. The case highlights the employer's obligation to act in good faith and promptly resolve wage disputes, with the court ruling that Tradigrain's actions did not meet these standards, thus warranting penalties and additional attorney fees on appeal.

Legal Issues Addressed

Employer's Good Faith and Wage Payment

Application: If there is doubt about the obligation to pay wages or the employee's entitlement, penalties do not apply. However, Tradigrain did not act in good faith as it was negligent and arbitrary in handling Holmes' wage payment.

Reasoning: If there is doubt regarding the employer's obligation to pay wages or if wage offsets exist, penalties for non-payment do not apply. However, an employer who acts arbitrarily, creates procedural obstacles, or is negligent regarding wage payment is liable for penalty wages.

Employer's Obligation Under Louisiana Revised Statutes 23:631-32

Application: Employers must pay employees any wages due within three days of resignation or discharge. In this case, Tradigrain failed to pay Holmes within the required timeframe after her resignation.

Reasoning: Louisiana law mandates that employers must pay employees any wages due within three days of resignation or discharge, and if there is a dispute, the undisputed portion must be paid.

Penalty Wages for Non-Payment

Application: An employee can recover either 90 days' wages or full wages from the demand date until payment is made if the employer fails to timely pay wages. Holmes was awarded penalty wages as Tradigrain was found negligent and arbitrary in its payment delay.

Reasoning: Failure to comply allows the employee to recover either 90 days’ wages or full wages from the demand date until payment is made, along with attorney fees.

Provision of Necessary Tax Forms

Application: Employers should provide necessary tax forms to employees to ensure compliance. Tradigrain's failure to provide withholding tax forms contributed to the delay in Holmes' wage payment.

Reasoning: The court noted that while Holmes needed to complete the forms, Tradigrain also had a duty to provide them and could have paid her while withholding taxes as if she had claimed no exemptions.