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Roto-Rooter Services Co. v. Department of Labor

Citations: 219 Conn. 520; 593 A.2d 1386; 30 Wage & Hour Cas. (BNA) 980; 1991 Conn. LEXIS 339Docket: 14116

Court: Supreme Court of Connecticut; July 16, 1991; Connecticut; State Supreme Court

Narrative Opinion Summary

This case involves an appeal concerning the interpretation of 'commissions on services' under General Statutes § 31-76g, which addresses exemptions from overtime pay under § 31-76c. The plaintiff, a services company, challenged the Department of Labor's ruling that denied their employees an exemption because their compensation was not considered 'commissions on goods or services.' The Department interpreted the statute to apply only to employees selling services, not performing them. The Superior Court initially upheld this interpretation, prompting the plaintiff to appeal. The appellate court found that the statutory language of § 31-76g encompasses commissions earned from performing services, thus reversing the lower court's decision. Furthermore, the court ruled against applying a 1989 legislative amendment retroactively, as it lacked explicit intent for retrospective application. The court also dismissed the reliance on the labor department's and attorney general’s interpretations, emphasizing the statute's clarity. Ultimately, the court ruled in favor of the plaintiff, granting them the sought exemption, and remanded the case for judgment consistent with this interpretation.

Legal Issues Addressed

Declaratory Judgment and Statutory Interpretation

Application: The plaintiff sought a declaratory judgment to challenge the Department of Labor's interpretation, which the court ultimately reversed in favor of the plaintiff.

Reasoning: Roto-Rooter then sought a declaratory judgment, which the Superior Court upheld, agreeing with the Department's interpretation.

Deference to Agency Interpretation

Application: The court rejects deferring to the labor department's interpretation or the attorney general’s opinion, emphasizing statutory clarity.

Reasoning: Additionally, the court rejects deferring to the labor department's interpretation or the attorney general’s opinion, the latter being persuasive but not binding.

Exemption Criteria Under General Statutes 31-76g

Application: The criteria for exemption require that employees earn more than twice the minimum wage, derive more than half their compensation from commissions, and work fewer than fifty-four hours a week.

Reasoning: This statute specifies that certain conditions must be met, including that employees must earn more than twice the minimum wage, derive more than half their compensation from commissions, and work fewer than fifty-four hours a week.

Non-Retrospective Application of Legislative Amendments

Application: The court holds that the 1989 amendment to Sec. 31-76g should not be applied retroactively due to the absence of clear legislative intent.

Reasoning: However, since the amendment affects employer obligations regarding overtime and lacks clear legislative intent for retrospective application, the court agrees with the trial court’s conclusion that it should not be applied retroactively.

Statutory Interpretation of 'Commissions on Services' Under General Statutes 31-76g

Application: The court interprets 'commissions on services' to include commissions earned by performing services, not just selling them, reversing the Department of Labor's narrow interpretation.

Reasoning: The court determines that this phrase includes commissions earned by employees performing services, not just those selling services.