Ninth Circuit Holds Time Booting Up Computers Is Compensable For Call Center Workers

Ashley Graves, Law Clerk

            The Court of Appeals for the Ninth Circuit held on October 24th that time spent by employees booting up their computers was compensable under the Fair Labor Standards Act (“FLSA”) because doing so was “integral and indispensable to their principal job duties.”[1]

Cadena v. Customer Connexx LLC – Background

            Connexx operated a call center where employees worked in-person, hourly, non-exempt positions, with primary responsibilities of providing customer service over the phone.  Employees clocked in and out using a computer-based timekeeping program, which was required to access other job-relevant programs on their computer terminals.  Employees had to turn on their computers, log in, and open the timekeeping program before working.  Employees were not assigned a particular computer and testified that, depending on the age of the computer and whether it was off or in sleep mode, it would take anywhere from a minute to twenty minutes for the computer to boot up so they could clock in. Once clocked in, employees would load various programs and scripts and confirm that their phone was ready to accept calls on their computers.  At the end of their shift, employees would wrap up their calls, close out of the job-relevant programs, clock out, and shut down their computers.  Employees estimated that shutting down their computer terminals took an average of 4.75 to 7.75 minutes.

The Lawsuit

            The employee plaintiffs filed suit alleging violations of the FLSA’s overtime provisions, contending that they were not paid for the time spent starting their computers prior to clocking in or closing their computers after clocking out.  The District Court dismissed their complaint, holding that “[s]tarting and turning off computers and clocking in and out of a timekeeping system are not principal activities,” since employees were not hired for that purpose, and therefore such activities were not compensable.

            The Court of Appeals reversed and first determined that the employees’ principal duties were answering calls and performing scheduling tasks.  The manner in which employees were able to perform these tasks was relevant, as the key question for the court was whether turning on and off computers was integral and indispensable to employees’ principal activities.  The court concluded that turning on the computers was integral and indispensable to the employees’ duties since none of the employees’ duties (including logging into Connexx’s timekeeping system) could be performed without turning on their computers, “and having a functioning computer [was] necessary before employees [could] receive calls and schedule appointments.”

            The court acknowledged that clocking in and out may not be integral to employees’ duties but found it sufficient that booting up the computers—which contained the programs necessary for employees to make their calls and otherwise perform their job duties—was integral to employees’ duties.  The Court recognized that not all activities an employer requires as part of an employee’s duties are compensable, “but when, as here, the required activity bears such a close relationship to the employee’s principal duties, the activity is compensable.”  The court declined to consider whether the time was de minimis and thus noncompensable.

Key Takeaways

            In reaching its determination, this court referenced a recent Tenth Circuit decision[2] which reached an identical conclusion.  These cases are binding in their respective jurisdictions, but all employers should be on notice that workers may seek similar rulings in other jurisdictions.  Additionally, while these cases were decided in the call center context, these decisions may have far-reaching effects and could potentially extend to other workforces that require functioning computers to fulfill job duties.  Going forward, employers in the Ninth and Tenth Circuits should consider whether computers are essential for their employees to perform their job duties, and if so, should ensure that nonexempt employees clock in prior to starting their computers.   

[1] Cadena v. Customer Connexx, LLC, --- F.4th ----, 2022 WL 13743450 (9th Cir. 2022)

[2] Peterson v. Nelnet Diversified Solutions, LLC, 15 F.4th 1033 (10th Cir. 2021)