FILED
Apr 11 2016, 9:20 am
CLERK
Indiana Supreme Court
Court of Appeals
and Tax Court
ATTORNEY FOR APPELLANTS ATTORNEYS FOR APPELLEE
Ronald E. Weldy Bonnie L. Martin
Weldy Law Steven F. Pockrass
Indianapolis, Indiana Ogletree, Deakins, Nash, Smoak &
Stewart, P.C.
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
Dorothea Bragg, on Behalf of April 11, 2016
Herself and All Others Similarly Court of Appeals Case No.
Situated, 49A02-1506-PL-653
Appellants-Plaintiffs, Appeal from the Marion Superior
Court
v. The Honorable Heather A. Welch
Trial Court Cause No.
Kittle’s Home Furnishings, Inc., 49D01-1406-PL-18569
Appellee-Defendant.
Bradford, Judge.
Case Summary
[1] Appellant-Plaintiff Dorothea Bragg was employed as a retail sales consultant by
Appellee-Defendant Kittle’s Home Furnishings, Inc. (“Kittle’s”) from
November of 2011 until September of 2013. Pursuant to the terms of Bragg’s
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employment, Bragg earned a regular bi-weekly salary. She also had the
potential to earn additional compensation, in the form of commission, if she
completed a certain level of delivered sales. Bragg voluntarily terminated her
employment at Kittle’s in September of 2013.
[2] On June 4, 2014, Bragg, both on behalf of herself and on behalf of a proposed
class of unknown current and former Kittle’s employees (the “unknown
purported class members”), filed a lawsuit against Kittle’s. In this lawsuit,
Bragg alleged that Kittle’s had failed to pay its employees earned commissions
within the ten-day limit set forth in the Indiana Wage Payment Statute (the
“Wage Payment Statute”). Of note, Bragg did not allege that Kittle’s had failed
to pay her or any of the other unknown purported class members any
commissions actually earned by the employees, only that Kittle’s failed to do so
within the ten-day limit set forth in the Wage Payment Statute.
[3] Kittle’s subsequently filed a motion to dismiss the lawsuit. With respect to the
claims relating to any of the unknown purported class members whose
employment had been involuntarily terminated by Kittle’s, the trial court
granted Kittle’s motion to dismiss for lack of subject matter jurisdiction. With
respect to the claims relating to Bragg, and seemingly any potential remaining
unknown purported class members, the trial court converted Kittle’s motion to
dismiss into a motion for summary judgment. After the parties submitted
designated evidence and legal argument in support on their position on Kittle’s
motion for summary judgment, the trial court granted summary judgment in
favor of Kittle’s.
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[4] Upon review, we conclude that (1) the trial court lacked subject matter
jurisdiction over the claims raised on behalf of any unknown purported class
members whose employment with Kittle’s was involuntarily terminated
because said unknown purported class members failed to first submit their
claims to the Indiana Department of Labor (“DOL”) as required by the Indiana
Wage Claims Statute (“Wage Claims Statute”); (2) the trial court did not abuse
its discretion in denying certain discovery requests made by Bragg. We
therefore affirm the judgment of the trial court; and (3) the trial court properly
granted summary judgment in favor of Kittle’s on the claims raised by Bragg
and any remaining unknown purported class members because the ten-day time
limit set forth in the Wage Payment Statute did not apply to the commissions at
issue as said commissions did not qualify as wages under the Wage Payment
Statute.
Facts and Procedural History
[5] Beginning on or about November 29, 2011, Bragg was employed as a retail
sales consultant at the Kittle’s store located in Fort Wayne. Bragg continued to
be employed by Kittle’s until she resigned from her position on September 1,
2013.
[6] As a retail sales consultant, Bragg received “chargeable draws toward
anticipated future commissions on a bi-weekly basis.” Appellee’s App. p. 36.
These “draws” were based on the number of hours Bragg worked each week
“multiplied by a pre-determined rate per hour, thus providing her with a regular
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and predictable stream of income every two weeks.” Appellee’s App. p. 36.
The draws were considered “chargeable” because “they counted toward the
commissions that Bragg received based on her delivered sales for the prior
month.” Appellee’s App. p. 36. “In the event that the commissions calculated
on Bragg’s delivered sales for the prior month … exceeded her chargeable draw,
[Bragg] received the excess in the form of a commission check.” Appellee’s
App. p. 36. If the amount of delivered sales did not exceed Bragg’s chargeable
draw, “then [Bragg] would not have received a commission check that month,
but Kittle’s also would not have required her to write a check or make some
other form of payment to Kittle’s that month to cover the difference, nor would
Kittle’s have reduced her future draws.” Appellee’s App. p. 36.
[7] It is undisputed that Bragg received commission payments on July 27, 2012,
August 24, 2012, September 21, 2012, October 16, 2012, November 16, 2012,
December 28, 2012, January 25, 2013, February 22, 2013, March 22, 2013,
April 19, 2013, May 17, 2013, June 28, 2013, July 26, 2013, August 23, 2013,
September 20, 2013, and October 18, 2013. It is also undisputed that on these
dates, Kittle’s paid all commissions owed to Bragg.
[8] On June 4, 2014, Bragg filed a complaint for damages, alleging a purported
class action under the Wage Payment Statute on behalf of current and former
employees of Kittle’s who had received “late payments of commissions on or
after May 30, 2012.” Appellee’s App. p. 3. Bragg was the only named plaintiff
identified. The complaint did not allege that any amounts remained unpaid as
of the date of the initiation of the law suit. The complaint also did not indicate
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that Bragg or any of the unknown purported class members received a referral
from the DOL for his or her claims.
[9] On August 13, 2014, Kittle’s filed a motion to dismiss Bragg’s complaint. In
this motion, Kittle’s sought dismissal on the grounds that the trial court lacked
subject matter jurisdiction over the claims of any involuntarily terminated
unknown purported class members who failed to exhaust the administrative
remedies provided by the DOL. Kittle’s also sought dismissal on the grounds
that Bragg’s commissions did not qualify as wages under the Wage Payment
Statute. On October 27, 2014, the trial court issued an order converting the
portion of Kittle’s motion to dismiss relating to the issue of whether Bragg’s
commissions qualified as wages under the Wage Payment Statute to a motion
for summary judgment and allowed the parties to conduct discovery on the
wage issue for summary judgment briefing.1
[10] The trial court scheduled a hearing on Kittle’s motion to dismiss for December
5, 2014. Approximately five days before the hearing, on Sunday, November
30, 2014, Bragg issued subpoenas to certain DOL personnel to appear at the
December 5, 3014 hearing. Bragg sought to have the DOL personnel give
testimony, which she believed might provide evidence which could be used in
opposition to Kittle’s motion to dismiss. On December 4, 2014, the Indiana
1
This ruling would also seem to apply to the claims of any unknown purported class members
who were either employed by Kittle’s at the time Bragg initiated the instant lawsuit or who
had voluntarily terminated their employment at Kittle’s.
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Attorney General’s Office filed a motion to quash the subpoenas. The trial
court subsequently vacated the December 5, 2014 hearing date.
[11] On December 10, 2014, the trial court granted the Attorney General’s motion
to quash. Bragg filed a motion to reconsider this order on January 5, 2015.
The trial court denied Bragg’s motion to reconsider on January 9, 2015. Bragg
filed a motion requesting permission to depose the DOL personnel on January
29, 2015. This request was denied by the trial court on February 2, 2015.
[12] On March 13, 2015, the trial court issued an order granting the motion of
Kittle’s to dismiss with respect to any unknown purported class members whose
employment was involuntarily terminated, finding it lacked subject matter
jurisdiction over such claims. On May 18, 2015, the trial court granted
summary judgment in favor of Kittle’s, finding that, as a matter of law, the
commissions paid to Bragg did not qualify as wages under the Wage Payment
Statute.2 This appeal follows.
Discussion and Decision
[13] On appeal, Bragg challenges the trial court’s order dismissing the claims raised
on behalf of the unknown purported class members whose employment was
involuntarily terminated by Kittle’s. Bragg alternatively challenges the trial
2
Again, this ruling would also seemingly apply to any remaining unknown purported class
members.
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court’s denial of a discovery request made on behalf of the unknown purported
class members whose employment was involuntarily terminated by Kittle’s.
Bragg last challenges the trial court’s order granting summary judgment in favor
of Kittle’s as to her claim against Kittle’s and those raised by any remaining
unknown purported class members. We will review each challenge separately.
I. Motion to Dismiss
[14] Bragg, on behalf of the unknown purported class members whose employment
was involuntarily terminated by Kittle’s, challenges the trial court’s order
granting Kittle’s motion to dismiss. “Our review of a trial court’s ruling on an
Indiana Trial Rule 12(B)(1) motion to dismiss where the facts before the trial
court are undisputed, as here, is de novo.” Hollis v. Def. Sec. Co., 941 N.E.2d
536, 537 (Ind. Ct. App. 2011) (citing Reel v. Clarian Health Partners, Inc., 917
N.E.2d 714, 717-18 (Ind. Ct. App. 2009), trans. denied), trans. denied.
[15] In granting Kittle’s motion to dismiss, the trial court found that it did not have
subject matter jurisdiction over any unknown purported class members whose
employment with Kittle’s was involuntarily terminated, because said unknown
purported class members had failed to exhaust their administrative remedies
pursuant to the Wage Claims Statute before filing the underlying lawsuit. In
challenging the trial court’s order, Bragg claims that the unknown purported
class members were not required to exhaust any administrative remedies
because they properly brought suit under the Wage Payment Statute, rather
than the Wage Claims Statute. Bragg alternatively argues that the failure to
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exhaust administrative remedies should be excused because the exercise of the
applicable administrative remedies would be futile.
A. Whether the Wage Payment Statute or the Wage Claims
Statute Applies
[16] Bragg claims that the trial court erroneously determined that the Wage Claims
Statute applies to any unnamed purported class members whose employment
with Kittle’s was involuntarily terminated. In raising this claim, Bragg asserts
that the question of which statute applies “is a matter of first impression
because the issue has barely been analyzed to date by any appellate court.”
Appellant’s Br. p. 15. However, we find this assertion curious, to say the least,
because even a cursory review of relevant Indiana authority indicates that the
appellate courts have considered this issue, on the merits, on numerous
occasions. See Treat v. Tom Kelley Buick Pontiac GMC, Inc., 646 F.3d 487, 489-
492 (7th Cir. 2011); Walczak v. Labor Works-Ft. Wayne LLC, 983, N.E.2d 1146,
1149 (Ind. 2013); St. Vincent Hosp. and Health Care Center, Inc. v. Steele, 766
N.E.2d 699, 705 (Ind. 2002); Hollis, 941 N.E.2d at 537-540; Gavin v. Calcars AB,
Inc., 938 N.E.2d 1270, 1271-72 (Ind. Ct. App. 2010), trans. denied. The
assertion is also curious because counsel for Bragg was also counsel of record
on at least three of the prior cases where this specific issue has been analyzed by
appellate courts, and therefore would have first-hand knowledge that this issue
had, in fact, been decided. See Treat, 646 F.3d at 489-492; Hollis, 941 N.E.2d at
537-540; Gavin, 938 N.E.2d at 1271-72.
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[17] Be that as it may, in considering whether the Wage Payment Statute or the
Wage Claims Statute applies to a plaintiff’s claim, the Indiana Supreme Court
determined that “[a]lthough both the Wage Claims Statute and the Wage
Payment Statute set forth two different procedural frameworks for wage
disputes, each statute applies to different categories of claimants.” Steele, 766
N.E.2d at 705; see also Hollis, 941 N.E.2d at 538-540; Gavin, 938 N.E.2d at 1272.
In reaching this determination, the Indiana Supreme Court observed that:
The Wage Claims Statute references employees who have been
separated from work by their employer and employees whose
work has been suspended as a result of an industrial dispute. I.C.
§ 22-2-9-2(a)(b). By contrast, the Wage Payment Statute
references current employees and those who have voluntarily left
employment, either permanently or temporarily. I.C. § 22-2-5-
1(b).
Steele, 766 N.E.2d at 705. We have subsequently applied the Indiana Supreme
Court’s decision in Steele in both Hollis and Gavin. See Hollis, 941 N.E.2d at 538-
540; Gavin, 938 N.E.2d at 1272.
[18] Further, in reviewing the relevant Indiana authority regarding whether the
Wage Payment Statute or Wage Claims Statute applied to a plaintiff’s claim,
the Seventh Circuit has noted that “both of these statutes, and questions about
their application, have received substantial attention from the Indiana state
courts.” Treat, 646 F.3d at 488. The Seventh Circuit cited to the Indiana
Supreme Court’s decision in Steele and our conclusions in Hollis and Gavin,
stating:
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The language of the Indiana Code suggests, and the Indiana state
courts have repeatedly confirmed, that the [Wage] Payment
Statute provides an avenue for relief to employees seeking unpaid
wages who voluntarily leave their employment or who remain
employed and whose wages are overdue. The [Wage] Claims
Statute, on the other hand, applies to employees seeking unpaid
wages after their employer has fired them.
Id. at 490.
[19] Contrary to Bragg’s claim, multiple appellate tribunals have considered whether
the Wage Payment Statute or the Wage Claims Statute applies to a plaintiff’s
cause of action. Each of these tribunals makes it clear that an employee’s status
at the time he or she files the claim is the relevant inquiry in determining
whether to proceed under the Wage Payment Statute or the Wage Claims
Statute. See Treat, 646 F.3d at 489-492; Walczak, 983, N.E.2d at 1149; Steele,
766 N.E.2d at 705; Hollis, 941 N.E.2d at 537-540; Gavin, 938 N.E.2d at 1271-
72. Thus, where a potential plaintiff’s employment was involuntarily
terminated by their former employer, the applicable authority is clear, the Wage
Claims Statute applies. See Treat, 646 F.3d at 489-492; Hollis, 941 N.E.2d at
537-540; Gavin, 938 N.E.2d at 1271-72.
[20] Therefore, we conclude that the Wage Claims Statute applies to the unknown
purported class members whose employment was involuntarily terminated by
Kittle’s. These unknown purported class members were therefore required to
exhaust the administrative remedy provided in the Wage Claims Statute by first
submitting their claims to the DOL. Steele, 766 N.E.2d at 705. They did not do
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so. Instead, Bragg, again on behalf of these unknown purported class members,
improperly filed a complaint based on the Wage Payment Statute in the trial
court. Because these unknown purported class members did not first submit
their claims to the DOL as is required by the Wage Claims Statute, we conclude
the trial court properly dismissed the claims raised by Bragg on behalf of the
unknown purported class members whose employment was involuntarily
terminated by Kittle’s. See Hollis, 941 N.E.2d at 540 (providing that because the
Wage Claim Statute applied to plaintiff’s claims and plaintiff did not allege any
Wage Claims Statute claims or submit his claims to the DOL, the trial court
properly dismissed plaintiff’s claims).
B. Whether Failure to Exhaust Administrative Remedies
Should Be Excused
[21] Again, plaintiffs who proceed under the Wage Claims Statute may not file a
complaint with the trial court but rather must first submit a claim to the DOL.
Lemon v. Wishard Health Servs., 902 N.E.2d 297, 300 (Ind. Ct. App. 2009), trans.
denied. Once a claim has been submitted to the DOL, the DOL’s responsibility
is described as follows:
(a) It shall be the duty of the commissioner of labor to enforce
and to insure compliance with the provisions of this chapter, to
investigate any violations of any of the provisions of this chapter,
and to institute or cause to be instituted actions for penalties and
forfeitures provided under this chapter. The commissioner of
labor may hold hearings to satisfy himself as to the justice of any
claim, and he shall cooperate with any employee in the
enforcement of any claim against his employer in any case
whenever, in his opinion, the claim is just and valid.
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(b) The commissioner of labor may refer claims for wages under this
chapter to the attorney general, and the attorney general may initiate
civil actions on behalf of the [plaintiff] or may refer the claim to any
attorney admitted to the practice of law in Indiana. The provisions of
IC 22-25-2 apply to civil actions initiated under this subsection by
the attorney general or his designee.
Id. (quoting Ind. Code § 22-2-9-4) (emphasis in original). “It is evident that the
Wage Claims Act contemplates that a [plaintiff] must approach the DOL before
he or she is entitled to file a lawsuit in court to seek unpaid wages or penalties.”
Id. “The DOL is then entitled to investigate the claim and refer the claim to the
Attorney General, who may either institute an action on the [plaintiff’s] behalf
or refer the claim to an attorney.” Id. at 300-01.
[22] In concluding that a plaintiff seeking redress pursuant to the Wage Claims
Statute must first submit the claim to the DOL before filing a lawsuit in court,
we observed that “[t]he statute makes it clear that a claim must work its way
through the proper channels—the DOL and, if need be, the Attorney General—
before it may be brought into court.” Id. at 301. We further observed that “the
plain language of the Wage Claims [Statute] requires that the letter be
obtained—and the administrative process followed—before the lawsuit is filed.”
Id. at 302.
[23] We applied our conclusion in Lemon to our opinion in Reel v. Clarian Health
Partners, Inc., 917 N.E.2d 714, 720 (Ind. Ct. App. 2009), trans. denied, in which
we stated the following:
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We agree with Lemon that a [plaintiff] seeking redress pursuant to
the Wage Claims Statute must first submit the claim to the DOL
before he or she is entitled to file a lawsuit in court and that the
act of filing a putative class action does not enable the putative
class members to subvert the statutory requirements. Therefore,
we conclude that the trial court properly granted Clarian’s Trial
Rule 12(B)(1) motion to dismiss the purported wages claims of
the proposed class of plaintiffs who had not sought review and
referral pursuant to Indiana Code section 22-2-9-4. That is,
because these proposed class members did not first pursue
administrative proceedings, the trial court did not have subject
matter jurisdiction over their purported wage claims.
(Footnote omitted).
[24] Despite our conclusions in Lemon and Reel, Bragg argues that the unknown
purported class members’ failure to first submit any potential claims to the
DOL should be excused.3 In support of this argument, Bragg asserts that
submitting the potential claims to the DOL would be futile. We disagree.
[25] In making the futility argument, Bragg cites to our opinion in Fox v. Nichter
Construction Co., 978 N.E.2d 1171 (Ind. Ct. App. 2012), reh’g denied. In Fox, we
outlined the DOL’s policies and powers, stating, in relevant part, the following:
According to the DOL … [b]y statute, when the wage claim is
submitted to the DOL it then becomes “the duty of the
commissioner of labor to enforce and to insure compliance with
3
We note that counsel for Bragg was also counsel for the plaintiffs involved in both Lemon
and Reel. See Lemon, 902 N.E.2d at 298; Reel, 917 N.E.2d at 715.
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the provisions of this chapter, to investigate any violations of any
of the provision of this chapter, and to institute or cause to be
instituted actions for penalties and forfeitures provided under this
chapter.” Ind. Code § 22-2-9-4(a). The DOL Commissioner
may exercise the duty, or “may refer claims for wages under this
chapter to the attorney general, and the attorney general may
institute civil actions on behalf of the claimant or may refer the
claim to any attorney admitted to the practice of law in Indiana.”
Ind. Code § 22-2-9-4(b).
If the DOL chooses to resolve the claim instead of making a
referral … the DOL notifies the employer of the claim in
writing…. If neither the [plaintiff] nor the DOL receives a
response from the employer [within two weeks], then a final
notice is sent to the employer providing for a one-week period of
time in which to respond. [Indiana Department of Labor, Online
Wage Claim Form, http://www.in.gov//dol/2734.htm (last
visited Oct. 3, 2012)]. If the employer fails to respond to the final
notice, then the DOL sends a copy of the wage claim file to the
[plaintiff] along with a letter recommending that the [plaintiff]
consult with an attorney or pursue the claim in court. Id.
If the employer disputes the claim, however, the DOL will make
a determination based upon the law and the documentation
provided by the parties. Id. … It is the DOL’s position that the
determination does not represent formal findings, nor is it
binding on the parties. If the DOL cannot make a determination,
the [plaintiff] “will receive notice along with a letter
recommending that [he or she] consult an attorney or pursue
[the] claim in the appropriate court.” Id.
The DOL contends that it does not provide a formal claim
resolution process and is not required to do so by law. The DOL
considers the administrative process it provides to be more in the
nature of mediation than a formal administrative review, and is
not subject to judicial review.
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Although the [plaintiffs] who are involuntarily separated from
their employment must submit their claim to the DOL first
before proceeding to court, it is the DOL’s practice to accept all
claims regardless of whether they arise under the Wage Claims
Statute or the Wage Payment Statute. [Steele], 766 N.E.2d at 705
(claimant under Wage Claims Statute must submit claim first
with DOL). The DOL has adopted this approach because it is
consistent with the DOL’s statutory authority and promotes
judicial economy by allowing all wage claimants the opportunity
to resolve their wage disputes at the administrative level first.…
The DOL argues that it benefits both the parties and trial courts
to allow all [plaintiffs] to attempt to resolve their disputes
administratively. When the DOL is able to resolve the claims to
the satisfaction of both the [plaintiff] and the employer, then
there is no need to present the claim in court.
****
The DOL’s position is that when it is unable to resolve the claim,
the claimant “will receive notice along with a letter
recommending [he or she] consult an attorney or pursue [the]
claim in the appropriate court.” Indiana Department of Labor,
Online Wage Claim Form, http://www.in.gov//dol/2734.htm
(last visited Oct. 3, 2012).
Id. at 1177-78 (some brackets in original, some added). Bragg points to the
above-quoted language and claims that “[g]iven that the DOL has no
investigative or enforcement apparatus, then if any of the proposed
involuntarily separated Class Members had filed their claims with the DOL,
then it would clearly had not benefited them in any manner. The DOL could
not provide these wage claimants with a remedy or otherwise perform any
meaningful task with regard to their wage claims.” Appellant’s Br. p. 23. We,
however, find Bragg’s interpretation of Fox to be inaccurate.
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[26] Contrary to Bragg’s interpretation, we read Fox to provide that once a claim is
submitted to the DOL, the DOL has the power to work with the parties to try to
resolve the claim, refer the matter to the attorney general, or provide the
plaintiff with a recommendation to pursue the matter in the appropriate court.
Each of these actions can provide a benefit to the plaintiff. Further, we observe
that in attempting to resolve matters, the DOL acts in a manner similar to a
mediator and engages in efforts to help the parties resolve their dispute without
the need for litigation. The DOL’s policies and procedures promote judicial
economy by allowing all wage claimants the opportunity to resolve their wage
disputes at the administrative level first before engaging in the often time-
consuming and expensive process of litigation. As such, we cannot agree with
Bragg’s broad assertion that submission of any claims brought under the Wage
Claims Statute to the DOL would be futile.
[27] For the foregoing reasons, we decline Bragg’s request to excuse the unknown
purported class members’ failure to first submit their possible claims to the
DOL. As we concluded in Reel, we again conclude that in light of the unknown
purported class members’ failure to exhaust their administrative remedies, the
trial court did not have subject matter jurisdiction over the purported wage
claims at issue. 917 N.E.2d at 720. We therefore further conclude that the trial
court properly granted the Trial Rule 12(B)(1) motion by Kittle’s to dismiss the
claims raised on behalf of the unknown purported class members whose
employment was involuntarily terminated by Kittle’s. See id.
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II. Denial of Discovery Request
[28] Bragg alternatively argues that the trial court abused its discretion in denying
her request to depose certain DOL personnel in an attempt to gain evidence
which she believes may have bolstered her futility argument.
A trial court has broad discretion in ruling upon discovery issues,
and we will interfere only where an abuse of discretion is
apparent. [Brown v. Dobbs, 691 N.E.2d 907, 909 (Ind. Ct. App.
1998)]. An abuse of discretion occurs only where the trial court’s
decision is against the logic and natural inferences to be drawn
from the facts of the case. Id. Due to the fact-sensitive nature of
discovery matters, a trial court’s ruling is cloaked with a strong
presumption of correctness on appeal. Id.
Riggin v. Rea Riggin & Sons, Inc., 738 N.E.2d 292, 308 (Ind. Ct. App. 2000).
[29] Bragg fails to point to any specific information which she believes that she
would have been likely to gain by deposing the requested DOL personnel.
Instead, her request seems to represent little more than a fishing expedition for
some unknown piece of information which may, or may not, exist. As such,
we conclude that the trial court did not abuse its discretion in denying Bragg’s
request to depose certain DOL personnel in an attempt to gain evidence which
she believes may have bolstered her futility argument.4
4
Because we conclude that the trial court did not abuse its discretion in denying Bragg’s
request to depose certain requested DOL personnel, we need not consider Bragg’s alternative
argument that the trial court could have converted the motion by Kittle’s to dismiss to a
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III. Summary Judgment Order
[30] Initially, we note that our analysis below is framed as whether the commissions
paid to Bragg qualified as wages under the Wage Payment Statute. The same
analysis, however, would apply to the commissions earned by any possible
remaining unknown purported class member who was either employed by
Kittle’s at the time Bragg filed the underlying lawsuit or who voluntarily
terminated their employment at Kittle’s. Therefore, our resolution of Bragg’s
claims also resolves any claims raised on behalf of any possible remaining
unknown purported class members.
A. Standard of Review
[31] The purpose of summary judgment is to terminate litigation
about which there can be no factual dispute and which may be
determined as a matter of law. Bushong v. Williamson, 790
N.E.2d 467 (Ind. 2003). On appeal, our standard of review is the
same as that of the trial court. Summary judgment is appropriate
only where the evidence shows there is no genuine issue of
material fact and the moving party is entitled to judgment as a
matter of law. Olds v. Noel, 857 N.E.2d 1041 (Ind. Ct. App.
2006). “All inferences from the designated evidence are drawn in
favor of the nonmoving party.” Hartman v. Keri, 883 N.E.2d 774,
777 (Ind. 2008).
McCausland v. Walter USA, Inc., 918 N.E.2d 420, 423-24 (Ind. Ct. App. 2009).
Review of an order granting summary judgment is limited to those materials
motion for summary judgment if it had permitted Bragg to depose the requested DOL
personnel.
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designated in the trial court. Naugle v. Beach Grove City Schs., 864 N.E.2d 1058,
1062 (Ind. 2007). While specific findings of fact and conclusions thereon are
not required, such findings, although not binding, may nonetheless aid our
review of a trial court’s summary judgment order. Quezare v. Byrider Fin., Inc.,
941 N.E.2d 510, 513 (Ind. Ct. App. 2011), trans. denied. Further, we may affirm
a trial court’s order granting a motion for summary judgment on any grounds
supported by the designated materials. Id.
B. The Wage Payment Statute
[32] The Wage Payment Statute, which is codified at Indiana Code sections 22-2-5-1
through 22-2-5-3, governs both the amount and the frequency with which an
employer must pay its employees. McCausland, 918 N.E.2d at 424 (citing
Naugle, 864 N.E.2d at 1062)). Specifically, Indiana Code section 22-2-5-1
provides, in relevant part, as follows:
(a) Every person, firm, corporation, limited liability company, or
association, their trustees, lessees, or receivers appointed by any
court, doing business in Indiana, shall pay each employee at least
semimonthly or biweekly, if requested, the amount due the
employee. The payment shall be made in lawful money of the
United States, by negotiable check, draft, or money order, or by
electronic transfer to the financial institution designated by the
employee. Any contract in violation of this subsection is void.
(b) Payment shall be made for all wages earned to a date not
more than ten (10) business days prior to the date of payment.
Indiana Code section 22-2-5-2 provides that if an employer fails to comply with
the ten-day requirement set forth in Indiana Code section 22-2-5-1(b):
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Every such person, firm, corporation, limited liability company,
or association who shall fail to make payment of wages to any
such employee as provided in section 1 of this chapter shall be
liable to the employee for the amount of unpaid wages, and the
amount may be recovered in any court having jurisdiction of a
suit to recover the amount due to the employee. The court shall
order as costs in the case a reasonable fee for the plaintiff’s
attorney and court costs. In addition, if the court in any such suit
determines that the person, firm, corporation, limited liability
company, or association that failed to pay the employee as
provided in section 1 of this chapter was not acting in good faith,
the court shall order, as liquidated damages for the failure to pay
wages, that the employee be paid an amount equal to two (2)
times the amount of wages due the employee.
C. Whether Commission Earned by Bragg Qualifies as
“Wages” Under the Wage Payment Statute
[33] In claiming that the trial court erred in granting summary judgment in favor of
Kittle’s, Bragg argues that the designated evidence raises an issue of material
fact as to whether Kittle’s violated the ten-day rule set forth in the Wage
Payment Statute by failing to pay Bragg certain commissions within the
required ten-day period. Kittle’s, for its part, argues that no issue of material
fact remains because the commissions at issue did not qualify as wages under
the Wage Payment Statute. Our resolution of this claim on appeal therefore
turns on the question of whether, as a matter of law, Bragg’s commissions
constituted wages as the term is used in the Wage Payment Statute.
[34] Although the Wage Payment Statute does not define the term wages, the Wage
Claims Act, again, codified at Indiana Code sections 22-2-9-1 through 22-2-9-8,
Court of Appeals of Indiana | Opinion 49A02-1506-PL-653 | April 11, 2016 Page 20 of 36
defines the term wages as follows: “all amounts at which the labor or service
rendered is recompensed, whether the amount is fixed or ascertained on a time,
task, piece, or commission basis, or in any other method of calculating such
amount.”5 It is well-established that in determining whether a method of
compensation constitutes wages for purposes of the Wage Payment Statute, the
name given to the method of compensation is not controlling. See Thomas v. H
& R Block E. Enters., Inc., 630 F.3d 659, 664 (7th Cir. 2011); Sheaff Brock Inv.
Advisors, LLC v. Morton, 7 N.E.3d 278, 285 (Ind. Ct. App. 2014); Quezare, 941
N.E.2d at 514; McCausland, 918 N.E.2d at 424; Davis v. All Am. Siding &
Windows, Inc., 897 N.E.2d 936, 943 (Ind. Ct. App. 2008), trans. denied; Kopka,
Landau & Pinkus v. Hansen, 874 N.E.2d 1065, 1072 (Ind. Ct. App. 2007); Gress v.
Fabcon, Inc., 826 N.E.2d 1, 3 (Ind. Ct. App. 2005).
Rather, we will consider the substance of the compensation to
determine whether it is a wage, and therefore subject to the Wage
Payment Statute. [Gurnik v. Lee, 587 N.E.2d 706, 709 (Ind. Ct.
App. 1992)]. We have recognized that wages are “something
akin to the wages paid on a regular periodic basis for regular
work done by the employee....” Wank v. St. Francis College, 740
N.E.2d 908, 912 (Ind. Ct. App. 2000). In other words, if
compensation is not linked to the amount of work done by the
employee or if the compensation is based on the financial success
5
As is discussed above, the Wage Claims Act relates to disputes over wages owed to an
employee whose employment has been terminated or suspended as a result of a labor dispute.
See Ind. Code § 22-2-9-2.
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of the employer, it is not a “wage.” Pyle v. Nat’l Wine & Spirits
Corp., 637 N.E.2d 1298, 1300 (Ind. Ct. App. 1994).
Gress, 826 N.E.2d at 3. “Moreover, because the Wage Payment Statute
imposes a penalty when wages are not paid within ten days of the date they are
‘earned,’ it is not practical to apply the statute to payments that cannot be
calculated within ten days after being earned.” McCausland, 918 N.E.2d at 424
(citing Highhouse v. Midwest Orthopedic Inst., 807 N.E.2d 737, 740 (Ind. 2004)).
[35] In Thomas, the United States Court of Appeals for the Seventh Circuit (the
“Seventh Circuit”) noted that “Indiana courts consider a variety of factors to
guide their determination of whether compensation … constitutes a wage.” 630
F.3d at 664. For instance, the Seventh Circuit noted that “Indiana courts are
more likely to find compensation a wage if it is ‘not linked to a contingency.’”
Id. (quoting Naugle, 864 N.E.2d at 1067). In this vein, the Seventh Circuit
noted that the Indiana Supreme Court has explained that “payment contingent
on factors outside of an employee’s or employer’s control ‘is not consistent with
the time constraints imposed by the Wage Payment Statute’ … [and that]
compensation is less likely to constitute a wage when it is difficult to calculate
and pay within ten days after it was earned.” Id. (quoting Highhouse, 807
N.E.2d at 740). The Seventh Circuit further noted that Indiana Courts also
consider whether (1) the compensation directly relates to the time that an
employee works, (2) wages are paid on a regular periodic basis for regular work
done by the employee, and (3) the compensation in question is paid in addition
to wages. Id.
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1. Discussion of Relevant Authority
i. Thomas
[36] In Thomas, the Seventh Circuit considered whether end-of-season commission
payments paid to Thomas by H&R Block qualified as “wages” under Indiana’s
Wage Payment Statute. Thomas worked as a seasonal employee for H&R
Block, responsible for preparing clients’ tax returns and offering other financial
products and services that H&R Block provides. Thomas, 630 F.3d at 662. As a
result of her seasonal employment with H&R Block, Thomas was eligible for
two forms of compensation, an hourly wage and potential end-of-season
compensation. Id. Thomas was eligible for end-of-season compensation “only
if the sum of various specified amounts exceeded the aggregate gross hourly
wages paid to her during the tax season.” Id. Thomas was subsequently
determined to be eligible for additional end-of-season compensation, after
which H&R Block paid Thomas the applicable amount of end-of-season
compensation. Id. at 663. Thomas later sued H&R Block arguing that
although it had paid her all compensation owed to her, it had failed to do so
within ten days as is required by the Indiana Wage Payment Statute. Id.
[37] The Seventh Circuit found that Thomas’s end-of-season compensation was
dependent on factors other than her efforts as a portion of the compensation
was based on the contingency of collecting from customers. Id. at 666. In
finding this to be a relevant contingency worthy of consideration, the Seventh
Circuit noted that the “Indiana Supreme Court has not limited relevant
contingencies to business performance and that imposing such a limit would be
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contrary to Indiana case law.” Id. at 667. The Seventh Circuit also found that
Thomas’s end-of-season compensation was not directly related to the time she
worked, noting that because the end-of-season compensation was partially
based on collections, Thomas could theoretically have worked for an entire tax
season without earning any end-of-season compensation. Id. at 666. Thomas
also received an hourly wage in addition to any potentially earned end-of-
season compensation. Id. In addition, the Seventh Circuit found that it was “at
least difficult, if not impossible” to calculate the compensation within the ten-
day period. Id.
ii. Gress
[38] In Gress, we considered whether commissions paid to Gress by Fabcon qualified
as “wages” under the Wage Payment Statute. Upon review, we found that
Gress was employed by Fabcon as a sales engineer, regional sales manager, and
national accounts manager. Gress, 826 N.E.2d at 1-2. His general job
responsibilities included soliciting and developing new business for Fabcon;
bidding/negotiating contracts; and participating in each of his projects through
the final project billing, collection, and closure. Id. at 2. Gress was paid on
both a salary and a commission basis. Id.
[39] The commission payments at issue in Gress were paid on a monthly basis and
represented either unearned advance payment for jobs shipped but not
completed or final earned commissions on jobs for which all costs had been
paid and actual profitability had been determined. Id. The commission
payments fluctuated from month to month depending on the degree of activity
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on Gress’s jobs, whether projects were closed out, and whether projects were
profitable. Id. The amount of any tendered future advance payments was
based off of anticipated profitability. Id. Once a project was “closed out,” the
final commission was calculated and any sums due to the salesperson were
paid. Id. A job was closed out when the accounting department determined
that all job costs had been paid, the final payment had been received, and the
actual profitability of the project could be determined. Id. This process could
take anywhere from several months to a couple of years after shipment. Id. If a
project was less profitable than anticipated, Gress might not receive any
additional commission. Id. Further, if Fabcon lost money or earned no profit
on the project, Gress was required to reimburse Fabcon for some or all of the
advance payment which had been tendered to him. Id.
[40] In determining whether Gress’s commissions qualified as “wages” under the
Wage Payment Statute, we found as follows:
Fabcon’s commission program is based upon the profitability of
the salesperson’s individual projects. The salesperson earns no
commission if the project does not result in a profit for Fabcon.
The payment of commissions was not directly linked to the
amount of work performed by Gress. To be sure, a salesperson
could work for an entire year without earning any commissions if
none of the projects were profitable. Moreover, although the
commissions were paid once each month, the payments were
based on the previous month’s accounting events for the
project—whether all job costs had been paid, whether the job had
“closed out,” and whether any determination had been made
with respect to profitability—rather than on work performed by
Gress in the previous month. In short, because of the length of
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time involved in determining the final commission, it was simply
impossible for Fabcon to know what Gress was owed within ten
days.
Id. at 4 (internal record citations omitted). In light of all these factors, we
concluded that Gress’s commissions were not “wages” within the purview of
the Indiana Wage Payment Statute. Id.
iii. McCausland
[41] In McCausland, we considered whether certain commissions paid to
McCausland by Walter USA qualified as “wages” under the Wage Payment
Statute. McCausland was employed as a direct sales manager for Walter USA,
and was primarily responsible for managing salespeople and assisting them in
making sales for the company. 918 N.E.2d at 422. He received compensation
in the form of salary, commissions, and bonuses. Id. at 422-23. His
commissions were dependent on the net sales for his district. Id. at 423.
McCausland’s employment with Walter USA was terminated on April 1, 2007.
Id. On September 17, 2007, McCausland filed suit against Walter USA alleging
that he was entitled to damages under the Wage Payment Statute. Id.
Specifically, McCausland argued that although Walter USA had paid him all
commissions and bonuses due to him, Walter USA had failed to do so in within
the time requirements of the Wage Payment Statute. Id. The trial court
subsequently granted summary judgment in favor of Walter USA. Id.
[42] Upon review, we concluded as follows:
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McCausland’s commissions were based on the success of the
salespeople he managed. While McCausland assisted the
salespeople he managed in making sales, ultimately, those sales
were directly attributable to a salesperson, and not McCausland.
In other words, McCausland’s commissions were not directly
linked to his own efforts. Moreover, the commissions were not
based on gross sales, but on “net sales” which required a
calculation of not only the gross sales but also other reductions,
such as discounts and returns, which McCausland had little
control over. Finally, McCausland’s commission could not be
accurately calculated until Walter received all point of sales
information from its distributors. Because McCausland’s
commissions were based on the efforts of his sales team and “net
sales,” and the commissions could not always be calculated
within the statutorily mandated ten-days, we conclude that the
commissions were not “wages” within the meaning of the Wage
Payment Statute.
Id. at 426.
iv. Quezare
[43] In Quezare, we considered whether certain bonuses paid to Quezare by Byrider
qualified as “wages” under the Wage Payment Statute. Byrider employed
Quezare as a collections account representative. 941 N.E.2d at 511. As part of
his employment, Quezare managed 290 accounts, each consisting of a loan on
a vehicle sold by Byrider’s sister corporation, J.D. Byrider. Id. Queazre was
teamed with four other account representatives and their primary responsibility
was to prevent the accounts covered by their team from becoming delinquent.
Id. Quezare was paid an hourly salary. Id. In addition, he was paid certain
bonuses or commissions if less than a certain percentage of his accounts were
Court of Appeals of Indiana | Opinion 49A02-1506-PL-653 | April 11, 2016 Page 27 of 36
delinquent. Id. Quezare subsequently filed suit against Byrider alleging that he
was entitled to damages under the Wage Payment Statute. Id. Specifically,
Quezare argued that although Byrider had paid him all bonuses due to him,
Byrider had failed to do so in within the time requirements of the Wage
Payment Statute. Id. The trial court subsequently granted summary judgment
in favor of Byrider. Id.
[44] With respect to the bonuses based on the percentage of the team accounts, we
concluded that because the bonuses were dependent on the efforts of the team,
those benefits did not constitute wages for purposes of the Wage Payment
Statute. Id. at 514. With respect to the bonuses based on Quezare’s individual
accounts, we concluded that even though the bonuses were calculated on a
weekly basis, they were not earned merely by working for a week. Id.
Rather, the bonuses [were] awarded only if the account
delinquency goals [were] met. Thus, they [were] not necessarily
paid on a regular basis. If the delinquency rate of an employee’s
accounts [was] greater than the bonus percentage month after
month, that employee will not earn any bonuses. Indiana courts
have consistently stated that a bonus is a wage under the Wage
Payment Statute if the bonus directly relates to the time that an
employee works, is paid with regularity, and is not dictated by
the employer’s financial success. [Tobin v. Ruman, 819 N.E.2d
78, 88 (Ind. Ct. App. 2004), trans. denied]; [Pyle, 637 N.E.2d at
1299-1300].
In addition, we note that Byrider’s bonus plan is purely
discretionary. Both pay plans provided that Byrider had the right
to alter, adjust, or terminate the plan at any time, without notice.
The discretionary nature of the plan also leads us to conclude
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that the bonus payments are not wages for purposes of the Wage
Payment Statute. See Pyle, 637 N.E.2d at 1301 [ ] (concluding
that bonus system was discretionary and therefore bonuses were
not wages); [Wank v. Saint Francis College, 740 N.E.2d 908, 913
(Ind. Ct. App. 2000)] (concluding that severance pay was not
wage because it was a “discretionary, gratuitous benefit”).
Id. at 514-15 (footnote omitted, brackets added).
2. Commissions Earned by Bragg
[45] In determining whether the commissions at issue qualified as wages under the
Wage Payment Statute, we will examine said commissions under the factors set
forth by the Seventh Circuit in Thomas.
i. Whether Commission Linked to Contingency
[46] Initially, we note that Bragg claims that the contingency factor is “meaningless”
to our analysis of whether the commissions at issue qualify as wages under the
Wage Payment Statute. Appellant’s Br. p. 12. In making this claim, Bragg
asserts that there is nothing “bonus-like” about the commissions at issue and
that “[t]o date, the ‘other factors’ analysis has only been applied to commissions
that are bonus-like.” Appellant’s Br. pp. 12, 13. We disagree and note that
nothing in any of the relevant authority supports Bragg’s assertion that the
contingencies factor should only be considered in the context of bonuses. 6
Furthermore, we find nothing in the designated evidence that would seem to
6
We also note that, generally speaking, all commissions are bonus-like in nature, and that Bragg
points to no relevant authority or designated evidence which would suggest otherwise.
Court of Appeals of Indiana | Opinion 49A02-1506-PL-653 | April 11, 2016 Page 29 of 36
differentiate the commissions involved in the instant matter from the
previously-considered types of commissions.
[47] Bragg also asserts that applying the contingencies factor to the consideration of
whether the commissions at issue constitute wages under the Wage Payment
Statute “would ignore the definition of ‘wages’ as articulated by the General
Assembly.” Appellant’s Br. p. 13. However, it is of note that in Thomas, the
Seventh Circuit rejected this very assertion, citing to Indiana case law which
has expressly provided that because it is the substance of the compensation that
guides our analysis, and not its label, commissions do not always constitute
wages. 630 F.3d at 666 (citing McCausland, 918 N.E.2d at 424-26; Gress, 826
N.E.2 at 4). It is also of note that in making this assertion, Bragg fails to
acknowledge Thomas and the Indiana cases on which Thomas relies.
[48] Bragg further asserts that because the courts have only considered the
profitability of the employer’s company to be a relevant contingency, any other
contingencies are irrelevant to the question of whether the commissions at issue
constitute wages under the Wage Payment Statute. The Seventh Circuit
expressly rejected a similar assertion in Thomas, noting that relevant Indiana
authority indicates that a company’s performance “is merely one example of a
contingency.” 630 F.3d at 667. In rejecting this assertion, the Seventh Circuit
stated that “[t]he Indiana Supreme Court has not limited the relevant
contingencies to business performance, and imposing such a limit would be
contrary to Indiana case law.” Id.
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[49] In the instant matter, the designated evidence contained numerous types of
contingencies that affected whether Bragg earned commissions. Commissions
were not earned by sales alone, but rather by “delivered sales.” Appellee’s App.
p. 43. As such, commissions were dependent upon the payment for and
acceptance of delivery of the item by the customer. In addition, if employees
worked together on a sale, any commissions earned as a result of said sale could
be divided among the employees.
[50] Further, because commissions were dependent upon delivery, numerous factors
which might take place after the initial sale, all of which were outside of Bragg’s
control, could potentially affect whether Bragg earned commissions. For
example, Bragg would not be entitled to commissions if, after the initial sale,
the customer decided to return the item or cancel the order. The amount of
commission earned would be also affected if there was a subsequent price
adjustment to the item, which would negatively impact the amount of profit
earned by Kittle’s on the sale. Therefore, even if a commission was ultimately
earned, because said commission was dependent on delivery, numerous factors,
again all of which were outside of Bragg’s control, could impact when said
commission was actually earned. For instance, factors such as product
availability, weather conditions, a customer’s location, and a customer’s
availability could impact when delivery was made. The type of order could
also impact delivery as some custom orders could take as many as sixteen
weeks for delivery.
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[51] The designated evidence also outlines the process by which Kittle’s calculated
commissions earned by its employees. In order to track monthly deliveries for
commission purposes, Kittle’s maintained a “commission edit list.” Appellee’s
App. p. 37. This list would be made available for employees to review on the
fourth day of each month. Employees would then review the list and work with
store management to resolve any potential discrepancies. Once finalized, the
information would be manually imput and commissions calculated. The
commissions earned were then sent to an outside payroll service for processing.
The entire process took multiple days to complete.
[52] In light of the numerous factors involved in determining whether and when a
commission was earned by an employee, we conclude that the designated
evidence demonstrates that the commission could not always be quickly and
accurately calculated within the ten-day time constraint set forth in the Wage
Payment Statute. This factor supports the determination that, as a matter of
law, the commissions at issue did not constitute wages under the Wage
Payment Statute. See generally, McCausland, 918 N.E.2d at 424 (citing
Highhouse, 807 N.E.2d at 740 (noting that because the Wage Payment Statute
imposes a penalty when wages are not paid within ten days of the date they are
earned, it is not practical to apply the statute to payments that cannot be
calculated within ten days after being earned)).
ii. Relation to Time Worked
[53] We have previously concluded that if compensation is not linked to the amount
of work done by an employee, it is not a wage. Hansen, 874 N.E.2d at 1072. In
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Gress, we noted that “[t]o be sure, a salesperson could work for an entire year
without earning any commissions if none of [their] projects were profitable.”
826 N.E.2d at 4. The same can be said here.
[54] The designated evidence here demonstrates that the payment of commission
was not directly linked to the amount of work performed by Bragg.
Commissions were not earned merely by working for a week. Rather, they
were awarded only if the salesperson completed delivered sales. Thus, while
potentially unlikely, it is at least possible that Bragg could have worked for an
entire month without completing any “delivered sales.” If that were the case,
Bragg would not earn any commission for that month. Thus, we conclude that
this factor supports also the determination that, as a matter of law, the
commissions at issue did not constitute wages under the Wage Payment
Statute. See generally, Hansen, 874 N.E.2d at 1072 (providing that if
compensation is not linked to the amount of work done by an employee, it is
not a wage).
iii. Payment on Regular Basis
[55] Bragg seems to acknowledge that the amount of any commission earned could
vary greatly from month to month. She asserts, however, that we should find
the fact that Kittle’s had a regular monthly payment schedule in place for the
payment of any commissions earned by their employees to be evidence
demonstrating that the commission payments paid by Kittle’s were made on a
regular basis.
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[56] In Quezare, we considered whether certain bonus payments were paid on a
regular basis. 941 N.E.2d at 514. We concluded that although the bonuses
were calculated on a weekly basis, they were paid only if certain goals were
met. Id. Thus, the payments were not necessarily paid on a regular basis. Id.
Similarly, here, although commissions were calculated and paid on a monthly
basis, any commissions paid were dependent upon “delivered sales” being
completed by Bragg. Further, although Kittle’s followed a specific schedule for
determining if any commissions had been earned, commission payments were
not paid on any pre-scheduled date, but rather varied from month to month.
Because the amount of any monthly commission payment could vary greatly,
and could even include months where no commission payment was earned by
Bragg, we conclude that like in Quezare, the commissions at issue here were not
made on a regular basis. We therefore conclude that this factor supports also
the determination that, as a matter of law, the commissions at issue did not
constitute wages under the Wage Payment Statute.
iv. Other Wages
[57] Bragg acknowledges that the commission payment was paid by Kittle’s in
addition to her salary. She asserts, however, that this fact is “meaningless”
because there is no statutory authority limiting an employee to only one type of
wage. Appellant’s Br. p. 11. We agree that Bragg was not limited to earning
only one type of compensation. However, we believe that the fact that Bragg
could potentially earn different types of compensation—one being her salary
which undoubtedly qualifies as a wage under the Wage Payment Statute—does
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not mean that each of the different types of compensation which she could
potentially earn would automatically qualify as wages under the Wage Payment
Statute. Rather, we conclude that the best practice is to examine each type of
compensation independent of any other type to determine whether it constitutes
a wage under the Wage Payment Statute.
v. Conclusion
[58] In the instant matter, it is undisputed that Bragg earned commissions in
addition to a regular salary and that Kittle’s has paid Bragg all earned
commissions. As is discussed above, the designated evidence demonstrates that
these commissions were not directly linked to the amount of work performed by
Bragg, but rather were contingent upon numerous factors, over most of which
Bragg had no control. These commissions were paid only when earned, and
not on a regular basis. As such, we determine that, as a matter of law, the
commissions did not qualify as wages under the Wage Payment Statute. We
therefore conclude that the trial court did not err in awarding summary
judgment in favor of Kittle’s on this ground.7
7
To the extent that Bragg relies on our opinion in J Squared, Inc. v. Herndon, 822 N.E.2d 633
(Ind. Ct. App. 2005), we find Herndon to be distinguishable from the instant matter as our
decision in Herndon did not turn on whether the commission at issue constituted a wage under
the Wage Payment Statute. In Herndon, we considered whether the trial court erred in
awarding damages to Herndon under the Indiana Wage Claims Statute. 822 N.E.2d at 639-
641. The Wage Claim Statute provides that an employer is responsible for paying employees
for wages and compensation due at the time of separation of the employee’s employment. Id.
at 640 (citing Ind. Code § 22-2-9-2). Concluding that Herndon had earned commission by
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Conclusion
[59] In sum, we conclude that the trial court did not err in in dismissing the claims
raised on behalf of the unknown purported class members whose employment
was involuntarily terminated by Kittle’s or in awarding summary judgment in
favor of Kittle’s. As such, we affirm the judgment of the trial court.
[60] The judgment of the trial court is affirmed.
Baker, J., and Pyle, J., concur.
securing sales on order prior to the termination of his employment and that J Squared had
failed to pay Herndon the earned commission, we affirmed the trial court. Id. at 641.
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