ALETA A. TRAUGER, District Judge.
The plaintiffs have filed a Motion for Approval of 29 U.S.C. § 216(b) Notice and Consent Forms and to Order Disclosure of Current and Former Tipped Employees (Conditional Certification) of Defendants Logan's Roadhouse Restaurants ("Motion for Conditional Certification") (Docket No. 36), to which the defendants have filed a Response in opposition (Docket No. 93), and the plaintiffs have filed a Reply (Docket No. 101). The defendants have also filed a document entitled "Objections to Evidence Submitted in Support of the Motion for Conditional Certification." (Docket No. 109.) For the following reasons, the Motion for Conditional Certification will be granted in part and denied in part.
This proposed collective action, brought under the federal Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq., involves claims that the defendants failed to pay wages to their "tipped employees"
LRI restaurants employ tipped employees whose primary duties are to take food and beverage orders and serve such items to customers. Plaintiffs Carey Bradford and Cody Bolen are residents of Tennessee and were employed by LRI as tipped employees during the three years prior to the filing of this action. The Complaint filed by Bradford and Bolen on behalf of all other similarly situated current and former tipped employees of the defendants during the relevant time period ("Complaint") alleges that LRI had a centralized plan, policy, or practice of management and budgeting that, among other things, encouraged or required its restaurant managers to improperly compensate tipped employees in order to meet or stay below budgeted labor costs.
(the "LRI Violations").
The Complaint states that the plaintiffs seek a collective action on behalf of themselves and all others similarly situated under FLSA §§ 206, 207, and 216(b). (Id. at ¶ 52.) The Complaint asserts that the class is so numerous that joinder of all members is impracticable and that, in fact,
On April 6, 2015, the plaintiffs filed the Motion for Conditional Certification. (Docket No. 36.) In support of the motion, the two named plaintiffs each filed their own declaration, and the plaintiffs also filed "representative" declarations from thirty-four out of the seventy-one opt-in plaintiffs who had already filed consent forms stating that they wished to join the litigation. (Docket No. 37 at Exs. A, B, C.) The Motion for Conditional Certification requests that the court do the following: (1) authorize this case to proceed as a collective action for minimum wage and overtime violations under the FLSA, on behalf of the plaintiffs and all other similarly situated hourly paid tipped employees (servers and bartenders) of LRI, nationwide, who were denied proper minimum wage and overtime compensation within the appropriate statute of limitations; (2) order LRI to provide a computer-readable file containing the names, last known physical addresses, last known email addresses, social security numbers, dates of employment, and last known telephone numbers of all food and beverage servers of LRI who were tipped employees of LRI within the last three years; (3) order that a court-approved notice be (a) posted at each LRI restaurant, (b) enclosed with all LRI tipped employees' next regularly scheduled paychecks or stubs, and (c) be mailed to LRI's current and former tipped employees who were employed at LRI during the past three years, so that putative class members can assert their claims on a timely basis as part of this litigation; (4) order tolling of the statute of limitations for the putative class as of the date the Motion for Conditional Class Certification is granted; and (5) order that the opt-in plaintiffs' consent forms be deemed filed on the date they are postmarked (excluding the opt-in plaintiffs who have opted in prior to the court-supervised notice being sent.) (Id. at pp. 1-2.)
Subsequent to filing of the Motion for Conditional Certification, the plaintiffs continued to file additional declarations in support of the motion (as well as additional notices of consent to join the litigation by new opt-in plaintiffs). (See Docket Nos. 44, 50, 57.) On May 12, 2015, LRI moved for an extension of time to respond to the Motion for Conditional Certification. (Docket No. 59.) The plaintiffs opposed
On July 6, 2015, after receiving written deposition responses from most of the eight chosen opt-in plaintiffs, LRI filed its Response in opposition to the plaintiffs' Motion for Conditional Certification. (Docket No. 93) On July 16, 2015, the plaintiffs filed a Reply (Docket No. 101) with forty more supporting declarations from additional opt-in plaintiffs. (Docket No. 101 and Ex. A.) Shortly thereafter, the plaintiff filed several more declarations (Docket Nos. 103, 104, 106, 108) and additional notices of new opt-in plaintiffs' consents to join the litigation (Docket Nos. 102, 105, 107). On July 29, 2015, LRI filed a document entitled "Objections to Evidence Submitted in Support of the Motion for Conditional Certification" ("Objections"), in which LRI objected to ninety-three of the declarations submitted by the plaintiffs in connection with the Motion for Conditional Certification and demanded that they be "completely disregarded by the court."
Recognizing that the value of an individual claim might be small and not otherwise economically sensible to pursue, the FLSA provides that a collective action "may be maintained against any employer ... by any one or more employees for and on behalf of himself or themselves and other employees similarly situated." 29 U.S.C. § 216(b). Because the FLSA only requires that employees be "similarly situated," plaintiffs seeking to certify a collective action under the FLSA face a lower burden than those seeking to certify a class action under Federal Rule of Civil Procedure 23. O'Brien v. Ed Donnelly Enters., 575 F.3d 567, 584 (6th Cir.2009). Once a collective action is certified, however, employees seeking to join the class must affirmatively
The FLSA does not define the term "similarly situated." The Sixth Circuit has noted that courts have considered the "`factual and employment settings of the individual[] plaintiffs, the different defenses to which the plaintiffs may be subject on an individual basis, [and] the degree of fairness and procedural impact of certifying the action as a collective action.'" O'Brien, 575 F.3d at 584 (quoting 7B Wright, Miller, & Kane, Federal Practice and Procedure § 1807 at 497 n. (3d ed.2005)) (alterations in original). "[I]t is clear that plaintiffs are similarly situated when they suffer from a single, FLSA-violating policy, and when proof of that policy or of conduct in conformity with that policy proves a violation as to all the plaintiffs." Id. at 585. But employees may also be similarly situated if their claims are merely "unified by common theories of defendants' statutory violations, even if the proofs of these theories are inevitably individualized and distinct." Id. Indeed, "[s]howing a `unified policy' of violations is not required [for certification]." Id. at 584 (emphasis added). In O'Brien, the Sixth Circuit stated that even a requirement that employees' "causes of action under the FLSA accrued at about the time and place in the approximate manner of the named plaintiff" would be "more demanding than what the [FLSA] requires." Id. at 585.
Typically, courts employ a two-phase inquiry to address whether the named plaintiffs are similarly situated to the employees they seek to represent. White v. Baptist Mem'l Health Care Corp., 699 F.3d 869, 877-78 (6th Cir.2012); Comer v. Wal-Mart Stores, Inc., 454 F.3d 544, 546 (6th Cir.2006); O'Brien, 575 F.3d at 583. "The first [phase] takes place at the beginning of discovery. The second occurs after all of the opt-in forms have been received and discovery has concluded." Comer, 454 F.3d at 546 (quotation marks omitted).
At the first stage, the plaintiff bears the burden of showing that employees in the class are similarly situated. Benson v. Asurion Corp., No. 3:10-cv-526, 2010 WL 4922704, at *2 (M.D.Tenn., Nov. 29, 2010). "The plaintiff must show only that `his position is similar, not identical, to the positions held by the putative class members.'" Comer, 454 F.3d at 546-47 (quoting Pritchard v. Dent Wizard Int'l Corp., 210 F.R.D. 591, 595 (S.D.Ohio 2002)). In Comer, the Sixth Circuit approvingly quoted the lower court's decision, which stated that conditional certification "`need only be based on a modest factual showing,'" id. at 547 (quoting Pritchard, 210 F.R.D. at 596), and that the court should use "`a fairly lenient standard [that] typically results in ... certification,'" id. (quoting Morisky v. Public Serv. Elec. & Gas Co., 111 F.Supp.2d 493, 497 (D.N.J.2000)); see also Ware v. T-Mobile USA, 828 F.Supp.2d 948, 951 (M.D.Tenn. 2011) (same); Frye v. Baptist Mem'l Hosp., Inc., No. 07-2708, 2008 WL 6653632, at *4 (W.D.Tenn. Sept. 16, 2008) (noting that the plaintiff's burden has been described as "relatively slight" and "not a heavy one"); Shabazz v. Asurion Ins. Service, No. 3:07-0653, 2008 WL 1730318, at *3 (M.D.Tenn., Apr. 10, 2008) (stating that plaintiffs "must simply submit evidence establishing at least a colorable basis for their claim that a class of similarly situated plaintiffs exist[s]") (quotation marks omitted); Mooney v. Aramco Servcs. Co., 54 F.3d 1207, 1213-14 (5th Cir.1995) (observing that the standard for collective action notice is a "lenient one"). In meeting this burden, substantial allegations supported by declarations are "all that is required." White v. MPW Indus. Servcs., Inc., 236
"[T]he certification is conditional and by no means final." Id., 454 F.3d at 546. After discovery, the defendant may move for decertification of the conditional class, which would trigger the second phase of the court's review. See O'Brien, 575 F.3d at 583; Benson, 2010 WL 4922704 at *3 (citing Anderson v. Cagle's, Inc., 488 F.3d 945, 952 (11th Cir.2007)). At this second stage, the court has access to more information and employs a "stricter standard" in deciding whether class members are, in fact, similarly situated. Comer, 454 F.3d at 547.
In support of the Motion for Conditional Certification, the plaintiffs have submitted declarations from numerous current and former LRI employees, each stating that they were subjected to one or more of the LRI Violations
The plaintiffs also offer approximately ninety-eight
LRI sets forth a number of concerns with the declarations in the Objections, none of which is persuasive. First, LRI complains that some of the declarations were signed many weeks before they were filed and/or not signed or filed at the same time that the signors opted into this action. LRI assigns an underhanded purpose to this. (See Docket No. 109 at pp. 1-2.) However, this hyper examination of the plaintiffs' prosecution of its case is of no moment as to the evidentiary value of the declarations. It is not the role of the court to second guess the timing of plaintiffs' filings as long as they do not offend the certification process (which, here, they do not).
Next, LRI argues that the declarations "contain statements that are unsupported by personal knowledge, consist of rank speculation or improper legal opinion, and/or lack any probative value, and they should be stricken from the record or otherwise disregarded." (Id. at p. 3.) Primarily LRI argues that the declarants have not established the proper foundation for their statements. For example, LRI points out that the declarants have not established how they obtained their knowledge concerning whether they or others were on or off the clock at any given time or whether they spent more than twenty percent of their time on side work. The court disagrees and finds that these are simple statements of fact based on personal knowledge or experience for which the declarants are not required to lay a foundation in their declarations. This is not a
LRI's Objections are also based on the fact that, when LRI deposed eight declarants by written question, it uncovered some inconsistencies between their responses and their declarations as to the particular LRI Violations they experienced. (Id.) LRI uses this fact to support its assertion that certain of those declarants have submitted "materially false" declarations in this matter. (See Docket No. 101 at p. 5 n. 10; Docket No. 109 at pp. 5-6.) The court notes that, when deposing the eight declarants by written question, LRI sent most of them 113 legal questions to be answered in a rapid time frame. (Docket No. 101 at p. 5.) Moreover, as the plaintiffs highlight in the Reply, several of those declarants, after realizing they had inadvertently made some mistakes, filed amended declarations to remedy them. (See Docket No. 101 at p. 5 n. 2, Ex. 2.) The court has reviewed LRI's concerns and finds that they are not, at this stage, substantially justified. Moreover, they are mostly inappropriate, because, as noted above, the court avoids making credibility determinations at this stage of the certification process.
LRI's Objections also refer to the declarations as vague and conclusory. In support of this argument, LRI relies at length upon Bacon v. Eaton Aeroquip, L.L.C., No. 11-14103, 2012 WL 4321712 (E.D.Mich. Sept. 20, 2012), a case which is not analogous. In Bacon, several employees at one plant sought to certify a nationwide collective action based solely on their own declarations, none of which even referenced another plant or company location. Id. at *2. The only statement made that was relevant to conditional certification was a vague, non-committal mention that the plaintiffs "understood" similar things were happening company-wide. Id. The court rejected conditional certification but made clear that the plaintiffs could have satisfied their burden through personal declarations demonstrating more specific personal knowledge or through any other factual support. Id. at *2-3. Here, the named plaintiffs' declarations are not vague and conclusory. Beyond that, however, the plaintiffs have offered a wealth of "other factual support" in the form of numerous additional declarations from tipped employees throughout LRI's nationwide territory. By the very precedent put forth in Bacon, this is satisfactory for conditional certification purposes.
Finally, LRI's Objections contain a list of "specific objections" to individual statements in the declarations. (See Docket No. 109 at pp. 7-14.) For example, LRI specifically objects to the statement "I have been required to perform non-tip producing work while clocked-in to the company's payroll system as a tipped employee, and received less than the minimum wage
In sum, the court finds that there is no basis to disregard the plaintiffs' declarations. Rather, the court finds that the plaintiffs' evidence is sufficient to make the required modest evidentiary showing for class certification purposes.
All together, the plaintiffs have provided one hundred declarations of current and former LRI employees, all of whom allege that LRI's wilful scheduling, assignment, and employment practices have denied them (and potentially other co-workers) minimum wage and overtime compensation in violation of the FLSA. These declarations show (1) employment with LRI; (2) the job title for which certification is sought; (3) performance of similar job duties under the job title regardless of the LRI restaurant at which they worked; (4) payment of wages; (5) work performed (a) for no wage, (b) for below the minimum wage, and/or (c) in excess of forty hours per week without overtime compensation by LRI; (6) job duties and requirements that do not meet the requirements of any exemptions to the FLSA. Because the plaintiffs' evidence suggests the existence of a common practice that violates the FLSA, the plaintiffs have met their "fairly lenient" burden to establish that they are "similarly situated" to other LRI employees for purposes of conditional certification. At the very least, the plaintiffs' claims are "unified by common theories of defendants' statutory violations, even if the proofs of these theories are inevitably individualized and distinct." O'Brien, 575 F.3d at 585. Furthermore, the court finds that the plaintiffs' evidence has provided the "modest factual showing" required for conditional certification of the plaintiffs' proposed class. See Comer, 454 F.3d at 547. The plaintiffs are therefore entitled to pursue this matter further, and, to do so, they need to provide notice of their claims to other LRI employees.
LRI's substantive arguments against certification that are based upon the merits of the plaintiffs' FLSA case are premature.
Similarly, the court will not review at this time LRI's argument that collective treatment should be denied because individualized issues would predominate over common ones. Specifically, LRI argues that the on-site management and employment experiences of the tipped employees at individual restaurants necessitates the individual examination of the plaintiffs' claims. (Docket No. 93 at pp. 24-26.) Courts have specifically held that "disparate factual and employment settings of the individual plaintiffs" are particular issues that are "appropriately examined under the second stage of the [certification] analysis" (i.e., in a motion for decertification), rather than at the motion for certification stage. White, 236 F.R.D. at 373 (citing Thiessen v. Gen. Elec. Capital Corp., 267 F.3d 1095, 1103 (10th Cir.2001)); see also, e.g., Gambo v. Lucent Tech., Inc., No. 05-C-3701, 2005 WL 3542485, at *6 (N.D.Ill. Dec. 22, 2005) (holding notice may issue under the first stage of the analysis, even if it appears that the investigation and analysis required to determine whether the putative plaintiffs are similarly situated may prove to be sufficiently cumbersome such that a collective action may
The court will, however, review LRI's arguments that are properly responsive in the conditional certification phase. LRI argues that the plaintiffs have not shown sufficient interest among members in the putative class in joining the litigation. (Docket No. 93 at p. 10-12.) Although LRI cites several cases suggesting a requirement of sufficient interest, see Beecher v. Steak N Shake Operations, Inc., 904 F.Supp.2d 1289, 1299 (N.D.Ga. 2012) (denying certification where twenty-three plaintiffs, twenty of whom worked in one state and almost exclusively in four stores, sought to conditionally certify a nationwide class of 65,000 employees) and Barten v. KTK & Associates, Inc., No. 8:06-CV-1574-T-27EAJ, 2007 WL 2176203, at *2 (M.D.Fla. Jul. 26, 2007) (denying certification where three named plaintiffs submitted declarations averring that they "think" others might be interested in the case), there is no controlling precedent in the Sixth Circuit regarding this specific issue. Ware, 828 F.Supp.2d at 955; see also Martin v. Psalms, Inc., No. 2:10-cv-02532-STA-dkv, 2011 WL 2882387, at *8 (W.D.Tenn. July 15, 2011) ("From this court's review of Sixth Circuit precedent, the Court finds that the Sixth Circuit has neither required [a showing of sufficient interest], nor held that such a showing is not required."). Addressing the sufficient interest argument, one district court outside this circuit noted that the argument "puts the cart before the horse." Heckler v. DK Funding, LLC, 502 F.Supp.2d 777, 780 (N.D.Ill.2007). It added that: "[T]he logic behind defendants' proposed procedure — requiring [the plaintiff] to show that others want to join in order to send them notice asking if they want to join — escapes the [c]ourt. Requiring a plaintiff to make an advance showing that others want to join would undermine the `broad remedial goal' of the FLSA." Id. (citing Hoffmann-La Roche, 493 U.S. at 173, 110 S.Ct. 482). The court finds this reasoning persuasive. See Ware, 828 F.Supp.2d at 955.
For these reasons, the court will grant the Motion for Conditional Certification. See, e.g., Roberts, 2015 WL 3905088, at *13 (granting motion for conditional certification, despite a variety of employee positions and circumstances involved, where the plaintiffs had made a broad "modest factual showing" that they worked in excess of forty hours per week at various correctional facilities without receiving overtime pay); Miller v. Lebanon Golf & Country Club, No. 3:14-CV-01099, 2014 WL 7359003, at *4 (M.D.Tenn. Dec. 23, 2014) (granting motion for conditional certification where the plaintiffs had met the "low bar" by invoking the common, specific statutory theory that they worked in excess of forty hours per week at a country club without receiving overtime pay); Benson, 2010 WL 4922704 at *4 (granting motion for conditional certification and noting that, even if evidence submitted by the defendant tends to contradict the plaintiffs' evidence or reveal potential weaknesses in their case, it does not preclude conditional certification if the plaintiffs' evidence suggests, at a minimum, that some hourly employees have performed uncompensated pre — and post-shift tasks); Barnwell v. Corr. Corp. of Am., No. 08-2151-JWL, 2008 WL 5157476, at *3 (D.Kan. Dec. 9, 2008) (granting motion for conditional certification where plaintiffs asserted they were similarly situated to potential opt-in plaintiff correctional facility employees who were also required to perform pre-and post-shift work without overtime compensation).
Moreover, the court finds that granting the plaintiffs' request for certification of a "nationwide" collective action that extends to all states in which LRI operates restaurants is appropriate and would serve the interests of justice and efficiency. The court recognizes that the plaintiffs have not adduced evidence from employees whose work has encompassed every LRI restaurant in every state in which LRI operates. However, this is not necessary, given the FLSA's broad remedial purpose, and such a high bar is rarely met in an FLSA action. While approximately half of the declarations provided by the plaintiffs are from tipped employees who have been employed at restaurants in Tennessee and Kentucky, the plaintiffs have also offered declarations from tipped employees who have been employed in eighty percent of the geographically disperse nationwide territory (fourteen of the
FLSA claims are governed by a two-year statute of limitations or, in the case of a "willful violation," a three-year statute of limitations. 29 U.S.C. § 255(a). The statute of limitations is not tolled for any individual class member until that individual has filed a written consent to join form with the court. 29 C.F.R. § 790.21(b)(2). The information contained in a notice form is, therefore, important to allow a prospective plaintiff to understand his or her interests and a collective action hinges on "employees receiving accurate and timely notice concerning [its] pendency [...], so that they can make informed decisions about whether to participate." Hoffmann-LaRoche, 493 U.S. at 170, 110 S.Ct. 482.
The plaintiffs propose a notice and consent protocol to notify potential opt-in plaintiffs of this action and enable them to join it. To that end, the plaintiffs have submitted specific proposed notice and consent documents (see Docket Nos. 37-4, 37-5). The plaintiffs contend that the court should authorize use of the proposed notice document because it is "timely, accurate, and informative," as required.
LRI contends that the plaintiffs' proposed notice is deficient in several respects: (1) the description of the putative collective action included in the notice fails to make clear to individuals receiving the notice that they are only eligible to opt in if they were subjected to an FLSA violation concerning which the court grants conditional certification; (2) the notice period should be limited to, at most, 45 days; and (3) notice should only be sent via U.S. mail and the disclosure of additional contact information is therefore unnecessary. (Docket No. 93 at p. 28.) LRI, therefore, requests that the court defer ruling on the proposed notice and direct the parties to meet and confer regarding its proper content.
The court has reviewed the proposed notice and consent forms. While the court is sensitive to the fact that the statute of limitations is running, it was the plaintiffs' decision to file the Motion for Conditional Certification without first meeting and conferring with counsel for LRI to work out a mutually agreeable proposed protocol. The result is disagreement between the parties regarding that protocol — albeit one that, based on common practice in FLSA litigation, should be easily resolved. The court will, therefore, order the parties to confer and to submit agreed notice and consent forms within fifteen days of the entry of the accompanying Order. If the parties cannot agree, the plaintiffs shall file their proposed forms, and LRI may file its specific objections thereto, both by the same deadline. The plaintiffs may respond to LRI's objections within five days.
To facilitate class notice, the court will order LRI to provide the plaintiffs with the names and last known mailing addresses of all similarly situated current and former employees who worked for LRI as tipped employees in the last three years. See Roberts, 2015 WL 3905088, at *16 (ordering same); Benson, 2010 WL 4922704 at *6 (ordering same); see also Hoffmann-LaRoche, 493 U.S. at 170, 110 S.Ct. 482 (finding that the "[d]istrict [c]ourt was correct to permit discovery of the names and addresses"); Grayson v. K Mart Corp., 79 F.3d 1086, 1101 (11th Cir. 1996) (ordering production of mailing list). Counsel for LRI will deliver this information to counsel for the plaintiffs, in a computer-readable file format, within fifteen days of the entry of the accompanying Order. The court finds that the plaintiffs have not demonstrated, either by a factual showing or through citation to legal precedent, that it is appropriate or necessary, at this time, to order the disclosure of email addresses, social security numbers, or telephone numbers.
The plaintiffs also request that the statute of limitations be tolled as of the date the Motion for Conditional Certification is granted so that putative class members will not have their limitations period run
In certain circumstances, the statute of limitations under the FLSA may be equitably tolled. See, e.g., Myers v. Copper Cellar Corp., No. 3:95-CV-541, 1996 WL 766505, at *3 (E.D.Tenn. Sept. 27, 1996). However, at this juncture, the court does not find it appropriate to rule upon undeveloped statute of limitations issues. "If, at a later stage in this proceeding, [LRI] advances an argument that certain claims are barred by the relevant statute of limitations, the plaintiff[s] may (of course) advance an argument that equitable tolling should apply." Miller, 2014 WL 7359003, at *5; see also Kutzback v. LMS Intellibound, LLC, No. 2:13-cv-2767-JTF-cgc, 2014 WL 7187006, at *13 (W.D.Tenn. Dec. 16, 2014) (declining to grant request for equitable tolling at notice of action and noting that, "[i]f and when potential plaintiffs whose claims would otherwise be time-barred choose to opt into this class, they may apprise the [c]ourt of their circumstances and individually move for equitable tolling"); Ware, 828 F.Supp.2d at 956 (declining to rule on an undeveloped statute of limitations tolling issue at the outset of FLSA collective action).
The plaintiffs also request that the consent forms be deemed "filed" on the date they are postmarked. (Docket No. 37 at p. 15.) This issue should be addressed, and preferably resolved, by the parties during their meet and confer regarding the notice and consent protocol. If it is not resolved, the parties may set out their positions at the objection phase outlined above.
This Memorandum and the accompanying Order shall have the following effect:
The plaintiffs' Motion for Approval of 29 U.S.C. § 216(b) Notice and Consent Forms and to Order Disclosure of Current and Former Tipped Employees (Conditional
An appropriate order will enter.
Plaintiffs' Motion for Approval of 29 U.S.C. § 216(b) Notice and Consent Forms and to Order Disclosure of Current and Former Tipped Employees (Conditional Certification) of Defendants Logan's Roadhouse Restaurants (Docket No. 36) is
(Docket No. 37 at p. 14.)