SUSAN O. HICKEY, District Judge.
Before the Court is Plaintiff's Motion to Certify. ECF No. 43. This action is brought pursuant to the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 216(b). Plaintiffs ask the Court to certify this case to proceed as a collective action and to authorize the issuance of their proposed notice to all potential plaintiffs. Defendants have responded. ECF No. 58. Plaintiffs have filed a reply. ECF No. 62. The matter is ripe for the Court's consideration.
Plaintiffs claim that they were denied overtime pay in violation of the FLSA. The named Plaintiffs and the proposed class members are current or former employees of nursing homes operated by Defendants
According to Plaintiffs, hourly employees of certain facilities owned by Defendants are subject to a common policy of automatically deducting thirty (30) minutes for meal breaks each day without consideration of whether a meal break was actually taken. As a result of Defendants' timekeeping policy, Plaintiffs claim they were not paid for their time worked over 40 hours per week. Plaintiffs claim that, for various reasons, they often had to work through meal breaks. Plaintiffs also assert that they had no meaningful way to reclaim their missed meal breaks.
There are two issues before the Court: (1) whether conditional certification of the collective action is proper; and if so, (2) whether Plaintiffs' proposed notice to other potential plaintiffs should be authorized.
Section 216(b) of the FLSA provides that an employee or employees may maintain an action to recover for the liability prescribed in the section against any employer on "behalf of himself or themselves and other employees similarly situated." 29 U.S.C. § 216(b). The operative phrase is the term "similarly situated."
Collective actions are intended to serve the interests of judicial economy and to aid in the vindication of plaintiffs' rights. Hoffmann-La Roche Inc. v. Sperling, 493 U.S. 165 (1989). Unlike Federal Rule of Civil Procedure 23, a collective action maintained under the FLSA is pursued as an opt-in class. c.f., 29 U.S.C. § 216(b) (stating that "[n]o employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which the action is brought."); and Fed. R. Civ. P. 23(c) (requiring that the notice to class members include a statement "that the court will exclude from the class any member who requests exclusion").
District courts have discretion, in appropriate cases, to facilitate notice to potential members of the class on whose behalf a collective action has been brought. Hoffman-La Roche, 493 U.S. at 169. Once the FLSA action has been filed, the court has a managerial responsibility to oversee the joinder of additional parties to assure that the task is accomplished in an efficient and proper way. See id. at 170-71.
The prevailing approach among federal courts for certifying collective actions under § 216(b) involves a two-stage process: (1) the notice stage; and (2) the opt-in or merits stage. Mooney v. Aramco Services Co., 54 F.3d 1207, 1214 (5th Cir. 1995). During the notice stage, the court makes a decision—usually based only on the pleadings and affidavits that have been submitted—whether notice should be given to potential class members. Id. at 1213. If the court allows for notification, the court typically creates a conditional certification of a representative class and allows notice to be sent to the potential opt-in plaintiffs.
During the notice stage, the Court does not make findings on legal issues or focus on whether there has been an actual violation of the law. See Thiessen, 267 F.3d at 1106-07. The Court also does not make credibility determinations or resolve contradictory evidence presented by the parties. See Grayson v. K Mart Corp., 79 F.3d 1086, 1099 n.17 (11th Cir. 1996). Instead, the Court determines whether, under the lenient standard of the notice stage, the named Plaintiffs, through their pleadings and affidavits, have demonstrated that they are "similarly situated" to the potential collective action members. See 29 U.S.C. § 216(b); Thiessen, 267 F.3d at 1106-07.
The FLSA does not define the term "similarly situated," but it typically requires a showing that the plaintiffs and potential class members were victims of a common decision, policy, or plan of the employer that affected all class members in a similar fashion. See Thiessen, 267 F.3d at 1106-08; Kautsch v. Premier Communications, 504 F.Supp.2d 685 (W.D. Mo. 2007). The "similarly situated" determination requires only a modest factual showing; it does not require the plaintiff and the potential class members to show that they are identically situated. See Kautsch, 504 F. Supp. 2d at 689.
In this case, the named Plaintiffs have made a preliminary showing that the hourly employees of the nursing homes are similarly situated. Plaintiffs have come forward with substantial allegations that they and the other members of the proposed collective action were victims of a common policy of automatically deducting meal breaks from all hourly employees and depriving the employees of the opportunity to reclaim the lost breaks.
Defendants argue that there is no evidence that all hourly employees have the same duties and responsibilities or that all hourly employees were affected in a similar way regarding meal breaks. For example, Defendants state that some hourly employees get a one-hour meal break and the reasons for employees not taking meal breaks likely vary depending on their specific job duties and supervisors. Furthermore, Defendants point out that there is no declaration from any hourly employees in a maintenance position who claim to have worked through meal breaks. These arguments may prove convincing at the decertification stage of this litigation; however, at the notice stage, Defendants' arguments do not preclude conditional certification of a collective action. Plaintiffs have adequately alleged that they and the employees they seek to represent were required to perform similar work without pay regardless of their individual job titles and supervisors.
Defendants assert that automatically deducting a meal break is not per se illegal as long as the employer provides employees with an effective method to reclaim the time that they worked during their meal break. In Defendants' response, they point out that at least two Courtyard employees were aware of a way to reclaim their automatically deducted meal break time.
Once the Court has determined that potential opt-in plaintiffs may be similarly situated for the purposes of certifying the collective action and authorizing notice, Plaintiffs must send a court-approved notice to the potential class members. See Kautsch, 504 F. Supp. 2d at 689. Plaintiffs have submitted a proposed notice to be sent to the potential opt-in plaintiffs. ECF No. 43-1. In its response to Plaintiffs' certification motion, Defendants make four primary objections.
First, Defendants argue that the notice is deficient based on the proposed class definition because it does not mention the specific alleged violation at issue under the FLSA. Plaintiffs, however, state that they are willing to amend the notice to make clear that the FLSA violation at issue is the alleged failure of Defendants to pay Plaintiffs for all hours worked in excess of forty due to uncompensated meal breaks. Plaintiffs are directed to make this amendment to the proposed notice.
Second, Defendants argue that Plaintiffs' notice is not properly drafted because it is addressed to all former and current employees, some of whom may be exempt from the requirements of the FLSA. While the notice is addressed to all present and former employees, Plaintiff's description of the lawsuit states that "Plaintiffs . . . are current and former employees of [certain facilities owned by Defendants] who were paid by the hour and classified as non-exempt from requirements of the [FLSA]." Any vagueness as to who the notice is addressed is likely clarified by the description of the lawsuit. Plaintiffs, however, state they are willing to amend the notice to specify that "present and former employees" of the facilities refers only to those hourly, non-exempt employees covered by the FLSA. Plaintiffs are directed to make this amendment to the proposed notice.
Third, Defendants repeat their arguments regarding a lack of similarity among the class. Defendants claim the notice is deficient because it references a class made up of hourly employees of Defendants without regard to specific job titles and duties. Defendants argue that all of Defendants' hourly employees cannot be considered similarly situated due to widely varying job duties and positions. The Court has already addressed this issue. Plaintiffs have sufficiently shown that all hourly employees of Defendants are subject to the common timekeeping practice of automatically deducting thirty (30) minutes for meal breaks each day without consideration of whether a lunch break was actually taken. This makes every hourly employee susceptible to the same under reporting of their time as Plaintiffs in spite of any varying job titles or duties. Accordingly, at this stage in the proceedings, the similarly situated requirement has been met.
Fourth, Defendants argue that the proposed notice overstates the applicable statutory period when it refers to three years. Under 29 U.S.C. § 255(a), FLSA claims generally have a two-year statute of limitations. An exception to that two-year limitations period occurs when there has been a willful violation of the Act, in which case the limitations period extends to three years. Id. Defendants assert that Plaintiffs have not shown that any alleged FLSA violations were willful and thus the defined putative class should include a two-year statute of limitations. Plaintiffs, however, have alleged willfulness. Whether this allegation is true is an issue that goes to the merits of the case, not whether notice should be issued to potential Plaintiffs. Resendiz-Ramirez v. P & H Forestry, LLC, 515 F.Supp.2d 937, 942 (W.D. Ark. 2007). Thus, for notice purposes, the statute of limitations is three years.
Plaintiffs request that Defendants be required to produce the following information on its employees: name, address, telephone number, dates of employment, employee number, and the last four digits of their social security number. Plaintiffs also ask that Defendants be required to post notice of this action at the relevant workplaces and include the notice in the employees' next paychecks in addition to mailing the notices. Defendants do not object to any of these requests regarding notice. The Court finds that Plaintiffs' requests regarding notice are reasonable except for one. Placing the burden on Defendants to include the notice in employee paychecks along with mailing the notices seems duplicative and unreasonable. This request is denied, and Defendants are not required to place the notice in employees' paychecks or to mail out notices to employees. Plaintiffs' remaining requests regarding notice are granted. Defendants must produce the requested information in a usable format within fourteen (14) days from the date of this Order.
The Court finds that other alterations to the proposed notice are needed. Plaintiffs' proposed notice states that "Plaintiffs seek to sue on behalf of themselves and on behalf of other Present and Former hourly-paid employees of [Defendants] who worked at their facilities . . . at any time during the three years before the date of December 5, 2012, to the present." ECF No. 43-1, ¶ 3. This same date—December 5, 2012—is referenced in the paragraph of the proposed notice explaining the effect of joining the lawsuit. ECF No. 43-1, ¶ 5. The Court presumes that Plaintiffs selected the date of December 5, 2012, because that is the date the original complaint was filed in this case. ECF No. 1. In collective actions, however, the statute of limitations is not tied to the filing of the complaint for opt-in plaintiffs. Instead, it continues to run against any individual claimant until the date on which the person files a written consent with the court to opt-in. 29. U.S.C. § 256.
Plaintiffs' proposed notice does not include a statement clearly explaining that claims of employees may be time-barred depending on when they elect to opt-in and, if so, that no recovery will be available. This information should be clearly set out in the notice sent to potential plaintiffs. To further alleviate this statute of limitations concern, the Court finds that notice should only go to individuals who were employed by Defendants during the three-year period immediately preceding this ruling. Plaintiffs should therefore promptly supplement their proposed notice and address these issues. Further, Plaintiffs should change the trial date referenced in paragraph two of the proposed notice to the current trial date.
For the reasons explained above, Plaintiffs' motion for certification and for authorization of their proposed notice should be and hereby is