VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
This matter is before the Court pursuant to the Motion for Summary Judgment (Doc. # 98), which was filed by Luis Maldonado, "on behalf of himself and those similarly situated," on December 1, 2017. Defendants Patrick Callahan and Callahan's Express Delivery, Inc. filed a Response in Opposition (Doc. # 99) on December 15, 2017. For the reasons that follow, the Court grants the Motion in part and denies the Motion in part.
Callahan's Express Delivery and Callahan contract to make local delivery of mattresses, furniture, and other goods on behalf of retail customers, such as Mattress Firm and IKEA. (Doc. # 98 at 2). Callahan is "the proprietor of Callahan's Express Delivery, Inc." (Callahan Aff. Doc. # 99-1 at ¶ 2). Maldonado was employed by Defendants from June of 2011 through June of 2012. (Maldonado Decl. Doc. # 98-3 at ¶ 5). Maldonado began his employment as a driver's helper and then became a driver. (
Maldonado claims Callahan told him where and when Maldonado should report for work. (
According to Maldonado, he typically worked 12 or more hours per day between 6 and 7 days a week. (
The parties agree that Maldonado supplied some of his own tools such as "basic hand tools" and his personal cell phone. (Maldonado Decl. Doc. # 98-3 at ¶¶ 20-21). Callahan confirms that Maldonado supplied "necessary tools to perform the job" such as "screwdrivers, cordless drill, smart phone, drill bits, and pliers." (Callahan Aff. Doc. # 99-1 at ¶ 12). Defendants, on the other hand, supplied 10,000 pound trucks, fuel, and insurance. (Maldonado Decl. Doc. # 98-3 at ¶ 20).
On January 31, 2013, Maldonado initiated this action by filing a single-count complaint for violations of the Fair Labor Standards Act against Mattress Firm, Inc., Callahan's Express Delivery, Inc., and Patrick Callahan. (Doc. # 1). Mattress Firm filed an Answer on March 12, 2013. (Doc. # 20). The Callahan Defendants filed a Motion to Compel Arbitration (Doc. # 23) on March 20, 2013. On April 24, 2013, the Court granted the Callahan Defendants' Motion to Compel Arbitration and directed the parties to advise the Court regarding whether Maldonado's claims against Mattress Firm should be stayed pending resolution of the arbitration proceedings. (Doc. # 34). On April 25, 2013, Mattress Firm filed a separate Motion requesting that the claims against it also be submitted to arbitration. (Doc. # 37). On June 3, 2013, the Court granted the Motion "to the extent that the Court compels arbitration of Maldonado's claim against Mattress Firm." (Doc. # 50 at 19). Because all of Maldonado's claims were ordered to be submitted to arbitration, the Court closed the case on June 3, 2013. (
Yet, on January 12, 2017, Maldonado filed a Motion to Reopen the Case. (Doc. # 51). Maldonado explained that he filed a Demand for Arbitration with the American Arbitration Association in order to commence arbitration proceedings against the Callahan Defendants, but the Callahan Defendants "repeatedly and willfully refused to comply with the AAA's requirements for maintaining a case in arbitration." (
On April 18, 2017, Maldonado renewed his Motion to Reopen the Case. (Doc. # 53). The Court entered an Order on May 3, 2017, reopening the case with respect to the Callahan Defendants but denying the Motion as to Mattress Firm. (Doc. # 59). The Court explained that Maldonado was required to proceed against Mattress Firm through arbitration and "the record reflects that no such proceeding was instituted by Maldonado against Mattress Firm in the almost four years since the Court compelled arbitration." (
With the case reopened as to the Callahan Defendants only, the Court entered a Fast Track Scheduling Order on May 4, 2017. (Doc. # 60). Thereafter, on June 2, 2017, Maldonado filed a Notice reflecting that six individuals (Johnny Machado, Ed-Joacin Melendez, Javier Aguilar, Alex Armon, Artis Patterson, and Mario Calo) executed Consent to Join Collective Action forms. (Doc. # 63). Machado filed a declaration containing statements similar to those made by Maldonado. (Machado Decl. Doc. # 98-4). Callahan states Maldonado, Machado, and Patterson were "independent contractor drivers" and Armon, Melendez, and Aguilar were "driver's helpers who were neither employees nor independent contractors." (Callahan Aff. Doc. # 99-1 at ¶¶ 5-6). Callahan explains that drivers had the prerogative to hire helpers, and if they did, the individual drivers, not Defendants, would pay the helpers. (
On June 26, 2017, the parties participated in a mediation conference but reached an impasse. (Doc. # 70). On November 8, 2017, the Court issued a Case Management and Scheduling Order setting a pretrial conference for February 5, 2018, and a jury trial for the February 2018 trial term. (Doc. # 97). On December 1, 2017, Maldonado filed a Motion for Summary Judgment. (Doc. # 98). The Motion is ripe for the Court's review. (Doc. # 99). As explained below, the Court grants the Motion in part and denies the Motion in part.
Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A factual dispute alone is not enough to defeat a properly pled motion for summary judgment; only the existence of a genuine issue of material fact will preclude a grant of summary judgment.
An issue is genuine if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.
If there is a conflict between the parties' allegations or evidence, the non-moving party's evidence is presumed to be true and all reasonable inferences must be drawn in the non-moving party's favor.
Maldonado seeks summary judgment on the issue of whether the Callahan Defendants are covered by the FLSA. The FLSA provides coverage where an enterprise (1) "has employees engaged in commerce or in the production of goods for commerce, or that has employees handling, selling or otherwise working on goods or materials that have been moved in or produced for commerce by any person;" and (2) "whose annual gross volume of sales made or business done is not less than $500,000." 29 U.S.C. § 203(s)(1)(A)(i)-(ii). "It has been firmly established that the phrase `engaged in commerce' within the meaning of the FLSA is to be given a broad, liberal construction."
Maldonado served the Callahan Defendants with discovery aimed at ascertaining FLSA coverage. (Doc. ## 98-1, 98-2). Among other requests, Maldonado requested that Defendants "[a]dmit that Respondent grossed more than $500,000 in gross receipts or business done" in 2009-2011. (Doc. # 98-1 at 8-9). He also requested that Defendants "[a]dmit that in the performance of his work, Claimant regularly handled goods and materials that originated outside the State of Florida." (
The Callahan Defendants did not respond to the discovery requests. Maldonado filed a Motion requesting sanctions based on the Callahan Defendants' failure to respond to discovery. (Doc. # 85). In an Order dated November 7, 2017, the Court granted the Motion for Sanctions and held that Maldonado's requests for admissions are deemed admitted. (Doc. # 96). Through the Requests for Admissions, which have been deemed admitted, Maldonado has established that the Callahan Defendants are covered by the FLSA. And, tellingly, in response to the Motion for Summary Judgment, Defendants did not raise any arguments aimed at defeating enterprise coverage under the FLSA. Thus, the Motion for Summary Judgment is granted to the extent that the Court finds that Callahan Defendants are an enterprise subject to the coverage of the FLSA.
The FLSA's overtime provisions apply to employees, but not independent contractors.
In the Eleventh Circuit, courts consider the following factors in determining an individual's employment status:
The Court recognizes that the determination of whether an individual is an employee or an independent contractor is a legal issue. Nevertheless, genuine issues of material fact preclude a ruling on this threshold issue.
"The economic reality inquiry requires [the Court] to examine the nature and degree of the alleged employer's control, not why the alleged employer exercised such control."
It is undisputed that Callahan hired the drivers, but it appears the individual drivers had the authority to hire the driver's helpers. Maldonado seeks overtime payments for his time as both a driver and as a helper. It is not clear whether the helpers were paid or otherwise employed by Defendants at all. And, while Maldonado claims that Callahan had the power to discipline and terminate drivers and helpers, Callahan characterizes his role differently. Callahan also claims the drivers "had no requirements to work any specific number of hours and could work as their availability and the availability of [Callahan's Express Delivery's] clients dictated." (Callahan Aff. Doc. # 99-1 at ¶ 19). Maldonado recounts the situation differently by asserting that Callahan controlled every aspect of the delivery schedule. There is also a dispute regarding the amount paid for deliveries. In
Courts may find independent contractor status when a worker is able to garner additional income or profit through the exercise of managerial skill or increased efficiency in the manner or means of accomplishing the work.
The Callahan Defendants argue that Maldonado had the opportunity to control the number of deliveries he made, the hours he worked, as well as the choice of whether to hire a helper. But, Maldonado claims he was completely powerless: "I did not manage any aspect of my work. Rather, each day I made the deliveries I was assigned, during specific windows of time, and was paid the $10.00 per delivery that Callahan set as my pay." (Maldonado Decl. Doc. # 98-3 at ¶ 13). The parties' differing accounts of the relevant facts present a genuine dispute and a credibility determination is needed.
Courts may find independent contractor status when a worker invests in equipment or materials required for completing his tasks, or hires other workers to assist him in the completion of his tasks.
However, when the Court compares the relative investments of the parties, it appears that this factor weighs in favor of finding employee status.
"A lack of specialization indicates that an individual is an employee, not an independent contractor."
Maldonado generally argues that he provided unskilled labor. Indeed, in
But, the Court recognizes the Callahan Defendants' arguments that delivery drivers "had to be qualified and skilled in driving delivery trucks" and their duties included "performing Department of Transportation inspections, general vehicle inspections, loading such vehicles, and securing the loads." (Doc. # 99 at 7). The Court requires more information regarding this factor to make a determination regarding FLSA employment status. For instance, did Maldonado need a commercial driver's license to act as a driver or helper? Was he provided any formal training? Was he required to spend time as helper before becoming a driver? It may be that drivers are independent contractors and helpers are employees. More information is needed before these determinations can be made.
In
Finally, the Court considers the extent to which Maldonado's services were an integral part of the Callahan Defendants' operations. "Generally, the more integral the work, the more likely the worker is an employee, not an independent contractor."
In determining whether an employer-employee relationship existed, "[n]o one factor is determinative;" "each factor should be given weight according to how much light it sheds on the nature of the economic dependence of the putative employee on the employer."
Here, some of the relevant factors point to employee status, but many of the relevant factors are dominated by factual disputes. And the overarching question of whether the helpers were employed or otherwise contracted by the Callahan Defendants remains to be addressed. The Court therefore denies the Motion for Summary Judgment with respect whether Maldonado was an employee or, rather, an independent contractor.
Plaintiff also seeks a finding that Patrick Callahan should be held individually liable for any violations of the FLSA that may be found in this case. "A corporate officer with operational control of a corporation's covered enterprise is an employer along with the corporation, jointly and severally."
Maldonado seeks summary judgment on the issue of whether the Motor Carrier Act exemption to the FLSA applies. Exemptions from the overtime provisions of the FLSA "are to be narrowly construed against the employer."
Here, the Callahan Defendants have not filed an Answer to the Complaint, nor have they asserted any defenses. Therefore, Defendants have not brought the exemption before the Court in a procedurally correct manner. Rather than provide a ruling on the application of an exemption that is not squarely before the Court, the Court provides the Callahan Defendants with the opportunity to file an Answer and Affirmative Defenses by
Maldonado seeks an Order finding that Defendants' conduct evinces a manifest lack of good faith and that the he is accordingly entitled to liquidated damages for any FLSA violations. The FLSA provides that any employer who violates the overtime requirements "shall be liable to the employee or employees affected in the amount of their unpaid . . . overtime compensation . . . and an additional amount as liquidated damages." 29 U.S.C. § 216(b). The Eleventh Circuit has instructed that "an employer who seeks to avoid liquidated damages bears the burden of proving that its violation was both in good faith and predicated upon such reasonable grounds that it would be unfair to impose upon him more than a compensatory verdict."
Here, the Court determines that it is premature to evaluate whether the Callahan Defendants acted in good faith. The good faith analysis will only be necessary if a violation of the FLSA is found. And, at this stage, the determination of whether Maldonado was an employees or an independent contractor still needs to be made. If, after hearing the evidence, the Court determines that the he was an independent contractor, the good faith inquiry will be moot. The Court accordingly denies the Motion for Summary Judgment on this issue.
Accordingly, it is
(1) Plaintiff's Motion for Summary Judgment (Doc. # 98) is
(2) Defendants shall file an Answer by