ROBERT W. GETTLEMAN, District Judge.
Plaintiffs Doris Solsol and Yoli Rodriguez Diaz brought a putative collective action complaint against defendants Scrub, Inc. ("Scrub"), Teresa Kaminska, and Mark Rathke alleging violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201
Scrub is a company that provides janitorial services in the Chicago area. Defendant Kaminska is Scrub's Vice President of Operations and defendant Rathke is Scrub's General Manager. Plaintiffs worked for Scrub as janitors at O'Hare International Airport ("O'Hare") under a contract with the City of Chicago to clean the domestic terminals from at least October 2010 until December 14, 2012, when the contract ended. Scrub has nearly one thousand employees who work in various capacities, but mostly at O'Hare.
Scrub employees working at O'Hare clock in and out at the start and end of their shifts. Once employees report their hours for the day (or week, depending on the supervisor's practices), supervisors fill out Supervisor Payroll Input Sheets ("input sheets") to record the time each employee worked. Sally Coady, Scrub's Payroll Specialist, uses these input sheets, not the time cards, to calculate Scrub's employee payroll. Plaintiffs claim that their compensation, as determined by the input sheets, violates the FLSA in two ways. First, plaintiffs claim that they punched in and performed work prior to the start of their shifts, but were not paid for that time, and that they continued to work after punching out, but were not paid for that time. Second, plaintiffs allege that thirty minutes were automatically deducted from their paid time for a lunch break on each shift, but they often worked during that break and were not compensated.
Neither Kaminska nor Rathke directly supervised either plaintiff. As Vice President of Operations, Kaminska supervises the manager for each department of operations, which is approximately ten people. These ten "top supervisors" oversee even more supervisors who oversee the janitors on each shift. Additionally, the janitors on each shift, and in each department, answer to a "lead" who acts as a supervisor for each individual crew, but also works as a janitor alongside the crew. Kaminska is responsible for promoting janitors and, through supervisors, approving any overtime worked. Kaminska does not, however, report time worked by janitors on the input sheets. The supervisor for each shift fills out the input sheets, which are forwarded to Coady, along with the corresponding time cards. According to Kaminska, she does not review the input sheets before they are sent to Coady or alter the time recorded on them, and only the janitors' supervisors are authorized to change the time recorded on the input sheets.
Kaminska acknowledged that some employees arrived at work, and clocked in, earlier than the start of their shift. She testified, however, that they did not do any work prior to the beginning of their shift because, according to her, there was nothing for them to do. She testified that in her thirty years of experience at Scrub she had never seen a janitor being asked to begin work early. This is why, Kaminska explains, she trained supervisors to record a janitor's scheduled hours as hours worked on the input sheet, provided they did not arrive to work late and did not leave early. Kaminska also testified that the only way she would know whether a janitor started working before his or her scheduled time would be if the customer, in this case the City of Chicago, called requesting that the janitor do so. According to Kaminska, that never happened. Kaminska also testified that she never instructed any supervisor to direct any janitor to work during their thirty-minute lunch break.
As Scrub's General Manager, Rathke, through other upper-level employees, oversees all financial aspects of the company, sales, contracts, and quality assurance. Rathke was the "point person" for all aspects of the City of Chicago contract, but Kaminska was involved with operational aspects of the contract. According to Rathke, Scrub's Human Resource ("HR") Specialist reports directly to him. Kaminska also brings HR issues to Rathke and when supervisors have issues with their subordinates, they generally go to him to resolve those issues. Rathke does not review payroll or janitors' time cards.
According to Rathke, the leads trained new janitors and either Kaminska or a supervisor trained the leads. He further testified that the leads decided when the janitors worked, and ensured that they did not violate any work rules. If such violations occurred, the leads reported them to the supervisors. Rathke does not hire janitors, nor is he involved in disciplining them unless the disciplinary action is raised to a suspension or termination. Rathke also testified that employees are not required to come to work prior to the start of their shift, and that those who do arrive early do not perform work until the start of their shift. Rathke admitted that Scrub's policy is to pay employees from the start of their shift, even if they clock in early, and explained that this is so because they are not required to do anything work-related prior to the beginning of the shift, but are allowed to clock in early to avoid waiting in line at the beginning of the shift. According to Rathke, if employees chose to do work prior to the start of the shift, he would not be aware of it.
Plaintiffs paint a vastly different picture. According to plaintiffs, they were told that they had to arrive prior to the start of their shifts so they would have time to collect supplies and do mandatory stretching exercises before the shift started.
Summary judgment is appropriate when the moving papers and affidavits show that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a);
A genuine issue of material fact exists when "the evidence is such that a reasonable jury could return a verdict for the nonmoving party."
Under the FLSA, "employees are entitled to overtime pay (i.e., one and one-half times the regular rate) for any hours worked in excess of forty hours per week, unless they come within one of the various exemptions set forth in the Act."
Although the FLSA's definition of employer is broad, it is not limitless.
The Seventh Circuit has not established a standard or legal test applicable to determining whether an individual employee is an employer under the FLSA.
Accordingly, this court's efforts to determine the "economic reality" of the parties' employment relationship will not be restricted to the above factors and will, instead, consider "the totality of the circumstances."
Starting with Rathke, plaintiffs have not presented even a mere scintilla of evidence that he was aware of, much less caused, the alleged FLSA violations. Specifically, plaintiffs provided no evidence that Rathke: (1) hired the janitors (he admitted that he had the power to fire them); (2) supervised or controlled their work schedules; (3) had anything to do with their rate or method of payment;
As discussed above, Rathke managed several aspects of the company through other upper-level employees. Rathke managed some HR issues, again through his subordinates. Rathke had no role in reviewing payroll or janitors' time cards. He also had no role in training either the janitors themselves or their leads and supervisors. Rathke does not work with or supervise the janitors. According to Rathke's deposition testimony, he is unaware of any janitor working prior to their start time, later than their end time, or during their lunch break. Plaintiffs offer no evidence to rebut this claim. Instead, plaintiffs attempt to cast doubt on the evidence presented by outlining Rathke's many duties at Scrub. In the end, they undermine their position because, although Rathke does indeed wear many hats at Scrub, none of them relate to the violations alleged in this case. Because Rathke did not "exercise[] control and authority over [plaintiffs] in a manner that caused the FLSA violation" he is not their employer for the purposes of this lawsuit.
Kaminska is a closer call. Here, as with Rathke, plaintiffs provide little evidence to fulfill the enumerated factors of the economic realities test, but it is not dispositive.
The best evidence plaintiffs offer in their attempt to hold Kaminska personally accountable for the alleged violations is that she "supervised the supervisors," which could lead a reasonable jury to infer that Kaminska is at least partially responsible for the alleged FLSA violations. This would be possible only if plaintiffs offered any evidence to suggest that Kaminska instructed the supervisors she oversaw to act in a way that facilitated the violations. They do not. The closest plaintiffs get is Rodriguez Diaz's claim that unnamed janitor supervisors and leads told her that she had to arrive to work, and start working, prior to her start time, and that the order came from Kaminska. Importantly, neither plaintiff claims to have ever spoken with, or received any direction whatsoever from, Kaminska. In fact, Solsol affirmatively denied any such communications, and Rodriguez Diaz's claim is, of course, hearsay, which the court cannot accept as true. See Federal Rule of Evidence 801. Moreover, plaintiffs have failed to offer testimony from any supervisor to confirm their claim that the alleged violations were the result of Kaminska's direction. Accordingly, they provide no evidence to show that Kaminska is even partially responsible for the alleged violations.
According to plaintiffs, the most obvious evidence that Rathke and Kaminska actually exercised authority over plaintiffs is that the alleged violations happened under their watch. Although Rathke and Kaminska were indisputably in their respective roles during the time the alleged violations occurred, it is not at all obvious to the court, based on the evidence plaintiffs presented, that they "actually exercised" any authority over the plaintiffs. Although they certainly hold high positions at Scrub, which might suggest that they were capable of exercising such authority, that alone is insufficient to establish employer liability under the FLSA.
For the foregoing reasons, the court grants Kaminska and Rathke's motion for partial summary judgment (doc. 580). This matter is set for a status report on September 13, 2018, at 9:00 a.m.