CATHERINE C. BLAKE, District Judge.
This case involves allegations of withheld minimum and overtime wages in violation of state and federal law. The plaintiffs
Giegerich and Steinman initially filed suit against Watershed, LLC, David Gjerde, and Amy Gjerde on June 12, 2015, raising minimum wage and overtime claims under the FLSA, 29 U.S.C. §§ 201 et seq., and the Maryland Wage and Hour Law, Md. Code, Lab. & Empl. §§ 3-401 et seq. (Compl., ECF No. 1). On August 11, 2015, the plaintiffs amended their complaint, adding Artifact, LLC, Foodshed, LLC, Parts & Labor, LLC, and Corey Polyoka as defendants. (Am. Compl., ECF No. 27). The plaintiffs filed a second amended complaint on November 20, 2015, adding Farmhouse Diner and Oystershed, LLC as a defendant. (Second Am. Compl., ECF No. 53). By the end of 2015, eighteen additional plaintiffs had joined the suit by filing notices of consent to become a party plaintiff.
On September 2, 2015, the plaintiffs moved for conditional certification under 29 U.S.C. § 216(b), and for the court's assistance in identifying and notifying similarly situated employees. (Mot. Conditional Certification, ECF No. 38). The defendants have opposed this motion. (Opp'n Mot. Conditional Certification, ECF No. 45). The facts stated below come primarily from the plaintiffs' declarations, which they attached as support for their motion and reply brief.
The plaintiffs allege violations at four food and beverage establishments: Woodberry Kitchen, Parts & Labor, Artifact Coffee, and Shoo-Fly Diner (collectively, "the restaurants").
In their positions as cooks, the plaintiffs were responsible for preparing and cooking a variety of food and beverage items according to instructions provided by the defendants. They usually prepared these items for their respective restaurants; occasionally, they prepared items for use at the defendants' other restaurants. The plaintiffs also had to perform related tasks such as gathering supplies and cleaning their workstations; it appears, however, that this work was peripheral to their main role as cooks.
All of the plaintiffs were compensated under the same "shift pay" system.
The plaintiffs ask the court to conditionally certify a class and facilitate notice of all cooks who have worked for the defendants at Woodberry Kitchen, Parts&Labor, Shoo-Fly Diner, or Artifact Coffee. They offer declarations from eight party plaintiffs as support
The defendants argue in response that the proposed representative plaintiffs are not similarly situated because the plaintiffs had differing job titles, responsibilities, rates of pay, and work schedules. Additionally, they claim the plaintiffs worked for different restaurants, owned by different companies, in different locations. In the alternative, the defendants argue that the class should be limited to pastry chefs at Woodberry Kitchen who received shift pay and line cooks at Parts & Labor who received shift pay as those were the only positions and restaurants covered by the affidavits attached to the plaintiffs' motion for conditional certification. The court rejects these arguments.
Under the FLSA, a collective action "may be maintained against any employer . . . by any one or more employees for and in behalf of himself or themselves and other employees similarly situated." 29 U.S.C. § 216(b). After an initial complaint is filed, other similarly situated employees may become party plaintiffs by giving "consent in writing to become such a party and such consent is filed in the court in which such action is brought." Id. Accordingly, § 216(b) "establishes an `opt-in' scheme, whereby potential plaintiffs must affirmatively notify the court of their intentions to be a party to the suit." Quinteros v. Sparkle Cleaning, Inc., 532 F.Supp.2d 762, 771 (D. Md. 2008).
"When deciding whether to certify a collective action pursuant to the FLSA, courts generally follow a two-stage process." Butler v. DirectSAT USA, LLC, 876 F.Supp.2d 560, 566 (D. Md. 2012). "In the first stage, commonly referred to as the notice stage, the court makes a `threshold determination of whether the plaintiffs have demonstrated that potential class members are similarly situated, such that court-facilitated notice to putative class members would be appropriate.'" Id. (quoting Syrja v. Westat, Inc., 756 F.Supp.2d 682, 686 (D. Md. 2010)) (some internal quotation marks omitted). "In the second stage, following the close of discovery, the court conducts a `more stringent inquiry' to determine whether the plaintiffs are in fact `similarly situated,' as required by § 216(b)." Id. (citation omitted).
The instant case has reached the first stage of this process. Thus, the central question here is whether the party plaintiffs have proffered enough for the court to make a threshold determination that they are "similarly situated" to the potential class members. Similarly situated does not mean identical. Id. "Rather, a group of potential FLSA plaintiffs is `similarly situated' if its members can demonstrate that they were victims of a common policy, scheme, or plan that violated the law." Id. "[P]laintiffs can be similarly situated even though there are distinctions in their job titles, functions, or pay." Robinson v. Empire Equity Grp., Inc., Civil No. WDQ-09-1603, 2009 WL 4018560, at *3 (D. Md. Nov. 18, 2009) (quoting Jirak v. Abbott Labs., Inc., 566 F.Supp.2d 845, 848-49 (N.D. Ill. 2008)).
To meet their burden at this stage, the plaintiffs must make only "a relatively modest factual showing," Randolph v. PowerComm Constr., Inc., 7 F.Supp.3d 561, 575 (D. Md. 2014) (internal quotation marks omitted), although "[m]ere allegations in the complaint are not sufficient; some factual showing by affidavit or otherwise must be made." Camper v. Home Quality Mgmt. Inc., 200 F.R.D. 516, 519 (D. Md. 2000). Employees cannot reasonably be expected, however, to have evidence of a stated policy of refusing to pay overtime or the minimum wage. See Quinteros, 532 F. Supp. 2d at 772.
The plaintiffs have made the necessary "modest factual showing" that they are similarly situated to other cooks compensated under the shift pay system. The plaintiffs' detailed declarations suggest they were all subject to the shift pay system, and they had the same general job responsibilities of preparing and cooking food and beverage items.
Taken together, these assertions suggest the cooks at the defendants' restaurants were subject to a common policy, scheme, or plan—an abusive shift pay system—that deprived them of the minimum and overtime wages to which they were entitled. See Faust v. Comcast Cable Commc'ns Mgmt., LLC, Civil No. WMN-10-2336, 2011 WL 5244421, at *5 (D. Md. Nov. 1, 2011) (plaintiffs made the necessary "modest factual showing" by submitting evidence that they were "encouraged to work off the clock, [were] in fact working off the clock with their supervisor's knowledge, and [were] not being properly compensated for that time"). The issues particular to individual plaintiffs, such as differing job titles, rates of pay, or time-keeping methods, are insufficient to defeat certification at this stage in the process. See Robinson, 2009 WL 4018560, at *3.
Attempting to avoid certification, the defendants also argue that the four restaurants are "owned by four different companies and, therefore, [are] not a `restaurant chain,'" which should preclude a finding that cooks from different restaurants were similarly situated. (Opp'n Mot. Conditional Certification 10, ECF No. 45). They assert "there can be no dispute that the Purported Representatives worked for different companies, worked for different restaurants, and worked in different locations." Id. at 11. Multiple locations owned by multiple entities, however, do not preclude a finding of a common policy, scheme, or plan. The FLSA acknowledges this reality by extending its overtime and minimum wage protections to employees of an "enterprise engaged in commerce." See 29 U.S.C. §§ 206-07. Under the statute, an enterprise includes
29 U.S.C. § 203(r)(1) (emphasis added); see also Brock v. Hamad, 867 F.2d 804, 806 (4th Cir. 1989).
Another judge of this court previously held that two taverns, although owned by separate entities, were a single enterprise when the taverns sold food and drink in the same neighborhood to similar clientele (related activities), were controlled by the same individual owner (common control), and shared a business objective of selling food and drink to paying customers (common business purpose). See Gionfriddo v. Jason Zink, LLC, 769 F.Supp.2d 880, 891-92 (D. Md. 2011). As in Gionfriddo, the facts of the instant case show that four of the corporate defendants, Artifact, LLC, Parts&Labor, LLC, Watershed, LLC, and Farmhouse Diner and Oystershed, LLC, operated as a single enterprise. Each of those entities owned an establishment selling food and drink in Baltimore City. The plaintiffs' declarations reveal (1) plaintiffs prepared food at one restaurant for the benefit of another; (2) plaintiffs were hired to work at one restaurant after interviewing at another location; (3) plaintiffs were transferred between restaurants without having to complete new employment paperwork; and (4) plaintiffs at each of the restaurants recognized the individual defendants as having authority over the operations of each establishment. These facts show that the defendants employed uniform operations or common control to conduct related activities for a common business purpose.
The parties dispute the appropriate scope for a conditionally certified class. The defendants argue that any class should be limited to pastry chefs at Woodberry Kitchen and line cooks at Parts&Labor, as only plaintiffs in those positions submitted declarations attached to the motion for conditional certification.
Accordingly, the court will grant the plaintiffs' motion for conditional certification of a class comprised of all cooks presently or previously employed by the defendants who were compensated under the shift pay system.
Where the court has conditionally certified a collective action, it has "broad discretion regarding the `details' of the notice sent to potential opt-in plaintiffs." Butler v. DirectSAT USA, LLC, 876 F.Supp.2d 560, 574 (D. Md. 2012) (citation omitted). See also Calder v. GGC-Baltimore, LLC, Civil No. BPG-12-2350, 2013 WL 3441178, at *3 (D. Md. July 8, 2013) ("So as to facilitate that notice, defendant is directed to supply plaintiffs with identifying information for the potential plaintiffs, to include full name, last known residential address, and last known email address."). The plaintiffs have requested that the parties be given seven days to confer and determine if they can agree to the notice's content. The court will so order, though it retains the ability to modify any proposed notice.
For the reasons stated above, the plaintiffs' motion for conditional certification and for the court's assistance in identifying and notifying similarly situated employees will be granted.
A separate order follows.