MALACHY E. MANNION
Presently before the court is a motion to dismiss filed by the defendant, Millwood Inc., (Doc. No.
The defendant is a corporation headquartered and maintaining its principal place of business in Vienna, Ohio. The defendant is in the business of manufacturing new and recycled wood pallets for customers throughout the United States. Before the defendant re-issues the recycled pallets back into the marketplace, employees holding the title of "pallet repairer" refurbish the used pallets. These pallet repairers are paid on a piece-rate basis, receiving approximately $.39 for every pallet they repair. (Doc. No.
After the pallet repairers finish, managers for the defendant inspect the finished product to ensure that the pallets meet sufficient quality standards. (Doc. No.
The plaintiff purports to bring this claim on behalf of other employees, although the plaintiff has not yet moved for class certification. The plaintiff alleges that the policy regarding improperly repaired pallets qualifies as an unauthorized deduction under the WPCL. Although he signed an agreement addressing repair deductions, (Doc. No.
The defendant suggests that the plaintiff's claim is deficient under the WPCL because the plaintiff failed to plead and cannot prove the existence of a contract between the parties. (Doc. No.
The plaintiff commenced the action by filing his original complaint on May 14, 2012. (Doc. No.
On June 6, 2012, the plaintiff filed an amended complaint. (Doc. No.
On December 12, 2012, the defendant filed the instant motion to dismiss the second amended complaint, (Doc. No.
The defendant's motion to dismiss is brought pursuant to the provisions of
The plaintiff's second amended compliant, (Doc. No.
The defendant argues that the plaintiff's claim under the WPCL should be dismissed because the plaintiff has failed to plead the existence of any contract between the parties, which is required by the statute. The court finds, at this stage, that the plaintiff has sufficiently pled the existence of a binding contractual agreement between the parties with regard to wages to be paid by the defendant to the plaintiff.
The defendant argues that the existence of a contract between the employer and employee is a prerequisite to a WPCL claim. The court agrees, however, the court finds that the defendant's characterization of the necessary contract misstates the requirements of the WPCL.
The WPCL states that "[a]ny employee or group of employees, labor organization or party to whom any type of wages is payable may institute actions provided under this act." 43 Pa.C.S.§260.9a. The language of the statute does not require a contract; nevertheless, Pennsylvania courts and federal courts applying Pennsylvania law have found a de facto requirement that the parties be in a contractual relationship. The defendant relies on the holding of Third Circuit Court of Appeals that the "WPCL does not create a right to compensation. Rather, it provides a statutory remedy when the employer breaches a contractual obligation to pay earned wages. The contract between the parties governs in determining whether specific wages are earned." Weldon v. Kraft, Inc., 896 F.2d 793, 801 (3d Cir. 1990)(citing Sendi v. NCR Comten, Inc., 619 F.Supp. 1577, 1579 (E.D. Pa. 1985) aff'd sub nom. Sendi v. N.C.R. Comten, Inc., 800 F.2d 1138 (3d Cir. 1986)(emphasis added). It is clear that the WPCL does not create a right to compensation but rather "the WPCL is a statutory vehicle that the legislature has provided for employees to recover unpaid wages that are due to them," Wink v. Ott, 2012 WL 1855216 (M.D. Pa. May
A line of recent cases has appeared to place increased weight on the presence of a formal contract, rather than a more fundamental contractual agreement to pay wages the employee has earned. These cases have held that "the Wage Payment and Collection Law provides employees a statutory remedy to recover wages and other benefits that are contractually due to them." In re Cargill Meat Solutions Wage & Hour Litig., 632 F.Supp.2d 368, 397 (M.D. Pa. 2008) (quoting Oberneder v. Link Computer Corp., 548 Pa. 201, 696 A.2d 148, 150 (Pa.1997)(emphasis in original)); see also Lehman v. Legg Mason, Inc., 532 F.Supp.2d 726 (M.D. Pa. 2007)(quoting Oberneder, 696 A.2d at 150). Moreover, the court in In re Cargill Meat Solutions added that "[r]elief under the WPCL is implausible without existence of a contract." In re Cargill Meat Solutions, 632 F. Supp.2d at 397. In each of these cases, however, the existence of a contract, formal or otherwise, was not the question squarely before the court. In In re Cargill Meat Solutions the court found that employees where not entitled to be paid for the added time of donning and doffing protective clothing because compensation for such time was not provided for in their collective bargaining agreement. In Lehman, the court emphasized the limited right to contractual wages in denying the plaintiff's allegation that he was entitled to statutorily mandated wages. Finally, in Oberneder, the Pennsylvania case from which the quotation is drawn, the court was focused on the availability of attorneys fees after the employer was ordered to pay commissions due under the employment contract. Although these cases emphasized the importance of a contract generally, they did not purport to examine the required scope of a contract sufficient to support a WPCL claim. In light of the WPCL's goal of making employees whole, the court does not find that the recent focus on contractual obligations is evidence of any judicial trend toward the requirement of a formal contract of employment to access the protections of the WPCL.
Moreover, the Third Circuit has clearly considered the possibility that WPCL claims may be predicated on contractual obligations arising from agreements other than contracts of employment. The Third Circuit specifically held that to access the WPCL when "employees do not work under an employment contract or a collective bargaining agreement, plaintiffs will have to establish the formation of an implied oral contract between [the employer] and its employees." De Asencio v. Tyson Foods, Inc., 342 F.3d 301, 309 (3d Cir. 2003); see also Braun v. Wal-Mart Stores, Inc., 2011 PA Super 121, 24 A.3d 875, 954 (Pa. Super. Ct. 2011)("[A]bsent a formal employment contract or collective bargaining agreement, an employee raising a WPCL claim would have to establish, at a minimum, an implied oral contract between the employee and employer.").
It is therefore clear to this court that the plaintiff need not plead the existence of any formal employment contract. Rather the plaintiff need only plead the existence of some contractual agreement to pay wages that defendant now owes to the plaintiff. Such a binding agreement may be express or, as the Third Circuit noted in De Asencio, it may be implied. In the context of an employment relationship "a promise to pay the reasonable value of the service is implied where one performs for another, with the other's knowledge, a useful service of a character that is usually charged for, and the latter expresses no dissent or avails himself of the service." McGough v. Broadwing Commc'ns, Inc., 177 F.Supp.2d 289, 297 (D.N.J. 2001)(quoting Martin v. Little, Brown and Company, 304 Pa.Super. 424, 430, 450 A.2d 984 (1981)).
Although the plaintiff's pleading includes minimal factual support, the court finds that there is sufficient evidence of a contract to pay wages to support a WPCL claim at this stage. The plaintiff has alleged, and the defendant does not deny, that he was employed as a pallet repairer by the defendant. The plaintiff also asserts that he was paid under a piece-rate wage scheme in which he was paid $.39 per pallet repaired and $3.90 was deducted from his pay for any pallet that was found to not meet quality standards. The plaintiff also alleges that the defendant availed itself of the plaintiff's work during two separate periods of employment. The defendant argues that the notice attached to the plaintiff's amended complaint, (Doc. No.
The failure to plead the existence of a contract is the sole ground for dismissal of this claim raised in the defendant's motion and brief and therefore the motion will be denied, at this stage, with respect to the WPCL claim.
Finding that the plaintiff has sufficiently pled the existence of an binding contractual agreement for the payment of wages owed, the defendant's motion will be denied to the extent that it requests dismissal of the plaintiff's WPCL claim, Count I. The plaintiff does not oppose the dismissal of the unjust enrichment claim, Count II, and, as such, the claim will be dismissed. An appropriate order will follow.