CLAUDIA WILKEN, District Judge.
Plaintiff Karen Martinez, on behalf of a putative class, brings this wage and hour suit against Defendant John Muir Health. Defendant moves to dismiss Plaintiff's complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). In the alternative, Defendant moves for an order requiring Plaintiff to provide a more definite statement pursuant to Federal Rule of Civil Procedure 12(e). Plaintiff filed an opposition and Defendant filed a reply. The Court hereby GRANTS IN PART Defendant's motion to dismiss or, in the alternative, for a more definite statement.
Unless otherwise noted, the factual background is taken from the allegations of the first amended complaint (FAC), which are taken as true for purposes of this motion. Docket No. 13 (FAC).
Defendant is a non-profit corporation operating primarily in Contra Costa County. Plaintiff was employed by Defendant as a Case Manager from May 1, 1997 to February 19, 2016. She was an hourly-paid, non-exempt employee earning $79.97 per hour at the time of her termination. She received the following non-discretionary bonuses from Defendant: (1) a "Success Sharing Bonus," which is a yearly bonus given to all non-exempt employees based on Defendant's financial success for the year; (2) a "Certification Bonus," which is a yearly bonus given to all non-exempt employees whose job positions require a certification credential; and (3) a "Top Range Bonus," which is a yearly bonus given to all non-exempt employees who are at the top of the pay scale and no longer receive yearly base rate wage increases.
Plaintiff's regular work schedule was 8:00 am to 4:30 pm. She alleges that, beginning in fall 2013, Defendant instituted cost-cutting measures that increased the employee-to-patient ratio. As a result, Plaintiff and other employees "were required to perform numerous work duties `off the clock' so as to meet the new patient metrics." For example, Plaintiff and other employees would clock out at the end of the workday but would continue to input patient notes and process insurance claims. Plaintiff alleges that she worked off the clock each and every workday.
Plaintiff asserts that the amount of overtime she is due for working off the clock can be calculated using certain electronic systems used by Defendant. Defendant maintains two such systems, EPIC and MIDAS, which Defendant's employees use to record and document patient care notes. Both EPIC and MIDAS track the times at which employees enter data into those systems. Defendant requires employees to use another electronic system, KRONOS, to clock in and out for purposes of timekeeping for payroll. Plaintiff asserts that the amount of overtime she worked can be calculated by comparing the time entries from EPIC and MIDAS with the time entries in KRONOS. Plaintiff estimates that she was required to work approximately 300 hours off the clock and thus is owed approximately $30,000 in unpaid wages.
Plaintiff alleges that, despite knowing that Plaintiff and other employees were performing work off the clock and without compensation, Defendant failed to prevent the performance of such work. Plaintiff alleges that Defendant knew that employees such as Plaintiff were working without compensation because Defendant's agents witnessed them doing so at Defendant's facility and because Defendant's own electronic systems showed that employees were working off the clock.
Plaintiff also regularly worked more than five hours without taking a meal or rest period. Defendant discouraged Plaintiff and other employees from taking meal or rest periods by emphasizing (such as in performance reviews) that the patient is the primary focus of the team and that employees must provide competent, compassionate, and timely care.
Plaintiff filed this suit on October 6, 2017. Docket No. 1. Sometime after Plaintiff filed suit, the parties scheduled a mediation to attempt to resolve this case.
On November 17, 2017, Defendant filed a motion to dismiss. Docket No. 10. In lieu of filing an opposition to Defendant's motion, Plaintiff filed the FAC. Docket No. 13;
A complaint must contain a "short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a). The plaintiff must proffer "enough facts to state a claim to relief that is plausible on its face."
In considering whether the complaint is sufficient to state a claim, the court will take all material allegations as true and construe them in the light most favorable to the plaintiff.
A party may also move for a more definite statement of a complaint "which is so vague or ambiguous that the party cannot reasonably prepare a response." Fed. R. Civ. P. 12(e). The motion "must point out the defects complained of and the details desired."
Defendant moves to dismiss all nine asserted causes of action for failure to state a claim.
Defendant first asserts that Plaintiff's first, second, and third causes of action fail because they do not contain the degree of specificity required to state claims for failure to pay minimum or overtime wages under the FLSA and the California Labor Code. In
Here, Plaintiff has alleged sufficient facts to "nudge[ ] [her] claims across the line from conceivable to plausible."
Defendant also contends that Plaintiff does not sufficiently allege that Defendant knew or should have known that Plaintiff and others were working off the clock.
Defendant additionally asserts that Plaintiff's complaint does not state why Plaintiff did not clock overtime for the additional time she spent inputting information into EPIC and MIDAS, despite the fact that she knew how. Defendant points to a pay stub Plaintiff attached to her complaint, which shows that she clocked overtime and received compensation for that overtime. But Plaintiff alleges in her complaint that Defendant instituted cost-cutting measures that increased the employee-to-patient ratio. As a result, Plaintiff and other employees "were required to perform numerous work duties `off the clock' so as to meet the new patient metrics." Considering these allegations and making all appropriate inferences in Plaintiff's favor, the Court finds that Plaintiff adequately alleges that she felt pressured by Defendant's policies to input information into EPIC and MIDAS after hours, without tracking it as overtime. Moreover, Plaintiff is not required under the relevant statutes or
Defendant asserts that Plaintiff's fourth cause of action for failure to provide meal and rest breaks also fails to state a claim. Specifically, Defendant argues that Plaintiff insufficiently explains "how or why Plaintiff and the proposed class were deprived of meal breaks" and instead "recites only the statutory language." Motion at 8.
Plaintiff, however, does allege that Defendant discouraged taking rest and lunch breaks by emphasizing in performance reviews and policies that patient care should be the priority. Plaintiff also alleges that Defendant instituted cost-cutting measures that increased the employee-to-patient ratio, which interfered with taking rest and lunch breaks. Making all inferences in Plaintiff's favor, this is sufficient to state a claim.
With respect to Plaintiff's fifth cause of action for failure to provide accurate wage statements, Defendant asserts that Plaintiff does not say what was unlawful about Defendant's wage statements. But Plaintiff explains in her first through fourth causes of action how she was underpaid, and she alleges that other employees were similarly underpaid. Thus, according to Plaintiff's allegations, Defendant issued incorrect wage statements reflecting the underpaid amount. As both parties acknowledge, this cause of action depends on Plaintiff's first through fourth causes of action. Because those claims survive Defendant's motion to dismiss, Plaintiff's fifth claim also survives.
Defendant challenges that Plaintiff's sixth, seventh, and ninth causes of action are not sufficiently plead. As with Plaintiff's fifth cause of action, the parties agree that these claims are derivative of Plaintiff's other claims. Again, because Plaintiff's other claims survive, these claims also survive.
At the hearing, Plaintiff clarified that her eighth cause of action seeks declaratory judgment that settlements and releases obtained by Defendant from putative class members should be invalidated. Defendant asserts that Plaintiff's eighth cause of action fails because it is (1) unripe and (2) insufficiently plead.
Defendant argues that this cause of action is not ripe because the FAC does not allege that Plaintiff was offered an individual settlement or release. Thus, Defendant argues that this claim is "too speculative for resolution" because it rests upon a series of contingencies; namely, that Defendant will seek to enforce a settlement against a signatory who opts into the FLSA class.
With respect to the first through seventh and the ninth causes of action, Defendant's motion for a more definite statement pursuant to Rule 12(e) is denied for the reasons given for denying Defendant's motion to dismiss. With respect to the eighth cause of action, Defendant's motion for a more definite statement is denied as moot.
Defendant's motion to dismiss is DENIED with respect to the first through seventh and the ninth causes of action and GRANTED without prejudice with respect to the eighth cause of action. The Court grants leave to amend to renew this claim if Plaintiff timely joins a named co-plaintiff who suffered the injury described in the eighth cause of action. Defendant's motion for a more definite statement is DENIED.
IT IS SO ORDERED.