MARCIA MORALES HOWARD, District Judge.
This Motion arises out of an action for unpaid wages under the Fair Labor Standards Act, 29 U.S.C. §§ 201-219 ("FLSA"), and the Florida Minimum Wage Act, Florida Statutes section 448.110 ("FMWA"), brought by Plaintiffs against their former employer, Defendant Saltwater Cowboys,
Following a four-day jury trial, the jury returned a verdict in Plaintiffs' favor.
Rule 59(a) provides that "[t]he court may, on motion, grant a new trial on all or some of the issues . . . after a jury trial, for any reason for which a new trial has heretofore been granted in an action at law in federal court." As a motion for a new trial is committed to the sound discretion of the trial court, a more lenient standard is applied than a motion for judgment as a matter of law.
Defendants contend that they are entitled to a new trial because the jury's verdict is against the clear weight of the evidence in two respects.
Upon review of the evidence adduced at trial, which the Court does not view in the light most favorable to Defendants, the Court concludes that the jury's verdict is not against the clear weight of the evidence and does not result in a miscarriage of justice. Put simply, this case boiled down to credibility determinations; if the jury believed the testimony of the Plaintiffs, it had sufficient evidence to find in their favor. Defendants have failed to demonstrate that the jury clearly erred in evaluating the credibility of the various witnesses called to testify at trial.
As an initial matter, Defendants' arguments are based on an apparent misunderstanding of the parties' burdens in this case. Defendants appear to suggest that Plaintiffs were required to prove that the owners themselves coerced Plaintiffs' participation in the kitchen tip pool, and that the owners themselves acted willfully. Motion at 6-8, 10-11. However, Defendant Saltwater Cowboys is more than just its owners; Saltwater Cowboys acted through those owners as well as its employees, including its manager, Jennifer Bryant, and its senior servers.
With respect to the jury's finding that Saltwater Cowboys failed to prove by a preponderance of the evidence that Plaintiffs contributed to the kitchen tip pool free of force or coercion by or attributable to Saltwater Cowboys,
At trial, the Court instructed the jury that, to be entitled to use the tip credit, Saltwater Cowboys was required to prove "by a preponderance of the evidence that it did not require or coerce a Plaintiff to participate in the kitchen tip pool." Court's Final Jury Instructions at 12-13. The Court further instructed the jury that it could "consider the employee's subjective belief" in determining whether Saltwater Cowboys required or coerced a Plaintiff to contribute to the kitchen tip pool, but that any such belief needed to be objectively reasonable, meaning "Saltwater Cowboys' conduct was such that a reasonable person in the Plaintiff's position would have been justified in reaching a similar conclusion." Id. at 13. During deliberations, the jury sent the following question to the Court: "Can we have a dictionary for definition of coercion? We would like to have more than just the attorneys['] definition. Or can you give us a legal definition[?]" The Court responded, "For purposes of this case you should assume that the word coerce means `to compel to an act or choice by force, threat, or other pressure.'"
The Court concludes that the jury's finding that Saltwater Cowboys failed to prove by a preponderance of the evidence that it did not coerce Plaintiffs to participate in the kitchen tip pool is not against the clear weight of the evidence. At trial, each Plaintiff testified that, based on his training with one or more senior servers, he believed that participation in the kitchen tip pool was mandatory. Most Plaintiffs testified that at least one owner was present at the restaurant each night, and Singleton testified that while at the restaurant he saw servers completing tip allocation sheets and checking out with the manager. Most Plaintiffs also testified that Bryant or another manager completing the check-out process would correct erroneous calculations on their or others' tip allocation sheets, including incorrect kitchen tip contributions. Little and Kubiak testified that managers and other servers did not call payments to the kitchen "tips" but instead referred to them as the amount the servers "owed" the kitchen. Farinos and Patterson testified that, on busy nights, the manager would sometimes complete their tip allocation sheets for them and simply tell them what they owed, without asking how much they wished to contribute to the kitchen tip pool. Keating testified that he once gave nothing to the kitchen tip pool, but Bryant reacted negatively to his decision and thereafter scheduled him to host and prohibited him from watching the bar and training new servers.
Additionally, the jury could have concluded that Saltwater Cowboys' owners and managers allowed senior servers to train Plaintiffs that they were required to contribute to the kitchen tip pool. Although Plaintiffs presented no evidence that senior servers had direct supervisory authority over Plaintiffs, the jury could have inferred that the method of training at Saltwater Cowboys implied that senior servers who were training new servers spoke on Saltwater Cowboys' behalf and conveyed Saltwater Cowboys' policies. The jury could have concluded that Plaintiffs reasonably accepted the accuracy of the information they received from senior servers during training because, by Singleton's admission, the servers were solely responsible for training other servers. The jury was entitled to infer from all of the evidence that the owners and managers allowed a pervasive environment of pressure to develop and failed to intervene.
Put simply, the jury had significant evidence to conclude that Bryant, senior servers, and thus the owners applied "other pressure" to compel Plaintiffs to contribute to the kitchen tip pool when they otherwise would not have done so. Although Defendants presented significant evidence flatly contradicting Plaintiffs' testimony, including testimony from Bryant that she never required participation in the kitchen tip pool and from several other servers that they knew the kitchen tip pool was voluntary, the Court cannot conclude that the jury's verdict is against the clear weight of the evidence.
With respect to the issue of willfulness, the Court instructed the jury that Plaintiffs bore "the burden of proving by a preponderance of the evidence that Saltwater Cowboys knew of, or showed reckless disregard for, the illegality of its conduct." Court's Final Jury Instructions at 17. Defendants assert that the Department of Labor suggested that "Defendants simply needed more documentation that the [kitchen] tip pool had been voluntarily created." Motion at 5-6. Defendants observe that the owners knew they could not coerce servers to contribute to the kitchen tip pool, so they attempted to remain as removed from the tip-pooling process as possible.
"An employer knowingly violates the [FLSA] if he disregards the minimum wage laws deliberately or intentionally, such as by ignoring advice from a responsible official that the conduct in question is not lawful."
The evidence the Court previously discussed precludes the Court from concluding that the jury's finding as to willfulness is against the clear weight of the evidence. That evidence supports a finding that Saltwater Cowboys' employees and owners sought to compel Plaintiffs to participate in the kitchen tip pool. Additionally, the jury was presented with evidence that the owners knew through a 1987 Department of Labor audit of a different restaurant that they needed to ensure that server contributions to the kitchen tip pool were voluntary. The jury also was presented with evidence that the servers thereafter voted to tip the kitchen, and the owners added the word "voluntary" on the kitchen tip field on tip allocation sheets. Nevertheless, Plaintiffs presented evidence that, for more than 20 years after that, the owners failed to ensure in any way that servers at Saltwater Cowboys understood that the kitchen tip pool was voluntary. Each Plaintiff testified that he did not participate in or learn of any vote on the tip pool, and each Plaintiff was trained that the 20-cent-per-entrée formula was required. And the jury was presented with evidence that the word "voluntary" did not appear on any tip allocation sheet at Saltwater Cowboys during the relevant time frame. The jury was permitted to conclude, based on that and other evidence, that the owners' complete failure to ensure the voluntariness of the kitchen tip pool despite a prior audit concerning the same issue amounted to reckless disregard for whether Saltwater Cowboys' practices violated the law. The jury reasonably could have concluded that, by relinquishing all control over server training, the owners ran an ever-growing risk that what might have started as a voluntary practice would evolve, over time, into a de facto rule which new servers, having been instructed by longtime employees, would be afraid to question. The jury had sufficient evidence to conclude that the owners' attempts to comply with the Department of Labor's directive hinged entirely on a single word on a form that the owners did not check for more than 20 years, and the hope that senior servers would properly train new servers over that same time period despite having no guidance from the owners. In light of the owners' prior knowledge from the Department of Labor that a mandatory kitchen tip pool would be unlawful, the jury could have concluded that the owners acted recklessly.
In short, having presided over the trial and heard all of the evidence, the Court is satisfied that the jury's credibility determinations, inferences, and conclusions do not result in a miscarriage of justice and should not be disturbed.
In light of the foregoing, Defendants' Motion is due to be denied. Accordingly, it is hereby
Defendants' Rule 59(a) Motion for New Trial (Doc. 255) is
Likewise, on the Verdict form, the jury was first asked whether Saltwater Cowboys had proven by a preponderance of the evidence that each Plaintiff contributed to the kitchen tip pool "free from force or coercion by or attributable to" Saltwater Cowboys. Verdict at 1, 3, 5, 7, 9, 11, 13, 15. If the jury found that Saltwater Cowboys had failed to meet its burden, the jury was then asked to determine whether "any of the individual owners qualified under the applicable law as" each Plaintiff's employer. Verdict at 3, 5, 7, 9, 11, 13, 15, 17. Thus, the jury's findings that Defendants challenge did not depend on the actions of the owners alone. In any event, as discussed in this Order, the jury heard evidence that the owners as well as the employees of Saltwater Cowboys willfully coerced Plaintiffs to participate in the kitchen tip pool.