JOSE E. MARTINEZ, District Judge.
THIS CAUSE came before the Court upon Defendants' Motion for Final Summary Judgment (D.E. No. 17). Plaintiff Jose Martinez-Pinillos ("Plaintiff" or "Martinez-Pinillos") has filed suit against his former employer, Air Flow Filters, Inc. ("Air Flow"), and the owner of Air Flow, Cecilia Singh ("Singh"), alleging violations of the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. ("FLSA") and breach of contract. Defendants Air Flow and Singh ("Defendants") have now moved for summary judgment arguing that no genuine issues of material fact remain in this case. After careful consideration and for the reasons set forth below, this Court grants in part and denies in part Defendants' motion.
Plaintiff alleges that he was employed by Defendant Air Flow, a local air filter fabrication company, from August 2008 until August 2009. (D.E. No. 18, Defendants' Statement at ¶ 1); (D.E. No. 23, Plaintiff's Response to Statement at ¶ 1); (D.E. No. 18-2, Depo. of Martinez-Pinillos at 10, 27).
With regard to the air filters the company produced, two employees assembled these filters. (D.E. No. 23-4, Depo. of Cecilia Singh at 11). In assembling these filters the two assemblers used metal sheet bottle caps purchased from a company in Indiana on a regular basis. Id. at 12-15; (D.E. No. 23-5, Depo. of Seudath Singh at 7). In addition, in manufacturing the air filters, the assemblers used cardboard purchased from an out-of-state vendor on a daily basis. (D.E. No. 23-4, Depo. of Cecilia Singh at 15-16). Defendant Singh testified that her husband, Seudath Singh,
In 2008, Defendant Air Flow had a gross volume of sales of more than $500,000. See (D.E. No. 18-3, Depo. of Seudath Singh at 9). On April 27, 2009, there was a fire that damaged Defendant Air Flow's facility. (D.E. No. 23-4, Depo. of Cecilia Singh at 19). This affected the company's revenue in 2009, resulting in gross volume of sales of only $384,440. Id.; (D.E. No. 18-1 at 4). Defendant Air Flow eventually received $800,000 from its insurance company relating to damage from the fire. (D.E. No. 23-4, Depo. of Cecilia Singh at 26).
Plaintiff alleges that he entered into a written contract with Seudath Singh to perform clean-up work after the fire for which he was supposed to receive payment of $22,500. (D.E. No. 18-2, Depo. of Martinez-Pinillos at 79, 80, 88). Plaintiff also alleges that he performed the work under the contract and that said contract was breached because he was never paid the $22,500. Id. at 101-103. In addition, Plaintiff testified that at the same time he was doing the clean-up work, he was also performing his regular work for the company. (D.E. No. 18-2, Depo. of Martinez-Pinillos at 125-126).
On August 20, 2009, Plaintiff filed suit against Defendants alleging violations of the FLSA and breach of contract. Defendants have now moved for summary judgment on all of Plaintiff's claims.
A motion for summary judgment should be granted "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c). By its very
If the moving party bears the burden of proof at trial, the moving party must establish all essential elements of the claim or defense in order to obtain summary judgment. See United States v. Four Parcels of Real Prop. in Greene and Tuscaloosa Counties, 941 F.2d 1428, 1438 (11th Cir.1991). The moving party "`must support its motion with credible evidence ... that would entitle it to a directed verdict if not controverted at trial.'" Id. (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 331, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (Brennan, J., dissenting)). "If the moving party makes such an affirmative showing, it is entitled to summary judgment unless the nonmoving party, in response, `come[s] forward with significant, probative evidence demonstrating the existence of a triable issue of fact.'" Four Parcels of Real Prop. in Greene and Tuscaloosa Counties, 941 F.2d at 1438 (quoting Chanel, Inc. v. Italian Activewear of Fla., Inc., 931 F.2d 1472, 1477 (11th Cir.1991)). See also Fed.R.Civ.P. 56(e).
In contrast, if the non-moving party bears the burden of proof at trial, the moving party may obtain summary judgment simply by establishing the nonexistence of a genuine issue of material fact as to any essential element of a non-moving party's claim or affirmative defense. Celotex, 477 U.S. at 324, 106 S.Ct. 2548. When the non-moving party bears the burden of proof, the moving party does not have to "support its motion with affidavits or other similar material negating the opponent's claim." Id. at 323, 106 S.Ct. 2548 (emphasis in original). The moving party may discharge its burden in this situation by showing the Court that "there is an absence of evidence to support the nonmoving party's case." Id. at 324, 106 S.Ct. 2548. Once the moving party discharges its initial burden, a nonmoving party who bears the burden of proof must "go beyond the pleadings and by [its] own affidavits or by the `depositions, answers to interrogatories, and admissions on file' designate `specific facts showing that there is a genuine issue for trial.'" Id. (quoting Fed. R.Civ.P. 56(e)). A non-moving party "may not rest upon the mere allegations or denials of the adverse party's pleadings, but... must set forth specific facts showing that there is a genuine issue for trial." Fed.R.Civ.P. 56(e).
Defendants move for summary judgment arguing that the FLSA does not apply to them, that Plaintiff cannot prove his damages under the FLSA, that Plaintiff cannot demonstrate he is entitled to relief on his minimum wage claim, that
First, Defendants argue that Plaintiff's work as their employee was not subject to the FLSA because Plaintiff cannot demonstrate individual or enterprise coverage. In addition, Defendants argue that Plaintiff did not provide the required statutory notice for his minimum wage claim and that he has abandoned any such claim. Defendants also argue that Plaintiff cannot prove his damages under the FLSA. Finally, Defendants argue that Plaintiff cannot prove that any violation of the FLSA was willful, and thus, Plaintiff is not entitled to liquidated damages. The Court grants summary judgment on Plaintiff's 2009 FLSA claims, finding that Plaintiff has not demonstrated individual or enterprise coverage for this time period. The Court also grants summary judgment on Plaintiff's minimum wage claims, finding that Plaintiff has conceded he is not entitled to any relief on these claims. The Court finds Defendants' remaining arguments relating to the FLSA are without merit.
First, Defendants argue that they are entitled to summary judgment because they are not subject to the FLSA. For the FLSA to apply, Plaintiff must show either individual or enterprise coverage. 29 U.S.C. § 207(a); Scott v. K.W. Max Invs., Inc., 256 Fed.Appx. 244, 247 (11th Cir. 2007). In their motion for summary judgment, Defendants state that Plaintiff cannot demonstrate either type of coverage, and thus, Defendants argue they are entitled to summary judgment.
In order to establish individual coverage, Plaintiff must demonstrate that he was "(1) engaged in commerce or (2) engaged in the production of goods for commerce."
"[F]or an employee to be `engaged in commerce' under the FLSA, he must be directly participating in the actual movement of persons or things in interstate commerce by (i) working for an instrumentality of interstate commerce, e.g.,
Plaintiff was also not engaged in the production of goods for commerce. For an employee to be engaged in the production of goods for commerce an employee's work must be "closely related and directly essential to the production of goods for commerce." Thorne, 448 F.3d 1264 at 1268. "Typical of the employees in this covered group are those who repair or maintain the machinery or buildings used by the producer in his production of goods for commerce and employees of a security force that protects the producer's premises." Id. Here, Plaintiff does not assert, and there is no evidence that Defendant Air Flow was producing goods for interstate commerce. It is undisputed that Defendant Air Flow only sold its products locally. (D.E. No. 18-1, Decl. of Seudath Singh at 2). Thus, Plaintiff was not engaged in the production of goods for commerce, and the Court finds it is undisputed that Plaintiff cannot demonstrate individual coverage under the FLSA.
Plaintiff, however, has at least created a genuine issue of material fact as to whether there is enterprise coverage with regard to any work he performed for Air Flow in 2008. In order to establish enterprise coverage, Plaintiff must demonstrate that his employer is an enterprise "engaged in commerce." 29 U.S.C. § 207(a)(1). An "enterprise engaged in commerce or in the production of goods for commerce" is an enterprise that (1) "has employees engaged in commerce or in the production of goods for commerce, or that has employees handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce by any person; and" (2) that has an "annual
First, the Court finds that Plaintiff has created at least a genuine issue of material fact that Defendant Air Flow is an enterprise "engaged in commerce." The regulations further clarify that an enterprise
29 C.F.R. § 779.238. In this case, there is evidence in the record that at least two employees regularly handled goods that moved in interstate commerce. Defendant Singh testified in her deposition that two employees assembled the air filters the company produced. (D.E. No. 23-4, Depo. of Cecilia Singh at 11). She also testified that in assembling these filters, the company used metal sheet bottle caps purchased from an out-of-state vendor
To demonstrate enterprise coverage, however, Plaintiff must also show that Defendant Air Flow has "an annual gross volume of sales made or business done" of not less than $500,000 for the years in which he is seeking to recover under the FLSA. In this case, it is undisputed that Defendant Air Flow had the requisite amount of sales in 2008,
With regard to 2009, Defendants have sought summary judgment arguing that Defendant Air Flow did not make the requisite amount in sales for enterprise coverage. Plaintiff argues that Defendant Air Flow's gross receipts of sales in the amount of $384,440 taken from Air Flow's 2009 tax return should be combined with an $800,000 payment they received in 2009 for material and equipment destroyed after a fire at Defendant's business. Plaintiff also argues that the Court should apply the "rolling quarter method" and find that because the annual gross volume of sales made or business done met the $500,000 threshold in 2008, the threshold is also met for 2009. This Court disagrees with Plaintiff's arguments and finds summary judgment is appropriate with regard to Plaintiff's claims arising from work performed in 2009.
Plaintiff's argument that the $800,000 payment from the insurance company for material and equipment destroyed in a fire can count as part of Defendant Air Flow's "gross volume of sales" or "business done" is without merit. A reimbursement from an insurance company for equipment and inventory damaged or destroyed is not a sale even under the broad definition of sale in 29 U.S.C. § 203(k). Section 203(k) defines a sale as "any ... exchange, contract to sell, consignment for sale, shipment for sale, or other disposition." A reimbursement from an insurance company for destroyed materials and equipment is not an exchange, a contract to sell a consignment for sale, a shipment for sale or in any way a disposition of Plaintiff's goods or assets.
Nor is such a reimbursement "business done" under the plain meaning of the terms. The United States Supreme Court has found that the relevant Senate Report makes clear the term "business done" was added to section 203 "to dispel any uncertainty that revenue derived from services, rentals or loans, even though perhaps not literally `sales,' was nevertheless to be considered in measuring the dollar-volume limitation of § 3(a)." Falk v. Brennan, 414 U.S. 190, 197-98, 94 S.Ct. 427, 38 L.Ed.2d 406 (1973). A reimbursement from an insurance company is not income derived from services performed by Air Flow, nor is it rental income or income received on a loan.
Finally, the Code of Federal Regulations provides that
29 C.F.R. 779.259(a). Under the plain language of this definition of "annual gross volume of sales or business done," a reimbursement from an insurance company for damaged or destroyed inventory equipment should not be included. The insurance company's reimbursement is not a "price paid by the purchaser for ... [a] property or service" sold to the insurance company. If such a reimbursement were considered a sale, then the sale of the goods would in effect be counted twice. It would be counted once when the insurance company provided the reimbursement and then again later when said inventory was actually sold to a purchaser.
Plaintiff also argues that this Court should use the "rolling quarter method" and find that as Defendant Air Flow grossed over $500,000 in 2008, that it also grossed at least $500,000 in 2009. The rolling quarter method "originated in the Interpretative Bulletin in the Code of Federal Regulations." Flores v. Nuvoc, Inc., 610 F.Supp.2d 1349, 1356 (S.D.Fla.2008). It provides:
29 C.F.R. § 779.266(b). Here, Plaintiff has the burden of demonstrating that Air Flow had an annual gross volume of sales made or business done of at least $500,000, Scott v. K.W. Max Investments, Inc., 256 Fed.Appx. 244, 247 (11th Cir.2007), and Plaintiff has not provided the Court with enough information to even create a genuine issue of material fact as to this issue.
It is unknown exactly what the gross receipts from all of Air Flow's sales made or business done was during the 12 months immediately preceding each quarter year in 2009. From the record, it is only clear that in 2008 Air Flow made more than $500,000 gross. (D.E. No. 18-3, Depo. of Seudath Singh at 9). It is unknown the exact figure that Air Flow earned in 2008, and it is also unknown what was earned when. With regard to 2009, it is clear that Air Flow earned $384,440 in gross receipts. (D.E. No. 18-1 at 4). However, it is unclear when in 2009 these gross receipts were earned or what the total was for each quarter. Thus, the Court cannot even begin to apply the "rolling quarter method." Here, the undisputed evidence is that in 2009 Air Flow had gross receipts of less than $500,000. Thus,
Defendants also argue that Florida minimum wage law is inapplicable because Plaintiff did not give the written notice required under the Florida statutes, and Plaintiff has abandoned any such minimum wage claims. The Court agrees only that Plaintiff has abandoned these claims. Plaintiff has not asserted a claim under Florida law relating to minimum wages. To the extent Defendants are attempting to argue that Plaintiff somehow waived his federal FLSA minimum claim because he failed to comply with the written notice provision in Florida Statute § 448.110(6), the Court finds such argument to be without merit.
Plaintiff, however, has conceded that he does not have a minimum wage claim, and thus, to the extent Plaintiff seeks recovery for unpaid minimum wages in his complaint, summary judgment is granted in favor of Defendants on this claim. See
Next, Defendants argue that they are entitled to summary judgment because Plaintiff cannot prove his damages as Plaintiff has testified inconsistently and without specificity relating to the number of hours he worked. This Court disagrees and finds that genuine issues of material fact remain as to this issue.
An FLSA plaintiff "has the burden of proving that he performed work for which he was not properly compensated." Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 687, 66 S.Ct. 1187, 90 L.Ed. 1515 (1946). The employer, however, has a duty under the FLSA to keep appropriate records of wages and hours worked. Id. Here, it is undisputed that there are no records concerning the wages and hours Plaintiff worked.
Instead, the Supreme Court has erected a burden-shifting standard that applies where an employer has failed to keep proper and accurate records. The Supreme Court has held that
Anderson, 328 U.S. at 687-88, 66 S.Ct. 1187. Here, there is evidence in the record that Plaintiff performed work for which he was improperly compensated. See (D.E. No. 18-2, Martinez-Pinillos Depo. at 41-53). Plaintiff has also presented evidence that at least creates a genuine issue of material fact as to the amount and extent of his work.
In his deposition, Plaintiff testified that he is owed for 560 hours of overtime and that he calculated this amount by taking into account the extra hours he worked on the weekends. Id. at 41-42. He specifically testified that he worked approximately two or three weekends per month. Id. at 43.
Plaintiff, however, did testify that his regular weekly work schedule was 7:00 a.m. until 4:00 p.m. every week day with a 15 minute break for breakfast and a 30 minute break for lunch. Id. at 44-45. Accordingly, under his regular schedule he worked a little more than forty hours every week. Thus, when he worked on the weekends, as he testified that he did two or three times a month, he would have been working overtime unless in a particular week he took some time off. While the Court agrees that Plaintiff has not demonstrated the exact amount of hours for which Defendants failed to compensate him, "this does not defeat his claim at this stage." Santelices v. Cable Wiring, 147 F.Supp.2d 1313, 1328 (S.D.Fla.2001) (finding that Plaintiff's failure to demonstrate the exact number of hours he worked overtime did not defeat his claim on summary judgment). In considering Defendants' motion for summary judgment, the Court must draw all reasonable inferences in Plaintiff's favor, and the Court finds that Plaintiff has created a genuine issue of material fact as to whether he worked overtime hours for which he was not compensated. Thus, the Court denies Defendants' motion for summary judgment on this issue.
Defendants also argue that they are entitled to summary judgment on the issue of liquidated damages because Defendants argue that Plaintiff testified that their violation was not willful and that he testified that Defendants acted in good faith and reasonably. The Court, however, finds that Defendants have misrepresented Plaintiff's testimony. Thus, summary judgment is inappropriate.
"Under the FLSA a district court generally must award a plaintiff liquidated damages that are equal in amount to actual damages." Rodriguez v. Farm Stores Grocery, Inc., 518 F.3d 1259, 1272 (11th Cir.2008). 29 U.S.C. § 216(b) provides that "[a]ny employer who violates the ... [FLSA] shall be liable to the employee or employees affected in the amount of their unpaid minimum wages ... and in an additional equal amount as liquidated damages." However, the Portal to Portal Act, 29 U.S.C. §§ 251-262, which amended the FLSA, provides that an employer who acted in good faith and under the reasonable belief that it was in compliance with the FLSA is not liable for liquidated damages. This safe harbor provision specifically provides:
29 U.S.C. § 260. The employer has the burden of demonstrating that he is entitled to the safe harbor provision, and the employer must demonstrate both subjective and objective good faith. Rodriguez, 518 F.3d at 1272.
(D.E. No. 18-2, Depo. of Martinez-Pinillos at 51). Stating "I don't know" if the violation was willful is not the same thing as stating that the violation is not willful. Thus, Defendants' argument relating to Plaintiff's testimony is completely devoid of all merit. Moreover, as discussed above, it is Defendants' burden to demonstrate that they are entitled to the safe harbor provision which exempts them from having to pay liquidated damages. Defendants have not even attempted to do this on summary judgment. Thus, Defendants' motion as to this issue is denied.
Defendants also seek summary judgment on Plaintiff's breach of contract claim, arguing that Plaintiff cannot prove the basic elements of his contract claim, that the statute of frauds bars the alleged oral contract, that even if there was a contract it was not between Plaintiff and Defendants, and that even if there was a contract it must be concluded that the parties modified the contract to pay Plaintiff at the rate of $9.00 per hour rather than the contract price.
First, Defendants argue that Plaintiff cannot prove the basic elements of his contract claim such as that there was a contract, that it was breached, and that he was damaged. It is well-settled that to prevail on a breach of contract claim, a plaintiff must demonstrate "the existence of a valid contract, breach of the contract, and damages." Murray v. Playmaker Servs., LLC, 512 F.Supp.2d 1273, 1279 (S.D.Fla.2007). The Court finds Plaintiff has created a genuine issue of fact as to all of these elements. Plaintiff testified that the parties had a signed agreement which provided that Plaintiff would clean up the company's premises after a fire for $22,500. (D.E. No. 18-2, Depo. of Martinez-Pinillos at 79, 80, 88). Plaintiff also alleges that he performed the work under the contract and that said contract was breached because he was never paid the $22,500. Id. at 101-103. Thus, Plaintiff has offered evidence to support all of the basic elements of a breach of contract claim.
Next, Defendants argue that Plaintiff's breach of contract claim, which they contend
Defendants also argue that even if there was a contract, it was between Seudath Singh as an individual and the Plaintiff and not the Plaintiff and either named defendant. Plaintiff argues that Defendant Air Flow is liable for the contract signed by Seudath Singh because he was acting as the company's agent. "Under Florida law, an agent may have actual or apparent authority to act on behalf of the principal." Moran v. Cameron, 362 Fed. Appx. 88, 95 (11th Cir.2010). "A finding of actual authority requires evidence that the principal acknowledged that the agent would act for him, that the agent accepted the responsibility of acting on behalf of the principal, and that the principal maintained control over the agent's actions." Id. "In contrast, an agency relationship based on apparent authority exists if there is a representation by the principal, reliance on the representation by a third person, and a change in position by the third party in reliance on the representation." Id. In this case, there is at least a genuine issue of material fact as to whether Seudath Singh had authority to bind the company to a contract with Plaintiff.
Seudath Singh testified that he is the husband of Cecilia Singh, the owner of the company. (D.E. No. 23-5, Depo. of Seudath Singh at 3). Cecilia Singh testified that she is the president and 100% owner of the company but that it was her husband who originally purchased the company. (D.E. No. 23-4, Depo. of Cecilia Singh at 4-5). Seudath Singh states that he doesn't have a title at the company but his "position there is ... [he does] a little bit of everything." (D.E. No. 23-5, Depo. of Seudath Singh at 3). Seudath Singh, however, also stated in his sworn declaration that he is a manager of Air Flow. (D.E. No. 18-1 at ¶ 2). He testified that the company is "a small mom-and-pop business" and both he and his wife would help assemble filters if necessary. Id. at 9. Their work was not "specific" as "[i]t's a small company. Everybody shares." Id. at 9. Plaintiff testified that Seudath Singh was a representative of the company because he gave orders at the company. (D.E. No. 18-2, Depo. of Martinez-Pinillos at 86). Plaintiff also insisted that the contract was entered into by Seudath Singh "under the name of the company." (D.E. No. 18-2 at 85, 102-103).
Moreover, although Seudath Singh testified that he could only get quotations for the cleanup job and it was up to his wife to accept an offer, he also testified that he is the one who accepted the quotation from Mr. Baluja for this job rather than the one provided from Plaintiff because Mr. Baluja's quotation was lower, and it made sense to him as a "businessman" to accept the lower quotation. Id. at 14. This decision made by Seudath Singh indicates that he did have actual authority to bind the company. Based on these facts, there is at least a genuine issue of fact as to whether Cecilia Singh actually gave her husband the authority to enter into contracts or
Finally, Defendants argue that even if there was a contract, the contract was modified by Plaintiff when he continuously accepted his regular paycheck for the clean-up work. It is clear that "subsequent conduct can modify the terms of a contract." Lake Sue Dev. Co., Inc. v. Keewin Real Property Co., 950 So.2d 1280, 1284 (Fla. 5th DCA 2007). Here, however, genuine issues of material fact remain as to whether Plaintiff's acceptance of his regular paycheck modified the amount he was to receive under the contract. Plaintiff testified that at the same time he was doing the clean-up work, he was also performing his regular work for the company. (D.E. No. 18-2, Depo. of Martinez-Pinillos at 125-126). Thus, it would make sense that he was also receiving his regular pay check. The Court cannot find on a motion for summary judgment that such conduct was a clear modification of the contract at issue in this case. See Lake Sue Dev. Co., 950 So.2d at 1284 (stating that "whether... conduct does in fact result in a modification is .. a question of fact"). Therefore, Defendants' motion is also denied as to this issue. Accordingly, it is hereby:
Defendants' Motion for Final Summary Judgment (