SARAH S. VANCE, District Judge.
In this Fair Labor Standards Act (FLSA) and Louisiana Wage Payment Act (LWPA) case, defendants DirecTV, Inc. and JP & D Digital Satellite Systems, Inc. move for partial summary judgment seeking dismissal of the claims asserted by plaintiffs Christian Lang, Larry Tucker, and Edward Dwayne Humphrey.
Plaintiffs are satellite television technicians who installed DirecTV systems at customers' houses. DirecTV is the largest provider of satellite television services in the United States. DirecTV provides for the installation and maintenance of its systems in customers' homes by directly hiring thousands of technicians and by contracting with entities known as Home Service Providers (HSPs). JP & D was an HSP for DirecTV, and for a time, Modern Day was also an HSP. For most of the time period at issue, however, Modern Day was a subcontractor under JP & D. Lang and Humphrey began working under Modern Day in 2007, and Tucker began doing so in March 2008.
Plaintiffs filed this action in state court on February 22, 2010, and defendants removed the case to this Court.
On August 13, 2010, 735 F.Supp.2d 421 (E.D.La.2010), the Court dismissed plaintiffs' state law fraud claim but otherwise denied defendants' motions to dismiss.
Summary judgment is appropriate when "the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c)(2); Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994). When assessing whether a dispute as to any material fact exists, the Court considers "all of the evidence in the record but refrains from making credibility determinations or weighing the evidence." Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398 (5th Cir.2008). All reasonable inferences are drawn in favor of the nonmoving party, but "unsupported allegations or affidavits setting forth `ultimate or conclusory facts and conclusions of law' are insufficient to either support or defeat a motion for summary judgment." Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir.1985); Little, 37 F.3d at 1075.
If the dispositive issue is one on which the moving party will bear the burden of proof at trial, the moving party "must come forward with evidence which would `entitle it to a directed verdict if the evidence went uncontroverted at trial.'" Int'l Shortstop, Inc. v. Rally's, Inc., 939 F.2d 1257, 1263-64 (5th Cir.1991). The nonmoving party can then defeat the motion by either countering with sufficient evidence of its own, or "showing that the moving party's evidence is so sheer that it may not persuade the reasonable fact-finder to return a verdict in favor of the moving party." Id. at 1265.
If the dispositive issue is one on which the nonmoving party will bear the burden of proof at trial, the moving party may satisfy its burden by merely pointing out that the evidence in the record is insufficient with respect to an essential element of the nonmoving party's claim. See Celotex,
Plaintiffs argue that the motion for partial summary judgment is premature and that they should be given the opportunity to conduct further discovery on the issue of whether they are employees or independent contractors. Under Fed. R.Civ.P. 56(d), a court may defer consideration of a motion for summary judgment if the opposing party "shows by affidavit or declaration that, for specified reasons, it cannot present facts essential to justify its opposition[.]" To obtain such a continuance, the party must indicate "why he needs additional discovery and how the additional discovery will create a genuine issue of material fact." Krim v. BancTexas Group, Inc., 989 F.2d 1435, 1442 (5th Cir.1993) (emphasis in original).
In this case, plaintiffs have had ample time in which to conduct discovery. Plaintiffs filed this case over a year ago, on February 22, 2010, and the first scheduling order was issued on May 27, 2010.
At the last hearing in this matter, plaintiffs were allowed an extension to submit the "blast facts".
DirecTV and JP & D contend that plaintiffs are independent contractors rather than employees of Modern Day and therefore are not covered by the FLSA. See Weisel v. Singapore Joint Venture, Inc., 602 F.2d 1185, 1188 (5th Cir.1979) (FLSA covers only employees). Defendants ask the Court to limit its inquiry to the relationship between plaintiffs and Modern Day and not to consider whether defendants are joint employers. When joint employment exists, however, courts consider the relationship among the plaintiffs and all of the joint employers in determining whether the plaintiffs are employees or independent contractors. See Schultz v. Capital Intern. Sec., Inc., 466 F.3d 298, 307 (4th Cir.2006) ("Because [defendants] were joint employers of [plaintiffs], the employment arrangement must be viewed as "one employment" for purposes of determining whether [plaintiffs] were employees or independent contractors under the FLSA.") (citing 29 C.F.R. § 791.2(a)); see also Zheng v. Liberty Apparel Co. Inc., 355 F.3d 61, 67-68 (2d Cir.2003) (unlike the joint employment issue, the independent contractor issue requires a determination of whether a worker is "independent of all employers") (emphasis in original). Limiting the analysis to plaintiffs' relationships with Modern Day would effectively be to assume that
The FLSA defines "employee" as "any individual employed by an employer," 29 U.S.C. § 203(e)(1), and "employ" as "to suffer or permit to work." Id. § 203(g). The Supreme Court has observed that this definition is broad. Rutherford Food Corp. v. McComb, 331 U.S. 722, 728, 67 S.Ct. 1473, 91 L.Ed. 1772 (1947). In determining whether an employment relationship exists, the Court must "focus on whether, as a matter of economic reality, the worker is economically dependent upon the alleged employer or is instead in business for himself." Hopkins v. Cornerstone America, 545 F.3d 338, 343 (5th Cir.2008). The Court is guided by the following non-exclusive factors: "(1) the degree of control exercised by the alleged employer; (2) the extent of the relative investments of the worker and the alleged employer; (3) the degree to which the worker's opportunity for profit or loss is determined by the alleged employer; (4) the skill and initiative required in performing the job; and (5) the permanency of the relationship." Id. There is no single determinative factor in this analysis, and the Court must consider the economic relationship as a whole. Thibault v. Bellsouth Telecommunications, Inc., 612 F.3d 843, 846 (5th Cir. 2010).
Courts that have examined whether satellite and cable installers are employees under the FLSA have reached mixed results. Compare Freund v. Hi-Tech Satellite, Inc., 185 Fed.Appx. 782 (11th Cir. 2006) (holding that satellite installer was independent contractor); Herman v. Mid-Atlantic Installation Services, Inc., 164 F.Supp.2d 667 (D.Md.2000), aff'd, 16 Fed. Appx. 104 (4th Cir.2001) (cable installers were independent contractors); and Dole v. Amerilink Corp., 729 F.Supp. 73 (E.D.Mo.1990) (same); with Parrilla v. Allcom Const. & Installation Services, No. 6:08-cv-1967-Orl-31GJK, 2009 WL 2868432 (M.D.Fla. Aug. 31, 2009) (holding that cable installer was employee); and Santelices v. Cable Wiring, 147 F.Supp.2d 1313, 1323 (S.D.Fla.2001) (genuine issue of fact as to whether cable installer was employee). Whether an individual is an employee or an independent contractor is highly dependent on the specific context in which an individual performs his work. Thibault, 612 F.3d at 848. In addition, it is difficult to generalize from the case law on independent contractor versus employee status because the courts are not consistent in the degree of emphasis they place on the different factors in the analytical mix. On the record presented here, the Court finds that disputed issues of material fact prevent the Court from accurately assessing the economic relationships among these parties as a whole. The Court will address these factual issues below.
The Fifth Circuit has made clear that "[c]ontrol is only significant when it shows an individual exerts such a control over a meaningful part of the business that she stands as a separate economic entity." Hopkins v. Cornerstone America, 545 F.3d 338, 343 (5th Cir.2008) (quoting Brock v. Mr. W Fireworks, Inc., 814 F.2d 1042,
Defendants exercised some control over plaintiffs in the course of the workday. The process of assigning technicians to jobs was performed at first by Modern Day, and later by DirecTV's Siebel software program.
Plaintiff Edward Dwayne Humphrey states that DirecTV's policy, passed down by JP & D and Modern Day, was that technicians would be fired if they did not work evening jobs.
Plaintiffs have also provided a number of DirecTV publications specifying how technicians were required to perform a wide variety of tasks.
Technical specifications, such as those that appear in the Blast Facts and the other memoranda sent out by DirecTV, do not necessarily render the plaintiffs employees. Defendants could require technicians, whether employees or independent contractors, to perform their tasks in accordance with specifications. As the court noted in Herman v. Mid-Atlantic Installation Services, Inc., 164 F.Supp.2d 667, 672-73 (D.Md.2000), a painter does not become an employee simply by painting a house the color directed by a homeowner. Nonetheless, by setting out the minimum number of minutes that technicians were
Further, defendants deducted fees from plaintiffs pay when defendants were dissatisfied with the results of quality control checks. According to plaintiffs, these fees sometimes exceeded the amounts that plaintiffs earned per job.
Thus, material facts remain in dispute, including whether defendants threatened to fire technicians who did not work evening shifts, whether plaintiffs received DirecTV's Blast Facts and other memoranda, the degree of discretion that plaintiffs retained in performing their jobs, and whether plaintiffs were "charged back" more than they earned on particular jobs. The Court is therefore unable to determine whether plaintiffs acted under the defendants' control as a matter of summary judgment.
The record is likewise conflicting on the extent to which defendants controlled plaintiffs' opportunities for profit or loss. Defendants set the job assignments for each technician, and plaintiffs generally followed those assignments, although trades were possible.
Plaintiffs did have the opportunity to obtain more jobs, and thus more profit, if they efficiently completed the jobs they were assigned.
Defendants argue that plaintiffs had the ability to maximize profits by selecting where to buy cables and other supplies.
Plaintiffs' ability to influence their profits and losses is also impacted by the extent to which defendants could deduct fees from plaintiffs' pay. This is particularly true if the defendants deducted fees in excess of the value of the jobs performed, and plaintiffs had no means of recourse to dispute the deductions. Cf. Parrilla, 2009 WL 2868432, at *4 (technicians were employees when they had no control over the kinds of jobs they were assigned). As the Court previously noted, there are disputed issues of fact related to the "charge backs". Accordingly, there are disputed issues of material fact on the issue of the extent to which plaintiffs' opportunity for profit or loss is controlled by the employer that preclude summary judgment.
The Fifth Circuit looks to both skills and ability to exercise initiative to determine whether workers are employees under the FLSA. Even if the Court were to find no issue of fact that plaintiffs' jobs required skill, the issue of plaintiffs' ability to exercise initiative is a mixed bag that, if anything, points in the direction of employee status. Plaintiffs had the ability to increase their profits by working more efficiently, and they could show initiative as to the order in which they performed the jobs within the windows defendants provided. Further, they could perform custom work. Plaintiffs could also hire helpers to perform more efficiently, but defendants began to require helpers to hold the same certifications as the installers, which reduced the efficacy of this practice.
As noted, courts analyze the permanency of the relationship and the relative investments of the parties in determining independent contractor status. Given the disputed issues of fact on control and on plaintiffs' ability to influence their profits and losses, regardless of the outcome of the analysis of these other factors, the Court is still unable to accurately determine plaintiffs' status on this summary judgment record.
On this record, defendants' motion for summary judgment on plaintiffs' FLSA claims is DENIED.
Plaintiffs also bring claims under the Louisiana Wage Payment Act, La. R.S. § 23:631, et seq. Under that statute, employers owe certain duties to "any laborer or other employee." Independent contractors are not covered by the statute. Knapp v. The Management Co., 476 So.2d 567, 568 (La.App. 3 Cir.1985). In determining whether a worker is an employee for purposes of that statute, Louisiana courts consider the following non-exclusive factors:
Mendoza v. Essential Quality Const., Inc., 691 F.Supp.2d 680, 686 (E.D.La.2010) (citing Gordon v. Hurlston, 854 So.2d 469, 472 (La.App. 3 Cir.2003)). The crux of the issue is the degree of control that the contract affords the purported employer over the individual. Mack v. CDI Contractors, Inc., 757 So.2d 93, 97 (La.App. 5 Cir.2000); Howlett v. Halpern, 559 So.2d 21, 23 (La.App. 4 Cir.1990). Under Louisiana law, "[i]t is not the actual supervision or control which is actually exercised by the employer that is significant, but whether, from the nature of the relationship, the right to do so exists." Mendoza, 691 F.Supp.2d at 686 (quoting Gordon, 854 So.2d at 472); see also Hickman v. Southern Pac. Transport Co., 262 La. 102, 262 So.2d 385, 391 (1972); Hughes v. Goodreau, 836 So.2d 649, 656 (La.App. 1 Cir. 2002); Mack, 757 So.2d at 97.
The same disputed issues of fact regarding defendants' control over plaintiffs for purposes of the FLSA also exist with respect
For the foregoing reasons, defendants' motion for partial summary judgment is