James K. Bredar, United States District Judge.
Carl Helfand ("Plaintiff") brought this action against W.P.I.P., Inc. ("WPIP") and Mark J. Einstein
Plaintiff worked from January 2, 2014, through August 20, 2015, as an office clerk and security guard for WPIP, a Maryland business that provides parking, storage, and lot-rental services for independent tractor-trailer drivers and corporate fleet drivers. (ECF No. 1 ¶ 9.) In his clerical capacity, Plaintiff performed administrative tasks including bill collecting and customer service; he was also responsible for light groundskeeping and maintenance. (Id. ¶ 20.) As a security guard, Plaintiff
According to Plaintiff, at the outset of his employment Defendants informed him that "he would not receive overtime pay, even though he [would] work well over forty (40) hours each week." (Id. ¶ 28.) True to their word, from January through November 2014, Defendants allegedly paid Plaintiff for forty hours of work each week even though he consistently worked as many as fifty or sixty hours. (Id. ¶¶ 29, 32.) Beginning in November 2014, Defendants scheduled Plaintiff for fifty-two hours of work each week, paying him "straight time" (i.e., no overtime compensation) for those fifty-two hours; Plaintiff continued to work additional hours without any compensation whatsoever. (Id. ¶¶ 33-34.) This pattern of undercompensation continued until Plaintiff's employment ended in August 2015.
Plaintiff filed suit on November 11, 2015, charging Defendants with violations of the FLSA, the MWHL, and the MWPCL. (ECF No. 1.) On December 14, 2015, Defendants filed the pending Motion to Dismiss pursuant to Rule 12(b)(6),
A complaint must contain "sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). In analyzing a Rule 12(b)(6) motion, the Court views all well-pleaded allegations in the light most favorable to the plaintiff. Ibarra v. United States, 120 F.3d 472, 474 (4th Cir.1997). "[A] well-pleaded complaint may proceed even if it strikes a savvy judge that actual proof of those facts is improbable...." Twombly,
Plaintiff alleges that Defendants undercompensated him in violation of the FLSA and the MWHL; because of these violations, Plaintiff further avers that Defendants are liable for damages under the MWPCL.
The FLSA requires covered employers to pay their employees a minimum wage, currently fixed at $7.25 per hour. 29 U.S.C. § 206(a). Covered employers must also pay their employees an overtime rate of one and one-half times the regular rate of pay for each hour worked in excess of forty per week. § 207(a). The MWHL requires Maryland employers to pay a minimum wage equal to the greater of the prevailing federal rate or the state rate;
In their pending Motion, Defendants do not challenge Plaintiff's state-law theories. They do, however, challenge his FLSA theory, arguing that he cannot satisfy the interstate-commerce requirements of a FLSA claim. (ECF No. 3-1 at 4.) To recover for minimum-wage or overtime violations under the FLSA, a plaintiff-employee must demonstrate that either (1) his employer is an "enterprise engaged in commerce or in the production of goods for commerce" or (2) the plaintiff himself has "engaged in commerce or in the production of goods for commerce" in his capacity as an employee. 29 U.S.C. §§ 206(a), 207(a)(1). The statute broadly defines "commerce" to include "trade, commerce, transportation, transmission, or communication among the several States or between any State and any place outside thereof." § 203(b).
As between the two avenues of FLSA coverage, enterprise coverage is particularly expansive: the statute defines such coverage to reach an employer with employees "handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce by any person." § 203(s)(1)(A)(i). To curb what might otherwise constitute virtually limitless coverage, Congress included a revenue threshold: enterprise coverage will only attach to an organization whose "annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated)." § 203(s)(1)(A)(ii); see also 29 C.F.R.
The 2014 financial statements do appear to show that WPIP generated only $439,919.60 in "total income" during that calendar year. (ECF Nos. 3-3 to 3-14.)
Furthermore, even had the Court accepted Defendants' enterprise-coverage argument, the Court would still allow Plaintiff's FLSA claim to proceed on a theory of individual coverage. The individual avenue for FLSA liability is admittedly narrower than the enterprise avenue: as the Supreme Court recognized in Mitchell v. Lublin, 358 U.S. 207, 211, 79 S.Ct. 260, 3 L.Ed.2d 243 (1959), "Congress, by excluding from the [FLSA's] coverage employees whose activities merely `affect commerce,' indicated its intent not to make the scope of the [FLSA] coextensive with its power to regulate commerce." Nonetheless, "within the tests of coverage fashioned by Congress, the [FLSA] has been construed liberally to apply to the furthest reaches consistent within congressional direction." Id. "[W]hether an employee is engaged `in commerce' within the meaning of the [FLSA] is determined by practical considerations, not by technical conceptions." Cook v. Nu-Tech Hous. Servs., Inc., 953 F.2d 1383, 1992 WL 17301, at *2 (4th Cir.1992) (unpublished table decision) (quoting Mitchell v. C.W. Vollmer & Co., 349 U.S. 427, 429, 75 S.Ct. 860, 99 L.Ed. 1196 (1955)). "To determine whether an employee is `engaged in commerce' ... `the test is whether the work is so directly and vitally related to the functioning of an instrumentality or facility of interstate commerce as to be, in practical effect, a part of it, rather than isolated, local activity." Bellows v. Darby Landscaping, Civ. No. WDQ-15-885, 2016 WL 264914, at *4 (D.Md. Jan. 21, 2016) (internal quotation marks omitted) (quoting Wirtz v. Modern Trashmoval, Inc., 323 F.2d 451, 457 (4th Cir.1963)).
Plaintiff alleges that "[a]t all times relevant to [his] Complaint, [he] engaged in interstate commerce by the nature of his duties performed as part of [his] employment with Defendants." (ECF No. 1 ¶ 7.) He then describes his employment responsibilities, which included bill collecting, customer service, and security functions (id. ¶¶ 20-21) — all for an organization whose parking, storage, and rental services are directed to trucking operations (i.e., the instrumentalities of interstate commerce). While Plaintiff's Complaint could have been more artfully drafted, and while the particularities of his daily responsibilities are unclear at this point, the Court can plausibly infer that an office employee and security guard at a company that caters to truck drivers may have done work so related to the functioning of an instrumentality of commerce as to be, for practical purposes, a part of it, see Modern Trashmoval, 323 F.2d at 457.
In fact, courts have acknowledged that employees with clerical or other duties of an apparently intrastate character may nevertheless qualify in some circumstances as employees engaged in interstate commerce. See Kendrick v. Eagle Int'l Grp., LLC, No. 08-80909-CIV, 2011 WL 1326830, at *3 (S.D.Fla. Apr. 4, 2011) (marketing associate who used the telephone, postal service, and Internet to contact potential clients was engaged in commerce); Shelton v. Inn at Trivium, No. 6:08cv00040, 2009 WL 1255465, at *3 (W.D.Va. May 6, 2009) (bed-and-breakfast assistant manager whose responsibilities included running credit-card transactions and making interstate phone calls was engaged in commerce); see also Wirtz v. Wardlaw, 339 F.2d 785, 787 (4th Cir.1964) (office employees who mailed newspaper clippings, monthly newsletters, and birthday cards to solicit out-of-state business were engaged in commerce); Crook v.
Of course, the burden rests on Plaintiff to prove each element of his FLSA claim, including the interstate-commerce element. But this is the pleading stage, and given Plaintiff's express allegation that he was engaged in commerce, it would be premature for the Court to presume that he cannot adduce sufficient evidence in support of that allegation. Cf. Amato v. SNAP Telecomms., Inc., Civ. No. WDQ-12-02410, 2013 WL 4561906, at *2 (D.Md. Aug. 27, 2013) (finding that plaintiff-employees stated a claim for relief under the FLSA where they alleged, inter alia, that they "`were engaged in commerce or in the production of goods for commerce' within the meaning of the FLSA").
For the foregoing reasons, an Order shall enter DENYING Defendants' Motion to Dismiss (ECF No. 3).
It is unclear whether any of the 2015 financial statements were filed with the United States Bankruptcy Court. In the end, it makes little difference for present purposes, as the Court concludes that these statements are insufficient grounds to deprive Plaintiff of discovery on his FLSA claim.
Defendants do cite one case in which the district court dismissed a FLSA claim out-right. In Russell v. Continental Restaurant, Inc., 430 F.Supp.2d 521, 525-26 (D.Md. 2006), Judge Williams of this District held that a waitress at a local restaurant who (1) may have served out-of-state customers, (2) may have handled produce with out-of-state origins, and (3) conducted interstate communications on an irregular basis was not engaged in interstate commerce. Significantly, however, the motion under review in Russell was a Rule 12(b)(1) motion to dismiss for lack of subject-matter jurisdiction. As Judge Williams noted, "the plaintiff bears the burden of proving that subject matter jurisdiction exists in the federal courts." Id. at 523. However, as discussed in note 2, supra, courts have more recently recognized that "FLSA coverage is not a jurisdictional issue," Ramirez, 114 F.Supp.3d at 309 n.2. Consequently, Plaintiff here need only sustain the comparatively light burden of stating a plausible claim for relief.