NOELLE C. COLLINS, United States Magistrate Judge.
Before the court is the Motion to Remand filed by Plaintiffs Steve Bowler, Dwight Watson, Chris Kassab, Paula Antkowiak, and Matthew Doubet (jointly, Plaintiffs). (Doc. 6). Also before the court are Plaintiffs' Motion for Attorney's Fees Under 28 U.S.C. § 1447(c) (Doc. 8), and the Motion for Reconsideration and Dissolution of Court Order on Plaintiffs' Emergency Motion to Enjoin Defendant's Contact with Putative Class Members filed by Defendant AlliedBarton Security Services, LLC, (Defendant) (Doc. 14). The matters are fully briefed and ready for disposition.
On February 24, 2015, Plaintiffs, who are Security Officers employed by Defendant, filed, a Petition in the Circuit Court of the City of St. Louis, Missouri. On April 9, 2015, Defendant removed this matter from the Circuit Court of the City of St. Louis to federal court based on this court's federal question jurisdiction, as conferred by 28 U.S.C. § 1331 ("The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.").
On April 10, 2015, Plaintiffs filed a First Amended Class Action Petition adding Matthew Doubet as a named Plaintiff. (Doc. 12). The allegations of the First Amended Class Action Petition track the original allegations as they relate to Defendant's practice of failing to properly pay its Security Officers in Missouri the straight-time and overtime wages to which they are allegedly entitled by law. Specifically, Plaintiffs claim that Defendant requires its Missouri-based Security Officers to work and remain at their posts, without relief, during purported thirty-minute meal breaks, and that Defendant does not pay the Security Officers for this thirty-minute period.
Plaintiffs bring Count I pursuant to Mo. Rev.Stat. § 290.505
In support of their Motion to Remand, Plaintiffs argue that this court does not have federal question jurisdiction because the First Amended Class Action Petition only alleges causes of action pursuant to State law; it does not allege a federal cause of action. Also, Plaintiffs have moved the court to order Defendant to compensate them for attorney's fees which they incurred as a result of Defendant's alleged improper removal. Defendant argues, for numerous reasons, that its removal of this matter was proper and that, even if this court should remand this matter, Plaintiffs should not be awarded attorney's fees. The court will address the parties' arguments below.
Except as otherwise expressly provided by Congress, civil actions for which the district courts of the United State have original jurisdiction may be removed from State court to federal district court. 28 U.S.C. §§ 1441(a), 1446. A party opposing removal may file a motion to remand to State court. 28 U.S.C. § 1447(c). The party removing and opposing remand has the burden of establishing federal subject matter jurisdiction. Iowa Lamb Corp. v. Kalene Indus., Inc., 871 F.Supp. 1149, 1154 (8th Cir.1994); In re Business Men's Assur. Co. of America, 992 F.2d 181, 182 (8th Cir.1983) (per curiam). Upon considering a motion to remand, a district court is "required to resolve all doubts about federal jurisdiction in favor of remand." Business Men's Assurance, 992 F.2d at 182 (citing Steel Valley Auth. v. Union Switch & Signal Div., 809 F.2d 1006, 1010 (3d Cir.1987)).
"The presence or absence of federal-question jurisdiction is governed by the `well-pleaded complaint rule,' which provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiff's properly pleaded complaint." Caterpillar Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987) (quoting Gully v. First Nat'l Bank, 299 U.S. 109, 112-113, 57 S.Ct. 96, 81 L.Ed. 70 (1936)). See also Gaming Corp. of America v. Dorsey & Whitney, 88 F.3d 536, 542 (8th Cir.1996) ("The `well-pleaded complaint rule' requires that a federal cause of action must be stated on the face of the complaint before the defendant may remove the action based on federal question jurisdiction.") (quoting Caterpillar, 482 U.S. at 392, 107 S.Ct. 2425). Because federal law provides that plaintiffs are the "masters of [their claims], [plaintiffs] may avoid federal jurisdiction by exclusive reliance on state law." Caterpillar, 482 U.S. at 392, 107 S.Ct. 2425.
Even in situations where a cause of action based on a federal statute does not appear on the face of the complaint, such as in the matter under consideration, preemption based on a federal statutory scheme may apply in circumstances where "the pre-emptive force of a statute is so extraordinary that it converts an ordinary state common-law complaint into one stating a federal claim." Caterpillar, 482 U.S. at 393, 107 S.Ct. 2425 (internal quotation and citation omitted). See e.g., Metro. Life Ins. Co. v. Taylor, 481 U.S. 58, 65, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987) (where
As further explained by the Eighth Circuit, the exception to the well-pleaded complaint rule applies where a federal statute provides "an exclusive cause of action for the claim asserted and also set[s] forth procedures and remedies governing that cause of action." Johnson, 701 F.3d at 248. The Supreme Court has recognized that such circumstances arise only in three areas: § 301 of the Labor Management Relations Act (LMRA), Avco Corp. v. Aero Lodge No. 735, 390 U.S. 557, 88 S.Ct. 1235, 20 L.Ed.2d 126 (1968); § 502(a) of ERISA, Metro. Life Ins. Co. v. Taylor, 481 U.S. 58, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987); and §§ 85 and 86 of the National Bank Act, Beneficial Nat'l Bank v. Anderson, 539 U.S. 1, 123 S.Ct. 2058, 156 L.Ed.2d 1 (2003). Johnson, 701 F.3d at 248.
As stated above, Plaintiffs allege only State law claims. Thus, for this court to find that federal jurisdiction exists and consequently to deny Plaintiffs' motion seeking remand to State court, it must determine that the exception to the well-pleaded complaint rule applies. See Caterpillar, 482 U.S. at 393, 107 S.Ct. 2425.
Defendant argues that Plaintiffs' cause of action is preempted by the Fair Labor Standards Act (FLSA), 29 U.S.C §§ 201 et seq. Indeed, the FLSA does not include a supersedure clause providing for federal preemption as does ERISA. Cf. Robertson v. LTS Mgmt. Servs., LLC, 642 F.Supp.2d 922, 928 (W.D.Mo.2008) ("[T]he FLSA does not expressly preempt all state law causes of action.") (quoting Osby v. Citigroup, Inc., 2008 WL 2074102, at *2 (W.D.Mo. May 14, 2008) (unreported)). See also Lechner v. Arvinmeritor, Inc., 2005 WL 1920746, at *5 (W.D.N.C. July 14, 2005) (unreported) ("[W]hen enacting the FLSA Congress did not express any clear, unqualified intent to make claims such as those [the defendant] states removable to federal court.... The FLSA's legislative history does not include, as ERISA's does, plain statements that cases such as this one are intended to arise under the courts' federal question jurisdiction.").
Further, it is well established within this Circuit that the FLSA does not have the requisite preemptive force to convert a plaintiff's State claims to a claim under the FLSA. See e.g., Robertson, 642 F.Supp.2d at 928 (duplication of claims does not mean that plaintiffs' state-law claim is preempted by their FLSA claim because the FLSA does not provide the exclusive remedy for its violations) (citing Bouaphakeo v. Tyson Foods Inc., 564 F.Supp.2d 870 (N.D.Iowa 2008); Osby v. Citigroup, Inc., 2008 WL 2074102 (W.D.Mo. May 14, 2008)); Perrin v. Papa John's Intern., Inc., 114 F.Supp.3d 707, 724, 2015 WL 4131358, at *14 (E.D.Mo. July 8, 2015) ("The FLSA
Defendant suggests that Plaintiffs' reliance on Defendant's employee handbook as the factual basis for the breach of contract claim alleged in Count II invokes an exception to the well-pleaded complaint rule. Indeed, the LMRA, codified as 29 U.S.C. § 185(a), provides that suits for violations of collective bargaining agreements between a labor organization and an employer may be brought in the district court having jurisdiction over the parties. Specifically, federal preemption applies when "[t]he heart of the [state-law] complaint [is] a ... clause in [a] collective bargaining agreement." Caterpillar, 482 U.S. at 394, 107 S.Ct. 2425. Clearly, Plaintiffs' claims are not based on rights created by or dependent on a collective-bargaining agreement. See id. To the extent Plaintiffs rely on Defendant's employee handbook as creating the contractual rights they claim in Count II of the First Amended Class Action Petition, the Supreme Court holds that the exception to the well-pleaded complaint rule does not apply to breaches of individual employment contracts, id. at 394-95, 107 S.Ct. 2425 ("Section 301 says nothing about the content or validity of individual employment contracts."; "[I]ndividual employment contracts are not inevitably superseded by any subsequent collective agreement covering an individual employee, and claims based upon them may arise under state law."); and, under Missouri law, an employee handbook does not constitute a contract between employees and employer, see Johnson v. McDonnell Douglas Corp., 745 S.W.2d 661, 662 (Mo.1988) (employee handbook did not alter at-will status of employee); West Cent. Mo. Reg'l Lodge No. 50 v. Bd. of Police Comm'rs of Kansas City, Mo., 939 S.W.2d 565, 567 (Mo.Ct.App.1997) (personnel policy and benefit manual did not constitute a contract between defendant and its employees; defendant's unilateral act of publishing manual was not a contractual offer).
Defendant acknowledges that it is "well settled law" that "a case may not be removed to federal court on the basis of a federal defense, including the defense of pre-emption." Caterpillar, 482 U.S. at 393, 107 S.Ct. 2425 (citing Franchise Tax Bd. of Cal. v. Constr. Laborers Vacation Trust for S. Cal., 463 U.S. 1, 12, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983)). This rule applies "even if the defense is anticipated in the plaintiff's complaint, and even if
To the extent Defendant argues that this court has federal question jurisdiction simply because Plaintiffs quote or refer to federal statutes or case law in their First Amended Class Action Petition, such a "mere reference ... is not sufficient to create federal question jurisdiction." Kennedy v. Commercial Bank, 2012 WL 639014, at *2 (E.D.Mo. Feb. 27, 2012) (unreported) (citing I.S. v. Washington Univ., 2011 WL 2433585, *5 (E.D.Mo. Jun. 14, 2011) (unreported) (no federal question jurisdiction where state law claim for negligence per se referred to the Health Insurance Portability and Accountability Act (HIPAA), 42 U.S.C. §§ 1320d et. al.)); Taylor v. Lewis, 772 F.Supp.2d 1040, 1044-45 (E.D.Mo.2011) (unreported) (no federal question jurisdiction in claim for personal injuries involving HUD lease); Henderson v. Jordan, 2009 WL 2168692, *2 (E.D.Mo. July 17, 2009) (unreported) (no federal question jurisdiction where state law breach of fiduciary claim referred to SEC regulations).
To the extent Defendant argues that because Plaintiffs' claims are more properly brought pursuant to federal law and have no basis under Missouri law, Defendant cites no authority, and the court is not aware of any authority, to support an argument that under such circumstances the well-pleaded complaint rule is not applicable.
Additionally, to the extent Defendant argues that in the "meal break context" federal law provides a necessary element of Plaintiffs' cause of action and that, therefore, preemption applies, the Supreme Court holds that where "it appears that some substantial, disputed question of federal law is a necessary element of one of the well-pleaded state claims," federal jurisdiction is not automatically conferred on a federal court; "the presence of the federal issue as an element of the state tort is not the kind of adjudication for which jurisdiction would serve congressional purposes and the federal system." Merrell Dow, 478 U.S. at 813-14, 106 S.Ct. 3229 (holding that Franchise Tax Board, 463 U.S. at 13, 103 S.Ct. 2841, "did not purport to disturb the long-settled understanding that the mere presence of a federal issue in a state cause of action does not automatically confer federal-question jurisdiction"; and finding no federal cause of action where plaintiff alleged federal statute as an element of its cause of action). See also Kennedy, 2012 WL 639014, at *1 (rejecting defendant's argument that federal question jurisdiction existed because plaintiff's claims required "the resolution of substantial questions of federal law under the FLSA," where plaintiff brought no federal claims).
Additionally, Plaintiffs' "incidental" reference to federal law does not "convert [their] state claim[s] into a federal cause of action." Carter v. Edgewood Children's Center, 2009 WL 383357, at *2 (E.D.Mo.
Although the Missouri statute upon which Plaintiffs rely for their claims that Defendant wrongfully failed to pay them overtime, Mo.Rev.Stat. § 290.505.4, provides that it "shall be interpreted in accordance with" the FLSA, there is no authority that this provision federalizes causes of action asserting violations of Mo.Rev.Stat. § 290.505.4. Cf. Morales v. Showell Farms, Inc., 910 F.Supp. 244, (M.D.N.C.1995) ("Even in the FLSA's core area of protection — minimum wage and overtime regulation — the FLSA does not completely preempt state laws but only preempts them to extent that they are less generous than the FLSA.").
The case upon which Defendant relies for the proposition that Plaintiffs' cause of action is removable because it is really a FLSA matter, Breuer v. Jim's Concrete of Brevard, Inc., 538 U.S. 691, 123 S.Ct. 1882, 155 L.Ed.2d 923 (2003), is distinguishable because in Breuer the plaintiff alleged both state and federal claims; in the matter under consideration, Plaintiffs allege only Missouri claims. Likewise, Grable & Sons Metal Products, Inc. v. Darue Engineering & Manufacturing, 545 U.S. 308, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005), upon which Defendant also relies, is distinguishable because it involved a contested federal issue regarding the validity of the Internal Revenue Service's tax lien, and that issue was substantial; in the matter under consideration there is no substantial federal issue.
Other cases upon which Defendant relies are distinguishable because those cases were based solely on the FLSA and they did not involve removal. See e.g., Hertz v. Woodbury Cnty., Iowa, 566 F.3d 775 (8th Cir.2009) (suit filed in federal court pursuant to FLSA for recovery of overtime pay); Barajas v. Acosta, 2012 WL 1952261 (W.D.Tex.2012) (unreported) (suit filed in federal court under FLSA for failure to pay minimum wage and overtime). In any case, authority upon which Defendant relies from district courts of jurisdictions other than those within the Eighth Circuit is not controlling, and, in this case, is no persuasive.
In conclusion, the court finds that Defendant has not met its burden to establish that this court has federal question jurisdiction, and that, therefore, this matter should be remanded to State court. See Iowa Lamb Corp., 871 F.Supp. at 1154; Business Men's Assurance, 992 F.2d at 182.
Pursuant to 28 U.S.C. § 1447(c) ("An order remanding the case may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal."), Plaintiffs seek attorney's fees related to the removal and remand of this matter. Plaintiffs argue that attorney's fees should be awarded because Defendant lacked an objectively reasonable basis for seeking removal.
Clearly, it does not necessarily follow that an award of attorney's fees follows remand unless the defendant was objectively unreasonable in its removal. Martin v. Franklin Capital Corp., 546 U.S. 132, 136-37, 126 S.Ct. 704, 163 L.Ed.2d 547 (2005) (rejecting plaintiff's argument that attorney's fees should be awarded automatically on remand; § 1447(c) uses the word "may" rather than "shall," and "`may' clearly connotes discretion"). Rather, awarding attorney's fees when a motion to remand is granted remains within a court's discretion. Id. at 139, 126 S.Ct. 704.
Upon defining its use of the term "discretion," the Supreme Court holds that "a motion to [a court's] discretion is a motion, not to its inclination, but to its judgment; and its judgment is to be guided by sound legal principles." Id. (internal quotation and citation omitted). The court finds that Defendant did have an objectively reasonable basis for removal. As such, the court finds, within its discretion, that Plaintiffs should not be awarded attorney's fees which they incurred as a result of Defendant's removal of this matter.
For the reasons stated above, the court finds that Plaintiffs' Motion to Remand (Doc. 6) should be granted; that Plaintiffs' Motion for Attorney's Fees Under 28 U.S.C. § 1447(c) (Doc. 8) should be denied; and that this matter should be remanded to State court.
Accordingly,
District courts within the Eighth Circuit have held that, even when a plaintiff alleges both state and FLSA claims in a federal lawsuit and those claims are duplicative, a plaintiff's state law claims are not preempted. See Robertson, 642 F.Supp.2d at 928 (duplication of claims does not mean that plaintiffs' state-law claim is preempted by their FLSA claim because the FLSA does not provide the exclusive remedy for its violations).