JOHN R. ADAMS, UNITED STATES DISTRICT COURT.
This matter is before the Court upon a motion for summary judgment (Doc. 19) filed by Defendant Weatherford U.S., LP "Weatherford." For the reasons stated herein, Defendant's motion for summary judgment is
The basic facts relative to the location, nature, and duration of Plaintiff's employment by Defendant are undisputed. In April of 2012, Plaintiff, Daniel A. Ayres, learned through a friend, that Defendant, "one of the largest drilling and mining operators in the world," was hiring for its fracing operations in North Dakota. Defendant, Weatherford, is a Louisiana limited partnership and one of the largest global providers of oil and natural gas well drilling equipment and services. (Decl. of Crabb at ¶ 2). Weatherford has fracing operations in multiple states, including Texas and North Dakota. Ayres, who lives in Poland, Ohio, began his employment with Weatherford in April 2012, when he traveled at Defendant's expense to Denver, Colorado for one week of training. After completing Weatherford's entry level driver training in Denver, Ayres worked in Texarkana, Texas briefly before he was transferred to Williston, North Dakota in early July 2012.
Ayres's worksite was Williston from July until he was terminated on October 19, 2012. Ayres's work schedule was intended to be three weeks on at the work site, two weeks off. (Ayres Deposition, 45-47.) Weatherford paid for Ayres to fly back to Ohio, and paid him full time for all five weeks, both at the work site and at home. Ayres admits that he never worked for Weatherford in Ohio, that his supervisors were not based in Ohio, and that Weatherford did not control where he lived or spent his two weeks off. When Ayres arrived in Williston, he initially worked six straight weeks, instead of the intended three on two off schedule. After this six week stretch, Ayres was sent home to Ohio on paid leave. Ayres remained in Ohio, on paid leave, until he was laid off in October.
Weatherford states that Ayres was let go as part of a general reduction in force in Williston. According to Weatherford, in 2012 fracing operations in Williston were
According to Ayres's deposition the training he received in Denver included instruction on his duty to verify that all assignments given him are within his qualifications as a driver and that if the assignment is outside his qualifications he could refuse to perform it without retaliation. (Ayres Deposition, 62, Exhibit 9.) Ayres was also aware that Weatherford has an anonymous hotline for the reporting of workplace issues and a company policy prohibiting retaliation for reporting. (Ayres Deposition, 61-62.) Ayres himself first reported a workplace issue to his supervisor in Texarkana, according to his deposition he was satisfied with how his report was handled, and the incident is not part of this suit. (Ayres Deposition, 62-65.)
While in Williston Ayres was also involved in the complaints of another employee, Jeff Pittman, who complained that Terry Crabb, the district manager, was ignoring him, the conditions of the man camps
Ayres alleges that after the Pittman complaints, he raised multiple issues with his supervisors and with the Regional Human Resources Manager, James Nicholson. According to Ayres he expressed concern that drivers were being asked to carry loads in violation of DOT regulations,
Ayres states that he informed his supervisor and Crabb about the load violations, informed Crabb about the timesheet violations (Crabb was responsible for the alteration, which were corrected after a Human Resources review). Ayres further states that when he was unable to reach local human resources representatives, he contacted the regional head of human resources, James Nicholson, and informed him of the DOT violations, drinking, time sheet altering, and of statements made by Terry Crabb, that anyone who complained to HR would be fired. (Ayres Deposition, 105.) Nicholson recalls speaking with Ayres via telephone but does not recall all of the specifics of the conversation, apart from discussing a Weatherford shuttle to the airport. According to Nicholson, Ayres and a supervisor were on the same shuttle, separate from many of Ayers's colleagues, because there was not enough room on a single shuttle. (Nicholson Deposition, 31-33.) Ayres cites this trip to the airport as evidence that he had been singled out for retaliation and deliberately separated from his colleagues. When other members of his team were called back to Williston on September 5, 2012, Ayres was not recalled.
On September 20, 2012, he emailed Nicholson, and copied several HR personnel, stating he believed he was being retaliated against in violation of company policy, he listed the violations of company policy he believed had occurred. Nicholson responded indicating that HR was investigating the work situation in North Dakota, but that the company was also "facing some realignment of our business in the Dakotas due to our consumer base." (Ayres Affidavit, Exhibit Q, p. 11.) Ayres emailed Nicholson again on October 5, 2012 asking to be reinstated. On October 22, 2012 Nicholson contacted Ayers to inform him that his last day of employment due to a reduction in force was October 19, 2012. Ayres appears to have applied for and received unemployment insurance benefits from Job Services North Dakota. (Ayres Affidavit, Exhibit N.)
Ayres filed this action asserting one count in violation of R.C. 4113.52, the "Ohio Whistleblower Statute" alleging his discharge was retaliation for reporting his supervisors, and a second count for violations of 29 USC 201, et seq., the Fair Labor Standards Act, alleging he was discharged for complaining that he was not properly paid overtime.
Summary judgment is appropriate when the "pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law." Estate of Smithers v. City of Flint, 602 F.3d 758, 761 (6th Cir.2010). A fact must be essential to the outcome of a lawsuit to be `material.' Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Summary judgment must be entered when a party fails to make a "showing sufficient to establish ... an element essential to that party's case." Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265. "Mere
Summary judgment creates a burden-shifting framework. See Anderson, 477 U.S. at 250, 106 S.Ct. 2505. The moving party has the initial burden of showing there is no genuine issue of material fact. Plant v. Morton Int'l, Inc., 212 F.3d 929, 934 (6th Cir.2000). Specifically,
Fed.R.Civ.P. 56(c)(1). The burden then shifts to the nonmoving party to prove that there is an issue of material fact that can be tried. Plant, 212 F.3d at 934. If this burden is not met, the moving party is then entitled to a judgment as a matter of law. Bell, 351 F.3d at 253. In evaluating a motion for summary judgment, the Court must construe the evidence and draw all reasonable inferences in the light most favorable to the nonmoving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The non-moving party may not simply rely on its pleadings; rather it must "produce evidence that results in a conflict of material fact to be resolved by a jury." Cox v. Kentucky Dep't of Transp., 53 F.3d 146, 150 (6th Cir.1995).
The OWPA protects Ohio employees who report improper activity or otherwise engage in protected activities from adverse action. See ORC § 4113.52. Section 4113.52(A)(1)(a) applies to the employees of private employers in Ohio:
The right of the several States to self-rule is enshrined in the Bill of Rights: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." U.S. Constitution, Amendment X. State sovereignty is a long settled principle:
Mayor, Aldermen & Commonalty of City of New York v. Miln, 36 U.S. 11 Pet. 102, 103, 9 L.Ed. 648 (1837). Applying an Ohio law to individuals and events that took place in North Dakota is a direct violation of North Dakota's "undeniable and unlimited jurisdiction over all persons and things within its territorial limits" that the Constitution guarantees. The violations of DOT regulations Ayres alleges would have taken place on North Dakota roads, if the individuals operating vehicles were intoxicated, it would be under the standard set in North Dakota, not Ohio. The fact that Weatherford also conducts business in Ohio, and that Ayres is an Ohio resident, is irrelevant to the right and responsibility of North Dakota to regulate employer/employee relationships within its own borders. Ayres is clearly aware of this fact, as his North Dakota application for unemployment benefits indicates. Weatherford has demonstrated that there is no genuine dispute as to any material fact concerning the application of the OWPA to Ayres's employment in North Dakota. Weatherford's motion for summary judgment is GRANTED as to count one.
The anti-retaliation provision of the FLSA makes it unlawful for an employer
Ayres offers no direct evidence of retaliation; he must establish a prima facie case in reliance on circumstantial evidence. "To establish a prima facie case of retaliation, an employee must prove that (1) he or she engaged in a protected activity under the FLSA; (2) his or her exercise of this right was known by the employer; (3) thereafter, the employer took an employment action adverse to her; and (4) there was a causal connection between the protected activity and the adverse employment action." Adair v. Charter Cnty. of Wayne, 452 F.3d 482, 489 (6th Cir.2006). To the extent that Ayres succeeds in making out the elements of a prima facie case of retaliation, the burden of production shifts to Weatherford to articulate a legitimate, non-retaliatory reason for the terminations. Dixon v. Gonzales, 481 F.3d 324, 333 (6th Cir.2007). Weatherford has explained Ayres's discharge as part of a reduction in force in Williston, Ayres was one of sixteen individuals let go, the majority of whom held the same Equipment Operator classification as Ayres. Because Weatherford has identified a legitimate, non-retaliatory reason, the burden shifts back to Ayres to show that the reason was a pretext for retaliation. Id.
To show pretext, the plaintiff must demonstrate that Weatherford's reasons (1) have no basis in fact, (2) did not actually motivate the discharge, or (3) were insufficient to motivate discharge. Manzer v. Diamond Shamrock Chem. Co., 29 F.3d 1078, 1084 (6th Cir.1994). Weatherford states that it was in the early stages of North Dakota operations when Ayres began work. Ayres himself states that he began work three weeks early due to a miscommunication, and that his duties in Williston were not as expected, involving more security work than equipment operation. Weatherford states that Ayres was included in the reduction in force because he was non-essential, there is some indication that Weatherford considered placing Ayres elsewhere. Ayres acknowledges that he was one of several involved in the reduction in force, but contends that because many in his group were not included, and because Weatherford was actually in the process of hiring elsewhere, the reduction in force is pretextual.
Even if this Court were to assume that Weatherford made an inefficient business decision by reducing its North Dakota force rather than relocating employees to Vernal, Utah where there was need, inefficiency is not pretext. See Gatch v. Milacron, 111 Fed.Appx. 785, 791 (6th Cir. 2004) ("even if the RIF was not entirely necessary from a business standpoint, it unquestionably occurred, resulting in the elimination of 38 jobs.... This evidence simply does not permit a finding that age discrimination rather than business judgment motivated the RIF"). The fact that Weatherford was hiring somewhere does not mean the company is required to retain, or rehire, employees elsewhere. See Almond v. ABB Indus. Sys., Inc., 56 Fed. Appx. 672, 678 (2003) (affirming summary judgment for defendant employer in ADEA suit, where employer hired new workers after a reduction in force; holding that "an employer has no duty to recall laid-off workers when a new position opens up").
For the reasons discussed herein, the Court GRANTS Defendant's motion for summary judgment (Doc. 19). Judgment is hereby entered in favor of Defendant. The complaint is DISMISSED in its entirety.
IT IS SO ORDERED.