ALETA A. TRAUGER, District Judge.
Pending before the court is the Motion for Expedited Court-Supervised Notice to Prospective Class Members Pursuant to 29 U.S.C. § 216(b) filed by the plaintiffs (Docket No. 36), to which the defendant has filed a response (Docket No. 45), and in support of which the plaintiffs have filed a reply (Docket No. 52). For the reasons discussed herein, the plaintiffs' motion will be
On May 2, 2011, the plaintiffs filed their Complaint in this case.
Hourly employees at T-Mobile's call centers clock in and out by means of their workstation computers. The plaintiffs allege that, before clocking in to work, employees had to spend a certain amount of uncompensated time bringing up their computers and performing other preparatory work. They also allege that the defendant underpaid employees by failing to include certain required payments in the regular rate of pay when it calculated overtime. The plaintiffs claim that, by failing to compensate employees for pre-shift work and work performed during unpaid meal breaks and by miscalculating the regular rate of pay, T-Mobile violated the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq. The plaintiffs seek to represent a class of all non-exempt current and former employees employed at any time since May 2, 2008 at TMobile's call centers nationwide who worked as CSRs, as TSRs, or in related occupations where employees handle calls with the public or vendors.
In addition to seeking authorization from the court for this case to proceed as a collective action under the FLSA, the plaintiffs filed proposed notice and consent forms that would be provided to potential plaintiffs to give them the opportunity to learn of this litigation and to opt-into it. The plaintiffs seek an Order directing: (1) the defendant to provide the names, mailing addresses, and any known e-mail addresses of all non-exempt current and former employees who have been employed at any time since May 2, 2008 at T-Mobile's call centers nationwide who worked as CSRs, as TSRs, or in related occupations where employees handle calls with the public or vendors; (2) the plaintiffs' counsel to notify such employees; (3) that all such employees shall have 120 days to opt in to this action from the date the defendant provides the requested names and addresses to the plaintiffs' counsel; and (4) that the statute of limitations be tolled until the close of the above-referenced notice period.
In seeking court-ordered "authorization" to proceed, at this early stage, as a collective action, the plaintiffs are seeking what is generally known as "conditional certification" of a collective action pursuant to 29 U.S.C. § 216(b) of the FLSA.
Recognizing that the value of an individual claim might be small and not otherwise economically sensible to pursue, the FLSA provides that a collective action "may be
The FLSA does not define the term "similarly situated." However, the Sixth Circuit has held that "plaintiffs are similarly situated when they suffer from a single, FLSA-violating policy, and when proof of that policy or of conduct in conformity with that policy proves a violation as to all the plaintiffs." O'Brien, 575 F.3d at 585. But employees may also be similarly situated if their claims are merely "unified by common theories of defendants' statutory violations, even if the proofs of these theories are inevitably individualized and distinct." Id. Indeed, "[s]howing a `unified policy' of violations is not required [for certification]." Id. at 584. In O'Brien, the Sixth Circuit stated that even a requirement that employees' "causes of action under the FLSA accrued at about the time and place in the approximate manner of the named plaintiff" would be "more demanding than what the [FLSA] requires." Id. at 585.
Typically, courts employ a two-phase inquiry to address whether the named plaintiffs are similarly situated to the employees they seek to represent. Comer v. Wal-Mart Stores, Inc., 454 F.3d 544, 546 (6th Cir.2006); O'Brien, 575 F.3d at 583. "The first [phase] takes place at the beginning of discovery. The second occurs after all of the opt-in forms have been received and discovery has concluded." Comer, 454 F.3d at 546 (quotation marks omitted).
At the first stage, the plaintiff bears the burden of showing that employees in the class are similarly situated. Shabazz v. Asurion Ins. Serv., No. 3:07-0653, 2008 WL 1730318, at *3 (M.D.Tenn. Apr. 10, 2008). At that point, "`the certification is conditional and by no means final.' The plaintiff must show only that `his position is similar, not identical, to the positions held by the putative class members.'" Comer, 454 F.3d at 546-47 (quoting Pritchard v. Dent Wizard Int'l Corp., 210 F.R.D. 591, 595 (S.D.Ohio 2002)). In Comer, the Sixth Circuit approvingly quoted the lower court's decision, which stated that conditional certification "`need only be based on a modest factual showing,'" Id. at 547 (quoting Pritchard, 210 F.R.D. at 596), and that the court should use "`a fairly lenient standard [that] typically results in ... certification.'" Id. (quoting Morisky v. Pub. Serv. Elec. & Gas Co., 111 F.Supp.2d 493, 497 (D.N.J.2000)); see also Shabazz, 2008 WL 1730318, at *3 (stating that plaintiffs "must simply submit evidence establishing at least a colorable basis for their claim that a class of similarly situated plaintiffs exist[s]" (quotation marks omitted)). If the named plaintiffs show that employees in the proposed class are similarly situated, "[t]he district court may use its discretion to authorize notification of similarly situated employees to allow them to opt into the lawsuit." Comer, 454 F.3d at 546.
After discovery, the defendant may move for decertification of the conditional class. See O'Brien, 575 F.3d at 583; Shabazz, 2008 WL 1730318, at *3 (citing Anderson v. Cagle's, Inc., 488 F.3d 945,
The parties dispute whether the plaintiffs have sufficiently shown that they are similarly situated to a class of other employees. In support of their motion, the plaintiffs have submitted declarations from themselves and one other T-Mobile employee, each stating that the defendant failed to compensate them for work performed prior to their shifts and during their unpaid meal breaks and miscalculated the regular rate of overtime pay. In response, T-Mobile argues that the plaintiffs have not shown that there is sufficient interest among members of the putative class in joining this litigation. (See Docket No. 45, at 12-13.) It also asserts that the recent decision of the Supreme Court in Wal-Mart Stores, Inc. v. Dukes, ___ U.S. ___, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011) trumps the Sixth Circuit's O'Brien decision and requires the court to recognize the individualized liability determinations that make conditional certification inappropriate. (Id. at 16-18.)
The plaintiffs' supporting declarations provide evidence that T-Mobile employees at the Nashville and Colorado Springs call centers were not compensated for all work performed. They also provide evidence that the defendant miscalculated the regular rate of pay for purposes of calculating overtime by failing to include various types of compensation paid to the plaintiffs in addition to their base salary. Each declaration contains the same basic factual allegations.
For example, the declaration of plaintiff Thomas Ware, who worked as a CSR at T-Mobile's Nashville call center from September 2007 to November 2010, states that he generally started to work 15 minutes before the beginning of his shift and began his day by pulling up the call center's computer system, which included several different computer programs, so that he could log into the system and review e-mails. (Docket No. 38, at 15.) It took approximately 8-12 minutes for him to pull up the various computer programs, and, while doing so, he would read memoranda and e-mails concerning changes and updates to T-Mobile policies.
In addition to performing pre-shift work, Ware also claims that he spent 5-7 minutes during his unpaid lunch break pulling the computer system back up before he clocked back in to work. (Id. at 16.) According to Ware, CSRs were required to resume taking calls from customers upon the conclusion of their lunch breaks. (Id. at 17.) Thus, if he returned to work at the end of his lunch break, he would have been considered late by T-Mobile, because he would not have been ready to take calls from customers until he pulled up the computer system and clocked in. (Id.)
Ware's declaration further states that, while he was eligible to receive several bonus and incentive payments on top of his base salary as part of his compensation, none of those additional payments was included in the rate of pay at which the defendant paid him overtime. (Id. at 17-18.) He added that he worked over 40 hours per week one to two times each month (Id. at 18.)
The declarations of plaintiffs Lance Wyss, Christian Zaragoza, Jeffrey Fite, and Joshua Callis all contain nearly identical allegations. All of these plaintiffs were formerly employed at the Nashville call center as CSRs.
The showing that the plaintiffs must make at the conditional certification stage is "modest," see Comer, 454 F.3d at 547, and the outcome largely depends on the plaintiffs' ability to demonstrate that the claims of the class would proceed under common, focused theories of statutory liability. See O'Brien, 575 F.3d at 585. Through their declarations, the plaintiffs have offered such common, specific theories here. Indeed, all potential plaintiffs at the Nashville and Colorado Springs call centers were effectively required to perform uncompensated tasks before clocking
While the plaintiffs have made the modest showing required for conditional certification of a class of current and former employees at T-Mobile's Nashville and Colorado Springs call centers, they have not made a similar showing with respect to current and former employees at T-Mobile's other call centers nationwide. The plaintiffs have not worked at any other T-Mobile call center outside of Nashville or Colorado Springs and have not presented a declaration from any current or former employee who worked at any such facility. Accordingly, the plaintiffs' request that current and former T-Mobile employees who worked at call centers nationwide be included in the conditional class and receive notice will be denied. See Shabazz, 2008 WL 1730318, at *5 (denying, without prejudice, plaintiffs' request to extend conditional class of hourly employees beyond defendant's Nashville call center to include employees that worked at its Houston call center, where plaintiffs failed to produce a declaration from any current or former employee who worked at the Houston call center).
In opposing conditional certification, T-Mobile argues that the plaintiffs have not shown sufficient interest among members in the putative class in joining the litigation. (Docket No. 45, at 12-13.) Although the defendant cites a number of cases applying a requirement of sufficient interest, including two from district courts in this circuit, see Frye v. Baptist Mem.'l Hosp., Inc., No. 07-2708, 2008 WL 6653632, at *6 (W.D.Tenn. Sept. 16, 2008); Arrington v. Michigan Bell Tel. Co., No. 10-10975, 2011 WL 3319691, at *5 (E.D.Mich. Aug. 1, 2011), there is no controlling precedent in the Sixth Circuit regarding this specific
Id. (citing Hoffmann-La Roche, Inc. v. Sperling, 493 U.S. 165, 173, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989)). The court finds this reasoning persuasive.
However, even if a showing of sufficient interest were required, the plaintiffs have demonstrated that there is sufficient interest in the present case. In Frye, the district court, relying on a decision from the Eleventh Circuit, noted that "[n]o specific minimum number of opt-in plaintiffs is required to establish a showing of sufficient interest. Rather, the question is simply whether `there are other employees... who desire to `opt-in.'" Frye, 2008 WL 6653632, at *6 (quoting Dybach v. Florida Dep't of Corr., 942 F.2d 1562, 1567 (11th Cir.1991)). Here, the plaintiffs have shown that at least one other former employee, David Scott, has opted into this action since the defendant raised its lack of interest argument. Given the fairly lenient standard for conditional certification, see Comer, 454 F.3d at 547, the court finds that the plaintiffs have shown there is sufficient interest to conditionally certify a class. See Psalms, Inc., 2011 WL 2882387, at *8 ("The fact that one other employee of Defendant has opted-into this collective action, is enough, at this stage in the litigation, for this Court to find that there is sufficient interest to conditionally certify a class and permit court-supervised notice.").
The defendant next asserts that the Supreme Court's recent decision in Wal-Mart Stores, Inc. v. Dukes, ___ U.S. ___, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011), trumps the Sixth Circuit's O'Brien decision and compels the court to recognize the individualized nature of the plaintiffs' FLSA claims.
Accordingly, the court will conditionally certify a class of all current and former employees who worked as Customer Service Representatives, as Technical Support Representatives, or in related occupations at T-Mobile USA's call centers in Nashville, Tennessee and Colorado Springs, Colorado since May 2, 2008.
To facilitate class notice, the court will order the defendant to provide the plaintiffs with the names and last known addresses of these employees. The plaintiffs have submitted proposed notice and consent forms. (Docket No. 52, Exs. 3, 4.) The defendant has asserted that the plaintiffs' proposed notice is deficient in material respects, although, with the exception of objecting to the 120-day opt-in period as unreasonably long, it has failed to otherwise describe how the proposed notice is defective. (See Docket No. 45, at 25, n. 46.) The defendant's brief also does not address the plaintiffs' proposed consent form. Thus, the court will order the parties to confer and attempt to submit agreed-upon notice and consent forms within 20 days of the date of the accompanying Order. If the parties cannot agree, the defendant shall file its specific objections to the plaintiffs' proposed forms by the same deadline.
Finally, the court finds no reason to rule on the undeveloped statute of limitations/tolling issue. If, at a later stage in this proceeding, the defendant advances an argument that certain claims are barred by the relevant statute of limitations, the plaintiff may (of course) advance an argument that equitable tolling should apply.
For all of the reasons discussed herein, the plaintiffs' Motion for Expedited Court-Supervised Notice to Prospective Class Members Pursuant to 29 U.S.C. § 216(b) is
An appropriate order will enter.
(Docket No. 45, Ex. C, at 11, 23.) (emphasis added)
The FLSA requires that an employee who works overtime must receive overtime compensation from his employer "at a rate not less than one and one-half times the regular rate at which he is employed." 29 U.S.C. § 207(a) (emphasis added). The plaintiffs argue that the quoted language from T-Mobile's Employee Handbook shows that T-Mobile calculates overtime based on an employee's hourly, as opposed to regular, rate of pay in contravention of the FLSA. The court does not agree. The quoted language twice states that T-Mobile shall calculate overtime pay in accordance with applicable laws, which can reasonably be interpreted to include the FLSA requirements concerning the calculation of overtime. It is not an unreasonable stretch to interpret this language to mean that various types of compensation paid to the plaintiffs on top of their base salary are included in T-Mobile's computation of overtime pay. Certainly this is too thin a thread upon which to base nationwide certification.