Cunningham v. Electronic Data Systems Corp.
2010 U.S. Dist. LEXIS 132127
| S.D.N.Y. | 2010Background
- Plaintiffs allege EDS misclassified them as exempt under the FLSA, seeking collective action certification for overtime claims.
- EDS uses a job-code system and job analysis to classify employees and determine exemption status nationwide.
- Job codes are grouped into job progressions and families; exemption status is tied to the code assigned.
- Local managers, not central management, assign job codes, creating potential misclassifications despite corporate guidance.
- The court adopts a two-stage certification framework (notice stage then merits stage) and considers discovery gathered prior to the ruling.
- Court grants conditional certification for specific job progressions within defined classes and defers form of notice issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiffs meet the first-stage 'similarly situated' standard | Cunningham must show uniform job-analysis policy across employees | Plaintiffs must show uniform duties under exemptions at first stage | Plaintiffs satisfied the first-stage standard |
| Whether to certify by job progression within families or by entire families | Job progression within families is appropriate | Certifying whole families may conceal differences in duties | Certify by job progression (Systems Administrators, Telecommunications Analysts, Service Center Analysts) within Class A; similar for Class B; Class C unaltered |
| Whether heightened scrutiny applies at the first stage | Evidence collected justifies a notice-stage inquiry | Discovery warrants a second-stage, more stringent review | Apply first-stage analysis; Myers governs process |
| Whether reliance on job codes is appropriate for determining similarity | Job codes group similarly situated employees nationwide | Job codes may not reflect identical duties | Job codes show similar duties within progressions; sufficient at first stage |
Key Cases Cited
- Myers v. The Hertz Corp., 624 F.3d 537 (2d Cir. 2010) (two-stage process; notice stage allows lenient 'similarly situated' showing)
- Hoffmann v. Sbarro, Inc., 982 F. Supp. 249 (S.D.N.Y. 1997) (definition and scope of 'similarly situated' at early stage)
- Lynch v. United Services Auto. Ass'n, 491 F. Supp. 2d 357 (S.D.N.Y. 2007) (low initial burden to show common policy or plan)
- Cuzco v. Orion Builders, Inc., 477 F. Supp. 2d 628 (S.D.N.Y. 2007) (illustrates modest factual showing for notice-stage certification)