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Demiko McCaster v. Darden Restaurants, Inc.
845 F.3d 794
7th Cir.
2017
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Background

  • Plaintiffs McCaster and Clark were intermittent hourly employees at Darden restaurants in Illinois (2004–2012) and brought a putative class action under the Illinois Wage Payment and Collection Act (IWPCA) alleging failure to pay pro rata accrued vacation ("anniversary pay") at separation.
  • Darden paid "anniversary" vacation on a pro rata, length-of-service basis; prior to June 1, 2008 the policy covered all employees, after that date it covered only full-time employees (30+ hours/week).
  • McCaster alleged nonpayment under the pre-2008 policy; Clark conceded she received owed pay pre-2008 but claimed post-2008 she was denied vacation pay when she separated because she was part-time.
  • Plaintiffs sought class certification for all separated hourly Illinois employees from December 11, 2003 to the present who "did not receive all earned vacation pay benefits." The district court struck a paralegal declaration relied on by plaintiffs and denied class certification as an impermissible "fail-safe" class; an alternative class definition (without the "did not receive" clause) was also denied for failure to satisfy Rule 23.
  • The district court granted summary judgment to Darden on Clark’s individual IWPCA claim (because she was part-time and thus ineligible under the post-2008 policy). McCaster settled his individual claim but reserved appeal of the class-certification denial.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Clark has an IWPCA claim despite being part-time after June 1, 2008 Clark: an employer that awards prorated, length-of-service vacation to full-time employees cannot deny equivalent pro rata benefits to part-time employees Darden: IWPCA forbids forfeiture of earned vacation but does not mandate that employers provide paid vacation; eligibility is determined by the employer's policy (which limited pay to full-time employees) Held: No IWPCA violation. The Act prevents forfeiture of accrued earned vacation but does not require employers to extend paid-vacation eligibility to part-time employees; Clark was ineligible so no claim.
Whether class certification was proper (class definition & Rule 23 requirements) Plaintiffs: class of all separated hourly Illinois employees subject to Darden’s vacation policy (or alternatively remove the "did not receive" language) to permit classwide adjudication of unpaid vacation claims Darden: proposed definitions are either impermissible fail-safe or, if corrected, plaintiffs cannot show commonality/predominance because claims turn on individualized employment/payroll facts Held: Denial affirmed. Original definition was an impermissible fail-safe. The revised class fails Rule 23 because plaintiffs did not identify a common unlawful practice or other classwide issue capable of resolving all claims; commonality, typicality, and predominance not met.

Key Cases Cited

  • Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (class commonality requires a common contention capable of classwide resolution)
  • Messner v. Northshore Univ. HealthSystem, 669 F.3d 802 (7th Cir. 2012) (fail-safe class doctrine and refining class definitions)
  • Suchanek v. Sturm Foods, Inc., 764 F.3d 750 (7th Cir. 2014) (standard of review for class-certification discretionary rulings)
  • Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (Rule 23(b)(3) predominance more demanding than commonality/typicality)
  • Golden Bear Family Rests., Inc. v. Murray, 494 N.E.2d 581 (Ill. App. Ct.) (length-of-service policy impermissibly conditioned payment on employment on a specific date — violation of anti-forfeiture rule)
  • Mueller Co. v. Dep’t of Labor, 543 N.E.2d 518 (Ill. App. Ct.) (explaining Golden Bear and applying pro rata/anti-forfeiture rule)
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Case Details

Case Name: Demiko McCaster v. Darden Restaurants, Inc.
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Jan 5, 2017
Citation: 845 F.3d 794
Docket Number: 15-3258
Court Abbreviation: 7th Cir.