Greathouse v. JHS Security Inc.
784 F.3d 105
2d Cir.2015Background
- Darnell Greathouse worked for JHS Security and orally complained to company president Wilcox on Oct. 14, 2011 that he had not been paid; Wilcox allegedly pointed a gun at him and effectively terminated him.
- Greathouse sued under the FLSA (29 U.S.C. § 215(a)(3)) and New York Labor Law for unpaid wages and retaliatory discharge; defendants defaulted and the clerk entered defaults.
- A magistrate judge recommended damages on wage claims but denied damages on the FLSA retaliation claim, relying on Second Circuit precedent Lambert v. Genesee Hosp. requiring complaints be filed with a government agency.
- The District Court adopted the report; Greathouse appealed, arguing Kasten v. Saint‑Gobain undermines Lambert and that intra‑company oral complaints are protected.
- The Second Circuit panel reconsidered Lambert in light of Kasten, the statute’s remedial purpose, and agency (EEOC/Secretary of Labor) positions; it vacated the portion of the judgment relying on Lambert and remanded for the district court to reconsider default‑judgment damages consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument (appointed amicus) | Held |
|---|---|---|---|
| Whether §215(a)(3) protects oral complaints to an employer (not an agency) | Greathouse: Kasten allows oral complaints to be protected and §215(a)(3) should include intra‑company complaints if sufficiently clear | Defendants: Lambert remains good law — §215(a)(3) requires filing with a government agency; intra‑company complaints are not "filed" under the statute | Court: Overrules Lambert to the extent it required agency filing; §215(a)(3) protects oral complaints to employers if they are "sufficiently clear and detailed" for a reasonable employer to understand them as asserting FLSA rights (Kasten standard) |
| Whether the word "filed any complaint" unambiguously means only agency filings | Greathouse: ambiguous; context, remedial purpose, and agency interpretations support a broad reading | Defendants: statutory context and other uses of "filed" in FLSA suggest a governmental filing requirement | Held: Phrase is ambiguous; textual context, statutory purpose, and agency precedent support including intra‑company complaints |
| Weight to give EEOC/Secretary of Labor interpretations | Greathouse: agencies consistently interpret §215(a)(3) to cover internal complaints; their views merit deference/weight | Defendants: agency interpretations cannot override statutory text | Held: The agencies’ long, consistent positions merit Skidmore weight and support a broad reading consistent with Kasten |
| Effect of default judgment posture on relief | Greathouse (and concurring judge): default established liability and district court should award damages on retaliation and overlapping NYLL claims | Majority/appointed amicus: procedural defenses preserved; remand required for district court to apply new rule to default judgment | Held: Majority remands for district court to determine in first instance whether default judgment on retaliation claim should be granted and what damages are appropriate; concurrence would have entered judgment on damages now |
Key Cases Cited
- Kasten v. Saint‑Gobain Performance Plastics Corp., 131 S. Ct. 1325 (2011) (held oral complaints can satisfy "filed any complaint" if sufficiently clear and detailed for a reasonable employer to understand they assert statutory rights)
- Lambert v. Genesee Hosp., 10 F.3d 46 (2d Cir. 1993) (prior Second Circuit rule limiting §215(a)(3) protection to formal/agency filings; overruled in part)
- Valerio v. Putnam Assocs. Inc., 173 F.3d 35 (1st Cir. 1999) (internal complaints may be "filed" with employer and §215(a)(3) should be read broadly)
- Minor v. Bostwick Labs., Inc., 669 F.3d 428 (4th Cir. 2012) (found "filed any complaint" ambiguous and adopted broad reading protecting intracompany complaints)
- Trans World Airlines, Inc. v. Hughes, 449 F.2d 51 (2d Cir. 1971) (default judgment effect discussion cited by concurrence regarding admissions by default)