Joyce Vallone v. CJS Solutions Group, LLC
9 F.4th 861
8th Cir.2021Background
- HCI Solutions Group (Florida) hires consultants on a per-project basis to provide on-site training at "go live" events; HCI arranges or reimburses travel but does not pay consultants for travel time.
- Plaintiffs Joyce Vallone (New York) and Erasmus Ikogor (Florida) traveled to Mayo Clinic projects in Rochester, Minnesota; they completed pre-travel paperwork but performed no HCI work while in transit and received no travel pay.
- Plaintiffs sued under the Fair Labor Standards Act (FLSA) seeking pay for out-of-town travel and moved to certify a nationwide collective action.
- The district court conditionally certified a collective action limited to travel claims tied to Minnesota (and to Minnesota residents) for lack of personal jurisdiction over unrelated claims.
- On summary judgment the court held plaintiffs were not HCI employees while traveling (duties began when the project commenced and ended when they were cut), so travel time was not compensable; the panel affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did HCI waive a personal-jurisdiction defense by its answer? | HCI's answer was ambiguous and failed to raise the defense. | HCI's answer referenced due-process limits and later briefed jurisdiction; no waiver. | No waiver; reference to due process plus briefing gave adequate notice. |
| Could Minnesota jurisdiction over some travel claims support nationwide travel claims in a collective action? | Jurisdiction over Minnesota travel claims permits adjudication of all travel claims. | Each unpaid-wage claim is distinct; no connection to Minnesota = no specific jurisdiction. | Rejected plaintiff; jurisdiction must be claim-specific; non-MN claims excluded. |
| Is travel time to/from a project compensable because consultants were "employees" while traveling? | Travel is primarily for HCI's benefit, so plaintiffs were employed during travel. | Travel produced no immediate benefit to HCI and plaintiffs did no work in transit; thus not employment. | Travel not compensable; plaintiffs were not employees while traveling. |
| Did signing contingent offer letters make plaintiffs employees before project start? | Signatures on contingent at-will offers established employment pre-travel. | Offers were not employment contracts and contemplated no work until project start. | No; contingent offers alone did not create employment before work began. |
Key Cases Cited
- Ins. Corp. of Ir. v. Compagnie des Bauxites de Guinee, 456 U.S. 694 (Due process limits on personal jurisdiction)
- Goodyear Dunlop Tires Ops., S.A. v. Brown, 564 U.S. 915 (corporate minimum-contacts principle)
- Bristol-Myers Squibb Co. v. Superior Ct. of Cal., 137 S. Ct. 1773 (specific jurisdiction requires connection between forum and claim)
- Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 141 S. Ct. 1017 (claims must arise out of or relate to defendant’s forum contacts)
- Keeton v. Hustler Magazine, Inc., 465 U.S. 770 (nationwide-damages discussion distinguished)
- Tony & Susan Alamo Found. v. Sec'y of Labor, 471 U.S. 290 (economic-reality test; no immediate advantage = no employment)
- Walling v. Portland Terminal Co., 330 U.S. 148 (definition of "employ"/"work")
- Reich v. ConAgra, Inc., 987 F.2d 1357 (employer benefit alone may not establish employment)
- Dellinger v. Sci. Applications Int'l Corp., 649 F.3d 226 (contingent offer acceptance does not establish employment before work)
- Petroski v. H & R Block Enters., LLC, 750 F.3d 976 (employee status and travel-time analysis)
- Wisland v. Admiral Beverage Corp., 119 F.3d 733 (Rule 12 waiver requires clear short-and-plain terms)
