763 F. Supp. 2d 979
W.D. Tenn.2011Background
- FTS USA, LLC and UniTek USA, LLC were sued for FLSA overtime violations by over 300 current/former cable installation technicians under a conditional class/collective action.
- Plaintiffs allege time-record manipulation, under-recording of overtime, and harassment of overtime reporting in multiple field offices.
- Defendants moved to decertify the class and for summary judgment, arguing individualized issues and insufficient classwide damages evidence.
- The court previously certified conditionally and limited discovery to 50 representative plaintiffs; the motions now seek resolution on the entire class.
- Key factual issues concern the accuracy of defendants’ timekeeping records and the existence of company-wide practices to deny overtime.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the plaintiff class should be decertified | Plaintiffs assert common methods—altering/underreporting hours, discouraging overtime, and a uniform piece-rate system—warrant class-wide treatment | Defendants contend individual differences require decertification | DENIED; class treatment appropriate |
| Whether damages can be proven on a classwide basis | Representative plaintiffs’ damages estimates can establish damages for the entire class | Damages must be proven for each, or are too speculative on a classwide basis | DENIED on summary judgment; representative proof allowed to support classwide damages |
| Whether willfulness is demonstrable on summary judgment | Evidence shows pervasive policy to deny overtime; know/reckless disregard | Evidence shows rogue managers rather than company-wide willfulness | DENIED; material factual disputes as to willfulness remain |
| Claims of Dowdy, Jones, Crossan, Boone, and Whitehead | Individual plaintiffs’ testimony supports damages and liability | Some claims lack precise dates or rely on unspecific testimony | Denied for Dowdy/Jones, Crossan/Boone; Whitehead discovery-related dismissal avoided for now |
Key Cases Cited
- Mt. Clemens Pottery Co. v. Dist. No. 7, UAW, 328 U.S. 683 (Supreme Court (1946)) (defining recoverable damages where records are inaccurate; reasonable inference allowed)
- Herman v. Palo Group Foster Home, Inc., 183 F.3d 468 (6th Cir. 1999) (records may be approximate if employee proves work performed and employer cannot prove exact amount)
- Myers v. Copper Cellar Corp., 192 F.3d 546 (6th Cir. 1999) (employee burden shifts when records are unreliable; damages may be inferred)
- McLaughlin v. Richland Shoe Co., 486 U.S. 128 (Supreme Court (1988)) (willfulness requires knowledge or reckless disregard of prohibitions; mere negligence not enough)
- Dole v. Elliott Travel & Tours, Inc., 942 F.2d 962 (6th Cir. 1991) (willfulness standard for FLSA; proof of knowledge or reckless disregard needed)
- Reich v. Dep’t of Conservation & Nat’l Res., 28 F.3d 1076 (11th Cir. 1994) (policies alone do not immunize willful noncompliance; enforcement matters)
- Chao v. Gotham Registry, Inc., 514 F.3d 280 (2d Cir. 2008) (employer duty to enforce overtime rules; policies insufficient alone to negate willfulness)
- Jarrett v. ERC Props., Inc., 211 F.3d 1078 (8th Cir. 2000) (evidence of supervisor directives can establish willfulness despite policy manuals)
- Donovan v. Tony & Susan Alamo Found., 722 F.2d 397 (8th Cir. 1983) (damages may be based on approximate evidence where exact figures are unavailable)