MEMORANDUM OPINION AND ORDER
I. INTRODUCTION
On April 29, 2010, the undersigned United States District Judge heard oral argument on Defendants Qwest Communications International, Inc., Qwest Communications Corporation, and Qwest Corporation’s (collectively “Qwest”) Rule 56(d) Motion [Docket No. 395] and Motion for Summary Judgment [Docket No. 398]. 1 Plaintiffs Lyle Brennan, Christopher Richard, and Michael Lundell (“Plaintiffs”) initiated this collective action asserting claims against Qwest for wage violations under the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. §§ 201-219, and the Minnesota Fair Labor Standards Act (“MFLSA”), Minn Stat. §§ 177.21-.35. For the reasons set forth herein, Qwest’s Rule 56(d) Motion is denied and Motion for Summary Judgment is granted in part and denied in part.
II. BACKGROUND 2
The Court granted conditional certification of Plaintiffs’ claims on March 25, 2008,
At the forefront of the parties’ dispute is the Quality Jobs per Day (“QJD”) metric, which is a “performance measurement component” Qwest created in 2003 and 2004 to “develop [ ] stronger technician performance and enhancfe] relationships between technicians and management, in order to continuously improve productivity, quality and customer service.” Peirce 2d Suppl. Aff. [Docket No. 412] ¶¶ 2-4; Berringer Aff. [Docket No. 414] ¶¶ 5, 8. QJD measures “real productivity” by determining a QJD score through the following formula: “(Job Co-ons-30 Day Repeats) / (Payroll Hours / 8 hours).” Peirce 2d Suppl. Aff. ¶¶ 8, 11. Because technicians perform different types of work, QJD scores are measured in four categories or “buckets” — Plain Old Telephone Service or “POTS,” Designed Services or “DS,” Digital Subscriber Line or “DSL,” and Cable— with different expectations applicable to each category. Id. ¶¶ 8, 12. Expectations are “stratified” into five performancе levels: “Outstanding,” “Satisfactory,” “Less than Satisfactory,” “Needs Improvement,” and “Unacceptable.” 3 Id. ¶ 18; Defs.’ Mem. in Supp. of Rule 56(d) Mot. [Docket No. 397] at 14. Technicians whose QJD scores fall in the “needs improvement” performance level may be subject to progressive levels of discipline, from “Documented Discussion, to Written Warning, then Warning of Dismissal, and finally becoming] subject to Dismissal.” June 4, 2009 Order at 4.
Plaintiffs’ unpaid overtime claims also implicate Qwest’s so-called “out-of-garage rule.” Technicians begin their work day at a Qwest garage and drive Qwest trucks to customers’ premises to perform their work. June 4, 2009 Order at 2. Before leaving the garage, technicians must (1) review all assigned work and commitment times; (2) make sure the vehicle is clean, stocked with necessary tools and equipment, and otherwise ready for the day; (3) сall the first customer and Qwest dispatch; and (4) perform certain pre-tests. Id. at 2-3. Technicians are expected to complete these tasks and leave the garage for the first job within fifteen minutes of the start time. Id. at 3. Also, upon returning to the garage at the end of the day, the technician must complete time entries. Id.
Plaintiffs allege that they have performed off-the-clock work to meet QJD expectations and comply with the out-of-the garage rule. Further, Plaintiffs allege that Qwest knew (or should have known) that its policies and expectations were causing such off-the-clock work and yet has failed to compensate them for that time worked. Qwest denies the allegations and stresses that (1) the QJD expectations were carefully developed to be objectively reasonable; (2) its policies and practices prohibit, rather than cause, off-the-clock work; (3) technicians bear the responsibility of self-reporting their time and doing so honestly and accurately; and (4) every
III. DISCUSSION
A. Summary Judgment Standard
Federal Rule of Civil Procedure 56(c) provides that summary judgment shall issue “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c);
see Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp.,
B. Qwest’s Motion for Partial Summary Judgment Regarding QJD
The FLSA requires employers to pay all covered employees at least one and a half times their regular rate of pay for hours worked in excess of forty hours per week. 29 U.S.C. § 207(a)(1). An employer violates the FLSA by failing to compensate employees for overtime work if the employer suffered or permitted such work.
See Chao v. Gotham Registry, Inc.,
By its first motion, Qwest seeks summary judgment that Plaintiffs’ attempt to predicate FLSA claims on QJD expectations fails as a matter of law. Specifically, Qwest argues that no triable issues remain concerning whether (1) Plaintiffs performed off-the-clock work in order to comply with QJD standards and (2) Qwest knew or should have known that such off-the-clock work was occurring.
1. Performance Standards and Off-the-clock Work
Qwest insists that, as a matter of law, employers cannot be held liable for unpaid overtime on a theory that performance or productivity standards such as
Qwest retreats a step and now argues that even “if there are circumstances under which an argument could be made that an employer’s legitimate performance expectations forced employees to lie about their work time ..., such an argument must necessarily be based on evidence that the employees were objectively compelled to work off the clock.” Defs.’ Mem. in Supp. of Rule 56(d) Mot. at 21, n. 4. Otherwise, Qwest concludes, “any performance management system [would be] subject to FLSA claims, a result certainly not countenanced under the law.” Id. Plaintiffs do not contest that their claims can be viable only if QJD expectations are shown to be so unreasonable that they objectively compelled off-the-clock work. Thus, the parties have framed the issue for the Court as turning on whether there are fact issues regarding the reasonableness of the QJD standards. 5
Assuming that Qwest can be held liable under the FLSA for off-the-clock work allegedly performed in order to meet QJD expectations only if those standards are shown to be objectively unreasonable, there are unresolved fact issues bearing on the objective reasonableness of the QJD expectations. Qwest contends the QJD expectations are demonstrably reasonable because (1) QJD expectations were “driven by technicians’ own recent past achievements, based on careful analyses of objective historic performance data [that] were duplicated to ensure accuracy, validated, tested, and re-validated”; (2) the “satisfac
Plaintiffs have produced competing evidence of the reasonableness of the QJD standards. For example, Qwest’s manager of process managemеnt, Roger Peirce, has stated that in the years 2005, 2006, 2007, and 2008, the percentage of technicians who “satisfied their minimum performance expectations on a monthly basis” was, on average, 80%, 54%, 63%, and 69%, respectively. Peirce Aff. [Docket No. 411] ¶2; Peirce Suppl. Aff. [Docket No. 426] ¶ 2. Plaintiffs have also identified evidence that (1) technicians were commonly assigned a daily work load that Qwest itself estimated would require as much as ten or eleven hours to complete and (2) the failure to complete the work load would impact QJD scores negatively. Morgan Aff. [Docket Nos. 443-44], Ex. 70 (Sullivan Depo.) at 77-78, Ex. 72 (Tombers Depo.) at 74-76.
Qwest also argues that to establish their FLSA claims, Plaintiffs must show QJD expectations “uniformly” forced “all technicians” to work off the clock and that Qwest knew or should have known that QJD had such a uniform effect on all technicians. Defs.’ Mem. in Supp. of Rule 56(d) Mot. at 21. Evidence that QJD did not uniformly force all technicians to work off the clock is probative of Qwest’s position that it did not know, nor should it have known, that such work was occurring. The named Plaintiffs and the other technicians who have opted in are required to show that they worked off the clock in order to meet QJD expectations. To that end, Plaintiffs have adduced evidence to support such a showing, including questionnaire responses from 90% of 164 Plaintiffs indicating the reason that best explains why they purposely understated the number of hours worked and worked through their lunch breaks was to make their QJD numbers look better. 6 Morgan Aff., Ex. 81. The viability of Plaintiffs’ claims does not depend on also showing that QJD forced the other 800-plus technicians who have not opted into this litigation to work off the clоck.
2. Knowledge of Off-the-clock Work
Qwest next argues that Plaintiffs have failed to present “substantial evidence” that Qwest knew or should have known that technicians were working off the clock in order to comply with QJD expectations. Qwest contends that in a collective action, proving actual or constructive knowledge by Qwest of off-the-clock work “requires more than individualized anecdotes suggesting reports of alleged unpaid work by some employees.” Defs.’ Mem. in Supp. of Rule 56(d) Mot. at 26. Instead, Qwest suggests, Plaintiffs should be required to identify evidence of (1) “statements by corporate executives that might suggest corporate ambitions for, encouragement of, or ... knowing acquiescence to off-the-clock work”; (2) “an illicit attempt to improve Qwest’s bottom line by forcing employees to work overtime without reporting it”; or (3) a “systеmic practice to discipline technicians for reporting overtime.” Id. at 26-27.
In denying Qwest’s decertification motion, this Court determined that “Plaintiffs have ... proffered evidence that, if believed, shows Qwest knew or should have known that technicians were working off-the-clock in order to meet QJD standards.” June 4, 2009 Order at 10-11. The evidence cited in the June 4, 2009 Order and additional evidence that, if credited by the factfinder, supports an inference of actual or constructive knowledge of a not uncommon practice of performing off-the-clock work to meet QJD expectations, includes: Morgan Aff., Ex. 14 (Diercks Depo.) at 33-34, 108; Ex. 17 (Engelhardt Depo.) at 19; Ex. 23 (Furo Depo.) at 30-32; and Ex. 56 (Puppe Depo.) at 76. 7 The previously mentioned evidence that technicians were commonly assigned a daily work load that Qwest itself estimated would require as much as ten or eleven hours to complete is further evidence that could support an inference of Qwest’s actual or constructive knowledge. 8
Davis v. Food Lion,
Prince v. MND Hospitality, Inc.,
another case cited by Qwest, was a denial of summary judgment whеre the evidence was similar in nature to evidence in this case. No. H-08-2617,
Lastly, Qwest argues that no evidence has been identified to show Qwest’s knowledge that its “out-of-the-garage rule” caused off-the-clock work. To the contrary, Plaintiffs have evidence of record that (1) the naturе and extent of the tasks to be completed before leaving for the first job of the day required technicians to begin work prior to the start of their shift in order to have enough time to complete those tasks and leave within fifteen minutes of the start of their shift, as required by the out-of-the-garage rule, (2) the alleged off-the-clock work was performed to comply with both the out-of-the-garage rule and QJD expectations; and (3) would support a reasonable inference that Qwest had actual or constructive knowledge of such off-the-clock work. See Morgan Aff., Ex. 18 (Erickson Depo.) at 45; Ex. 27 (Hightshoe Depo.) at 49; Ex. 50 (Olson Depo.) at 49-50; Ex. 55 (Plaster Depo.) at 46; Ex. 58 (Richard Depo.) at 207. For example, one technician explained:
A.... You have to start early because they wanted you out of the garage by ten minutes after 8, and if you came in, started at 8:00, you would never get out of there before 8:30, because it took that long. You had to ... boot up your computer and ... get online and then get your jobs and write them down, and ... then you had to go out and supply your truck. So you just came in ten, 15 minutes early and started. And, youknow, and when you’re working, say you’re working at somebody’s house at lunchtime, you know, and you only got ... like 15 minutes left to finish your job there.... Would [a customer] appreciate me saying, well, it’s lunchtime, I have to go ... sit in my truck and twiddle my thumbs for 30 minutes and then come back and finish [the job]? ... So to keep good customer relations, you finished the job and went on to the next. And [Qwest] insisted that you put down a lunch every day because there was some state law or something saying that you could not go without a lunch. So you had to work with a lunch, even though you didn’t ... take a lunch.
And then ..., at night, when you come in, it’s the same thing.... You work and you finish the job and then try [to] make it back to the garage, and instead of getting off at 4:30, you’re getting off at ten to 5.... And in order to get overtime approved, you had to find somebody that would approve it....
Ex. 47 (Mikush Depo.) at 16-17.
Plaintiffs’ evidence demonstrates the existence of genuine issues of material fact regarding (1) whether Plaintiffs performed off-the-clock work to comply with QJD expectations and the out-of-the-garage rule and (2) whether Qwest had actual or constructive knowledge that QJD and the other requirements and expectations were causing this off-the-clock work. Qwest’s extensive recitation of its contrary evidence that QJD expectations are objectively reasonable and that Qwest cannot be charged with actual or constructive knowledge of technicians’ off-the-clock work demonstrates a strong case for the factfinder, but it is not a basis for disregarding Plaintiffs’ contrary evidence and granting summary judgment in its favor.
C. Qwest’s Motion for Summary Judgment 10
By its second motion, Qwest seeks a ruling that Plaintiffs have failed to identify evidence to establish that they actually performed off-the-clock work and that Qwest management knew or should have known about it.
1. Performance of Off-the-clock Work
To establish an FLSA claim for unpaid overtime, the employee must (1) prove “that he has in fact performed work for which he was improperly compensated” and (2) “produce[] sufficient evidence to show the amount and extent of that work as a matter of just and reasonable inference.”
Anderson v. Mt. Clemens Pottery Co.,
Qwest first argues Plaintiffs’ claim that unpaid overtime work actually occurred is precluded by evidence that (1) Qwest’s policies unequivocally рrohibit off-the-clock work and require technicians to report their compensable time accurately; (2) Qwest trusts network technicians to report their compensable time honestly; (3) Qwest specifically makes paid time available for the tasks Plaintiffs claim they are required to complete at the beginning and end of their shifts; and (4) Qwest pays for every minute of overtime that is reported. Defs.’ Mem. in Supp. of Mot. for Summ. J. [Docket No. 400] at 5-9. Qwest’s evidence
Qwest next argues that “Plaintiffs should be strictly held to their burden to establish the fact and extent of alleged unpaid overtime” by “specific, substantial evidence demоnstrating that they actually worked additional time they did not report” and should not be allowed to base their claims on their own, uncorroborated testimony.
Id.
at 9-10. An employer’s compliance, or lack thereof, with the requirements in 29 U.S.C. § 211(c) of “mak[ing], keeping], and preserving] ... records of the persons employed by him and of the wages, hours, and other conditions and practices of employment maintained by him” determines the burden of proof a plaintiff must carry in establishing the number of overtime hours worked.
See McGrath v. Central Masonry Corp.,
No. 06-cv-00224,
Relying heavily on
Seever, supra
n. 7, Qwest argues inaccuracies in the time records were due to Plaintiffs’ failure to ensure that the records accurately reported the total amount of time worked and, therefore, Plaintiffs are required to present specific evidence showing when and for how long they worked off the clock. Critical to the analysis in
Seever
was that there was no genuine dispute that the inaccuracies in the time records were
“solely due to plaintiffs' deliberate failure to accurately record the time they worked.”
“The burden to maintain accurate records falls on the employer regardless of whether the employee is responsible for recording his own hours on a time sheet.”
McGrath,
As discussed previously, see supra nn. 7-8, no greater quantum or quality of evidence is required to survive summary judgment in an off-the-clock case. As one court aptly observed, accepting such an argument
would ignore the general principles arising under the FLSA case law on this issue, as well as certain well-established principles relating to the entry of summary judgment. In the broadest sense, [the plaintiffs] burden on his off-the-clock claim is merely to establish that he performed compensable work for a number of hours for which he was not properly compensated by his employer, who either did know or had reason to know that he was working off-the-clock.
England v. Advance Stores Co. Inc.,
Here, as a matter of well-established law, we must accept [the plaintiffs] testimony as being true. [The plaintiff] testified that the store manager trained him that he must clock out all of the store employees ... prior to entering the amount of cash on hand in the safe. [The plaintiff] testified that he repeatedly grumbled to the store manager about this requirement that forced him and the others to work off-the-clock when closing the store. The fact that [the plaintiff] did not complain higher up the chain, or that he did not go behind and manually correct the time records ... are circumstances that do not work as a matter of law to deny [his] right to recovery, but mоre naturally run to the question of mitigation and the extent of any possible recovery rather than the right to pursue it in the first instance. Looking to all of the evidence, along with the FLSA case law cited herein, and the standard for summary judgment, the Court concludes that genuine issues of material fact preclude entry of summary judgment on ... [the plaintiffs] claim to recover for the off-the-clock work that he regularly performed as part of the store closing process.
Id. at 450-51 (citations omitted) (footnote omitted).
The record in this case compels the same conclusion. Plaintiffs have evidence, their responses to interrogatories and a specially prepared questionnaire and their deposition testimony, that they performed off-the-clock work and setting forth good-faith estimates
11
of the number of hours for which they were not paid.
See, e.g.,
Morgan Aff., Ex. 97 at 6-7; Ex. 81 at Q.17; Ex. 44 (Lundell Depo.) at 119-25; Olson
Lastly, Plaintiffs cite evidence that Qwest supervisors receive daily information in connection with the Work Fоrce Administration (“WFA”) system, which is used to allocate and balance job assignments among technicians, see Peirce 2d Suppl. Aff. ¶¶ 24-27, showing that it was a fairly common occurrence for the number of dispatch hours reported by technicians to exceed the total number of payroll hours reported. Id. ¶ 29. Qwest’s expert testified that “in general” WFA dispatch hours would exceed payroll hours. See Morgan Aff., Ex. 3 (Berringer Depo.) at 148. Plaintiffs reason that a larger number of dispatch hours compared to payroll hours indicates that technicians were performing compensable work that was not being reported on their payroll records. Qwest responds that the disparity between dispatch hours and payroll hours “is not accurate evidence of a technician’s total work time on any given day.” Defs.’ Mem. in Supp. of Summ. J. аt 28 n. 7. Qwest’s manager of process management explains that comparing the total number of dispatch hours to payroll hours is not “reliable evidence of underpayment” because a technician could (1) dispatch on a job but not start actually working and instead have coffee with co-workers, (2) inadvertently or purposefully stay dispatched on a job during his meal break, the performance of union activities, or even after he has finished the job, or (3) double count his dispatch time by reporting overlapping jobs. Peirce 2d Suppl. Aff. ¶ 24. These are plausible explanations, but so too is the explanation by Plaintiffs that they were indeed performing compensable work during the reported dispatch hours yet reporting fewer payroll hours. Deciding which explanation to believe is a mattеr for the factfinder.
2. Knowledge of Off-the-clock Work
The Court has already concluded in the analysis of Qwest’s Rule 56(d) Motion, see supra III.B.2, that Plaintiffs have demonstrated the existence of facts creating a triable issue regarding Qwest’s actual or constructive knowledge that Plaintiffs performed off-the-clock work to comply with QJD expectations and the out-of-the-garage rule. No further discussion of the issue is necessary here.
D. Request for Sanctions
Plaintiffs argue that Qwest’s challenge to the viability of predicating FLSA liability on QJD expectations and the out-of-the-garage rule amounts to “unreasonable, vexatious rebriefing” of issues that were decided in the Court’s June 4, 2009 Order denying decertification and, for that reason, is sanctionable under 28 U.S.C. § 1927. The legal and factual issues in this litigation are complex and raise novel issues of FLSA law and the practical manageability of collеctive actions. The factual record has been developed significantly since the June 4, 2009 Order, and a decertification analysis is quite different from a summary judgment analysis. Qwest’s summary judgment motions, though improperly postured as two motions rather
IV. CONCLUSION
Based upon the foregoing, and all the files, records, and proceedings herein, IT IS HEREBY ORDERED:
1. Qwest’s Rule 56(d) Motion [Docket No. 395] is DENIED; and
2. Qwest’s Motion for Summary Judgment [Docket No. 398] is GRANTED IN PART and DENIED IN PART;
3. Defendants Qwest Communications International, Inc. and Qwest Communications Corporation are DISMISSED; and
4. Counts II, III, IV, and V of the Complaint [Docket No. 1] are DISMISSED.
Notes
. The Court joins in Magistrate Judge Janie S. Mayeron's disapproval of the tactic employed by Qwest's counsel of simultaneously filing two summary judgment motions collectively exceeding 12,000 words. See March 30, 2010 Letter [Docket No. 439]. The complexity of the issues did warrant the increase in the word limit. Rather than filing two motions, Qwest’s counsel should have followed the practice prescribed by LR 7.1(d) by requesting permission to enlarge the word limitation prior to submitting its opening briefs.
. On a motion for summary judgment, the Court views the evidence in the light most favorable to the nonmoving party.
Ludwig
v.
Anderson,
. The process by which Qwest determined the QJD scores applicable to each performance level is explained in the Discussion section, see infra III.B.
. The only known case in which a similar issue was posed also involved Qwest.
See Brechler v. Qwest Commc’ns Int’l, Inc.,
No. cv-06-940,
. Although the Court’s analysis will track the issues as the parties have presented them in the factual context of this case, it is unclear whether the only situation in which off-the-clock work completed to meet performance standards could ever support FLSA liability is if the performance standards are shown to be objectively unreasonable. From a policy perspective, subjecting an employer to potential FLSA liability merely for imposing performance standards — especially, ones that are objectively reasonable — is ill advised. However, no rule of law precludes an FLSA claim from being based on a theory that off-the-clock work occurred, with the employer’s actual or constructive knowledge, as a result of performance standards that are objectively reasonable. Instead, "[t]he reason an employee continues to work beyond his shift is immaterial; if the employer knows or has reason to believe that the employee continues to work, the additional hours must be counted.”
Reich v. Dep't of Conservation & Natural Res.,
. Qwest repeatedly contends that Plaintiffs must support their claims through "specific, substantial evidence,” and that questionnaire responses and deposition statements amount to "individualized anecdotes” that do not qualify as "specific, substantial evidence.” Defs.’ Rep. Mem. in Supp. of Rule 56(d) Mot. at 3, 5. While withstanding summary judgment requires a demonstration that "specific facts” exist in the record, and reliance on mere allegations in a pleading is not sufficient, no authority supports Qwest’s apparent suggestion that summary judgment also requires that the evidence on which Plaintiffs rely be "substantial,” "substantiated,” or consisting of more than their own testimonial statements. Whether Plaintiffs’ evidence is sufficient despite its claimed lack of substantiation and corroboration is an issue regarding the weight and credibility of the evidence.
. Qwest relies on
Seever v. Carrols Corp.,
. Qwest contends that because this is a collective action, Plaintiffs should not be permitted to attempt to prove actual or constructive knowledge through evidence of what information individual technicians and supervisors were privy to because doing so would defeat the purpose of a collective action, which is to test the claims through evidence common to the entire class. However, evidence of what individual technicians and supervisors knew is clearly relevant to whether Qwest had constructive notice of off-the-clock work among its technicians.
. Qwest emphasizes that the union representing the technicians never filed any grievances alleging that unpaid overtime work was occurring. While that evidеnce may be relevant to persuading the factfinder to adopt its position that Qwest had no actual or constructive knowledge of off-the-clock work, it does not somehow erase the evidence Plaintiffs have produced in support of their position.
. Plaintiffs do not dispute dismissal of (1) Qwest Communications International, Inc. and Qwest Communications Corporation as not being proper party defendants to Plaintiffs’ FLSA claims; and (2) the state law claims. See Pls.’ Resp. to Mot. For Summ. J. [Docket No. 442] at 2 n. 1. Accordingly, dismissal of Qwest Communications International, Inc. and Qwest Communications Corporation and the state law claims is granted.
. Qwest alleges that "the numbers submitted were not fact-based estimates from the individual Plaintiffs, but rather were amounts manufactured by Plaintiffs’ counsel.” Defs.' Mem. in Supp. of Summ. J. at 12-13. An accusation of manufacturing evidence should not be leveled lightly.
