Lessie Anderson v. Cagle's, Inc.Lessie Anderson v. Cagle's, Inc.
Appellants, plaintiffs in the underlying action, appeal the district court’s order decertifying their collective action alleging violations of the Fair Labor Standards Act (“FLSA”) of 1938, as amended,
I. BACKGROUND
Cagle’s and CFJV (collectively “the employers”) are engaged in the business of hatching, growing, slaughtering, and processing chickens for distribution and eventual consumption. During the relevant time period, Cagle’s owned and operated multiple production facilities located in Georgia and Alabama. Prior to the relevant time period, in 1993, Cagle’s partnered with Executive Holdings, L.P., to create CFJV for the purpose of operating a production facility in Camilla, Georgia, previously operated solely by Cagle’s.
The plaintiffs in the underlying action, some of whom are not parties to this appeal, can be divided into four distinct groups: (1) three named plaintiffs who at the time the lawsuit was filed were employed or had been employed directly by Cagle’s in the company’s Macon, Georgia, and/or Pine Mountain Valley, Georgia, plants (“named Cagle’s plaintiffs”); (2) opt-in plaintiffs who at the time they joined the lawsuit were employed or had been employed directly by Cagle’s in any of several plants, including the Macon and Pine Mountain Valley plants (“opt-in Ca-gle’s plaintiffs”); (3) nine named plaintiffs who at the time the lawsuit was filed were employed or had been employed directly by CFJV in the Camilla plant (“named CFJV plaintiffs”); and (4) opt-in plaintiffs who at the time they joined the lawsuit were employed or had been employed directly by CFJV in the Camilla plant (“opt-in CFJV plaintiffs”). 2
At the time the lawsuit was filed, the twelve named plaintiffs worked or had worked on the employers’ production lines and wеre paid according to a line-time method that calculates compensable time based on when the chicken to be processed reaches the production line. Pay begins when the first chicken reaches the production line. It ends when the last chicken reaches the production line.
As part of their jobs, the named plaintiffs are required to wear various articles of protective clothing, including smocks, hair/beard nets, gloves, and hearing protection, though the clothing required varies depending upon the particular job responsibilities. The employers require employees to arrive before line-time begins in order to don the clothing and remain after line-time ends to doff the clothing. In addition, the named plaintiffs, who are represented by the Retail, Wholesale, and Department Store Union (“RWDSU”), are required to don/doff the protective clothing in conjunction with their breaks. Prior to the adoption of
The named plaintiffs also challenged the employers’ line-time pay policy to the extent that it interferes with their unpaid breaks. According to the named plaintiffs, the employers require them to remain on the production line аfter line-time has stopped, and breaks have begun, in order to process the last chicken on the production line. This, too, the named plaintiffs contend, violates the FLSA.
The district court initially certified the collective action and facilitated notice to would-be opt-in plaintiffs. 3 In all, approximately 2,200 employees or former employees of Cagle’s and/or CFJV joined the lawsuit. Of those who joined, approximately 388 were later dismissed, 217 of whom the named plaintiffs themselves sought to dismiss because their claims were not commensurate with the named plaintiffs’ primary claims. Of the other 171 who were dismissed, 56 were dismissed because their claims fell outside the statute of limitations, and 115 were dismissed for failure to comply with discovery requests.
Following discovery, both Cagle’s and CFJV moved to sever the claims against the respective defendants and decertify the collective action. The district court granted the motions after finding that the putative plaintiff class members remaining were not all similarly situated. Subsequently, both Cagle’s and CFJV separately filed motions for summary judgment. Before the district court ruled on the motions, however, the three named Cagle’s plaintiffs settled their claims, and, accordingly, the district court denied as moot the summary judgment motion filed by Ca-gle’s. The district court subsequently granted CF JV’s motion for summary judgment after concluding that the time the named CFJV plaintiffs spent changing in and out of their protective clothing at the beginning and end of the workday was not compensable according to section 3(d) of the Fair Labor Standards Amendments of 1949, Pub.L. No. 81-393, § 3(d), 63 Stat. 910, 911 (1949) (codified at
The named CFJV plaintiffs filed a motion to alter or amend the judgment. Before the district court ruled on that motion, however, the named CFJV plaintiffs and all of the former opt-in plaintiffs joined in a motion to intervene to permit the opt-in plaintiffs to appeal the district court’s orders decertifying the collective action and severing the defendants. The named CFJV plaintiffs and the former opt-in plaintiffs filed a notice of appeal on the same day they moved to intervene. The district court denied the motion to intervene after concluding that it lacked jurisdiction to grant the motion. The district court also denied the named CFJV plaintiffs’ motion to alter or amend the judgment. Immediately thereafter, the appellants, which do not include the named Cagle’s plaintiffs, amended their notice of appeal to challenge these denials as well.
II. ISSUES
1. Whether we have subject matter jurisdiction over this appeal as it relates to Cagle’s.
3. Whether the district court erred when it granted summary judgment in favor of CFJV. 4
III. STANDARDS OF REVIEW
We review a “grant of summary judgment
de novo,
drawing all [reasonable] infеrences in favor of the non-moving party.”
Fin. Sec. Assurance, Inc. v. Stephens, Inc.,
IV. DISCUSSION
A. Jurisdiction
Cagle’s challenges our jurisdiction as well as the appellants’ standing to name Cagle’s as a party to this appeal. Essentially, Cagle’s takes the position that all claims against it were resolved when the district court adopted the settlement agreement between Cagle’s and the named Cagle’s plaintiffs.
The arguments Cagle’s presents fail to acknowledge or address the namеd and opt-in CFJV plaintiffs’ contention, which they have maintained throughout the underlying action, that Cagle’s was their employer in conjunction with CFJV and, thus, liable to them directly for FLSA violations.
See
Cagle’s focuses on the appellants’ ability to challenge the district court’s adoption of the settlement agreement and the effects of the district cоurt’s severance order, which regrettably lacks explanation of both the district court’s rationale and intent. Cagle’s does not offer any legal argument explaining why, assuming the appellants’ joint liability theory is correct, this court nevertheless would lack jurisdiction. The argument Cagle’s offers regarding the named and opt-in CFJV plaintiffs’ standing is similarly lacking. The employers’ alleged joint liability is directly at issue. Therefore, we have jurisdiction over Ca-gle’s, and the named and opt-in CFJV plaintiffs have standing to name Cagle’s as a party to this appeal..
See
B. Decertification
The district court engaged in a two-stage analysis to determine whether a col
Following discovery, the employers separately filed motions to decertify the collective action. The district court granted the motions after determining that the opt-in plaintiffs were not similarly situated to the named plaintiffs. Specifically, the court found that “[n]amed plaintiffs essentially employed by a single employer, based on the discovery before the Court, cannot fairly and adequately represent the variously assigned employees, the wide variety of work assignments and varied compensation structures affecting the purported class.” In its analysis, the district court contrasted the employers’ independent identities, locations, and work forces; the various methods by which the putative class members were compensated; and the protective clothing the putative class members were required to wear.
The appellants contend that the district court applied an incorrect standard for determining whether the opt-in and named plaintiffs are similarly situated. Although they do not challenge the district court’s two-stage approach, they do challenge the district court’s view of the facts and go so far as to accuse the district court of exaggerating the distinctions among the putative class members. Their arguments lack merit.
To maintain a collective action under the FLSA, “plaintiffs must demonstrate that they are ‘similarly situated.’ ”
Hipp,
In
Grayson,
we interpreted the FLSA’s collective action provision to require plaintiffs alleging age discrimination to “de-monstrat[e] a reasonable basis for their claim of class-wide discrimination ... by making substantial allegations of class-wide discrimination, that is, detailed allegations supported by affidavits which successfully engage defendants’ affidavits to the contrary.”
5
In
Mooney,
the court noted that at the initial stage the district court’s decision to certify a class is based primarily on pleadings and affidavits.
At the second stage, which is “typically precipitated by a motion for ‘de-certification’ by the defendant usually filed after discovery is largely complete and the matter is ready for trial[,] ... the court has much more information on which to base its decision, and makes a factual determination on the similarly situated question.”
Mooney,
We also need not specify how plaintiffs’ burden of demonstrating that a collective action is warranted differs at the second stage. It is sufficient to conclude, again quite logically, that at the second stage plaintiffs
may
— the ultimate decision rests largely within the district court’s discretion — not succeed in maintaining a collective action under
The appellants direct the court to evidence in the record they contend undermines the district court’s conclusion. Whether the record contains evidenсe arguably supporting the appellants’ position is not dispositive, however, and whether we would have come to the same conclusion as the district court is not relevant. “A district court abuses its discretion if it applies an incorrect legal standard, follows improper procedures in making the determination, or makes findings of fact that are clearly erroneous.”
Chicago Tribune Co. v. Bridgestone/Firestone, Inc.,
263
We have thoroughly reviewed the record in this сase and conclude that the district court’s view of the evidence is reasonable, and its findings, therefore, are not clearly erroneous.
8
Furthermore, the district court’s decision to decertify the collective action based on the distinctions noted in its opinion does not constitute legal error.
See Mooney,
C.
The district court granted CFJV’s motion for summary judgment after determining that the named CFJV plaintiffs’ claims were foreclosed by
I. Changing Clothes
Relying on a fairly recent opinion from the Ninth Circuit Court of Appeals squarely addressing this same issue, the named CFJV plaintiffs contend that the act of donning/doffing the garments at issue does not constitute clothes “changing,” and the garments themselves do not сonstitute “clothes.”
See Alvarez v. IBP, Inc.,
It is by now axiomatic that we interpret a statute with the aim of giving effect to the drafters’ intent.
See, e.g., United States v. Ballinger,
The dictionary defines “clothes” as “clothing,” which itself is defined as “covering for the human body or garments in general: all the garments and accessories worn by a person at any one time.” Webster’s Third New International Dictionary 428 (unabridged) (1986) [“Webster’s”]. This broad definition, we believe, is consistent with the common understanding of the word, and we see no need to distinguish uniforms from protective clothes, for example, worn in the workplace.
We recognize that there may be limits to the application of
The definition of “change” is similarly broad. It means “to make different,” that is “to modify in some particular way but short of conversion into something else.” Webster’s 373. Thus, we see no logic in appellants’ unsupported argument that “ ‘changing clothes’ can only refer to the specific act of arriving at work in one set of clothes, removing those clothes, and putting on a different set of clothes.” [Appellant’s Br. at 26]. Nothing in the statute’s language suggests that its application turns on whether one must fully disrobe or exchange one shirt, for examрle, for another. Therefore, we conclude that one need not exchange clothes to change clothes for the purpose of applying
Our interpretation of the term “changing clothes” is consistent with that of the agency responsible for administering the FLSA. In a recent advisory opinion, the Administrator of the Wage and Hour Division of the Department of Labor stated that, for the purpose of applying
Relying on the Ninth Circuit’s opinion in Alvarez, the named CFJV plaintiffs contend that the term “clothes” must be construed against the employers. We acknowledge that our conclusion conflicts with the Ninth Circuit’s opinion.
The Ninth Circuit premised its conclusion in large part on its view that
None of the cases on which the Ninth Circuit relied held that
The statute’s plain meaning aside, our conclusion in this regard also finds support in the circumstances surrounding passage of the provision that became
disregard of long-established customs, practices, and contracts between employers and employees, thereby creating wholly unexpected liabilities, immense in amount and retroactive in operation, upon employers with the results that, if said Act as so interpreted or claims arising under such interpretations were permitted to stand, (1) the payment of such liabilities would bring about financial ruin of many employers and seriously impair the capital resources of many others ...; (2) the credit of many employers would be seriously impaired; (3) there would be created both an extended and continuous uncertainty onthe part of industry, both employer and employee, аs to the financial condition of productive establishments and a gross inequality of competitive conditions between employers and between industries; (4) employees would receive windfall payments, including liquidated damages, of sums for activities performed by them without any expectation of reward beyond that included in their agreed rates of pay; (5) there would occur the promotion of increasing demands for payment to employees for engaging in activities no compensation for which had been contemplated by either the employer or employee at the time they were engaged in; [and] (6) voluntary collective bargaining would be interfered with and industrial disрutes between employees and employers and between employees and employees would be created.
Congress’s efforts to curtail employee-protective interpretations of the FLSA continued when the FLSA was amended two years later to add, among other things, what would become
In conclusion, we hold that
2. Custom or Practice Under a Bona Fide CBA
The named CFJV plaintiffs contend that the pay policy at issue does not qualify as a “custom or practice under a bona fide” CBA, as
The named CFJV plaintiffs contend that the district court erred by construing the CBAs and the evidence related to the existence of negotiations in favor of CFJV. Rather than address their allegations of error directly, we simply assume that the CBAs never addressed the compensation policy with respect to clоthes changing and that the parties to the relevant CBAs never discussed the policy. We nevertheless conclude that the named CFJV plaintiffs’ view of the law is incorrect.
Relying again on a common sense understanding of the statute’s language, we believe that a policy concerning compensation (or noncompensation, as the case may be) for clothes changing, written or unwritten, in force or effect at the time a CBA was executed satisfies
For the purpose of our inquiry, we are concerned with the CBAs executed in 1997, 2000, and 2003, which were in effect during the relevant time period. As previously noted, the named CFJV plaintiffs’ arguments focus on the language of the CBAs and the absence of negotiations. They do not contend that they lacked notice of the relevant compensation policy when executing the 1997, 2000, or 2003 CBAs. Nor do they contend that the CBAs in еffect during the relevant time period were somehow not “bona fide.” Having resolved the relevant factual questions in the named CFJV plaintiffs’ favor, we conclude that CFJV’s policy of not compensating employees for clothes changing activities satisfies
Therefore, the district court correctly granted CFJV’s motion for summary judgment.
D. Miscellany
The district court’s opinion granting summary judgment did not explicitly address all of the claims the named CFJV plaintiffs alleged in their complaint. Specifically, the district court did not discuss the claims related to uncompensated break-time clothes changing and uncompensated time on the production line. The district court’s judgment nevertheless disposed of these claims.
In their initial brief on appeal, the named CFJV plaintiffs cursorily assign as error the district court’s failure to address these claims as well as other claims they conceded at oral argument were not alleged in their complaint.
15
Their treаtment of this issue, which arises essentially as an aside in the context of a broader introduction to their brief on appeal, is insufficient for the purpose of appellate review.
See, e.g., United States v. Jernigan,
V. CONCLUSION
Having determined that jurisdiction is proper, we conclude that the district court did not abuse its discretion when it decer-tified the colleсtive action. Furthermore, CFJV’s motion for summary judgment was properly granted. Therefore, the district court’s orders decertifying the collective action, granting summary judgment, and entering judgment in favor of CFJV are affirmed.
AFFIRMED.
Notes
. CFJV is now known as Equity Group-Georgia Division, LLC. For the sake of simplicity, we continue the district court’s practice of referring to the company as it was known at the time the lawsuit was filed.
. When referring to all but the opt-in plaintiffs, we utilize “the named plaintiffs.’’
. In an order issued shortly after oral argument, we concluded that the district court abused its discretion in denying the motion to intervene. Anderson v. Cagles, Inc., No. 06-10306 (11th Cir. Mar. 9, 2007) (order granting motion to intervene). We, therefore, granted the motion to intervene and allowed the opt-in plаintiffs to submit briefs addressing decertification and severance. Id.
. The Age Discrimination in Employment Act of 1967,
.
Mooney
was overruled in part on other
. The Grayson opinion did not mention Mooney or the two-stage approach.
. Among the numerous distinctions, we find particularly important evidence that, unlike all of the named plaintiffs, many of the opt-in plaintiffs are not unionized. A key defense in this case, indeed the very defense that resulted in the district court granting summary judgment in favor of CFJV, requires the existence of a collective bargaining agreement.
. We need not address the appellants’ contention that the district court was required to craft subclasses of plaintiffs. Although the plaintiffs suggested to the district court the creation of subclasses as a way to effectively manage the collective action, they failed to argue or cite legal authority for the proposition that taking such action was compulsory. Therefore, they have waived this issue.
See Access Now, Inc. v.
Sw.
Airlines Co.,
. Grayson
and
Hipp
are distinguishable for relevant reasons not already mentioned. Unlike in this case, in
Grayson,
which concerned claims of age discrimination, we were faced with a broad policy applied to a discreet group of employees (i.e. older store managers) emanating from the highest levels of the defendant corporation, control of which was not in dispute.
.
. The named CFJV plaintiffs devote a great deal of attention to the Supreme Court's opinion affirming the Ninth Circuit in
Alvarez.
The Supreme Court’s opinion in
Alvarez
did not discuss issues relevant to this appeal, however. The Court limited
certiorari
review to the question ”[w]hether walking that occurs between compensable clothes-changing time and the time employees arrive at or depart from their actual work stations constitutes non-compensable 'walking ... to and from the actual place of performance of the principal activity’ within the meaning of Section 4(a)” of the Portal-to-Portal Act of 1947,
. In
Bonner v. City of Prichard,
. We do not intend to suggest that a policy implemented after the parties executed a CBA would satisfy
. We offer no opinion regarding the sufficiency of the complaint, though we note that the complaint alleged as grounds for the FLSA claim only the compensation policies mentioned in this opinion.