MEMORANDUM OPINION AND ORDER
THIS MATTER comes before the Court on Lucy Burrows’ Memorandum Motion to Dismiss All Claims, filed April 29, 2010 (Doc. 9)(“Motion”). The Court held a hearing on July 8, 2010. The primary issues are: (i) whether the Court should dismiss Plaintiffs Louise B. Saavedra’s and Robert Saavedra’s Americans with Disabilities Act, 42 U.S.C. §§ 12201-12213 (“ADA”), claim against Defendant Lucy Burrows because the ADA precludes personal capacity suits against individual supervisors or other employees; (ii) whether the Court should dismiss the Plaintiffs’ New Mexico Human Rights Act, NMSA 1978 §§ 28-1-1 to 28-1-15 (“NMHRA”), claim against Burrows because L. Saavedra did not exhaust her administrative remedies under the NMHRA; (iii) whether the Court should dismiss the Plaintiffs’ claim for retaliatory discharge under New Mexico common law because Burrows was acting within the scope of her employment; (iv) whether Plaintiff R. Saavedra, L. Saavedra’s husband, has stated a claim upon which relief can be granted against Burrows under the Family Medical Leave Act, 29 U.S.C. § 2601 through § 2654 (“FMLA”); (v) whether the Court should dismiss L. Saavedra’s claim against Burrows under the FMLA because the Plaintiffs failed to plead sufficient facts to demonstrate that Burrows qualifies as an “employer” under the FMLA; and (vi) whether the Court should dismiss the Plaintiffs’ punitive damages claims. Because the ADA precludes personal capacity suits against individuals who do not otherwise qualify as employers under the statutory definition, the Court will dismiss the Plaintiffs’ ADA claim against Burrows. Because the Plaintiffs failed to exhaust the administrative remedies with the Human Rights Bureau of the New Mexico Department of Workforce Solutions (“NMHRD”), the Court will dismiss the NMHRA claims against Burrows.
FACTUAL BACKGROUND
For the purposes of a rule 12(b)(6) motion to dismiss, the Court assumes the Plaintiffs’ well-pleaded factual allegations are true. According to the allegations in the Complaint, on or about April 27, 2007, L. Saavedra began working as a cashier at Lowe’s Home Improvement Store No. 1543, located in Albuquerque, New Mexico.
See
Complaint for Wrongful Termination of Employment as the Result of Disability Discrimination in Violation of the Americans With Disabilities Act and the New Mexico Human Rights Act, For Retaliation Contrary to the Families [sic] and Medical Leave Act, For New Mexico Common Law Tort, and For Common Law Tort, and For Punitive Damages ¶ 13, at 4, filed March 23, 2010 (Doc. 5)(“Complaint”). Burrows “was employed in a managerial capacity” by Defendant Lowe’s Home Centers (Lowe’s).
See
Complaint ¶ 4, at 2. On April 11, 2008, L. Saavedra was scheduled to work from 1:30 p.m. until 10:30 p.m., but after working for approximately two hours, she began to experience stomach discomfort, chest pain, shortness of breath, and a severe headache.
See
Complaint ¶ 14, at 4. L. Saavedra approached store management and asked to be allowed to go home, but her request for emergency leave was denied.
See id.
When a co-worker arrived, L. Saavedra was allowed to take her lunch break.
See id.
¶ 15, at 5. She went outside and sat in her vehicle, then drove herself to the hospital.
See id.
She was diagnosed with a Transient Ischemic Attack (“TIA”), commonly known as a “mini stroke,” and was hospitalized.
Id.
¶ 15, at 5. L. Saavedra was released from the hospital on Saturday, April 12, 2008, and was scheduled to report back to work for seven continuous days, beginning on Monday, April 14, 2008.
See id.
¶ 16-17, at 5. On April 16, 2008, before her scheduled work hours, L. Saavedra met with her doctor, Dr. Wagnel-Mogl, who determined that L. Saavedra needed additional medical testing.
See id.
¶ 18, at 5. After conducting further tests on L. Saavedra’s next scheduled days off, Dr. Wagnel-Mogl directed that she should stop working, pending treatment of her medical condition.
See id.
The Plaintiffs allege that L. Saavedra’s medical condition required her to take leave under the FMLA and that Lowe’s placed her on FMLA leave for twelve consecutive weeks, during which time her condition worsened because she developed severe depression.
See id.
¶ 19, at 5-6. “Before [L. Saavedra’s] twelve weeks of FMLA had expired, Burrows changed Ms. Saavedra’s leave status from FMLA leave to personal leave. Ms. Burrows gave no explanation for this action.” Complaint ¶ 20, at 6. “In late July of 2008, [L. Saavedra] was released by her doctor to return to work. [L. Saavedra], howev
On August 1, 2008, R. Saavedra, was terminated from his employment at Lowe’s “for assisting his wife ... as she struggled with her disability condition.” Id. ¶ 24, at 6. L. Saavedra filed timely complaints of prohibited discrimination through the United States Equal Employment Opportunity Commission (“EEOC”) and through the NMHRD. Id. ¶ 25, at 6-7.
PROCEDURAL BACKGROUND
The Plaintiffs filed their Complaint against the Defendants on December 30, 2009, asserting five claims: (i) violation of the ADA; (ii) violation of the NMHRA; (iii) violation of the FMLA; (iv) retaliatory discharge; and (v) punitive damages. See Complaint ¶¶ 28-41, at 7-9. R. Saavedra brings claims solely under the FMLA and under New Mexico common law.
On April 29, 2010, Lowe’s filed an Answer, admitting that it employed L. Saavedra but denying that Burrows employed her. See Answer of Defendant Lowe’s Home Centers ¶ 1, at 5-6, filed April 29, 2010 (Doc. 8). On April 29, 2010, Burrows moved, pursuant to rule 12(b)(1) of the Federal Rules of Civil Procedure, to dismiss the claim of discrimination under the NMHRA, arguing that L. Saavedra did not name her in the charge of discrimination which she filed with the NMHRD and that she therefore failed to exhaust her administrative remedies as the NMHRA requires. See Motion at 4-5. Burrows also moved, pursuant to rule 12(b)(6), to dismiss the claim under the ADA, the claim for retaliatory discharge and the claim for punitive damages. See Motion at 1. She argues that the United States Court of Appeals for the Tenth Circuit has long held that individual liability is not available under the ADA. See Motion at 3. Burrows also argues that there is no individual liability under the FMLA and that “individuals cannot be held liable as employers unless they fit the definition of employer under the [statute].” Motion at 3-4 (citing Isaaeowitz v. Dialysis Clinic Inc., No. CIV-09-638 JCH/RHS, Memorandum Opinion and Order, at 11-12 (D.N.M. Feb. 22, 2010) (Herrera, J.)). She contends that the Court should dismiss the Plaintiffs’ claims under the FMLA because they did not allege that Burrows qualified as their employer under the FMLA. See Motion at 4. Burrows also argues that she is not liable under the NMHRA, because Saavedra did not name her in the Charge of Discrimination, which she filed against Lowe’s with the New Mexico Department of Labor. See Motion at 4. Burrows contends that she cannot be held individually liable for wrongful discharge under New Mexico common law. See id. at 6. Finally, Burrows argues that, because the Plaintiffs have no entitlement to recover under their substantive causes of action, the Court should deny the punitive damages claim. See id. at 7.
In response, the Plaintiffs “concede that they have no claims against Burrows indi
In reply, Burrows argues that individuals can be liable under the FMLA only if they have direct supervisory authority to hire and to fire the FMLA-protected employee. See Lucy Burrows Reply in Support of Motion to Dismiss All Claims at 2, filed June 2, 2010 (Doc. 13)(“Reply”). She further argues that the allegations in the Complaint are insufficient, as a matter of law, to establish that she was a supervisory employee with authority to hire or fire L. Saavedra. See Reply at 4.
At the hearing, the Court noted that the Plaintiffs had not responded to Burrows’ arguments in favor of dismissing Count IV — the claim for individual liability for the tort of wrongful discharge — and Count V — the claim for punitive damages — and inquired whether Dennis Montoya, the Plaintiffs’ attorney, intended to concede the two claims. See Transcript of Hearing at 2:20-3:5 (taken July 8, 2010)(“Tr.”). 1 Mr. Montoya stated that the Court should dismiss Counts IV and V. See Tr. at 2:20-3:6 (Court, Montoya). The Court also inquired whether Mr. Montoya would oppose dismissing R. Saavedra’s claims against Burrows, and Mr. Montoya stated that he was not opposed to dismissing those claims given that R. Saavedra did not qualify as an employee of Burrows. See Tr. at 13:9-22 (Court, Montoya).
Lisa Mann, Burrows’ attorney, noted that the Tenth Circuit has not ruled whether individuals may be held liable under the FMLA.
See
Tr. at 3:16^1:8 (Mann). She argued that, even if individual liability exists under the statute, the allegations in the Plaintiffs’ Complaint fail to allege that Burrows qualified as an employer under the FMLA.
See
Tr. at 3:16-4:8 (Mann). Ms. Mann conceded that a majority of courts have found that there is individual liability for employees, acting directly or indirectly in the interest of an employer, using the definition of employer as defined in the Fair Labor Standards Act, 29 U.S.C. § 201 through § 219 (“FLSA”).
See
Tr. at 4:15-25 (Court, Mann). Ms. Mann argued, however, that courts have not found individual liability in cases where employees are supervisors in name only, and that conclusory allegations that an individual defendant simply acted for the employer or within the scope of their employment are insufficient.
See
Tr. at 5:16-23 (Mann). Mr. Montoya argued that, although not every employee of Lowe’s would be subject to FMLA liability, Burrows “direet[ed] [and] controlled] the action that is clearly an adverse employment action.” Tr. at 9:25-10:1 (Montoya). Mr. Montoya further argued that Burrows “at the very minimum acted in the interests of
At the hearing, the Court granted the parties leave to file supplemental briefing on the issue of individual liability under the FMLA. On June 16, 2010, Burrows filed a supplemental brief. See Supplemental Brief on Definition of “Employer” Under FLSA, filed June 16, 2010 (Doc. 19) (“Burrows’ Supp.”). Burrows argues that the Tenth Circuit has adopted the “economic reality” test to determine whether an employee is an “employer” under the Employee Polygraph Protection Act, 29 U.S.C. § 2001-2009 (“EPPA”), a statute that defines employer using the same language as the FLSA. Burrows’ Supp. at 2. Burrows further argues that the test includes a number of factors, including the power to hire and fire employees, to exert control over work schedules, to dictate rate and method of payment, and to control employment records. See Burrows’ Supp. at 2. Burrows contends that courts examining individual liability under the FLSA have dismissed claims against individuals where it is not alleged that the defendants are corporate officers, or managerial or supervisory employees over the Plaintiffs. See Burrows’ Supp. at 4. The Plaintiffs filed a Supplemental Memorandum In Response to Motion to Dismiss By Defendant Lucy Burrows, filed June 19, 2010 (Doc. 20)(“P1. Supp.”), arguing that the facts pled in the Complaint align with the factors a court would consider in applying the economic-realities test. See PL Supp. at 6. The Plaintiffs argue that the relevant considerations include whether Burrows had the power to fire employees, whether she was in a supervisory position in charge of FMLA matters, whether she had the power to change FMLA leave to unpaid leave, whether she determined eligibility for medical leave, and whether she maintained FMLA records. See Pl. Supp. at 6. They argue that the Complaint alleges that Burrows was a supervisor in charge of FMLA matters, that she fired L. Saavedra because of alleged FMLA violations, and that she had the power to demand corrected documents before allowing L. Saavedra to return to work. See PL Supp. at 6. Given these allegations, the Plaintiffs contend that Burrows was an employer under the statutory definition. See Pl. Supp. at 6.
STANDARD FOR DECIDING A MOTION TO DISMISS UNDER RULE 12(b)(1)
Rule 12(b)(1) empowers a court to dismiss a complaint for “lack of jurisdiction over the subject matter.” Fed.R.Civ.P. 12(b)(1). The party invoking federal jurisdiction bears the burden of establishing its existence.
See Basso v. Utah Power & Light Co.,
On a facial attack, a plaintiff is afforded safeguards similar to those provided in opposing a rule 12(b)(6) motion: the court must consider the complaint’s allegations to be true. See Ruiz v. McDonnell,299 F.3d at 1180 ; Williamson v. Tucker,645 F.2d 404 , 412 (5th Cir.),cert. denied, 454 U.S. 897 ,102 S.Ct. 396 ,70 L.Ed.2d 212 (1981). But when the attack is factual, a district court may not presume the truthfulness of the complaint’s factual allegations. A court has wide discretion to allow affidavits, other documents, and a limited evidentiary hearing to resolve disputed jurisdictional facts under rule 12(b)(1). In such instances, a court’s reference to evidence outside the pleadings does not convert the motion to a rule 56 motion.
Alto Eldorado Partners v. City of Santa Fe,
No. CIV 08-0175 JB/ACT,
[T]he trial court may proceed as it never could under 12(b)(6) or Fed.R.Civ.P. 56. Because at issue in a factual 12(b)(1) motion is the trial court’s jurisdiction— its very power to hear the case — there is substantial authority that the trial court is free to weigh the evidence and satisfy itself as to the existence of its power to hear the case. In short, no presumptive truthfulness attaches to plaintiffs allegations, and the existence of disputed material facts will not preclude the trial court from evaluating for itself the merits of jurisdictional claims.
Williamson v. Tucker,
STANDARD FOR DECIDING A MOTION TO DISMISS UNDER RULE 12(b)(6)
Rule 12(b)(6) allows a court to dismiss a complaint for failure to state a claim upon which it can grant relief. Under rule 12(b)(6), a motion to dismiss “admits all well-pleaded facts in the complaint as distinguished from conclusory allegations.”
Mitchell v. King,
A complaint challenged by a rule 12(b)(6) motion to dismiss does not require detailed factual allegations, but a plaintiffs obligation to set forth the grounds of his or her entitlement to relief “requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.”
Bell Atl. Corp. v. Twombly,
“Factual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).”
Id.
at 555-56,
LAW REGARDING THE FMLA
The FMLA entitles private and government employees to a total of twelve administrative weeks of leave during any twelve-month period under certain specified circumstances, including instances where a serious health condition makes an employee unable to perform the functions of the employee’s position.
See
29 U.S.C. § 2612(a)(1); 5 U.S.C. § 6382(a)(1). The FMLA also ensures that those who take such leave will be restored to their former position or an equivalent one upon returning to work.
See
29 U.S.C. § 2614(a)(1). “In order to establish a prima facie claim for FLSA or FMLA retaliation, a plaintiff must show that: (1) she engaged in activity protected under either act; (2) she subsequently suffered adverse action by the employer; and (3) a causal connection existed between the employee’s activity and the adverse action.”
Richmond v. ONEOK, Inc.,
1. Individual Liability Under the FMLA.
The FMLA defines “employer” as including “any person who acts, directly or indirectly, in the interest of the employer to any of the employees of such employer.” 29 U.S.C. § 2611 (4)(A)(ii)(I). The pertinent regulation promulgated under the FMLA refers to the FLSA and states:
An “employer” includes any person who acts directly or indirectly in the interest of an employer to any of the employer’s employees. The definition of “employer” in section 3(d) of the ... FLSA ... similarly includes any person acting directly or indirectly in the interest of an employer in relation to an employee. As under the FLSA, individuals such as corporate officers “acting in the interest of an employer” are individually liablefor any violations of the requirements of FMLA.
29 C.F.R. § 825.104(d). The FLSA defines “employer” as including “any person acting directly or indirectly in the interest of an employer in relation to an employee.” 29 U.S.C. § 203(d).
The plain meaning of the FMLA evinces an intent to provide for individual liability.
When interpreting the language of a statute, the starting point is always the language of the statute itself. If the language is clear and unambiguous, the plain meaning of the statute controls. A statute is ambiguous when it is capable of being understood by reasonably well-informed persons in two or more different senses.
United States v. Quarrell,
The Tenth Circuit has yet to decide whether there is individual liability under the FMLA; however, a majority of courts that have confronted the issue have found that individuals may be held liable as “employers” under the statute.
Mitchell v. Chapman,
In determining whether an individual meets the definition of “employee” under the FLSA — a distinct but related inquiry — the Tenth Circuit has considered a number of factors.
See Johnson v. Unified Gov’t of Wyandotte County,
Several courts in the Tenth Circuit have held that the FMLA provides for individual liability.
See Pinkard v. Lozano,
No. 06-CV-02523,
2. “Employer” and the “Economic Reality” Test Under the FMLA and FLSA.
Under the FLSA, “to employ” means “to suffer or permit to work,” 29 U.S.C. § 203(g), and an “employer” includes “any person acting directly or indirectly in the interest of an employer in relation to an employee,” 29 U.S.C. § 203(d). A person must be an “employer” within the meaning of the FMLA and FLSA to be held individually liable under either statute. See 29 U.S.C. § 2611 (4)(A)(ii)(I); 29 U.S.C. § 203(d); Isaacowitz v. Dialysis Clinic Inc., No. CIV-09-638 JCH/RHS, Memorandum Opinion and Order, at 11-12 (D.N.M. Feb. 22, 2010) (Herrera, J.).
The Supreme Court has instructed courts to construe the terms “employer” and “employee” expansively under the FLSA.
Nationwide Mutual Ins. Co. v. Darden,
The statute is a remedial one, written in the broadest possible terms____It runs counter to the breadth of the statute and to the Congressional intent to impose a qualification which permits an employer who exercises substantial control over a worker, but whose hiring decisions occasionally may be subjected to a third party’s veto, to escape compliance with the Act.
Carter v. Dutchess Cmty. Coll.,
In determining whether an employment relationship exists, for the purposes of federal welfare legislation, courts consider employ an “economic reality” test.
See Tony and Susan Alamo Found, v. Sec’y of Labor,
Although the Tenth Circuit has not addressed whether supervisors may be held liable as “employers” under the FMLA or the FLSA, it has noted that determinations about employment relationships are “not limited by any contractual terminology or by traditional common law concepts of ‘employee’ or ‘independent contractor.’ ”
Baker v. Flint Eng’g & Const. Co.,
In
Fernandez v. Mora-San Miguel Electric Cooperative,
The [economic-reality] test ... stems from cases interpreting the Fair Labor Standards Act, which defines “employer” the same way as the EPPA. See [Rubin v. Tourneau, Inc.,797 F.Supp. 247 ] id. at 252 [ (S.D.N.Y.1992) ].... Given Congress’s use of the same language in defining> the term “employer” in the two statutes, and because we agree with the reasoning of the other courts that have adopted this test, we approve using the economic reality test in evaluating whether a polygraph examiner is an “employer” for purposes of EPPA.
Several other circuits and numerous district courts have explored the outer limits of the definition of “employer.” The United States Court of Appeals for the First Circuit has found that a corporate officer with operational control over payroll is an “employer” under the FLSA and is individually liable for wage violations.
Donovan v. Agnew,
Courts consider a variety of factors in assessing employment relationships, but note that it is important to “avoid having the [economic-reality] test confined to a narrow legalistic definition.”
Herman v. RSR Sec. Servs., Ltd.,
In assessing the amount of control an employer exercised over an employee, other courts have addressed various factors such as whether the alleged employer “(1) had the power to hire and fire employees, (2) supervised and controlled employee work schedules or conditions of payments, (3) determined the rate and method of payment, and (4) maintained employment records.”... [W]e decline to so limit our review in this case or subsequent cases. Although these factors are certainly relevant in deciding whether an employer-employee relationship exists, it would be foolhardy to suggest that these are the only relevant factors, or even the most important. ... Rather, we hold generally that for a joint-employer relationship to exist, each alleged employer must exercise control over the working conditions of the employee, although the ultimate determination will vary depending on the specific facts of each case.
Some courts have focused on a defendant’s ability to exercise supervisory authority over a complaining employee.
See, e.g., Riordan v. Kempiners,
Corporate officers who have a substantial ownership interest in the corporation, and who are directly involved in decisions affecting employee compensation, may be held personally liable under the FLSA.
See Donovan v. Agnew,
LAW REGARDING THE NMHRA
The NMHRA allows individuals to bring a lawsuit in the appropriate district court after exhausting their administrative remedies.
See Luboyeski v. Hill,
“Under the NMHRA, a plaintiff must exhaust his or her administrative remedies against a party before bringing an action in district court against that party....”
Sonntag v. Shaw,
ANALYSIS
The Plaintiffs’ Complaint alleges claims under the ADA, the NMHRA, and the FMLA, and claims for retaliatory discharge under New Mexico common law and for punitive damages. R. Saavedra brings claims solely under the FMLA and under New Mexico common law. Burrows moves the Court to dismiss the claims against her because she argues that she is not a proper defendant under these causes of action. The Court will grant the motion in part and deny the motion in part.
I. THE COURT WILL DISMISS THE ADA CLAIM AGAINST BURROWS.
Burrows moves the Court to dismiss the Plaintiffs’ ADA claim because she argues that there is no individual liability under the ADA. The Court agrees that Burrows does not qualify as an employer under the ADA’s definition and is therefore not subject to individual liability under the ADA.
2
See Butler v. City of Prairie Village,
II. THE COURT WILL DISMISS THE NMHRA CLAIM AGAINST BURROWS.
Burrows also moves the Court to dismiss the Plaintiffs’ NMHRA claim assert
III. THE COURT WILL DISMISS THE PLAINTIFFS’ COMMON-LAW, RETALIATORY DISCHARGE CLAIM AGAINST BURROWS.
Burrows moves the Court to dismiss the Plaintiffs’ retaliatory discharge claim, arguing that she cannot be held individually liable because she was not acting outside the course of her employment. To recover for retaliatory discharge, an employee “must demonstrate that he [or she] was discharged because he [or she] performed an act that public policy has authorized or would encourage, or because he [or she] refused to do something required of him by his employer that public policy would condemn.”
Vigil v. Arzola,
IV. THE COURT WILL DISMISS R.
SAAVEDRA’S FMLA CLAIM
AGAINST BURROWS.
In Count III, both R. Saavedra and L. Saavedra assert claims against Burrows under the FMLA. The Complaint, however, does not plead facts regarding R. Saavedra’s employment relationship with Burrows. At the hearing, Ms. Mann stated that R. Saavedra worked at a different Lowe’s location. See Tr. at 6:24-7:1 (Mann). The Court inquired whether Mr. Montoya would oppose dismissing R. Saavedra’s FMLA claim against Burrows, and Mr. Montoya stated that he was not opposed, given that R. Saavedra did not qualify as an employee of Burrows. See Tr. at 13:9-22 (Court, Montoya). Because the Plaintiffs did not allege R. Saavedra was under Burrows’ supervisory control, the Court will dismiss R. Saavedra’s FMLA claim in Count III against Burrows.
V. L. SAAVEDRA HAS ADEQUATELY PLED A CLAIM AGAINST BURROWS UNDER THE FMLA.
Burrows argues that individuals may be held liable under the FMLA only in cases where they have direct supervisory authority to hire and fire the FMLAprotected employee in question. She further argues that the allegations in the Complaint are insufficient, as a matter of law, to qualify her as a supervisory employee with authority to hire and fire employees, to supervise or control employee work schedules or conditions of employment, or to determine the rate and methods of employee payment. L. Saavedra argues that the plain language of the statute and the existing case law clearly establish individual liability, and that, although not every employee of Lowe’s would be subject to FMLA liability, Burrows, as human-resources officer, was directing and controlling an adverse employment action against L. Saavedra, making Burrows subject to liability under the FMLA. The Court finds that L. Saavedra has adequately pled a claim in Count III against Burrows under the FMLA, and thus denies the motion to dismiss this claim.
A. THE COURT WILL APPLY THE ECONOMIC-REALITY TEST TO DETERMINE WHETHER BURROWS IS AN EMPLOYER UNDER THE FMLA.
Under the FMLA, “employer ... includes — any person who acts, directly or indirectly, in the interest of the employer to any of the employees of such employer.” 29 U.S.C. § 2611(4)(A)(ii)(I). The breadth of the statute’s plain language suggests that almost any person who “acts ... in the interest of the employer” as to “any of the employees” would qualify as an “employer.”
Id.
Under the statute, and given the allegations of the Complaint, Burrows could be an employer as to L. Saavedra.
See
Complaint ¶¶ 20, 21, 23, at 6.
See Morrow v. Putnam,
The courts and the United States Department of Labor have given the statute more definition. The pertinent regulation promulgated under the FMLA refers to the FLSA and states, “as under the FLSA, individuals such as corporate officers ‘acting in the interest of an employer’ are individually liable for any violations of the requirements of the FMLA.” 29 C.F.R. § 825.104(d). The Tenth Circuit has yet to address whether there is individual liability under the FMLA; however, a majority of courts that have confronted the issue have found that individuals may be held liable as “employers” under the statute.
See Darby v. Bratch,
The Supreme Court has instructed courts to construe the terms “employer” and “employee” expansively under the FLSA.
Nationwide Mut. Ins. Co. v. Darden,
The statute is a remedial one, written in the broadest possible terms.... It runs counter to the breadth of the statute and to the Congressional intent to impose a qualification which permits an employer who exercises substantial control over a worker, but whose hiring decisions occasionally may be subjected to a third party’s veto, to escape compliance with the Act.
Carter v. Dutchess Cmty. Coll.,
Although the Tenth Circuit has not addressed whether supervisors may be held liable as “employers” under the FMLA or the FLSA, it has discussed factors relevant in determining when an individual qualifies as an employer or an employee.
See Baker v. Flint Eng’g & Const. Co.,
While the Court believes the statute’s plain language answers whether Burrows is an employer as to L. Saavedra, the Court will also consider the four factor test in
Baker v. Flint Engineering & Construction Co.
in determining whether Burrows qualifies as an employer under the FMLA. Courts have placed some emphasis on the first of the factors, finding liability in cases where the defendants have the power to hire and fire.
See Brock v. Hamad,
The Court has reviewed the Tenth Circuit’s discussion in Baker v. Flint Engineering & Construction Co. and other cases addressing the employer issue, and agrees with the parties that the Tenth Circuit would likely find that the economic-reality test is appropriate in determining whether an individual qualifies as an employer. The Court will thus, in addition to plainly reading the statute’s language, apply the economic-reality test to determine whether the facts pled in the Complaint support the contention that Burrows qualifies as an employer under the FMLA. The Court will use the four factors that the Tenth Circuit outlined in Baker v. Flint Engineering & Construction Co.
B. THE PLAINTIFFS SUFFICIENTLY PLED L. SAAVE-DRA’S CLAIM UNDER THE FMLA AGAINST BURROWS.
“The court’s function on a Rule 12(b)(6) motion is not to weigh potential evidence
Burrows does not introduce any additional statements of fact, but contends that the “plaintiffs’ meager allegations do not suggest ... that she had the authority to hire and fire employees, that she supervised or controlled employee work schedules or conditions of employment, nor that she determined the rate and methods of payment.” Burrows’ Supp. at 2-3. Burrows relies on
Does v. Rodriguez,
No. 06-CV-00805,
Burrows cites to some authority outside the Tenth Circuit supporting the argument that the economic-reality analysis does not impose individual liability in cases where allegations are insufficient to prove that defendants are managerial or supervisory employees with the requisite authority over complainants. These cases, however, did not dismiss FMLA claims under rule 12 but rather were decided after the factual record was much more developed.
See Baystate Alternative Staffing v. Herman,
The Complaint alleges that Burrows “was employed in a managerial capacity,”
See
Complaint ¶ 4, at 2, and it is a reasonable inference that L. Saavedra, who reported to Burrows regarding her FMLA leave, was under Burrows’ purview,
See id.
¶¶ 20, 21, 23, at 6. The Plaintiffs allege that Burrows had the authority to hire and fire employees, and that, at least to a degree, she supervised or controlled employee work schedules or conditions of employment. The Plaintiffs allege that Burrows changed L. Saavedra’s leave status,
See id.
¶ 20, at 6, that Burrows refused to accept a note from L. Saavedra’s doctor releasing her to work,
See id.
¶ 21, at 6, and that Burrows told L. Saavedra that she was terminated,
See id.
¶ 23, at 6. The Court believes that the Plaintiffs’ allegations are specific enough to satisfy the rule 8 pleading requirements, and sufficient to satisfy the factors set forth in the economic-reality test.
See Bell Atlantic Corp. v. Twombly,
The Plaintiffs do not allege that Burrows determined the rate and method of payment for L. Saavedra, which would satisfy the third factor, or that Burrows maintained employment records, which would satisfy the fourth factor. The Plaintiffs are not required to satisfy all four factors to establish that Burrows is an employer under the FMLA.
See Zheng v. Liberty Apparel Co., Inc.,
VI. THE COURT WILL DISMISS L. SAAVEDRA’S PUNITIVE DAMAGES CLAIM AGAINST BURROWS.
The Plaintiffs’ Complaint, in Count V, seeks punitive damages. The sole claim remaining against Burrows is L. Saavedra’s claim under the FMLA. Section 2617 of Title 29 of the United States Code provides, in relevant part:
(1) Liability. Any employer who violates section 105 [29 USCS § 2615] shall be liable to any eligible employee affected—
(A) for damages equal to—
(i) the amount of—
(I) any wages, salary, employment benefits, or other compensation denied or lost to such employee by reason of the violation; or
(II) in a case in which wages, salary, employment benefits, or other compensation have not been denied or lost to the employee, any actual monetary losses sustained by the employee as a direct result of the violation, such as the cost of providing care, up to a sum equal to 12 weeks (or 26 weeks, in a case involving leave under section 102(a)(3) [29 USCS § 2612(a)(3) ]) of wages or salary for the employee;
(ii) the interest on the amount described in clause (i) calculated at the prevailing rate; and
(in) an additional amount as liquidated damages equal to the sum of the amount described in clause (i) and the interest described in elausefii), except that if an employer who has violated section 105 [29 USCS § 2615] proves to the satisfaction of the court that the act or omission which violated section 105 [29 USCS § 2615] was in good faith and that the employer had reasonable grounds for believing that the act or omission was not a violation of section 105 [29 USCS § 2615], such court may, in the discretion of the court, reduce the amount of the liability to the amount and interest determined under clauses (i) and (ii), respectively; and
(B) for such equitable relief as may be appropriate, including employment, reinstatement, and promotion.
29 U.S.C. § 2617(a)(1).
In passing the Civil Rights Act of 1991, Congress provided for compensatory and punitive damages in a Title VII action and an American with Disabilities action,
see
42 U.S.C. § 1981a; however, two years later, Congress did not provide for punitive damages when it enacted the FMLA,
See
29 U.S.C. § 2617. In
Nevada Department of Human Resources v. Hibbs,
The canons of statutory construction support the conclusion that the FMLA does not provide for punitive damages. Section 2617 of Title 29 of the United States Code specifies what damages are available, and punitive damages are not included. Where Congress has included certain means of recovery, the doctrine of
expressio unis est exclusio alterius
discourages judicial recognition of additional means.
3
See Walker v. United Parcel Service, Inc.,
The statutory language on remedies for FMLA claims lists particular compensatory remedies — damages for lost wages, salary, employment benefits, and other compensation and interest. In addition to this compensatory relief, a court must award double the amount of any damages under the FMLA, as liquidated damages, unless the defendant persuades the court that the violation was in good faith and that the employer had reasonable grounds for believing that the act or omission was not a violation of the FMLA.
See
29 U.S.C. § 2617(a)(1). Like the other damages recoverable under the FMLA, the liquidated damages provision provides for compensatory, not punitive, relief.
See Jordan v. U.S. Postal Service,
Because Congress did not write punitive damages into the remedial scheme of the FMLA and instead limited recovery to certain compensatory damages, the Court finds that punitive damages are not available under the statute. Moreover, at the hearing, the Court inquired whether Mr. Montoya would oppose dismissing the punitive damages claim against Burrows, and Mr. Montoya stated that he was not opposed. See Tr. at 2:20-3:6 (Court, Montoya). As the sole claim remaining against Burrows is L. Saavedra’s FMLA claim, the Court will dismiss Count V asserted against Burrows.
IT IS ORDERED that Lucy Burrows’ Memorandum Motion to Dismiss All Claims is granted in part and denied in part. The Court will dismiss Counts I, II, IV, and V asserted against Defendant Lucy Burrows. The Court will also dismiss Plaintiff Robert Saavedra’s claim against Burrows in Count III. The Court denies the motion to dismiss Plaintiff Louise B. Saavedra’s claim in Count III.
Notes
. The Court's citations to the transcript of the hearing are to the court reporter’s original, unedited version. Any final transcript may contain slightly different page and/or line numbers.
. The ADA defines an “employer” as “a person engaged in an industry affecting commerce who has 15 or more employees ..., and any agent of such person.” 42 U.S.C. § 12111 (5)(A). The ADA’s definition mirrors the definitions of “employer” in Title VII of the Civil Rights Act of 1964 and in the Age Discrimination in Employment Act ("ADEA”).
See
42 U.S.C. § 2000e(b); 29 U.S.C. § 630(b). The Tenth Circuit has stated that it "can discern no meaningful distinction between the definitions of 'employer' in Title VII and the ADA,” and therefore has relied on precedent holding that an individual supervisor may not be held personally liable under Title VII to find that the ADA precludes personal capacity suits.
Butler v. City of Prairie Village,
. The Court notes that punitive damages are awarded under 42 U.S.C. § 1983, when "the defendant’s conduct is shown to be motivated by evil motive or intent, or when it involves reckless or callous indifference to the federally protected rights of others” despite the lack of explicit statutory language authorizing such recovery.
Smith v. Wade,
