MEMORANDUM OPINION AND ORDER
Plаintiffs Michael Skelton and Diane Ab-binanti have sued their former employer, American Intercontinental Online University, alleging violations of the Fair Labor Standards Act, 29 U.S.C. § 216(b), the Illinois Minimum Wage Law, 820 ILCS 105/1 et seq. and the Illinois Wage Payment and Collection Act, 820 ILCS 115/1 et seq. for failure to pay overtime compensation and retaliatory discharge. AIUO has filed for summary judgment.
For the reasons stated below, the Court denies AIUO’s motions for summary judgment as to plaintiffs’ claims under the FLSA and the overtime claim under the IMWL but grants AIUO’s motions as to plaintiffs’ retaliation claims under the IMWL and IWPCA and as to their claim under the IWPCA.
AIUO is a for-рrofit college offering associate’s, bachelor’s, and master’s degrees through online courses. Michael Skelton worked for AIUO in Hoffman Estates, Illinois from February 10, 2003 through July 17, 2003, when he was terminated. Diane Abbinanti worked in the same AIUO office from August through October 2002, when she left voluntarily, and then again from January 10, 2003 until she was terminated on July 22, 2003. Plaintiffs worked in the position of “admissions advisor.” As admissions advisors, plaintiffs called prospective students and sought to enroll them in one of the school’s online programs. Plaintiffs were responsible for recording on time sheets the hours they worked. Hours worked beyond forty per week were considered overtime work and were compensated at a rate of time and a half.
AIUO grouped admissions advisors into teams that were supervised by a director of admissions. Plaintiffs were part of a team supervised by national director of admissions, Mark Savasta, and director of admissions, Oma Rassul. Plaintiffs allege that Savasta and Rassul, along with other AIUO managers, instructed them to work beyond forty hours per week but prohibited them from recording the overtime work on their time sheets, which resulted in plaintiffs not being compensated for the work.
On July 14, 2003, plaintiffs, along with fellow admissions advisors Gary Severs and Paul Vander Vennet, met with Judy Clinton, the head of human resources for AIUO. They complained to Clinton that they were being instructed to work overtime but were prohibited from recording their overtime hours. Skelton was fired from AIUO three days after the meeting with Clinton, and Abbinanti was fired eight days after the meeting.
Discussion
Summary judgment is proper only if, after considering all of the evidence and drawing all reasonable inferences in favor of the non-moving party, the Court determines that there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Fed. R.CrvP. 56(c);
Celotex Corp. v. Catrett,
1. Overtime compensation claims
A. FLSA
As admissions advisors at AIUO, Skel-ton and Abbinanti were “employees” under the FLSA and thus were entitled to the benefits and protections of the Act, including the FLSA’s guarantee of overtime compensation for overtime worked. 29 U.S.C. § 213;
Kennedy v. Commonwealth Edison Co.,
AIUO makes several arguments in support of its motions for summary judgment on plaintiffs’ claims for failure to pay overtime wages. First, AIUO asserts, аnd plaintiffs do not dispute, that plaintiffs were paid for all overtime hours actually recorded on their time sheets. Because company policy made employees responsible for recording their time, AIUO contends that plaintiffs must bear the loss of any failure on their part to record then-time.
AIUO’s argument is unpersuasive. The FLSA makes clear that employers, not employees, bear the ultimate responsibility for ensuring that employee time sheets are an accurate record of all hours worked by employees. 29 U.S.C. § 211(c);
AIUO argues that plaintiffs have failed to present evidence showing that they actually worked unreported overtime hours. Plaintiffs bear the burden of proving they performed overtime work for which they were not compensated.
Mt. Clemens,
AIUO argues that plaintiffs’ deposition testimony is merely “self-serving” and insufficient to defeat summary judgment, particularly in light of the fact that plaintiffs admit that they did not personally keep any documentary evidence rеflecting the hours they worked but did not report. Skelton Dep. at 165-66, 203-05; Abbinanti Dep. at 41-43, 55-56, 71, 186, 203. But even if the fact that testimony is self-serving were a proper basis to exclude it or deem it insufficient — a doubtful proposition at best — plaintiffs have also submitted deposition testimony from more than ten other admissions advisors that corroborates their allegations.
See, e.g.,
Harrison Dep. at 65-66 (Savasta told her “he would not pay us [admissions advisors on his team] for the overtime” worked); Langer Dep. at 90 (she did not report overtime hours, though she frequently worked over forty hours per week), 94-95 (Steve Fir-eng, president of AIUO, told her she should work overtime in order to meet enrollment goal, but she would not get paid for it); Myers Dep. at 56-57, 97-98 (instructed by manager to report forty hours per week of work, regardless of overtime hours worked); Vander Vennet Dep. at 19-21 (supervisor Mark Oleferehik told him to delete overtime from time sheet because he had failed to enroll enough students the previous week); Skarpac Deck ¶¶ 12-15 (instructed by supervisors to work overtime but not to report it, therefore, overtime work was frequently not recorded on time sheets);
AIUO next contends that it had no knowledge of plaintiffs’ unrecorded overtime work and therefore cannot be held liable under the FLSA for failing to pay for that work. AIUO relies on
Bjornson v. Daido Metal U.S.A., Inc.,
Savastа’s knowledge of plaintiffs’ unreported overtime work is sufficient to show that AIUO was aware of the unreported overtime work.
See Ladegaard,
In sum, plaintiffs have presented sufficient evidence for a reasonable trier of fact to conclude that they had a blanket “pre-approval” to work overtime to meet job expectations.
B. IMWL
The IMWL parallels the FLSA, and thus the same analysis applies to claims made under the IMWL and FLSA.
Haynes v. Tru-Green Corp.,
C. IWPCA
The Illinois Wage Payment and Collection Act, unlike the IMWL, requires that a claim for compensation be based on a “contract or agreement” between employer and employee. 820 ILCS 115/2. Plaintiffs contend that AIUO’s employee handbook, which states that employees are entitled to overtime wages, constitutes a “contract or agreement” under the IWP-CA. See Def. Ex. 3 (“Overtime compensation is paid to all eligible employees in accordance with federal and state wage and hour restrictions”).
Recent Illinois cases have made it clear, however, that a plaintiff may pursue a IWPCA claim based on an “agreement” to pay wages that falls short of a legally enforceable contract.
See, e.g., Catania v. Local 4250/5050, Communications Workers of America,
— Ill.App.3d —,
2. Retaliatory discharge claims
A. FLSA
Plaintiffs contend that they were terminated by AIUO in retaliation for blowing the whistle on AIUO’s failure to pay overtime wages in violation of the FLSA. To avoid summary judgment, plaintiffs must submit evidence from which a jury could find they were terminated because of activity protected by the FLSA, by either the direct method of proof or by the indirect
McDonnell Douglas
burden-shifting method.
Stone v. City of Indianapolis Pub. Util. Div.,
“The direct method of proof permits a plaintiff to show, by way of direct or circumstantial evidence,” that her termination was motivated by an impermissible purpose.
Rhodes v. Ill. Dept. of Transportation,
AIUO argues that even if plaintiffs’ activities were protected, they fail to present direct evidence of retaliation and therefore must proceed under the
McDonnell Douglas
burden-shifting method. AIUO’s argument represents a misunderstanding of the requirements of the direct method of proof. The direct method of proof permits a plaintiff to show, “by way of direct
or
circumstantial evidence,” that her termination was motivated by an impermissible purpose.
Rhodes v. Ill. Dept. of Transportation,
Plaintiffs have presented the Court with both direct and circumstantial evidence of retaliatory discharge. This direct evidence includes deposition testimony from a fellow admissions advisor that Savasta told her he fired Skelton for complaining to human resources, and that she would suffer the same fate if she complained, Harrison Dep. at 240, and testimony from Van-der Vennet that Savasta threatened to fire him if he complained “behind his back again” to humаn resources. Vander Ven-net Dep. at 16.
Plaintiffs also present circumstantial evidence of retaliatory discharge. The Seventh Circuit has identified three types of circumstantial evidence.
See Troupe v. May Dept. Stores Co.,
Plaintiffs have presented the Court with what the jury could find to be a “convincing mosaic” of circumstantial evidence. Both Abbinanti and Skelton contend that the timing of their terminations, eight and three days, respectively, after the meeting with Clinton, was suspicious. Furthermore, they argue that Vander Vennet and Severs, the two admissions advisors also present at the meeting with Clinton, suffered retaliation, though not termination, within a week of the meeting. Severs Dep. at 192-93, 209 (he was denied training opportunities provided to similarly situated employees); Vander Vennet Dep. at 36-37 (he was transferred to another team in July 2003).
In addition, plaintiffs present evidence that the stated reasons for their terminations were pretextual. Abbinanti was purportedly fired because she was medically unable to work at the time, per doctor’s orders, but had exhausted her medical leave benefits and therefore had to be let go. Abbinanti contends the actual policy at AIUO was to provide sick employees with indefinite leave. She supports this with records of other employees who took significant amounts of medical leave and were not fired, see PI. Resp. to Def. Facts ¶ 65; Langer Dep. at 7-8; Pl.Ex. K; PL Ex. M, and, perhaps more importantly, with a declaration from Joseph Sova, AIUO’s former vice president of human resources, to the effect that AIUO’s policy from 2003 through January 2005 was not to fire any employeе because they ran out of sick or disability leave. Sova Decl. ¶ 18. Skelton was allegedly fired for poor performance. Though he concedes that he was put on a plan to increase his performance a week before being terminated, he presents business records showing that his performance was the same or better than fifteen other admissions advisors, all of whom were not terminated. See Enrollment Statistics, Bowie Decl., Ex. A.
Plaintiffs have one final hurdle to overcome to defeat summary judgment. They must show that the person who made the decision to terminate them was aware of their complaints about unpaid overtime at the time of the termination.
Maarouf v. Walker Mfg. Co.,
For these reasons, the Court finds that genuine issues of material fact exist precluding summary judgment on plaintiffs’ claims of retaliatory discharge. Because plaintiffs present sufficient evidence to overcome summary judgment under the direct/circumstantial evidence method, an
B. IWPCA and IMWL
The IWPCA provides for criminal penalties for retaliatory discharge but provides no express civil remedy. 820 ILCS 115/14(c) (retaliation is a Class C misdemeanor). Plaintiffs argue that the Act should be interpreted as giving rise to an implied civil remedy. The most rеcent Illinois case on the issue, however, holds that there is no implied right of action for retaliatory discharge under the IWPCA.
McGrath v. CCC Information Svcs., Inc.,
Because the IMWL also provides for criminal penalties for retaliatory discharge and does not contain an express private right of action for retaliatory discharge, AIUO asserts that plaintiffs are likewise barred from bringing a claim for retaliatory discharge under the IMWL. 820 ILCS 105/ll(c) (retaliation is a Class B misdemeanor). Thоugh the Court could find no Illinois case to have ruled on the issue one way or the other (and the parties have provided none), the policy concerns expressed in McGrath regarding whether the IWPCA apply with equal force to the IMWL. The intent of the IMWL’s retaliation provision of the IMWL is to deter employers from retaliating, just as it is under the IWPCA. The criminal penalties in the IMWL are sufficient to deter retaliation, and therefore, a civil right of action for retaliatory discharge is unnecessary. For this reason, the Court hold that plaintiffs’ IMWL retaliatory discharge clаim is likewise barred.
Conclusion
For the reasons stated above, the Court grants AIUO’s motion for summary judgment [docket nos. 74 & 75] in part and
Trial counsel are directed to appear and should be prepared to discuss the anticipated length of trial.
Notes
. AIUO also makes an estoppel argument based on plaintiffs' failure to report their overtime work on their time sheets. AIUO's estoppel claim relies on
Brumbelow v. Quality Mills, Inc.,
. It is difficult to see what the IWPCA would add to plaintiffs’ claims in the circumstances presented here, as the purported promise cited as the basis for an IWPCA-enforceable “agreement” simply tracked whatever obligations AIUO had under state and federal law to pay overtime.
. In a final еffort to avoid summary judgment, AIUO argues that the Court should grant summary judgment because neither plaintiff suffered damages as a result of being discharged. AIUO argues that Abbinanti has no damages because at the time of her termination, she was on unpaid leave. Abbinanti does not dispute that she was on unpaid leave but argues that she is eligible for lost benefits and back pay because she would have returned to work on August 1, 2003 had she not been terminated. Abbinanti Dep. at 336-37. Instead, she had to take a new job that pays her significantly less than her job at AIUO. Id. at 342. Thus, there is evidence that she suffered damages as a result of being terminated.
AIUO argues that Skelton’s ability to recover damages is severely limited because he admitted falsifying his employment application and resume. Def. Ex. 23 & 24. AIUO argues that it would have fired Skelton immediately had it discovered this during his employment and that the after-acquired evidence doctrine prevents Skelton from claiming damages except for back pay from the date of discovery.
McKennon v. Nashville Banner Publishing Co.,
