OPINION AND ORDER
On November 26, 2008 plaintiff Gamze Zivali filed a Class & Collective Action Complaint (“Complaint”) on behalf of herself and all others similarly situated. The Complaint alleges that defendant AT & T Mobility LLC (“Mobility” or “AT
&
T”) failed to pay wages and overtime compensation in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201
et seq.,
and the New York Labor Law. Plaintiff subsequently filed a motion for conditional class certification, which the Court granted on July 14, 2009.
See Zivali v. AT & T Mobility LLC,
After careful consideration, the Court hereby grants Mobility’s motion to decertify the collective action. Overall, the Court concludes that plaintiffs have failed to demonstrate they are similarly situated for the purposes of a FLSA collective action. It is now apparent that Mobility’s timekeeping system and formal corporate policies are lawful under the FLSA, and plaintiffs have failed to show that these lawful policies are consistently violated in practice such that it would be possible to generalize across the 4,100 opt-in plaintiffs in this case. To the contrary, the record shows an extremely wide variety of factual and employment settings among the individual plaintiffs, managers, and retail stores; this variety would in effect necessitate over four-thousand mini-trials, a result that is antithetical to collective action treatment.
Hinojos v. Home Depot, Inc.,
No. 2:06-CV-00108,
The logical implication of the Court’s conclusion regarding decertification is that Mobility’s motion for summary judgment must be denied. Given the wide range of factual and employment settings in this case, there are simply too many disputed issues of material fact for the Court to determine on a class-wide basis that Mobility is not liable for FLSA violations. Indeed, some of the evidence in this case suggests that certain plaintiffs may be able to recover damages from Mobility for un
The Court now turns to a fuller elaboration of the above conclusions. By way of background, the plaintiffs in this action are “non-exempt” employees of Mobility who work as retail sales consultants (“RSCs”) and assistant store managers (“ASMs”).
Zivali v. AT & T Mobility LLC,
At the conditional certification stage, the Court found these allegations sufficient to satisfy the “modest factual showing” required at that stage that the named plaintiff “and the potential plaintiffs were victims of a common policy or plan violating FLSA.”
Chowdhury v. Duane Reade, Inc., et al.,
No. 06 Civ. 2295(GEL),
It is undisputed that the MyTime system is capable of capturing all time worked while employees are physically present in the store. MyTime employs a timestamp feature that records the precise time employees start and stop work. Declaration of Terry Fogel, dated November 2010 (“Fogel Decl.”), Def.s’ Decertification Ex. D. MyTime is also capable of capturing work performed off-site because it allows employees to obtain time adjustments. See, e.g., Defendant’s Local Rule 56.1 Statement of Undisputed Material Facts Supporting Defendant’s Motion for Summary Judgment (“Def.s’ 56.1”) ¶¶ 7-9 (opt-in plaintiffs discussing MyTime’s adjustment feature); Report of Lisa M. Disselkamp, dated September 16, 2010 (“Disselkamp Report”), Def.s’ Summary Judgment Ex. I at pp. 6-7, 10; Declaration of Emmanuelle Pallia, dated November 6, 2010 (“Pallia Decl.”), Def.s’ Summary Judgment Ex. D ¶¶ 6-8 (adjustment feature commonly used to capture time employees engage in “selling activities or other work outside the store” and to correct human errors in applying time punches). To obtain a time adjustment, employees need only report hours worked to their Retail Store Manager (“RSM”), or Assistant Store Manager (“ASM”) if that duty has been delegated. The RSM or ASM then manually adjusts the employee’s time to reflect the work performed. See, e.g., Def.s’ 56.1 ¶ 9 (opt-in plaintiffs requested adjustments to time entries from managers); Pallia Decl. ¶ 7; Declaration of Karen Bennett, dated November 6, 2010 (“Bennett Deck”), Def.’s Summary Judgment Ex. A ¶23 (“This kind of reporting happens as a matter of routine, standard practice.”). Both employees and supervisors review the records for accuracy. Fogle Deck ¶ 7; Disselkamp Report, at p. 5, 10. The MyTime System itself, therefore is a permissible record-keeping system under the FLSA.
Mobility’s formal policies regarding timekeeping and overtime are likewise legally acceptable. It is undisputed that Mobility maintains official corporate policies that, on the one hand, prohibit working off-the-clock without pre-approval, but, on the other hand, mandate that all overtime, even if not authorized in advance, be
Plaintiffs acknowledge that these principles are reinforced in recurring training for both managers and non-exempt employees alike. Def.s’ 56.1 ¶¶ 20-21 (plaintiffs discussing Mobility’s training programs). If either managers or employees violate Mobility’ formal policies, they are subject to discipline.
See, e.g.,
“Do’s and Don’ts for Managers,” Declaration of Robert R. Rothman, dated December 13, 2010 (“Rothman Deck”), Pls.’ Ex. 61 (“DO require overtime to be scheduled and approved before worked by an employee. DON’T fail to discipline managers or employees who violate this policy.”). If violations do occur, employees can seek redress through a variety of avenues, including: reporting the issue to Human Resources or a more senior manager, including the Area Retail Sales Manager (“ARSM”); raising the issue with the Communications Workers of America (the union that represents most of Mobility’s RSCs and other non-exempt employees) by filing a grievance under the applicable collective bargaining agreement; and anonymously reporting the issue through Mobility’s toll-free Ethics Hotline.
See
Pallia Decl. ¶¶ 13-16. From the face of Mobility’s corporate policies alone, the Court can discern nothing that violates the FLSA.
See, e.g., Eng-Hatcher v. Sprint Nextel Corp.,
No. 07 Civ. 7350(BSJ),
Plaintiffs essentially concede that neither the MyTime system nor Mobility’s formal corporate policies violate the FLSA.
See, e.g.,
Plaintiffs’ Opposition to Defendant AT & T Mobility, LLC’s Motion for Summary Judgment (“Pls.’ Opp’n to SJ”) at 4.
4
See also Colozzi v. St. Joseph’s Hosp. Health Ctr.,
Plaintiff argues, however, that “[t]he ‘legality’ of MyTime’s ‘design and implementation’ is not a determinative element to any of plaintiffs’ claims. That MyTime, in some contrived, theoretical way, could accurately capture plaintiffs’ off-the-clock work is not undisputed proof that it actually did.”
Id.
(emphasis removed). Similarly, plaintiff argues that “policy statements do not protect employers when their established practices are to the contrary.”
Id.
(citing
Russell v. Ill. Bell Tel. Co., Inc.,
For their arguments to be pertinent to certification, however, plaintiffs must demonstrate that the “practices” and “culture” of which they complain are sufficiently uniform and pervasive as to warrant class treatment.
See, e.g., Basco v. Wal-Mart Stores, Inc.,
NO. 00-3184 SECTION “K” (4),
As Mobility argues, plaintiffs’ off-duty claims involve highly individualized situations. For example, the extent to which plaintiffs received off-duty electronic communications appears to have varied widely. Some of the opt-in plaintiffs did not even receive business emails on their COU devices.
6
Other plaintiffs who did receive corporate communications on their COU devices signed acknowledgements that such devices were not to be used for business purposes off hours, but that any such use should be reported to management for payment.
7
Testimony regarding the expectations of management is inconsistent, with some plaintiffs testifying that Mobility managers never expected them to review company emails off-hours;
8
others testifying that they left their COU devices at the store or set out-of-office notifications on their email;
9
and still others testifying that their off-duty email use varied
The same problem exists with respect to plaintiffs’ other allegations of practices and culture. Although Mobility requires employees to take a meal break and MyTime automatically records as compensable any
On the basis of this record, the Court finds that plaintiffs are not similarly situated with respect to their factual and employment settings.
Additionally, the defenses available to Mobility appear to be highly individual to each plaintiff. For example, plaintiffs must demonstrate that Mobility had actual or constructive knowledge of the off-duty work performed.
See Singh v. City of
The Court must finally consider whether fairness and procedural considerations counsel for or against decertification. Plaintiffs note that a collective action allows plaintiffs the “advantage of lower individual costs to vindicate rights by the pooling of resources,” and that the “judicial system benefits by efficient resolution in one proceeding of common issues of law and fact arising from the same alleged discriminatory activity.”
Hoffman-La Roche Inc. v. Sperling,
Again, however, there appear to be very few common issues of fact in this case. The testimony of the plaintiffs is not representative and cannot fairly be extrapolated to the 4,100 individuals who have opted into this action.
See, e.g., Burch v. Qwest Commc’ns Int’l, Inc.,
Accordingly, the Court concludes that all three relevant factors favor decertification in this ease. Unlike cases in which courts have permitted plaintiffs to proceed as a class, 36 the record shows that there is simply no uniform policy or practice at Mobility that would result in systematic FLSA violations across the potential 4,000-plus plaintiff class. Indeed, the Court finds that this case is far more closely analogous to those in which courts have granted motions for decertification as a result of plaintiffs’ failure to present consistent evidence that they were subject to any uniform policy or practice. 37
SO ORDERED.
Notes
.
See, e.g., Saleen v. Waste Management,
.See also COBC, Declaration of Andrew Bagley, dated November 16, 2010 ("Bagley Decl.”), Def.'s Summary Judgment Ex. A.3 at MOBILITY 00002134 ("Nonexempt (overtime eligible) employees must accurately report all hours worked each day and each week and may not work overtime unless it is approved by a supervisor in advance. However, all overtime hours worked by nonexempt employees must be paid regardless of whether they were approved. Managers are prohibited from requiring or permitting nonexempt employees to work ‘off the clock.' ”).
. Requiring pre-approval for overtime, and disciplining employees for working overtime that has not been authorized, is not unlawful.
See, e.g., Chao v. Gotham Registry, Inc.,
. See also 01/24/11 Transcript at 24 ("We aren’t faulting that policy”); id. at 25 ("The fact that you can police against unauthorized overtime is not disputed by us.”).
. See, e.g., Rothman Decl., Pls.' Ex. 33, Deposition Testimony of Albert Martin Valenzuela (“Valenzuela Dep.“) at 75: 1-5 (“they pretty much taught us and drilled in your head to put our cell phone number to the customer's phone as part of our selling process for us to get a first point of contact for that customer’’); “RSM Execution Excellence,” Rothman Decl., Pls’ Ex. 58 at MOBILITY 03870603 (ASMs and RSCs "[p]rovide 1st contact customer resolution, own the problem and provide the solution”).
. See, e.g., Bennett Decl. ¶¶ 41-44, 42; Bagley Decl., Def.’s Decertification Ex. GG, Deposition of Melissa Schneider (“Schneider Dep.”) at 70:7-12 (never received or responded to emails from customers while an RSC because no access to COU off duty); Bagley Decl., Def.’s Decertification Ex. R, Deposition of Derek Easdon ("Eadson Dep.”) at 27:24-28:2, 39:10-13 (no email on COU).
. See, e.g., Bagley Decl., Def.’s Decertification Ex. II, Deposition of Tony Sterling ("Sterling Dep.”) at 44:18-47:18 (signed COU policy requiring him to not review email while off-the-clock and requiring him to report any off-the-clock work to management for payment); Pallia Decl. ¶ 20 (attaching form signed by opt in Sterling); Bennett Decl. ¶ 45; Declaration of Catalina E. Cruz, dated November 5, 2010 ("Cruz Decl.”), Def.’s Decertification Ex. K. 14 ¶¶ 20-21; Declaration of Elizabeth A. Valdez, dated November 5, 2010 ("Valdez Decl.”), Def.’s Decertification Ex. K. 85 ¶ 13, 15.
. See, e.g., Bagley Dec., Def.'s Decertification Ex. U, Deposition of Michael Harrell ("Harrel Dep.”) at 46:11-14 (no one told him he had to respond immediately to customers’ emails when he was off duty); Bagley Dec., Def.'s Decertification Ex. KK, Deposition of Patricia Timper ("Timper Dep.”) at 52:14-19 (same); Sterling Dep. 43:18-44:9, 47:16-18 (while he had email on his COU device, no one ever instructed him to review emails off duty and he was never disciplined for not reading email off duty). But see Bagley Dec., Def.'s Decertification Ex. MM, Deposition of Brian Walsh ("Walsh Dep.”) at 60:20-25 (”[n]obody specifically stated but it was implied [that he had to check company email] since I had company issued e-mail on my BlackBerry”).
.See, e.g., Declaration of Justin Garrigues, dated March 6, 2009 ("Garrigues Decl.”), Def.'s Decertification Ex. K. 26 ¶ 14-15 (half of his RSCs leave COU devices at the store); Declaration of Elizabeth Cardenas, undated ("Cardenas Decl.”), Def.'s Decertification Ex. K. 26 ¶ 11 ("When I was full time, I would occasionally leave my iPhone at the store.”); Declaration of Jennifer L. Martin, dated November 2, 2010 ("Martin Decl.”), Def.'s Decertification Ex. K. 49 ¶ 30 (“I leave my work phone at work.”); Declaration of Leihua Alisa, dated March 11, 2009 ("Alisa Decl.”), Def.’s Decertification Ex. K. 1 ¶ 7 (RSM suggests employees “leave their cell phones in my office during their off hours”).
. See, e.g., Bagley Decl., Def.’s Decertification Ex. O, Deposition of Brian Carrega ("Carrega Dep.”) at 47:8-48:3 (would send emails to ARSM while off duty summarizing his future action plan only on days with no sales).
. For example, plaintiff Thomas K. Linnenbaugh requested, and received, a two-minute adjustment for time it took him to write an email to his manager after logging out of MyTime. See Bagley Decl., Def.’s Decertification Ex. PP (Linnenbagh’s request for adjustment); Ex. QQ (time record showing adjustment made).
. Charles J. Mullin, Ph.D., a labor economist at ERS Group, analyzed a sampling of texting data for several opt-ins to determine what proportion of time was spent on business related activity. The analysis of six opt-ins’ COU records suggests that their texting patterns varied widely. See “Analysis of Phone Calls and Text Messages For Selected Opt-In Plaintiffs,” Report of Dr. Charles Mullin, dated September 16, 2010 ("Mullin Report”), Def.’s Decertification Ex. I at p. 21 (from 5 to 42 minutes a week).
. Declaration of Karen Ashcraft, dated March 5, 2009 ("Ashcraft Decl.”), Def.'s Decertification Ex. K. 3 ¶ 8; Declaration of Eduardo E. Villasenor, dated October 26, 2010 ("Villasenor Decl.”), Def.’s Decertification Ex. K. 81 ¶ 30 (2 per week); Declaration of Hector Iracheta, dated November 2, 2010 ("Iracheta Decl.”), Def.’s Decertification Ex. K. 39 ¶ 9 (“I very seldom get calls on my COU device during my non-working hours, and when I do, I typically just let them go to voicemail....”).
. Valenzuela Dep. 97:16-100:23 (five of most frequently called numbers on COU are girlfriend, mother, friends, ex-girlfriend, and cousins); Easdon Dep. 28:10-12, 52:2-14 (used COU for personal calls and recognizes wife’s, mom's and dad's numbers).
. Bagley Decl., Def.’s Decertification Ex. V, Deposition of David Hendricks (“Hendricks Dep.”) at 39:1-5, 44:5-12 (no policy that required answering calls when off duty and never criticized or disciplined for not taking customer calls); Cardenas Decl. ¶ 14 (calls go to voicemail); Declaration of Alissa Philebaum, dated March 5, 2009 ("Philebaum Decl.”), Def. Decertification Ex. K. 61 ¶ 5 (usually ignores unrecognized numbers); Declaration of Darren Collins, dated March 6, 2009 ("Collins Decl.”), Def. Decertification Ex. K. 13 ¶¶ 5, 6 ("The majority of RSCs let any off-hour calls go to their voicemail where they have a professional voicemail greeting requesting that the caller leave a message.”); Declaration of Amanda Herman, dated March 5, 2009 ("Herman Decl.”), Def. Decertification Ex. K. 36 ¶ 4 ("Many RSCs ... leave the store number in the voicemail greeting to direct any customer calls to the store.”).
. See Mullin Report at 21 (phone activity between six opt-ins and supervisors varied from 2 times per week to 21 times per week).
. Pallia Decl. ¶ 10.
. See, e.g., Carrega Dep. at 102:25-103:3; Easdon Dep. at 13:15-19; Sanchez Dep. at 17: 15-17; Timper Dep. at 10:22-11:3.
. See Easdon Dep. 14:13-17 (tried to go off-site).
. See, e.g., Philebaum Decl. ¶ 15 ("I'm rarely if ever interrupted during my lunch break. I'm usually just in my own little world in the break room.”); Declaration of Adam C. Farthing, dated October 26, 2010 ("Farthing Decl.”), Def. Decertification Ex. K. 21 ¶ 33 (rarely interrupted during lunch).
. See, e.g., Declaration of Cedric Washington, dated March 9, 2009 ("Washington Decl.”), Def. Decertification Ex. K. 82 ¶ 10 ("The store provides a one hour paid lunch break. I take the full hour break about 95% of the time. Sometimes, when I am in the back eating, a customer who I have already done a significant amount of work for, will come into the store and ask for me specifically. When duty calls like that, I log back into MyTime and then go help the customer. When I’m done helping them I log back out of MyTime and finish my lunch.”)
. See Clark Dep. 16:1-6 (no claim); Bagley Deck, Def. Decertification Ex. L, Deposition of Ibn Abdul Rahman (“Abdul-Rahman Dep.”) at 11:3-17 (no claim); Sanchez Dep. 69:15-18 (not instructed to do work activities before punching in for opening shift).
. See, e.g., Bagley Deck, Def. Decertification Ex. N, Deposition of Mark Bonomo (“Bonomo Dep.”) at 68:22-69:17 (approximately 1 minute 25 seconds per week opening the store, which included unlocking the door, re-locking it, disarming the alarm and logging into the computer); Bagley Decl, Def. Decertification Ex. T, Deposition of Christine Nicole Gutierrez ("Gutierrez Dep.”) at 52:3-54:6, 54:20-22 ("a couple seconds” to unlock back door, "a couple seconds” to walk to alarm, "a couple seconds” to disarm alarm, "a couple seconds” to walk from inventory door to gate, "a couple seconds” to unlock gate unless it was broken, "a couple seconds” to open door behind gate).
. See, e.g., Valenzuela Dep. 25:19-26:20 (long boot-up time of 10 minutes but RSM would adjust time); Gutierrez Dep. 45:19-22 (time was adjusted on two occasions when MyTime froze and she reported that she could not log in to her manager).
. Some plaintiffs testified that they were paid for their attendance, see, e.g., Cruz ¶ 14 (paid for work done in a hotel room as part of an off-site training); some testified that they were never instructed to participate in off-duty training, see, e.g., Sanchez Dep. 74:17-21; some testified that they punched in at the store before leaving for a meeting, see, e.g., Sterling Dep. 92:4-93:5; 93:15-94:3; some testified that they sought time adjustments and others did not, see, e.g., Bagley Deck, Def. Decertification Ex. X, Deposition of James Joven (“Joven Dep.”) at 39:10-17 (manager adjusted time to reflect off-duty work for small business account).
. See, e.g., Bonomo Dep. 132:4-8 (no one told him he was required to familiarize himself with products off duty and not be paid for it).
. See, e.g., Easdon Dep. 9:10-10:1, 10:2-12 ("I understood that I was to be paid for every minute that I worked, so, you know, and adjustments would be made by the manager.”); Harrell Dep. 27: 19-28:2 (received training about requesting adjustments from manager); Sterling Dep. 34:1-16 (same); Farley Dep. 41:1-42:1 (requested manager to adjust time for missed punches and they were made); Hendricks Dep. 16:17-19, 50:10-20 (requested time adjustments due to missed punches); Sterling Dep. 19:15-20:15, 34:17-36:9, 37:12-18 (manager makes adjustments due to missed punches and as an ASM, would also do the same for RSCs).
. See, e.g., Sterling Dep. 56:4-20 (his RSM or fellow ASMs made any and all adjustments he requested to his time); Linnenbaugh Dep. 18:11-20 (all adjustments he sought were made by managers).
. See, e.g., Wilcox Dec. ¶ 9 ("I always feel comfortable reporting the time that I work, even if it was unscheduled.... Mobility explicitly requires me to report all overtime that I work and I have always reported all of my time worked, both in Idaho and now in Washington, since the start of my employment with Mobility, without feeling any pressure about working too much overtime.”).
. Bennett Dep. 55:10-56:3, 80:24-81:21 (plaintiff admitting that when he asked his last RSM for adjustments to his time via email, the RSM made the adjustments).
. Sterling Dep. 65:2-76:6 (never sought compensation for 2 minutes of time opening or closing because did not think it was compensable work until he got notice of the lawsuit).
. See, e.g., Sanchez Dep. 19:14-20 (chose to work through lunches to make sales); Harrell Dep. 52:6-53:8 (chose to respond to emails from customers off the clock because it helped drive sales and, as a result, he would receive more commissions).
. See also White Report at 24 ("The Kronos data provides information on the original employee time punches as well as the management edits. Of the 1,485,026 employee/days in the Kronos data during this time period for the opt-ins, 389,536 (or 26.2%) were edited in some way as part of the timekeeping process.”) (footnote omitted).
. See Walsh Dep. 60:20-25 ("[n]obody specifically stated but it was implied [that he had to check company email] since I had company issued email on my Blackberry”); Timper Dep. 9:23-10:21 (not sure that manager was aware of all the off-duty work she claims to have done); Hendricks Dep. 87:11-16 (manager could not have known about his off-duty work because he was "not in my home when I’m doing it.”)
. See, e.g., Cruz Decl. ¶ 23 (sometimes will take a minute or two to call the customer back; "not worth it to me to record this time” because those "few minutes are really not a big deal to me”); Sterling Dep. 61:5-62:17 (got one to two calls a week off duty from store employees that would last on average 1 to 2 minutes each and did not report time); Gladura ¶ 14 ("never actually thought to” report calls from managers or co-workers that do not take up more than 10 minutes a week "because it is so inconsequential”); Spraggins Dec. ¶ 21; Villasenor Dec. ¶¶ 27-28; Ashcraft Dec. ¶ 6 (stating it would "silly” to count as time worked every time she looks at her iPhone).
.
See, e.g., Ayers v. SGS Control Servs.,
No. 03 Civ. 9078(RMB),
.
King v. CVS/Caremark Corp.,
No. 07-21824-CIV-GRAHAM/TORRES,
