Albert v. Honda Development & Manufacturing of America, LLC

CourtDistrict Court, S.D. Ohio
DecidedJanuary 30, 2023
Docket2:22-cv-00694
StatusUnknown

This text of Albert v. Honda Development & Manufacturing of America, LLC (Albert v. Honda Development & Manufacturing of America, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albert v. Honda Development & Manufacturing of America, LLC, (S.D. Ohio 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

MICHAEL ALBERT, on behalf of himself and others similarly situated,

Plaintiff, Case No. 2:22-cv-694 JUDGE EDMUND A. SARGUS, JR. v. Magistrate Judge Kimberly A. Jolson

HONDA DEVELOPMENT & MANUFACTURING OF AMERICA, LLC,

Defendant.

TREVOR TRIPOLI, on behalf of himself and others similarly situated,

Plaintiff, Case No. 2:22-cv-3828 JUDGE EDMUND A. SARGUS, JR. v. Magistrate Judge Kimberly A. Jolson

BRANDON WHATLEY, on behalf of himself and others similarly situated,

Plaintiff, Case No. 2:22-cv-4372 JUDGE EDMUND A. SARGUS, JR. v. Magistrate Judge Kimberly A. Jolson

MELISSA SCARBROUGH, on behalf of himself and others similarly situated,

Plaintiff, Case No. 2:22-cv-4277 JUDGE EDMUND A. SARGUS, JR. v. Magistrate Judge Kimberly A. Jolson

OPINION AND ORDER This matter is before the Court for consideration of the parties’ Joint Motion to Consolidate Cases (Albert ECF No. 55; Tripoli ECF No. 34; Scarbrough ECF No. 14; Whatley ECF No. 17); Plaintiff Michael Albert’s Emergency Motion for Notice and Conditional Certification (ECF No. 27); and Defendant Honda Development & Manufacturing of America, LLC’s (“HDMA”) memorandum in opposition, which both opposes Plaintiff’s emergency motion and alternatively requests an order staying these proceedings (ECF No. 32). For the following reasons, the parties’ Joint Motion to Consolidate Cases is GRANTED (Albert ECF No. 55; Tripoli ECF No. 34; Scarbrough ECF No. 14; Whatley ECF No. 17); Plaintiff’s Emergency Motion for Notice and Conditional Certification is DENIED without prejudice (ECF No. 27); and Defendant HDMA’s request in the alternative to stay proceedings pending the final disposition of Brooke Clark, et al v. A&L Home Care and Training Center, LLC, et al., Sixth Circuit Case Nos. 22-3101, 22-3102 is GRANTED (ECF No. 32). I. BACKGROUND Plaintiff Michael Albert brings this action against Defendant HDMA. Plaintiff raises claims under the Fair Labor Standards Act (“FLSA”), alleging that HDMA failed to pay overtime to him and other similarly situated employees. (Compl., ECF No. 13, at 15-17.) Plaintiff also raises claims under state law, which are not the subject of the motions at bar. (Id. at 17-18.) A. The Parties in Albert According to Plaintiff, HDMA “is a firm consisting of ‘all of [HDMA’s] automobile manufacturing facilities in the U.S. related to frame, engine, transmission, and related engineering and purchasing operations[.]’” (Id. at 5.) Plaintiff also maintains that HDMA is an “employer” of

Plaintiff and other putative collective members within the meaning of the FLSA, 29 U.S.C. § 203(d). (Id.) Plaintiff Albert has been employed by HDMA as an hourly equipment service technician since October 2020. (Id. at 6.) HDMA classifies and pays Plaintiff, as well as those he seeks to include in this collective action, as a nonexempt employee. (Id.) To facilitate the payment of compensation to HDMA’s employees, HDMA uses a timekeeping system called Kronos, which is maintained by Ultimate Kronos Group. (Pl. Emergency Mot. for Cond. Cert., ECF No. 27, at 1.) B. Plaintiff’s FLSA Claim Plaintiff’s FLSA claim arises from a ransomware attack on the Kronos timekeeping system

that rendered the system, as used by HDMA, inoperable from approximately December 11, 2021 to mid-February 2022. At the time of this service outage, HDMA did not have an alternative system in place to accurately track its employees’ hours worked, including overtime compensation. (Id. at 2.) Without access to Kronos, HDMA was unable to determine the amount of time worked by each employee in the weeks leading up to and during the Kronos outage. (Def. Opp’n, ECF No. 32, at 2.) On December 16, 2021, just a few days after HDMA lost access to Kronos, HDMA had to issue paychecks to its employees. (Id.) Unable to determine whether any nonexempt employees were entitled to overtime compensation, HDMA opted to pay these employees for 40 hours at their regular rate of pay. (Id.) These paychecks did not account for any overtime that may have been due. (Id.) Before the second week of the Kronos outage, HDMA implemented a new compensation method, labeled the “40 plus 3 Pay Method.” (Id. at 3.) Under the 40 plus 3 Pay Method, HDMA paid all nonexempt employees for 40 hours at their regular rate and for six hours at their overtime

rate (HDMA retroactively applied three of those six overtime hours to the previous pay period when these nonexempt employees did not receive overtime compensation). (Id.) HDMA used the 40 plus 3 Pay Method until the fifth week of the Kronos outage. (Id.) As of the fifth week, HDMA transitioned to a new timekeeping system using PeopleSoft, which functioned as a less-sophisticated Kronos. (Id. at 3-4.) The PeopleSoft system required nonexempt employees to manually complete their timesheets, which department managers and other supervisors then reviewed, adjusted, or approved, and then entered into the PeopleSoft system. (Id.) HDMA used the PeopleSoft system for weeks 5 through 10 of the Kronos outage. (Id. at 4.) After the tenth week of the outage, HDMA was able to return to the Kronos timekeeping system in a limited capacity. (Id.) HDMA also issued a memo to its nonexempt employees stating

that HDMA had started a reconciliation process that would rectify any discrepancies between the amount paid under the 40 plus 3 Pay Method and the amount that should have been paid while Kronos was either offline or functioning at a limited capacity. (Id. at 4-5.) HDMA began issuing reconciliation payments on April 27, 2022. (Id. at 5.) According to Plaintiff Albert, as well as multiple opt-in plaintiffs, these reconciliation payments did not adequately compensate them for their overtime, additional wage damages, or both. (Pl. Emergency Mot. for Cond. Cert., ECF No. 27, at 3-4.) As a result of the Kronos outage and HDMA’s subsequent remedial efforts, Plaintiff alleges that HDMA knowingly and willfully violated the FLSA by failing to pay and/or failing to timely pay its nonexempt employees all overtime hours worked to which they were entitled. (Compl., ECF No. 13, at 3, 9-10, 11, 16.) C. The Albert Action On February 15, 2022, Plaintiff Michael Albert, on behalf of himself and others similarly

situated, brought suit against HDMA under, inter alia, the FLSA, 29 U.S.C. §§ 201-219. (Id. at 3.) Several months later, on May 4, 2022, Plaintiff moved pursuant to § 216(b) of the FLSA to conditionally certify the following collective: All current and former non-exempt (including but not limited to commission-based, hourly and salaried) employees of Defendant in the United States since the onset of the Kronos ransomware attack, from on or about December 1, 2021 to the present, whose weekly work hours were usually or would usually have been tracked by the Kronos timekeeping system, and who were not paid overtime compensation in the amount of one and one-half times the employee’s regular rate of pay for all hours worked over forty (40) in any workweek during the Kronos outage period.

(Pl. Emergency Mot. for Cond. Cert., ECF No. 27, at iii.) HDMA opposes conditional certification, and has filed its opposition and, in the alternative, a request to stay the proceedings (ECF No. 32), to which Plaintiff has replied (ECF No. 34). D. The Tripoli Action On July 26, 2022, five months after Plaintiff Albert filed a Complaint in the Southern District of Ohio, Plaintiff Trevor Tripoli initiated a substantially similar collective action in the Southern District of Indiana.1 (Tripoli Compl., ECF No.

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Albert v. Honda Development & Manufacturing of America, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albert-v-honda-development-manufacturing-of-america-llc-ohsd-2023.