Allen v. Vocatus, LLC

District Court, D. Nevada·Decided December 12, 2022·No. 2:21-cv-00377·Unknown

Opinion

3 ERIN ALLEN, Case No.: 2:21-cv-00377-APG-DJA

4 Plaintiff Order Granting in Part and Denying in Part Defendants’ Motion for Summary 5 v. Judgment

6 VOCATUS, LLC and SHAMOUN’S LLC, [ECF No. 35]

7 Defendants

8 Plaintiff Erin Allen sues her former employers Vocatus, LLC and Shamoun’s LLC for 9 alleged violations of state and federal law based on her contention that she was misclassified as 10 exempt from overtime pay and then fired after she complained to the Department of Labor 11 (DOL). She asserts claims for (1) declaratory relief, (2) failure to pay overtime under the Fair 12 Labor Standards Act (FLSA), (3) retaliation in violation of the FLSA, (4) failure to pay wages 13 for all hours worked under Nevada Revised Statutes (NRS) §§ 608.140 and 608.016, (5) failure 14 to pay all wages due and owing at termination under NRS §§ 608.140 and 608.020-.050, and 15 (6) wrongful termination in violation of public policy under Nevada law. 16 The defendants move for summary judgment on all claims on a variety of grounds. Allen 17 opposes. The parties are familiar with the facts, so I repeat them here only as necessary to 18 resolve the motion. I grant the motion as to Allen’s claims for declaratory relief and wrongful 19 termination. I deny the motion as to Allen’s claims for unpaid overtime under the FLSA 20 (including the issues of willfulness and liquidated damages), FLSA retaliation, and the Nevada 21 statutory claims (except that the statute of limitations is two years for all Nevada statutory 22 claims). 23 / / / / 2 Summary judgment is appropriate if the movant shows “there is no genuine dispute as to 3 any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 4 56(a). A fact is material if it “might affect the outcome of the suit under the governing law.” 5 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A dispute is genuine if “the evidence

6 is such that a reasonable jury could return a verdict for the nonmoving party.” Id. 7 The party seeking summary judgment bears the initial burden of informing the court of 8 the basis for its motion and identifying those portions of the record that demonstrate the absence 9 of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The 10 burden then shifts to the non-moving party to set forth specific facts demonstrating there is a 11 genuine issue of material fact for trial. Sonner v. Schwabe N. Am., Inc., 911 F.3d 989, 992 (9th 12 Cir. 2018) (“To defeat summary judgment, the nonmoving party must produce evidence of a 13 genuine dispute of material fact that could satisfy its burden at trial.”). I view the evidence and 14 reasonable inferences in the light most favorable to the non-moving party. Zetwick v. Cnty. of

15 Yolo, 850 F.3d 436, 440-41 (9th Cir. 2017). 16 A. Declaratory Relief 17 The defendants argue that this is not a separate cause of action and has no place in this 18 case because the complaint relies on the Nevada Rules of Civil Procedure, but this case is 19 proceeding in federal court. Allen responds that Nevada law allows her to request a declaration 20 to determine the parties’ rights and obligations. 21 A declaratory relief claim that is duplicative of a plaintiff’s other claims is subject to 22 dismissal. Swartz v. KPMG LLP, 476 F.3d 756, 765-66 (9th Cir. 2007). The declaratory relief 23 1 claim in this case does not serve a purpose that will not be resolved by Allen’s substantive 2 claims. I therefore dismiss it. 3 B. FLSA Failure to Pay Overtime 4 1. Exemption 5 The defendants argue that Allen is exempt from the FLSA’s requirement to pay overtime

6 because she was employed in a bona fide administrative capacity. They contend that she was 7 paid a salary that exceeds the salary requirement for this exemption and that she performed non- 8 manual office work directly related to the defendants’ business operations in which she exercised 9 independent judgment and discretion. 10 Allen responds that the parties dispute the scope of her job duties and whether she 11 exercised discretion in performing these duties. She contends that she did not engage in 12 managerial tasks, did not exercise discretion or independent judgment, and performed tasks at 13 the direction of the companies’ owner and president, Rony Shamoun (Shamoun).1 She thus 14 contends a fact dispute precludes summary judgment on the exemption’s applicability.

15 “The FLSA requires employers to pay overtime to covered employees who work more 16 than 40 hours in a week.” Encino Motorcars, LLC v. Navarro, --- U.S. ----, 138 S. Ct. 1134, 1138 17 (2018) (citing 29 U.S.C. § 207(a)). But the FLSA exempts some employees from the overtime 18 pay requirement. Id. (citing 29 U.S.C. § 213). As relevant here, the FLSA exempts from 19 overtime pay “any employee employed in a bona fide executive, administrative, or professional 20 capacity.” 29 U.S.C. § 213(a)(1). 21 22

23 1 Shamoun owned Vocatus and Shamoun’s and was the president and CEO for both companies. ECF Nos. 35-3 at 15-16; 35-25 at 1. 1 This exemption applies if the employee (1) is “compensated not less than $455 per 2 week;” (2) performs “as her primary duty office or non-manual work related to the management 3 or general business operations of the employer or the employer’s customers;” and (3) has “as her 4 primary duty the exercise of discretion and independent judgment with respect to matters of 5 significance.” McKeen-Chaplin v. Provident Sav. Bank, FSB, 862 F.3d 847, 850-51 (9th Cir.

6 2017) (simplified) (citing 29 C.F.R. § 541.200(a)). “These three conditions are explicit 7 prerequisites to exemption, not merely suggested guidelines.” Id. (quotation omitted). The 8 “question of how an employee spends his or her workday is one of fact, while the question of 9 whether his or her activities exclude him or her from the overtime-pay requirement is one of 10 law.” Christopher v. SmithKline Beecham Corp., 635 F.3d 383, 391 (9th Cir. 2011). The 11 defendants bear the burden of proving the exemption applies. McKeen-Chaplin, 862 F.3d at 850. 12 Viewing the facts in the light most favorable to Allen, genuine disputes remain regarding 13 the scope of her duties and the level of discretion and independent judgment she exercised. The 14 defendants contend that although Allen had no official job title, she exercised discretion and

15 independent judgment in running the defendants’ affairs, including addressing financial, human 16 resources, and regulatory issues without Shamoun’s direct involvement. But Allen testified that 17 she could not take any action without Shamoun’s direction, could not act on matters of 18 significance for the companies, and was merely a conduit or point of contact for Shamoun. See 19 ECF Nos. 35-3 at 10, 14-15, 30, 100-01, 108, 111, 113; 49-3 at 5-8, 13-16; 49-4 at 5-7. See also 20 Bothell v. Phase Metrics, Inc., 299 F.3d 1120

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