Arrison v. Walmart Incorporated

District Court, D. Arizona·Decided July 10, 2023·No. 2:21-cv-00481·Unknown

Opinion

WO

Kathy Arrison, et al., No. CV-21-00481-PHX-SMB

Plaintiffs, ORDER

v.

Walmart Incorporated, et al.,

Defendants. Before the Court is Defendants Walmart, Inc. and Wal-Mart Associates’ (collectively “Walmart”) Motion for Summary Judgment (Doc. 56). Plaintiffs Kathy Arrison and Tristan Smith, individually, and on behalf of a Class of others similarly situated, filed a Response (Doc. 66), and Defendants a Reply (Doc. 71).1 The Court held oral argument on June 28, 2023. After considering the parties’ arguments and the relevant law, the Court will grant in part Defendants’ Motion for the reasons discussed below. In response to COVID-19 and guidance from federal, state, and local public health agencies, Walmart began screening employees for COVID-19 symptoms in its Arizona stores on April 10, 2020 through February 28, 2022. (Doc. 56 at 7.) Before the start of every shift, associates underwent a multi-step screening process as a prerequisite to entering the store. (Id. at 8.) After screening, an associate could leave the store and return without screening again for that day. (Id.)

1 The Court has also considered the parties’ briefings in Plaintiffs’ Motion for Rule 23 Class Certification (Docs. 55, 65, 72). Associates would first scan their badge or record their employee identification number. (Id.) Screeners would then ask several “yes” or “no” questions about symptoms and COVID-19 exposure before checking an associate’s temperature using a handheld digital thermometer. (Id.) In May 2020, Walmart began allowing Arizona associates to complete the screening questions on their mobile devices using the “Me@Walmart” application. (Id.) Walmart instructed associates that any self-screening on their devices was to be done within 15 minutes of their scheduled shift’s start time. (Id.) Upon arriving to the screening table, a self-screener showed their device’s completion screen and then underwent an on-site temperature check. (Id.) Upon completion of either screening method, an associate was permitted to enter the building where they could then clock in at the appropriate time. (Id.) Associates could clock in using a timeclock or a computer program available on terminals throughout the store. (Id.) Beginning in April 2021, Walmart also allowed associates to clock in using the Me@Walmart application on their mobile devices. (Id. at 3–4.) Walmart did not require associates to immediately clock in if they arrived early for their shift. (Id. at 4.) Associates could shop, wait in the breakroom, or engage in other non-work activities before clocking in. (Id.) Walmart alleges that its policy “was to pay associates for all time they spent undergoing COVID-19 screening, including any time waiting in line.” (Id.) Starting April 11, 2020, Walmart began adding five minutes to every non-exempt associate’s daily hours to compensate for any time it took to undergo the screenings. (Id.) Walmart alleges that Plaintiffs received an additional five minutes of pay for every shift the policy was in effect. (Id.) If the screening process exceeded five minutes, Walmart asked associates to adjust their time entries accordingly to receive payment. (Id.) Walmart alleges that it posted signs at the screening locations stating: “If your health screening (including time in line) takes longer than 5 minutes, please submit an [electronic time adjustment] for any additional time.” (Id.) Even if screenings lasted under five minutes, associates were paid an extra five minutes for every shift the policy was in effect. (Id.) Associates could submit time adjustments through the store timeclock, their mobile device, a store computer terminal, or a paper form. (Id.) Plaintiffs originally sought damages for failing to pay for COVID screening time and post-screening time (the time between completion of screening and clocking in). Now Plaintiffs only seek damages for the failure to pay post-screening time during the time period of April 10, 2020 to February 27, 2020, and COVID screening time only for April 10, 2020. Now, Walmart moves for summary judgment on Plaintiffs’ Arizona Wage Act (“AWA”), record keeping, and unjust enrichment claims. (Id. at 7.) A Court may rule on a motion for summary judgment before a motion for class certification. Wright v. Schock, 742 F.2d 541, 543–44 (9th Cir. 1984). Summary judgment is appropriate when “there is no genuine dispute as to any material fact” and the moving party “is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). Facts are material when the factual issue may affect the outcome of the case under the governing substantive law. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). Factual disputes are genuine if the evidence allows a reasonable jury to return a verdict for the non-moving party. Id. At the summary judgment stage, the Court believes the non-moving party’s evidence, see id., and construes disputed facts in the light most favorable to Plaintiffs. See Ellison v. Robertson, 357 F.3d 1072, 1075 (9th Cir. 2004). If “the evidence yields conflicting inferences [regarding material fact], summary judgment is improper, and the action must proceed to trial.” O’Connor v. Boeing N. Am., Inc., 311 F.3d 1139, 1150 (9th Cir. 2002). Still, the non-moving party bears the burden of proof, so summary judgment is warranted if Plaintiffs fail “to make a showing sufficient to establish the existence of an element essential to that party’s case.” Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Plaintiffs cannot defeat summary judgment by “simply show[ing] that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). A. AWA Claim (Count I) Arizona law requires an employer to pay its employees all wages due. A.R.S. § 23- 355. “‘Wages’” means nondiscretionary compensation due an employee in return for labor or services rendered by an employee for which the employee has a reasonable expectation to be paid whether determined by a time, task, piece, commission or other method of calculation.” A.R.S. § 23-350(7). Plaintiffs’ AWA claim is predicated on the argument that Walmart was required to pay its associates pursuant to Ariz. Admin. Code § R20-5- 1202 which states in part that: “[H]ours worked” means all hours for which an employee covered under the Act is employed and required to give to the employer, including all time during which an employee is on duty or at a prescribed work place and all time the employee is suffered or permitted to work. Plaintiffs argue Walmart required uncompensated time by using “a fixed sum to pay its workers for standing in line and completing the COVID screenings, but paid nothing for the time after the screenings were completed and until the employees were able to eventually clock in.” (Doc. 66 at 9.) They argue Walmart therefore violated Ariz. Admin. Code § R20-5-1202 because that time was spent “at a prescribed work place” and should have been paid accordingly. (Doc. 66 at 9–10.) Moreover, Plaintiffs argue the same is true for April 10, 2020, when Walmart tendered no pay for the screenings. (Id. at 10.) Walmart presents three a

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Arrison v. Walmart Incorporated, (D. Ariz. 2023).

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