Babineau v. Federal Express Corp.

576 F.3d 1183, 15 Wage & Hour Cas.2d (BNA) 135, 2009 U.S. App. LEXIS 17055, 2009 WL 2212158
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 27, 2009
Docket08-16227
StatusPublished
Cited by84 cases

This text of 576 F.3d 1183 (Babineau v. Federal Express Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Babineau v. Federal Express Corp., 576 F.3d 1183, 15 Wage & Hour Cas.2d (BNA) 135, 2009 U.S. App. LEXIS 17055, 2009 WL 2212158 (11th Cir. 2009).

Opinion

EDENFIELD, District Judge:

Plaintiffs, who are hourly employees of defendant Federal Express Corporation, Inc. (“FedEx”), appeal the district court’s denial of class certification. They assert claims of breach of contract and unjust enrichment resulting from FedEx’s failure to pay employees for “all hours worked.” The district court concluded that certification was improper primarily because individualized factual inquiries into whether and how long each employee worked without compensation would swamp any issues that were common to the class. The sole question before this Court is whether the district court abused its discretion in declining to certify the class. We hold that the district court acted within the bounds of its discretion and affirm its decision.

I. BACKGROUND

In what might be characterized as “Round Two” of their litigation against FedEx for its compensation practices, Plaintiffs allege that FedEx has engaged in a pervasive and long-standing policy of failing to pay hourly employees for all time worked. Previously, the district court denied certification of a nationwide class of FedEx employees asserting substantially similar claims in Clausnitzer v. Federal Express Corp., 248 F.R.D. 647 (S.D.Fla.2008). Plaintiffs subsequently brought this suit which attempts to address the defects identified in Clausnitzer by limiting the scope of the class to Florida employees, adding a claim for quantum meruit, and altering the theory of their breach of contract claim.

Plaintiffs seek to certify a class defined as “All employees of [FedEx] paid on an *1186 hourly basis as nonexempt employees, who were employed in the state of Florida, from the maximum time period preceding the filing of this complaint, as permitted by the statute of limitation, until such time as the Class period closes.” The class includes couriers, courier/handlers, service agents, and any other non-exempt employees who are, or were, required during the class period to punch in and out on a manual time clock, but were paid only from their scheduled start time to their scheduled end time. The class also includes employees who worked during unpaid breaks.

Plaintiffs claim that FedEx breached their contracts by failing to pay for three categories of time worked: (1) the interval between an employee’s manual punch in time and his scheduled start time; (2) the interval between an employee’s scheduled end time and his manual punch out time; and (3) the time worked during unpaid breaks. They also assert a claim for quantum meruit. 1

A. The Contract

Plaintiffs claim that their employment relationship with FedEx is governed by an express contract which requires FedEx to pay for “all time worked.” This contract and its terms are allegedly embodied in several documents including a standard written agreement (the “Agreement”) that every FedEx employee signs during the employment application process as well as certain FedEx employment manuals. The Agreement contains a statement that “all terms of my employment except to the extent covered specifically by this contract or any other valid contract between Company and me ... shall be determined and governed by Company’s Policies and Procedures Manual as same may be amended from time to time hereafter.... ”

FedEx publishes or otherwise provides employees with a “People Manual” and an “Employee Handbook.” 2 Both manuals state, “It is the policy of FedEx [] to compensate for all time worked in accordance with applicable state and federal law.” In the People Manual, the next sentence states, “Except for certain approved preliminary and post-liminary activities, no employee should perform work ‘off the clock’ for any reason, whether on their own initiative or at the request of management.” Each manual contains an express disclaimer that it is not a contract and its provisions should not be read or implied to provide for one. 3 Furthermore, upon receipt of the Employee Handbook, each employee signed an acknowledgment that the Handbook does not create a contract. 4

*1187 Plaintiffs conceded at oral argument that under Florida law the manuals do not themselves create a contract. Rather, they argue that the Agreement signed during the application process creates the contract and that the Agreement expressly incorporates the manuals’ terms. FedEx disputes the existence of any express employment contract. However, even if the Agreement constitutes an at-will employment contract, FedEx contends that under Florida law the terms in its policy manuals do not create any contractual rights.

B. Timekeeping

An understanding of Plaintiffs’ claims requires an understanding of FedEx’s time-keeping procedures. FedEx employs three methods of tracking time. First, employees track their time by entering various codes corresponding to different work activities into a hand-held computerized tracking device (a “tracker”). Employees manually enter into the trackers them scheduled start times and end times as well as the times at which they start and finish a break. The tracker data is transmitted to FedEx’s payroll database and is used to calculate employee compensation. Additionally, as a backup for the tracker data, employees manually write on a time card the time codes for each task, as well as the start and end time for that task.

FedEx also requires employees to punch in and out on a manual punch clock before and after their shifts. Until 2007 the trackers did not automatically time stamp the employees’ entries, so an employee who was supposed to commence work at 8:00 a.m. but arrived for work at 8:05 a.m. could hide his tardiness by entering an 8:00 a.m. start time into the tracker. Thus, FedEx claims that the manual punch records were simply used to verify the integrity of time entries that employees entered into the trackers. FedEx paid its employees only for the time between the scheduled start and end times as entered into the trackers, which did not necessarily coincide with employees’ manual punch in and punch out times. The periods of time between the start/end times entered into the tracker and the punch in/out times are referred to as “gap periods.” Thus, if an employee punched in at 7:45 a.m. but entered a start time of 8:00 a.m. into the tracker, there would be a fifteen minute gap period for which the employee would not be paid. Additionally, FedEx required employees to take an unpaid break (the “break period”) during the day, but Plaintiffs claim that employees frequently worked during their breaks. Plaintiffs seek compensation for work that they performed during gap periods and break periods.

C. Gap Periods

Plaintiffs allege that FedEx structures employees’ workloads such that it is usually impossible for its hourly employees to perform all necessary pre- and post-liminary tasks during their scheduled shifts. Thus, they argue, FedEx requires employees to perform certain work activities during the gap periods.

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576 F.3d 1183, 15 Wage & Hour Cas.2d (BNA) 135, 2009 U.S. App. LEXIS 17055, 2009 WL 2212158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/babineau-v-federal-express-corp-ca11-2009.