Balasanyan v. Nordstrom, Inc.

294 F.R.D. 550, 2013 WL 4517821
CourtDistrict Court, S.D. California
DecidedAugust 12, 2013
DocketNos. 3:11-cv-2609-JM (WMC), 3:10-cv-2671-JM (WMC)
StatusPublished
Cited by8 cases

This text of 294 F.R.D. 550 (Balasanyan v. Nordstrom, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balasanyan v. Nordstrom, Inc., 294 F.R.D. 550, 2013 WL 4517821 (S.D. Cal. 2013).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTIONS FOR CLASS CERTIFICATION OF THE PROPOSED CALIFORNIA CLASSES, DENYING PLAINTIFFS’ MOTION FOR CERTIFICATION OF THE NATIONWIDE CLASS, AND STRIKING BOEDEKER’S REPORT

JEFFREY T. MILLER, District Judge.

On March 6,2013, plaintiffs Gino Maraventano, Neesha Kurji, Gina Balasanyan, and Nune Nalbandian (together, “Plaintiffs”) filed a motion to certify classes in two proposed class action lawsuits, Case No. 3:11-cv-2609 (“Balasanyan”) and Case No. 3:10-cv-2671 (“Maraventano”) against Nordstrom, Inc. (“Nordstrom”). The Balasanyan complaint was originally filed in Los Angeles Superior Court on April 5, 2011, then removed to federal court, and later transferred to this district on November 9, 2011. The Maraventano complaint was originally filed in San Diego Superior Court, North County, in October 2010 and was removed to this court in December 2010. For the reasons stated below, the motions for certification are granted for the proposed California classes and subclass and denied for Balasanyan’s proposed nationwide class. In addition, the Boedeker Declarations (Maraventano, Dkt. 99, Attachment 5; Balasanyan, Dkt. 91, Attachment 8), which were submitted by Nordstrom, are stricken for failure to comply with Magistrate Judge William McCurine, Jr.’s orders requiring that expert reports be disclosed by January 18, 2013 (Balasanyan, Dkt. 71 as modified by Maraventano, Dkt. 78).

I. BACKGROUND

A. Nordstrom’s Compensation Structure

1. Commission Compensation with Minimum Draw Guarantee

Nordstrom’s salespeople are paid on commission rather than at an hourly rate. Mara[554]*554ventano First Amended Complaint (“MFAC”) ¶ 11. However, Nordstrom’s salespeople are guaranteed a “minimum draw,” or an average pre-determined hourly rate, whether or not they sell merchandise. Maraventano Motion for Class Certification (“MMCC”) at 2. Nordstrom calculates each salesperson’s commissions at the end of each period and compares their commissions with the guaranteed minimum draw that they would have received had they been working at an hourly rate. MFAC ¶ 21; Balasanyan Second Amended Complaint (“BSAC”) ¶¶ 12-15. If a given employee’s commissions per selling hour equals or exceeds their guaranteed minimum, Nordstrom pays commissions. MFAC ¶ 21; BSAC ¶ 51. If that employee’s commissions per selling hour do not equal or exceed the guaranteed minimum draw rate, Nordstrom pays the employee with his or her commission plus the amount necessary to bring them to the guaranteed minimum draw rate for all sell time. MFAC ¶ 21; BSAC ¶ 51. For example, if the minimum draw rate was $10.85 per hour and the employee was working 10 hours, an employee would need to make over $108.50 in commissions to be paid solely on commissions and earn above the minimum draw. Otherwise, the employee would be paid $10.85 per hour for his or her time.

2. Pre-Opening and Post-Closing Hours

Sell time can include up to 40 minutes of pre-opening and post-closing time. MFAC ¶¶ 14-18; BSAC ¶¶ 12-15. Pre-opening and post-closing activities include writing thank you notes to customers, addressing invitations to customers regarding upcoming sales events, calling customers to thank them for their business, attending store rallies and certain meetings, walking the sales floor to familiarize him or herself with merchandise, putting away shoes that customers did not purchase, putting shoes on display, organizing mismatched shoes, taking tissue paper out of shoes, and cleaning and dusting tables on the sales floor.

Plaintiffs claim that they were unable to make sales during the pre-opening and post-closing hours included in sell time because the stores were not open and that this time should have therefore been considered non-sell time.1 However, Nordstrom claims that its doors are generally open 10 minutes before the posted opening time and closed 10 minutes after the posted closing time. MMCC at 4; Balasanyan Motion for Class Certification (“BMCC”) at 4. Plaintiffs dispute this claim. MMCC at 4; BMCC at 4. But even if Nordstrom stores opened 10 minutes before posted opening and closed 10 minutes after posted closing, Plaintiffs explain that they were purportedly still unable to earn commissions during the additional 30 minutes that they were required to work before opening or after closing. MMCC at 4.

3. Stock Assignments

In addition to pre-opening and post-closing hours, sell time can include up to 30 minutes of daily stock assignments. MFAC ¶ 21; BSAC ¶ 12. Managers give stock assignments during pre-opening and post-closing time as well as during store operating hours. BMCC, Nalbandian Deck ¶ 11; Answer to BSAC ¶ 13 (conceding that stock assignments “sometimes occur before the store doors open to the public or after the store is closed to the public”). Plaintiffs further allege that stock assignments occurred each shift and lasted, on average, between fifteen (15) and forty-five (45) minutes. BMCC, Boenzi Deck ¶ 6; BMCC, Nalbandian Deck ¶ 11; BMCC, Balasanyan Deck ¶ 13.

Stock assignments may include “checking merchandise, preparing the sales floor, opening and closing registers, putting away and [555]*555taking out merchandise onto the sales floor and picking up or dropping off alterations, along with a variety of other sales-related activities.” Answer to BSAC ¶ 13. By Nordstrom’s own definition, salespeople are not available to service customers during these assignments.2 MMSJ, Ex. 9 at 21. Accordingly, Plaintiffs claim that they were precluded from making any sales during stock assignments. BSAC ¶35. However, Plaintiffs’ numerous declarations vary widely in this regard.3

While Nordstrom’s official policy provides that salespeople may be asked to perform up to 30 minutes of stocking per shift, compensated only with commission, Nordstrom insists that stock assignments do not preclude employees from making sales and are not uniformly assigned once per shift.4 Opp. BMCC at 6:3-17; Opp. BMCC at 13:2-8. In fact, Nordstrom insists stock assignments come second to assisting customers and occur only infrequently if at all. Id. Nordstrom claims that many draw commission employees do not receive stock assignments and that the assignments vary greatly from department to department in terms of frequency, duration, and tasks performed.5

4. Non-Sell Time

Nordstrom’s policy provides that employees should be compensated at an hourly rate for all non-sell time, which includes pre-opening and post-closing activities in excess of 40 minutes, stock assignments in excess of 30 minutes, and meetings.6 MFAC ¶ 21; BSAC ¶ 16. Specifically, Nordstrom policy states that “[mjeetings are considered non-sell hours. This means meetings are paid at [an employee’s] non-sell hourly rate and are not [556]*556included in the calculation of [that employee’s] commission.” BMCC, Ex. 5 at 82.

However, the Balasanyan Plaintiffs claim that Nordstrom violated its own policy by regularly requiring employees to attend “staff meetings” and to perform stock assignments and pre-opening and post-closing assignments without allowing them to clock-in at their hourly rates. Specifically, the Balasanyan

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Bluebook (online)
294 F.R.D. 550, 2013 WL 4517821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balasanyan-v-nordstrom-inc-casd-2013.