Banks v. First Student Management LLC

237 F. Supp. 3d 397, 2017 WL 616433, 2017 U.S. Dist. LEXIS 21422
CourtDistrict Court, E.D. Louisiana
DecidedFebruary 15, 2017
DocketCIVIL ACTION NO. 16-4316
StatusPublished
Cited by3 cases

This text of 237 F. Supp. 3d 397 (Banks v. First Student Management LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banks v. First Student Management LLC, 237 F. Supp. 3d 397, 2017 WL 616433, 2017 U.S. Dist. LEXIS 21422 (E.D. La. 2017).

Opinion

ORDER AND REASONS

KURT D. ENGELHARDT, UNITED STATES DISTRICT JUDGE

Presently before the Court is “Defendants’ Motion to Dismiss Counts I, III, and IV of Plaintiffs’ First Amended Complaint” (Rec. Doc. 19) filed by First Student Management LLC and First Student Management, Inc. (collectively “First Student”). Plaintiffs1 have opposed the motion [400]*400(Rec. Doc. 22), and'First Student has submitted a “Reply to Plaintiffs’ Opposition, to Defendants’ -Motion to Dismiss”,(Rec. Doc. 25). .

Having carefully considered the parties’ supporting and opposing submissions and applicable law, IT IS ORDERED that First Student’s motion is GRANTED for the reasons stated herein.

I. BACKGROUND

The instant suit arises out of an employment dispute between First Student and bus drivers and driver assistants employed by First Student. On May 6, 2016, Plaintiffs (the drivers and driver assistants) filed a Complaint (Rec. Doc. 1) in this Court alleging four causes of action relating to their employment with First Student, including claims under the Fair Labor Standards Act (“FLSA”). Thereafter, Plaintiffs filed a First Amended Complaint (Rec. Doc. 14) naming additional Plaintiffs but alleging the same four causes of action, which are: (I) FLSA-Claim for Unpaid Time at a Regular Rate of Pay; (II) FLSA-Overtime Claim; (III) Breach of Contract-Straight Time Claim; and (IV) Breach of Contract-Overtime Claim. (Rec. Doc. 14).

Thereafter, First Student filed “Defendants’ Motion to Dismiss Counts I, III, and IV of Plaintiffs’ First Amended .Complaint” (Rec. Doc. 19). With regards to Count I, First Student, alleges that this claim should be dismissed, as “it purports to seek damages for straight time damages under the FLSA.” (Rec. Doc. 19-1): Specifically, First Student argues that courts within the Fifth Circuit do not “entertain” causes of action under the FLSA that seek to recover straight time pay, unless those rates of pay fall below the minimum wage. Id, In response, Plaintiffs claim that First Student misstates the law, and “the FLSA does permit a claim for straight time pay when an allegation has been made that an employee worked in excess of 40 hours in a workweek and did not receive appropriate overtime compensation.” (Rec. Doc. 22). However, in its reply, First Student explains that such an argument relies solely on cases that interpret rights under contracts for defined minimum paid hours and rates, creating a contractual right to gap time “up and above” the FLSA requirements. (Rec. Doc. 25).

As for Count III, the breach of contract claim for'straight time wages, First Student makes-several arguments in support of dismissal. First, it argues that such claim should be dismissed with prejudice, as these claims are preempted by Section 301(a) of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185 et seq. (“Section 301”). (Rec. Doc. 19-1). In particular, First Student asserts that Section 301 is the exclusive remedy for a claim under state law to remedy an alleged-breach of a collective bargaining agreement. Id. However, if this Court disagrees, First Student alternatively argues t,hat if this claim is not preempted by Section 301, it should dismissed for Plaintiffs’ failure to exhaust their remedies under the “Labor Agreement.” Id. Additionally, First Student argues that if Count III is not dismissed for the two aforementioned reasons, it should be dismissed because Plaintiffs have failed to adequately allege a contract under Louisiana law, apart from the collective bargaining agreement.- Id.

[401]*401In response, Plaintiffs argue that Count III is not preempted by the LMRA, as preemption under Section 301 is not automatically granted whenever there is- a collective bargaining, agreement. (Rec. Doe. 22). Furthermore, Plaintiffs counter that the collective bargaining agreement is evidence supporting a breach of contract action. Id. Plaintiffs argue that not only is the collective bargaining agreement evidence of a contract but the language in the agreement indicates that “[h]ours of work and overtime shall be negotiated at the local level.” Id. (internal quotations omitted). Plaintiffs further allege that the existence of a contract is a finding of fact, and at this early stage of the litigation, it be would “improper to dismiss the breach of contract claims based solely on Defendants’ disingenuous posture that there are no contracts in place relating to their obligation to pay wages to Plaintiffs.” Id.

: In its reply, First Student argues that Count III should be dismissed on three separate grounds. (Rec.'Doc. 25). First, the collective bargaining agreement provides no more protection than the requirements of the FLSA. Id. Second, the claim is preempted by Section 301 because the state law causes of action based upon a collective bargaining agreement, involving the payment of wages, -are “inextricably intertwined with consideration of ■ the terms of the labor contract.” Id. (citing Richter v. Merchants Fast Motor Lines, Inc., 83 F.3d 96, 97 (5th Cir. 1996)) (internal quotations, omitted). Third, the claim should be dismissed because Plaintiffs have not alleged that they have exhausted the grievance procedures that are established within the collective bargaining agreement. Id.

As to Count IV of Plaintiffs’ First Amended Complaint, the breach of contract claim for overtime pay, First Student makes the same arguments mentioned above involving preemption by Section 301 of the LMRA, failure to exhaust any grievance procedures established , by the collective bargaining agreement,-: and Plaintiffs’ failure to adequately allege the existence of a contract under Louisiana law. (Rec. Doc. 19-1). Additionally, First Student also argues that Count IV should, be dismissed because it is preempted by the FLSA. Id. In opposition to these arguments, Plaintiffs assert the same ■ arguments made in regards to iCount III: (1) the breach of contract claim is a properly pled cause of action, and (2) the breach of contract claim is not preempted by Section 301 of the LMRA. (Rec. Doc. 22). Additionally, Plaintiffs argue that Count IV is not preempted by the FLSA, as the state law claim entitles- the employee to compensation above and beyond that to which employees are entitled under the FLSA. Id. In its reply, First Student makes the same three arguments addressed in the preceding paragraph regarding Count. Ill of Plaintiffs’ First Amended Complaint. (Rec. Doc. 25).

II. LAW AND ANALYSIS

In order to survive a motion to dismiss filed pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, the complaint must allege “enough facts to-state a claim to relief that is plausible on its face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that, allows the court to - draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662

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Cite This Page — Counsel Stack

Bluebook (online)
237 F. Supp. 3d 397, 2017 WL 616433, 2017 U.S. Dist. LEXIS 21422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banks-v-first-student-management-llc-laed-2017.