Bergman v. Kindred Healthcare, Inc.

949 F. Supp. 2d 852, 2013 WL 2632596, 2013 U.S. Dist. LEXIS 82238
CourtDistrict Court, N.D. Illinois
DecidedJune 11, 2013
DocketNo. 10 C 191
StatusPublished
Cited by53 cases

This text of 949 F. Supp. 2d 852 (Bergman v. Kindred Healthcare, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bergman v. Kindred Healthcare, Inc., 949 F. Supp. 2d 852, 2013 WL 2632596, 2013 U.S. Dist. LEXIS 82238 (N.D. Ill. 2013).

Opinion

OPINION AND ORDER

WILLIAM T. HART, District Judge.

This is a nationwide collective action alleging violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and an Illinois state law putative class action based on the application of an automatic 30-minute meal break deduction policy without ensuring that employees do not work through all or part of their meal break. This court has original jurisdiction over plaintiffs’ FLSA claims pursuant to 29 U.S.C. § 216(b) and 28 U.S.C. § 1331. Jurisdiction over the state law claims purportedly exists pursuant to the Class Action Fairness Act of 2005 (“CAFA”), 28 U.S.C. § 1332(d)(2), because the Illinois plaintiffs and members of the purported classes include citizens of a state different than one or more defendants and the matter in controversy exceeds the sum or value of $5,000,000. However, it would appear that jurisdiction under CAFA is excluded because more than two-thirds of the class members are citizens of Illinois,1 defendant Kindred Chicago Lakeshore is a citizen of Illinois, and the principal injuries and related conduct occurred in Illinois. 28 U.S.C. § 1332(d)(4)(A). But even if that exclusion applies, this court would have supplemental jurisdiction of the state law claims pursuant to 28 U.S.C. § 1367(a). Daprizio v. Harrah’s Las Vegas, Inc., 2010 WL 3259920 *2 (D.Nev. Aug. 17, 2010). But compare Beye v. Horizon Blue Cross Blue Shield of N.J., 568 [854]*854F.Supp.2d 556, 572 n. 22 (D.N.J.2008) (dictum ).2

Plaintiff Peter Bergman (“Bergman”) filed this action against Kindred Healthcare, Inc., Kindred Chicago Lakeshore, and Doe defendants 1-10. Subsequently two other actions (one filed in this court and one transferred from the Eastern District of Michigan) were consolidated with this action adding plaintiffs Bobbie Cason (“Cason”) and Lisa Smith (“Smith”). See Docket Entry 35, 45. Thereafter leave to file an amended complaint was granted adding defendant Kindred Healthcare Operating, Inc. (“KHOI”). As a result of the consolidations and amendments the defendants named in the Third Amended Complaint are Kindred Healthcare, Inc. (“KHI”); Kindred Healthcare Operating, Inc. (“KHOI”); Kindred Chicago Lake-shore (“Lakeshore”), a subsidiary of KHOI; and Kindred Hospitals East, LLC (“KHE”), which operates Kindred-Detroit. (For convenience the defendants will be referred to collectively as “Kindred.”) Mira Bhuiyan, Jennifer Cabulong, Kenya Hawk, Ben Philip Ginsberg, Amelia Wesseh, and Lisa Pigecella subsequently consented to join the case. See Docket Entry 75, 76, 80, 89, 103. In 2012, Cason withdrew her personal claims without prejudice.

Kindred has approximately 55,000 employees in the United States. On January 12, 2007, there were approximately 10,000 hourly employees working at 74 Kindred facilities in 23 different states. Kindred Healthcare is the largest diversified provider of post-acute care services in the United States. Entities owned by KHOI are divided into three divisions: the Hospital Division, the Nursing Center, and the Rehabilitation Division.

It is alleged that this action is filed on behalf of phlebotomists, business office managers, admission coordinators and officers, receptionists, secretaries, housekeepers, custodians, clerks, porters, registered nurses, licensed practical nurses, nurses’ aides, administrative assistants, anesthetists, clinicians, medical coders, medical underwriters, nurse case managers, nurse interns, nurse practitioners, practice supervisors, professional staff nurses, quality coordinators, resource pool nurses, respiratory therapists, senior research associates, operating room coordinators, surgical specialists, admission officers, student nurse technicians, trainers, transcriptionists, and all other non-exempt individuals who are employed at any of defendants’ facilities and subject to the automatic meal break deduction policy.

Because of the represented magnitude of this case and the expenses it will and could impose, plaintiffs were granted more than 11 months to take discovery with respect to the certification issue. They have taken three Rule 30(b)(6) depositions and served two sets of interrogatories and requests for the production of documents. Defendants have produced over 5,800 pages of documents. Three requests for the extension of discovery have been granted. See Docket Entry 26, 40, 57, 88. Defendants have submitted 34 declarations of putative class members who represent 25% of the employees at Lakeshore. The parties have also submitted opposing charts analyzing the information gathered. All of this has been accompanied by oversized briefs.3

[855]*855The case is now before the court on plaintiffs’ motion for conditional certification of a collective action in order to issue a notice to opt-ins pursuant to the FLSA and for certification of classes, pursuant to Fed.R.Civ.P. 23, for their state law claims. The state law claims are under the Illinois Minimum Wage Law (“IMWL”), 820 ILCS 105, and the Illinois Wage Payment Collection Act (“IWPCA”), 820 ILCS 115, or, alternatively, under Illinois common law for unjust enrichment. Plaintiffs have also moved for equitable tolling of the FLSA statute of limitations applicable to opt-ins. Defendants moved for summary judgment, but briefing on that motion was held in abeyance.

Plaintiffs propose an IMWL Class defined as:

All persons employed by Defendants at any of their Illinois facilities at any time since January 12, 2007, who worked in excess of forty (40) hours in any individual workweek, whose pay was subject to an automatic 30-minute meal period deduction even when they performed compensable work during the unpaid “meal break,” and who were not paid for all overtime worked, including such uncompensated meal break time, at a rate of one and one-half times their regular rate of pay.

Plaintiffs’ proposed IWPCA Class definition is:

All persons employed by Defendants at any of their Illinois facilities at any time since January 12, 2000, who worked fewer than forty (40) hours in any individual workweek, whose pay was subject to an automatic 30-minute meal period deduction even when they performed compensable work during the unpaid “meal break,” and who were not paid for all time worked, including such uncompensated meal break time.

Alternatively, plaintiffs move for certification of a common law unjust enrichment claim class.

Today’s ruling will only resolve FLSA collective action issues.

The FLSA provides that an action may be maintained against an employer by any one or more employees in behalf of himself and other employees similarly situated. Woods v.

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Bluebook (online)
949 F. Supp. 2d 852, 2013 WL 2632596, 2013 U.S. Dist. LEXIS 82238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bergman-v-kindred-healthcare-inc-ilnd-2013.