Blondeau v. MedStream Anesthesia, PLLC

CourtDistrict Court, W.D. North Carolina
DecidedMarch 18, 2024
Docket1:23-cv-00114
StatusUnknown

This text of Blondeau v. MedStream Anesthesia, PLLC (Blondeau v. MedStream Anesthesia, PLLC) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blondeau v. MedStream Anesthesia, PLLC, (W.D.N.C. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA ASHEVILLE DIVISION CIVIL CASE NO. 1:23-cv-00114-MR-WCM

JOANNA BLONDEAU, individually ) and on behalf of all others similarly ) situated, ) ) Plaintiff, ) ) vs. ) MEMORANDUM OF ) DECISION AND ORDER MEDSTREAM ANESTHESIA, PLLC, ) ) Defendant. ) _______________________________ )

THIS MATTER is before the Court on Plaintiff’s Motion for Conditional Class Certification [Doc. 26]. I. PROCEDURAL BACKGROUND Joanna Blondeau (“Blondeau”) commenced this action by filing her Complaint on April 25, 2023. [Doc. 1]. Blondeau alleges that MedStream Anesthesia, PLLC (“MedStream”), misclassified her and its other Certified Registered Nurse Anesthetists (“CRNAs”) as independent contractors to avoid paying overtime wages required by the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201, et seq. [Id. at ¶¶ 19, 33-34]. MedStream filed its answer, denying Blondeau’s allegations, on June 20, 2023. [Doc. 8 at ¶ 19, 33-34]. On November 10, 2023, Blondeau moved for conditional certification of the following collective:

All Certified Registered Nurse Anesthetists (CRNAs) who have worked over 40 hours in a workweek for at least one week for Medstream Anesthesia, PLLC as an independent contractor or contracted through Pivot Healthcare at any time since three years prior to the filing of this Complaint through judgment.1

[Docs. 26; 27 at 15]. MedStream responded on December 15, 2023, and Blondeau replied on December 29, 2023. [Docs. 29; 30]. Having now been fully briefed, Blondeau’s Motion for Conditional Certification [Doc. 26] is ripe for disposition. II. FACTUAL BACKGROUND From approximately May of 2020 through December of 2022, Blondeau worked at Hilton Head Hospital as a CRNA on behalf of MedStream. [See Docs. 8 at ¶¶ 6-7; 28 at ¶ 2]. MedStream entered exclusive contracts with hospitals around the country to provide them with anesthesia related services. [Doc. 27-2 at 35:15-36:4]. To fulfill these agreements, it was MedStream’s “business model” to hire CRNAs as independent contractors and to assign them to work in specific contracting

1 Blondeau does not allege any claims against Pivot Healthcare (“Pivot”) in her Complaint. [See generally Doc. 1]. However, in her memorandum accompanying her motion for conditional certification, she contends that MedStream, at minimum, jointly employed a group of CRNAs with Pivot. [See Doc. 27 at 15-16 n.3]. hospitals. [Docs. 1 at ¶¶ 16-17; 27-2 at 75:2-5]. MedStream and Blondeau’s business, Joanna M. Blondeau, P.A., entered an “Independent Contractor

Agreement for Professional Services” that governed her work for MedStream.2 [Doc. 27-4]. MedStream paid its independent contractor CRNAs a fixed hourly rate, but it did “not pa[y] overtime compensation as

defined as time and-a-half their regular rate for hours over 40[.]” [Doc. 27-2 at 86:19-21, 87:7-12]. However, in May of 2017, MedStream began “losing” CRNAs who did not wish to work as independent contractors. [Id. at 74:18-75:1].

Accordingly, Lance Player, MedStream’s Chief Executive Officer, and two of its other employees, formed a new entity, Pivot, that started hiring CRNAs

2 The parties do not specifically address what effect, if any, the fact that Blondeau worked for MedStream through her personal business has on her claims under the FLSA. However, to give effect to its broad remedial purpose, the FLSA must be interpreted expansively and in such a way that substance is prized over form. See Emmons v. City of Chesapeake, 982 F.3d 245, 251 (4th Cir. 2020). The Supreme Court has noted that the FLSA’s definitions of key terms are some of “the broadest definition[s] that ha[ve] ever been included in any one act.” United States v. Rosenwasser, 323 U.S. 360, 363 n.3 (1945); see also Nationwide Mut. Ins. Co. v. Darden, 503 U.S. 318, 326 (1992). Indeed, “employ” is defined as “to suffer or permit to work[,]” 29 U.S.C. § 203(g), “employee” is defined as “any individual employed by an employer,” id. at § 203(e)(1), and “employer” is defined as “any person acting directly or indirectly in the interest of an employer in relation to an employee . . . .” Id. at § 203(d). Given these broad definitions, “an individual may be the employee of more than one employer at a . . . time.” Jacobson v. Comcast Corp., 740 F. Supp. 2d 683, 688 (D. Md. 2010) (citing Schultz v. Cap. Int’l Sec., Inc., 466 F.3d 298, 305 (4th Cir. 2006)). As such, it is entirely possible that Blondeau worked for her own business while also being employed by MedStream. Moreover, MedStream appears to recognize this, as it concedes that conditional certification of a collective action including Blondeau is appropriate in this matter. [See Doc. 29 at 1-2]. exclusively as W2 employees. [Id. at 43:12-44:22, 74:11-75:14]. Pivot entered agreements with MedStream so that its CRNAs worked in the

hospitals that contracted with MedStream. [Id. at 45:20-46:3]. Pivot paid its employee CRNAs “a fixed base salary every two weeks,” which it calculated “based on the expectation they[] [were] going to work 46 weeks [per year],

five days [per week], [and] eight hours [per day].” [Id. at 85:5-14]. However, Pivot defined its employee CRNAs’ hourly rate of pay in their contracts and at the end of the year, if a CRNA worked more or less than expected, they were compensated for additional time, or “ha[d] to pay . . . back” excess

compensation, at their hourly rate. [Id. at 85:21-86:18]. III. STANDARD OF REVIEW The FLSA “embodies a federal legislative scheme to protect covered

employees from prohibited employer conduct.” Dearman v. Collegiate Hous. Servs., No. 5:17-cv-00057-RJC-DCK, 2018 WL 1566333, at *2 (W.D.N.C. Mar. 30, 2018) (quoting Houston v. URS Corp., 591 F. Supp. 2d 827, 831 (E.D. Va. 2008)). Section 216 of the FLSA provides that an employee

subject to a violation of the FLSA may bring suit on behalf of herself and similarly situated employees. 29 U.S.C. § 216(b). Specifically, § 216(b) states that:

An action to recover the liability prescribed in the preceding sentences may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and on behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.

Id. Accordingly, certification as a collective action under the FLSA requires: (1) that employees in the collective action be “similarly situated”; and (2) that all collective action members opt-in to the action by filing written consents. Dearman, 2018 WL 1566333, at *2. While the Fourth Circuit has not established a process to determine whether prospective members are “similarly situated,” courts in this Circuit generally follow a two-step approach. See id. (collecting cases).

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