Brandenburg v. Cousin Vinny's Pizza, LLC

District Court, S.D. Ohio·Decided November 25, 2019·No. 3:16-cv-00516·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO WESTERN DIVISION AT CINCINNATI

Thomas Brandenburg, Case No. 3:16-cv-516 On behalf of himself and those similarly situated, Plaintiff, Judge Walter H. Rice Vv. Magistrate Judge Michael J. Newman Cousin Vinny’s Pizza, LLC, et al., Defendants.

ORDER GRANTING PLAINTIFF’S UNOPPOSED MOTION FOR SETTLEMENT APPROVAL

Before the Court are Plaintiff's unopposed motion for final approval of the class action settlement (Doc. 185 and 187) and the oral arguments presented by counsel at the fairness hearing on November 13, 2019. For the reasons stated below, the Court grants Plaintiff's motion.

I. Background This is a wage and hour lawsuit brought on behalf of a class of pizza delivery drivers who worked at the Cousin Vinny’s Pizza stores, Plaintiff originally filed this lawsuit on December 23, 2016. See Complaint, Doc. 1. Plaintiff subsequently moved for FLSA conditional certification (Doc. 5) and class certification (Doc. 162). The Court granted both motions (Doc. 55 and Doc. 169). Plaintiff alleges, on behalf of himself and similarly situated employees, three categories of wage and hour violations under state law and the Fair Labor Standards Act.

First, Plaintiff alleges that Defendants under-reimbursed Plaintiff and similarly situated workers for their expenses related to using their own vehicles to deliver pizzas. See Amended Complaint, Doc. 28, J 211. Specifically, Plaintiff alleges that Defendants did not reimburse the drivers for their actual expenses or reimburse them at the IRS rate. As this Court previously held when evaluating Ohio law, which, in the context of paying wages “free and clear” and without “kickbacks,” uses the same standard as the FLSA, “[bJecause the vehicles owned by the delivery drivers are considered ‘tools of the trade,’ 29 C.F.R. § 531.35, and required by Cousin Vinny’s as a condition of being hired as a delivery driver, there needed to be an adequate reimbursement rate, using either the IRS mileage rate or actual reimbursement of cost, in order to avoid a decrease in the minimum wage and overtime paid.” Brandenburg v. Cousin Vinny’s Pizza, LLC, No. 3:16-cv-516, 2018 WL 5800594, at *4 (S.D. Ohio Nov. 6, 2018)(certifying this case as a Rule 23 class action under Ohio law); see also Hatmaker v. PJ Ohio, LLC, No. 3:17-cv-146, 2019 WL 5725043, at *7 (S.D. Ohio Nov. 5, 2019) (granting summary judgment in favor of pizza delivery drivers and holding that “[a]s a matter of law, the proper measure of minimum wage compliance for pizza delivery drivers is to either (1) track and pay delivery drivers’ actual expenses or (2) pay the mileage reimbursement rate set by the Internal Revenue Service.”). Defendants argue that the reimbursement rate they paid was adequate and, at a minimum, higher than Plaintiff calculated. Second, Plaintiff alleges that, for at least some of the relevant time period, Defendants paid delivery drivers a “tipped wage rate” for work done in a non-tipped capacity. See Amended Complaint, Doc. 28, | 210. In other words, Plaintiff claims that, while his time spent delivering pizzas was part of a “tipped occupation,” his time spent inside the store building pizza boxes, answering phones, and cleaning was part of a “non-tipped occupation.” See 29 C.F.R. 531.56(e)

(describing employees working “dual jobs”). Defendants argue that any time spent in the store was minimal and related to Plaintiff's tipped occupation such that the time may be compensated at a tipped wage rate. Third, Plaintiff brings a claim for unpaid wages under Ohio’s Prompt Pay Act, O.R.C. § 4113.15(B) for the underlying allegedly unpaid wages. See Amended Complaint, Doc. 28, J] 323-325. This claim can “rise and fall” with an underlying violation of another wage requirement. Craig v. Bridges Bros. Trucking LLC, 823 F.3d 382, 385, n. 1 (6th Cir. 2016). The Prompt Pay Act applies to any Ohio employer that “conducts business within the State of Ohio,” including those that, as Defendants do, employ individuals outside of the Ohio. Parks v. Cent. USA Wireless, LLC, No. 1:17-cv-448, 2019 WL 4743648, at *6 (S.D. Ohio Sept. 29, 2019). Finally, Plaintiff also alleges that, after he filed this lawsuit, Defendants retaliated against him by providing a negative reference to prospective employers. See Amended Complaint, Doc. 28, Gf] 333-346.

Il. The Settlement Agreement The parties’ settlement agreement obligates Defendants to pay $1,140,000 to class members who either (1) joined the lawsuit in response to the FLSA notice of conditional certification or (2) submitted a claim form and release in response to the notice of settlement. The settlement amount includes money that will go toward attorney’s fees, expenses, an incentive award, and an amount to settle Plaintiff's personal retaliation claim. Generally speaking, the settlement money is allocated to class members based on (1) when they opted into the case and (2) how many hours they worked. Specifically, those individuals who filed claims earlier may have preserved more of their FLSA claims than those

filing later claim forms.' Thus, it is reasonable to give those individuals a larger share of the settlement fund. In this case, the larger share is a 1.5 share, compared to single share for others. The Court finds that it is equitable to divide the fund in this way. Based on the claim numbers that counsel presented to the Court at the Fairness Hearing, out of approximately 1,354 class members, approximately 34% of the total class either opted in or filed a claim form. After fees, expenses, the incentive award, and the retaliation settlement are deducted, Class Members will receive an average of approximately $1,600 each. Defendants will make the settlement payments in two installments. The first is due at the end of January 2020, and the second is due at the end of January 2021. Money going to Plaintiff and Plaintiff's counsel will also be paid in installments under the same terms as the class members. In exchange for the payments, Plaintiff and the class members release all of their Ohio law claims “that were asserted in the Lawsuit concerning the alleged under-reimbursement of expenses and alleged underpayment of wages for non-tip-related work performed inside the stores, or that could have been asserted in the Lawsuit based upon the same factual allegations concerning the under-reimbursement of expenses and hours worked inside the store in a non- tipped capacity” for the period of December 23, 2013 until April 23, 2019. Plaintiff and all class members who either opted into the case or filed a claim form also release the same claims under the Fair Labor Standards Act.

I. Analysis a. The parties’ settlement is fair and reasonable.

' Arguments for equitable tolling notwithstanding.

Before a district court approves a settlement, the Court must find that the settlement is “fair, reasonable, and adequate.” Johnson v. Midwest Logistics Sys., Ltd., Case No. 2:11-cv- 1061, 2013 WL 2295880, at *4 (S.D. Ohio May 24, 2013) (citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Brandenburg v. Cousin Vinny's Pizza, LLC, (S.D. Ohio 2019).

Brandenburg v. Cousin Vinny's Pizza, LLC (Brandenburg v. Cousin Vinny's Pizza, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Stephenson Ex Rel. Al-Mansoob v. Malloy
700 F.3d 265 (Sixth Circuit, 2012)
In Re Cardinal Health Inc. Securities Litigations
528 F. Supp. 2d 752 (S.D. Ohio, 2007)
Donna Craig v. Bridges Bros. Trucking LLC
823 F.3d 382 (Sixth Circuit, 2016)
China Agritech, Inc. v. Resh
584 U.S. 732 (Supreme Court, 2018)
McHugh v. Olympia Entertainment, Inc.
37 F. App'x 730 (Sixth Circuit, 2002)
Hainey v. Parrott
617 F. Supp. 2d 668 (S.D. Ohio, 2007)
In re Cardizem CD Antitrust Litigation
218 F.R.D. 508 (E.D. Michigan, 2003)
Ramey v. Cincinnati Enquirer, Inc.
508 F.2d 1188 (Sixth Circuit, 1974)