Brennan v. IES Energy Solutions, LLC

CourtDistrict Court, N.D. Ohio
DecidedSeptember 28, 2021
Docket3:20-cv-01965
StatusUnknown

This text of Brennan v. IES Energy Solutions, LLC (Brennan v. IES Energy Solutions, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. IES Energy Solutions, LLC, (N.D. Ohio 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO WESTERN DIVISION

Thomas Brennan, Case No. 3:20-cv-1965

Plaintiff,

v. MEMORANDUM OPINION AND ORDER

IES Energy Solutions, LLC,

Defendant.

I. INTRODUCTION Before me is the motion of Plaintiff Thomas Brennan for a default judgment. (Doc. No. 7). Brennan moved for a default judgment after the Clerk of Court entered a default on November 18, 2020. (Doc. No. 5). Brennan seeks $165,330.40 in damages, $77,454.90 in attorney’s fees, $541.67 in costs, and post judgment interest under 28 U.S.C. § 1961. (Id.). For the reasons that follow, Brennan’s motion for default judgment is granted in part and denied in part. II. BACKGROUND Brennan alleges he worked for Defendant IES Energy Solutions, LLC, from around June 2018 to July 22, 2020. (See Doc. No. 1). Defendant is headquartered in Toledo, Ohio, but provides various insulation services to individual homeowners, commercial building owners, engineers, architects and consultants, builders, general contractors, and Heating Ventilation and Air Conditioning (“HVAC”) companies located in Michigan and Ohio. Around June of 2018, Defendant employed Brennan to market Defendant’s services to potential customers – or “leads” – which Defendant would generate. Brennan would also distribute Defendant’s marketing materials in certain neighborhoods. The work Brennan performed was the primary way in which Defendant secured customers to apply for its services. Defendant required Brennan to work from 9:00 a.m. to 9:00 p.m., Monday through Saturday. Brennan worked exclusively for Defendant during this time. Brennan was not permitted to take any time off from work without Defendant’s permission. Around the time he was hired, Brennan was required to undergo two and a half weeks of

training, which took place Monday through Friday, for between four to five hours a day. This training covered information about Defendant and the industry’s background, procedures to follow when presenting Defendant’s services to potential customers, and other various sales techniques. Defendant also provided Brennan with a “pitch book” as part of this training, which was a set of detailed scripts that Brennan was required to follow when making pitches to potential customers. These scripts differed depending on the particular service being marketed. Brennan was instructed to memorize the words in these scripts and to employ certain body language when giving them. Defendant held mandatory weekly meetings where Brennan and others like him discussed and analyzed new sales techniques, participated in sales role-play, and provided reports about potential customers that did not ultimately sign up for Defendant’s services. Brennan was never paid for his participation in the mandatory weekly meetings. Brennan alleges that a typical day for him consisted of meeting with four different leads, with each meeting occupying a three-hour window in Brennan’s day. The leads were always

generated and assigned to Brennan by Defendant, who would provide specific instructions regarding the services to market to each lead. Brennan drove between 300 to 400 miles a day and was responsible for all job-related expenses, including automobile costs, maintenance, depreciation, gasoline expenses, insurance, cell phone charges, and other equipment. When Brennan met with these leads, those interested in purchasing services from Defendant would be required to submit an application. Defendant had sole discretion over whether to accept the application and provide services, and on several occasions a potential customer that Brennan convinced to apply was rejected by Defendant for reasons outside Brennan’s control. Brennan was paid on a sliding-scale commission basis, which paid Brennan a percentage of profits that ranged from 5% to 9% for each job. The commission amount was non-negotiable and would not be paid

until after the installation or service it was based on had been completed. This meant that even though paychecks were supposed to be distributed every Friday, there were weeks where Brennan received no pay at all. As a result, there were many times where Brennan was not paid the minimum wage for all hours worked in a given workweek, as well as times where Brennan was not paid overtime pay for all hours that Brennan worked over 40 in a given workweek. On July 22, 2020, Brennan complained to Defendant that he wanted to be “a W-2 employee instead of a 1099 independent contractor” and notified Defendant he wanted to receive the benefits afforded to IES employees, including “health insurance, workers’ compensation, unemployment aid, COVID-19 aid, and reimbursement of certain expenses. (Doc. No. 1 at 7). Later that day, Defendant effectively terminated Brennan, telling him: “‘Your[sic] an independent Salesperson 1099. . . You don’t[sic] get benefits . . . Your # is being blocked only contact is calling office . . . you are no longer allowed on our property at all.’” (Id.). III. STANDARD

“Once a default is entered against a defendant, that party is deemed to have admitted all of the well pleaded allegations in the Complaint.” Poskovic v. D2 Mgmt., LLC, No. 5:19-cv-1222, 2019 WL 6727098 at *1 (N.D. Ohio Dec. 11, 2019) (quoting Ford Motor Co. v. Cross, 441 F. Supp. 2d 837, 846 (E.D. Mich. 2006)). While the factual allegations relating to liability are taken as true, the court must still determine whether those facts are sufficient to state a claim for relief. Zinganything, LLC v. Imp. Store, 158 F. Supp. 3d 668, 672 (N.D. Ohio 2016). And if the plaintiff has successfully stated one or more claims for relief, the court must conduct an inquiry to ascertain the amount of damages with reasonable certainty. See Vesligaj v. Peterson, 331 F. App’x 351, 355 (6th Cir. 2009) (explaining that because the allegations in the complaint with respect to damages are not deemed true, “[t]he district court must [] conduct an inquiry in order to ascertain the amount of damages with reasonable certainty.”) (quoting Credit Lyonnais Sec. (USA), Inc. v. Alcantara, 183 F.3d 151, 155 (2d Cir.

1999)) (further citation omitted). IV. DISCUSSION Brennan brings a total of seven different wage and hour claims. Six of these are minimum wage and overtime pay claims brought under the Fair Labor Standards Act (FLSA) (counts I and II), Ohio Minimum Wage Fair Standards Act (OMWFSA) (counts III and IV), and Michigan Workforce Opportunity Wage Act (WOWA) (count VI and VII). The remaining claim is for untimely payment of wages in violation of the Ohio Prompt Pay Act (OPPA) (count V). Brennan also brings retaliation claims under the FLSA (count VIII) and the Ohio Constitution (count IX), as well as a claim for unjust enrichment, (count X). A. WAGE AND HOUR CLAIMS 1. Employer Status As a threshold issue, for Brennan to succeed on any of his wage and hour claims, Brennan must show that Defendant was his employer. The same analysis will apply to whether Brennan is an

employee for all of his wage and hour claims.1

1 See Thomas v. Speedway SuperAmerica, LLC, 506 F.3d 496, 501 (6th Cir. 2007) (explaining that Ohio’s minimum wage and hour statute “expressly incorporates the standards and principles found in the FLSA.”); see also Dikker v. 5-Star Team Leasing, LLC, 243 F. Supp. 3d 844, 854 n.3 (W.D. Mich.

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Bluebook (online)
Brennan v. IES Energy Solutions, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-v-ies-energy-solutions-llc-ohnd-2021.