Brown v. Select One, Inc

CourtDistrict Court, N.D. Illinois
DecidedJuly 12, 2024
Docket1:24-cv-00903
StatusUnknown

This text of Brown v. Select One, Inc (Brown v. Select One, 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
Brown v. Select One, Inc, (N.D. Ill. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Jasmine Brown,

Plaintiff, No. 24 CV 903 v. Judge Lindsay C. Jenkins Select One, Inc., et al.

Defendants.

MEMORANDUM OPINION AND ORDER Plaintiff Jasmine Brown, individually and on behalf of all other similarly situated delivery drivers, sued Select One, Inc., and its manager, Daniel Georgievski (collectively, “Defendants”). Brown alleges Defendants misclassify drivers like him as independent contractors as opposed to employees, and through that misclassification, Defendants engage in a series of unlawful payment practices in violation of the Illinois Wage Payment and Collection Act (“IWPCA”), the Fair Labor Standards Act (“FLSA”), and the common law tort of unjust enrichment. Before the Court are Defendants’ motion to dismiss Brown’s complaint on the merits, and Brown’s motion for conditional certification of his FLSA collective. For the reasons stated herein, the Court denies Defendants’ motion and grants Brown’s. I. Background The Court takes Plaintiffs’ well-pleaded factual allegations as true for purposes of ruling on the motion to dismiss. See Smith v. First Hosp. Lab’ys, Inc., 77 F.4th 603, 607 (7th Cir. 2023). Jasmine Brown, a North Carolina resident, provided trucking services for Select One—a “customer-focused trucking company”—from roughly January 2021 until May 2023. [Dkt. 1 ¶¶ 4, 6.] Defendant Georgievski is a “Manager” of Select One who “possesses and exercises the authority to make or participate in decisions concerning drivers’ compensation; implement and enforce rules affecting

the material terms of drivers’ work, employment, and compensation; hire drivers, supervise their work, and impose discipline on them.” [Id. ¶ 7.] During his tenure, Brown was obligated to sign contracts with Select One which classified him as an independent contractor. Notwithstanding this status, Brown alleges Select One had considerable oversight over the execution of his duties. For example, Brown was required to lease a truck and trailer from Select One, both

of which had Select One insignia. Brown worked up to 70 hours per week with Select One, and did not have any other employment. Brown had to routinely contact Select One’s dispatchers to receive instructions on when loads should be picked up, and where they should be delivered. Brown also had to abide by various Select One policies, report to Select One staff, and use their equipment. If equipment needed to be repaired, Brown had to use Select One’s maintenance staff. Select One did not permit Brown or other drivers to have their own customers; all business had to come

from Select One. Brown had to inform Select One in advance if he wanted to take time off. Brown alleges that the collective amount of control Select One has over him and other drivers renders them employees. [Id. ¶¶ 14-18, 24-32.] As for payment, Brown received a “percentage-of-the-load basis” for each delivery. But Select One also made deductions from Brown’s pay, including for “insurance, fuel, truck and trailer rental, escrow, maintenance and repairs, highway taxes, IFTA payments, and GPS.” These deductions often totaled several thousand dollars per week. Nor was Brown reimbursed for out-of-pocket expenses he incurred while driving, such as cell phone payments or maintenance. With the deductions,

Brown alleges he often made less than minimum wage while driving for Select One in violation of the FLSA. Indeed, for multiple “pay” periods, Brown’s statement indicated he owed Select One money. [Id. ¶¶ 19-23.] Based on his mischaracterized employment status and unlawful wage deductions, Brown filed this lawsuit against Select One on behalf of himself and all other drivers who were subject to these policies. Brown seeks to represent an IWPCA

class of individuals “who have either been classified as independent contractors or have not been paid or treated as employees during the relevant statutory period.” Brown also wants to certify a collective under the FLSA for those “who worked as delivery drivers for Select One during the past three years” and did not receive minimum wage. [Id. ¶¶ 33, 39-40; Dkt. 18.] Defendants have moved to dismiss Brown’s complaint in its entirety. Defendants argue Brown has failed to allege an FLSA claim because has not

demonstrated how his independent contractor status is erroneous. Defendants also contend that he cannot bring an IWPCA because he is not an Illinois resident, and that Illinois does not recognize unjust enrichment as an independent tort. Additionally, Defendants contend Defendant Georgievski cannot be liable under the FLSA or IWPCA because he is not an employer. [Dkt. 13.] II. Motion to Dismiss At the motion to dismiss stage, the Court takes well-pleaded factual allegations as true and draws reasonable inferences in favor of the plaintiff. Choice v. Kohn L.

Firm, S.C., 77 F.4th 636, 638 (7th Cir. 2023); Reardon v. Danley, 74 F.4th 825, 826- 27 (7th Cir. 2023). “To survive a motion to dismiss under Rule 12(b)(6), plaintiff’s complaint must allege facts which, when taken as true, plausibly suggest that the plaintiff has a right to relief, raising that possibility above a speculative level.” Cochran v. Ill. State Toll Highway Auth., 828 F.3d 597, 599 (7th Cir. 2016) (cleaned up). A plaintiff’s claim must be “plausible, rather than merely speculative,” which requires a plaintiff to allege “just enough details about the subject matter of the case

to present a story that holds together.” Russell v. Zimmer, Inc., 82 F.4th 564, 570-71 (7th Cir. 2023) (cleaned up). “If the complaint is plausible, the plaintiff receives the benefit of imagination, so long as the hypotheses are consistent with the complaint.” Brant v. Schneider, Nat’l, Inc., 43 F.4th 656, 664 (7th Cir. 2022). A. Sufficiency of Brown’s FLSA Allegations To state an FLSA claim, a plaintiff must allege that he was engaged in commerce, that he did not receive the federally mandated minimum wage for at least

one week, and that he was an “employee”; independent contractors cannot avail themselves of the FLSA. Brant, 43 F.4th 656 at 664; Simpkins v. DuPage Housing Authority, 893 F.3d 962, 964 (7th Cir. 2018). Defendants take issue with this last requirement, arguing Brown has failed to allege facts which permit the inference he was an employee. [Dkt. 13 at 4-6.]1 To determine whether an individual qualifies as an employee, courts look to

the “totality of the circumstances, with the ultimate goal of determining the ‘economic reality of the working relationship.’” Simpkins, 893 F.3d 962, at 964 (quoting Vanskike v. Peters, 974 F.2d 806, 808 (7th Cir. 1992)). An employee-employer relationship exists where the employee is “dependent upon the business to which they render service.” Sec’y of Labor, U.S. Dep’t of Labor v. Lauritzen, 835 F.2d 1529, 1534 (7th Cir. 1987). Courts construe this term “expansively”, Simpkins, 893 F.3d 962, at

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Bluebook (online)
Brown v. Select One, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-select-one-inc-ilnd-2024.