Buckles v. EUBA Corp.

CourtDistrict Court, S.D. Ohio
DecidedMay 17, 2021
Docket3:18-cv-00355
StatusUnknown

This text of Buckles v. EUBA Corp. (Buckles v. EUBA Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckles v. EUBA Corp., (S.D. Ohio 2021).

Opinion

In the United States District Court for the Southern District of Ohio Western Division at Dayton

The Estate of Michael McConnell, On behalf of himself and those Case No. 3:18-cv-00355 similarly situated, Plaintiff, Judge Walter H. Rice V. EUBA Corp. et al., Defendants.

Order and Decision Granting Plaintiff's Motion for Final Settlement Approval

Before the Court is Plaintiff's Motion for Final Approval (Doc. 53) of a settlement on behalf of members of an FLSA collective action and Rule 23 class action. On May 3, 2021, the Court held a Final Fairness Hearing on this matter. Plaintiff's Motion is now ripe for adjudication. I. Background This is a wage and hour lawsuit brought on behalf of a class of delivery drivers at approximately fourteen Domino’s Pizza franchise locations in Ohio. Plaintiff Michael McConnell was one of those drivers. Plaintiff raises a number of claims under the Fair Labor Standards Act, the Ohio Constitution, Article II, Section 34a, the Ohio Minimum Fair Wage Standards Act, O.R.C. 4111.01, et seq., the Ohio Prompt Pay Act, O.R.C. 4113.15, and O.R.C. 2307.60. Those claims are discussed below. A. Under-reimbursement of Vehicle Expenses

Plaintiff and other drivers delivered food for Defendants’ Domino’s Pizza operation and used their own cars to do so. Plaintiff contends that Defendants under-reimbursed the drivers for the expenses that the drivers incurred in having to use their own vehicles. It is well-established that employers must reimburse employees for expenses that they incur when an employee provides “tools of the trade” used in the employee’s work. See 29 C.F.R. 531.35. Likewise, there is little dispute that a car is a delivery driver’s “tool of the trade.” Brandenburg v. Cousin Vinny’s Pizza, LLC, No. 3:16-cv-516, 2018 WL 5800594, at *4 (S.D. Ohio Nov. 6, 2018) (“Brandenburg I’). Courts in this district have concluded that, in order to comply with the FLSA and Ohio minimum wage law, employers of minimum wage delivery drivers who provide cars to use at work must either keep track of and reimburse for the drivers’ actual automobile expenses or reimburse at the IRS standard business mileage rate for each mile driven. Id, at *11; Hatmaker v. PJ Ohio, LLC, No. 3:17-cv-146, 2019 WL 5725043, at *7 (S.D. Ohio Nov. 5, 2019), motion to certify appeal denied, 2019 WL 7421952 (S.D. Ohio Dec. 23, 2019); Waters v, Pizza, No. 3:19-cv-372, 2021 U.S. Dist. LEXIS 87604, at *28 (S.D. Ohio May 7, 2021). In this case, Plaintiff alleges that, across the class, the under-reimbursed amount is approximately $650,000 during the relevant time period. Defendants raise a number of defenses to Plaintiff's claims, including Plaintiff's calculations of the miles driven and amounts owed. B. Tip Credit Violation Plaintiff also claims that Defendants failed to meet the requirement for claiming a tip credit because they did not fully reimburse for automobile expenses. In order to claim a tip credit under 29 U.S.C. 203(m) and Ohio law, employers must meet the requirements set forth in 29 C.F.R. 531.59(b). Specifically, prior to taking a tip credit, the employer must inform the tipped employee of the amount of the cash wage that is to be paid to the tipped employee by the employer; the

additional amount by which the wages of the tipped employee are increased on account of the tip credit claimed by the employer, which amount may not exceed the value of the tips actually received by the employee; that all tips received by the tipped employee must be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and that the tip credit shall not apply to any employee who has not been informed of these requirements in this section. Jd. “The requirements of the tip credit are strictly construed and employers must comply with them even if...[plaintiffs] actually earned more than minimum wage for every shift they worked.” Chung v. New Silver Palace Restaurant, Inc., 246 F.Supp.3d 220, 228-30). When an employer fails to actually pay the cash wage that they informed their tipped employees that they would pay, the employer fails to meet the requirements for taking a tip credit. Ornelas v. Los Arrieros, 232 F.Supp.3d 962, 970 (N.D. Ohio Jan. 9, 2017). Here, Plaintiff contends that Defendants under-reimbursed delivery drivers, thereby failing to pay the cash wage they promised to pay. As a result, Plaintiff claims Defendants were not entitled to claim a tip credit. Plaintiff estimates that the class-wide unpaid wages for the tip credit differential claim are approximately $1 million. Defendants dispute both liability and this estimate. C. Ohio Prompt Pay Act Plaintiff alleges that, as a result of the above claims, Defendants necessarily violated Ohio’s Prompt Pay Act, O.R.C. § 4113.15. Plaintiffs are correct that an underlying wage and hour violation can give rise to a Prompt Pay Act claim. See, e.g., Craig v. Bridges Bros. Trucking LLC, 823 F.3d 382, 385, n.1 (6th Cir. 2016). Of relevance here, the Prompt Pay Act allows employees to sue for two measures of damages. First, the employee may sue for any wages due under another law but not timely paid

under the Prompt Pay Act. Id. Second, the employee may sue for liquidated damages arising from

any wages “not in contest or disputed” but still unpaid. O.R.C. 4113.15(B). The parties do not dispute that, whether under the FLSA, Prompt Pay Act, or the Ohio Minimum Fair Wage Standards Act, employees may only recover their unpaid wages once, even if entitlement to those wages arises under multiple laws. The parties do dispute, however, whether any of the allegedly unpaid wages in this case are “not in contest or disputed.” Thus, had the case proceeded, the Court would need to adjudicate whether any or all of the claims at issue could give rise to liquidated damages under the Prompt Pay Act. D. O.R.C. 2307.60 Finally, Plaintiff claims under O.R.C. § 2307.60 that the delivery drivers are entitled to compensatory and punitive damages as a result of Defendants’ criminal act of willfully violating the Fair Labor Standards Act. The FLSA carries criminal penalties for willful violations. 29 U.S.C. § 216(a). The Ohio Revised Code provides compensatory and punitive damages for those injured by another party’s criminal act. O.R.C. § 2307.60(A)(1); see also Buddenberg v. Weisdack, 2020- Ohio-3832 (Ohio 2020) (holding that claim under § 2307.60 requires a criminal act, not a criminal conviction). Defendants dispute that they willfully violated the FLSA and therefore dispute this claim.

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Buckles v. EUBA Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckles-v-euba-corp-ohsd-2021.