Butler v. DirectSAT USA, LLC

876 F. Supp. 2d 560, 21 Wage & Hour Cas.2d (BNA) 1298, 2012 WL 1203980, 2012 U.S. Dist. LEXIS 50119
CourtDistrict Court, D. Maryland
DecidedApril 10, 2012
DocketCivil Action No. DKC 10-2747
StatusPublished
Cited by84 cases

This text of 876 F. Supp. 2d 560 (Butler v. DirectSAT USA, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butler v. DirectSAT USA, LLC, 876 F. Supp. 2d 560, 21 Wage & Hour Cas.2d (BNA) 1298, 2012 WL 1203980, 2012 U.S. Dist. LEXIS 50119 (D. Md. 2012).

Opinion

MEMORANDUM OPINION

DEBORAH K. CHASANOW, District Judge.

Presently pending and ready for resolution in this Fair Labor Standards Act (“FLSA”) case are motions for conditional certification of a collective action and facilitation of notice (ECF No. 41), and to seal (ECF No. 43) filed by Plaintiffs Jeffry Butler and Charles Dorsey. Also pending is a motion to seal filed by Defendants DirectSAT USA, LLC (“DirectSAT”), UniTek USA, LLC (“UniTek”), and UniTek Global Services, Inc. (“UGS”). (ECF No. 56). The issues are fully briefed, and the court now rules pursuant to Local Rule 105.6, no hearing being deemed necessary. For the reasons that follow, Plaintiffs’ motion for conditional certification of a collective action and facilitation of notice will be granted in part and denied in part, as will the parties’ motions to seal.

I. Background A. Factual Background

Defendant DirectSAT, a subsidiary of UniTek and UGS, provides satellite installation services to DirectTV customers throughout the country. Plaintiffs are technicians who previously installed, upgraded, and serviced DirectTV equipment at customer locations in Maryland, Virginia, and the District of Columbia. (See ECF No. 41-8) (setting forth the job description for the “technician” position).1 Jeffry Butler began working for Defendants as a technician in October 2007 and held this position for approximately ten months before being promoted to warehouse manager. Although initially based out of DirectSAT’s warehouse in Capitol Heights, Maryland, Mr. Butler transferred to the warehouse in Waldorf, Maryland, after the Capitol Heights warehouse closed. Charles Dorsey starting working for Defendants as a technician in May 2009 and held this position for approximately seven months. During his tenure, Mr. Dorsey was also based out of DirectSAT’s Waldorf, Maryland warehouse. In their declarations and deposition testimony, Mr. Butler and Mr. Dorsey, the named Plaintiffs, allege the following facts.

Defendants pay their technicians “based on job or piece rates.” (ECF No. 54, at 14).2 Thus, rather than receiving a typical hourly wage, DirectSAT compensates technicians based on the work they complete at a customer’s home by assigning a value to each completed job. Technicians are then credited with the value assigned to their jobs, and this value becomes the basis for calculating wages, including overtime. “For example, if a technician worked 40 hours in a particular week and accumulated $1,000 in production, the technician’s effective hourly rate would be $25.00/hour.” (Id. at 16). Technicians receive different piece rates depending on their technician level, which varies based on experience and efficiency. Higher-ranked technicians receive higher piece rates.

Plaintiffs assert that although Direct-SAT’s employee handbook provides that technicians will be paid for any overtime hours worked, the company did not follow [564]*564this formal policy. Both Mr. Butler and Mr. Dorsey state that general managers and supervisors instructed them to record time only when they were performing jobs at customer locations. They also assert that management either encouraged or instructed them to work “off the clock” in the evenings after they arrived home and in the mornings before arriving at their first jobs. {E.g., ECF No. 41-9, Butler Deck, at 2). During this time, Plaintiffs would perform numerous uncompensated tasks, including building satellite dishes for upcoming installations, preparing routes and schedules based on company emails listing next-day installations, pre-calling customers, loading their vehicles at the warehouse, and attending company meetings. These tasks resulted in Plaintiffs routinely working in excess of forty hours per week.

Plaintiffs also insist that they were instructed by their general managers not to record overtime on their weekly time-sheets. Mr. Butler occasionally recorded his excess hours despite this instruction, but the company regularly refused to pay him overtime. Mr. Dorsey’s timesheets were returned to him for correction when he recorded more than forty hours in a given week, and he does not recall ever being paid any overtime. Both complained to management at their warehouses about this issue. In response, management informed them that “[tjhere was nothing [it] could do” because the non-payment of overtime was “a corporate decision” (ECF No. 54-15, Butler Dep., at 31), and that “[t]hose were the rules, follow them or work somewhere else,” (ECF No. 54-17, Dorsey Dep., at 24).

B. Procedural Background

Plaintiffs filed a complaint against Defendants on October 4, 2010, on behalf of themselves and similarly situated others.3 They sought to bring an FLSA overtime claim as a collective action pursuant to 29 U.S.C. § 216(b), as well as state overtime and unpaid wage claims as class actions pursuant to Federal Rule of Civil Procedure 23. Defendants subsequently moved to dismiss the complaint. On July 6, 2011, 800 F.Supp.2d 662 (D.Md.2011), the court issued a memorandum opinion and order, granting in part and denying in part Defendants’ motion to dismiss.4 Defendants then answered the complaint, and the parties began discovery.

On November 1, 2011, Plaintiffs moved for conditional certification of a collective action for DirectSAT technicians based out of the company’s Waldorf and Beltsville warehouses during the past three years. (ECF No. 41).5 They also requested facili[565]*565tation of notice to potential opt-in plaintiffs. (M).6 They submitted' numerous exhibits with their motion, and they subsequently filed a motion to seal four of those exhibits pursuant to a stipulated confidentiality order that the court had previously approved. (ECF No. 43). Before responding to Plaintiffs’ certification motion, Defendants filed two motions to compel discovery responses from Mr. Dorsey and to compel Mr. Dorsey’s deposition. (ECF Nos. 45, 46). The court held a telephone conference on November 16, 2011, at which time it extended the time for Defendants to oppose Plaintiffs’ motion for conditional certification and denied as moot the motion to compel Mr. Dorsey’s deposition because the parties had resolved that dispute.7

After taking Mr. Dorsey’s deposition, Defendants filed their response to Plaintiffs’ motion for conditional certification. (ECF No. 54). They submitted numerous exhibits in support of their opposition and filed a motion to seal twelve of those exhibits pursuant to the confidentiality order. (ECF No. 56). Plaintiffs timely replied to Defendants’ opposition. Both interim motions to seal, as well as Defendants’ motion to compel discovery responses, are unopposed.

II. Motion for Conditional Certification and for Court-Facilitated Notice

“Under the FLSA, plaintiffs may maintain a collective action against their employer for violations under the act pursuant to 29 U.S.C. § 216(b).” Quinteros v. Sparkle Cleaning, Inc., 532 F.Supp.2d 762, 771 (D.Md,2008). Section 216(b) provides, in relevant part, as follows:

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876 F. Supp. 2d 560, 21 Wage & Hour Cas.2d (BNA) 1298, 2012 WL 1203980, 2012 U.S. Dist. LEXIS 50119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butler-v-directsat-usa-llc-mdd-2012.