Cadena v. Customer Connexx LLC

District Court, D. Nevada·Decided May 22, 2023·No. 2:18-cv-00233·Unknown

Opinion

CARIENE CADENA, et al., Case No.: 2:18-cv-00233-APG-DJA

Plaintiffs Order

v. [ECF Nos. 77, 78, 79, 80, 91]

CUSTOMER CONNEXX LLC, et al.,

Defendants

Plaintiffs Cariene Cadena and Andrew Gonzales were hourly employees working at a call center for defendant Customer Connexx LLC (CC). CC is a wholly owned subsidiary of defendant JanOne Inc. The plaintiffs sue on behalf of themselves and similarly situated employees under 29 U.S.C. § 207 of the Fair Labor Standards Act (FLSA), claiming they were not paid for all overtime worked.1 Specifically, they contend that they were not paid for time spent booting up their computers before clocking into a timekeeping program at the beginning of their shifts and for time spent powering down the computers after clocking out of the timekeeping program at the end of their shifts. They assert that the failure to account and pay for this time resulted in overtime violations under the FLSA. This case was initiated in state court by former named plaintiff Danielle Curley. ECF No. 1-1. The defendants removed the case to this court. ECF No. 1. The plaintiffs thereafter amended the complaint to substitute Cadena and Gonzales as named plaintiffs because Curley

1 The plaintiffs also brought claims under Nevada law, but I remanded those claims to state court. ECF No. 112 at 16-17. Those claims are no longer pending in this court, so I deny as moot the plaintiffs’ motion to certify a class for those claims and the defendants’ related motion to strike. ECF Nos. 77; 91. had become unresponsive. ECF Nos. 32, 46. The plaintiffs amended a second time to substitute original defendant ARCA, Inc. with JanOne. ECF Nos. 72, 86. The FLSA collective action was conditionally certified and notice was sent to putative collective action members. ECF Nos. 28, 30. Thereafter, consents to join the suit were filed by Amber Miller, Donna Alford, Marguerite Sigmon, Ariel Wilcox, Brandon Cadena, Clarrissa Dix,

Nathan Schavers, Krystal Paynther, Kevin Kinyon, Judith Cummings, Kenya Mills, Dawn Pratt, Steve Somodi, Rossalind Saxton, Thomas Johnson, Diana Giraldo, Richard Ortiz, Mary Smith, and Danielle Curley. ECF Nos. 1-1 at 23; 35; 43; 49. Ariel Wilcox subsequently withdrew her consent. ECF No. 61. The claims of Thomas Johnson, Amber Miller, and Mary Smith were dismissed because they failed to respond to discovery. ECF No. 71. As a result, there are 17 opt- in plaintiffs in this FLSA action. I previously granted summary judgment in the defendants’ favor, concluding that the time spent booting up and shutting down the computers was not compensable under the FLSA. ECF No. 112 at 16. The Ninth Circuit reversed and remanded, concluding that the time spent

turning on the computer and logging into the timekeeping program is compensable as integral and indispensable parts of the employees’ principal job duties. ECF No. 121 at 19-20. The Ninth Circuit held that “shutting down the computers is not integral and indispensable to the employees’ ability to conduct calls, [so] it is not compensable under this theory.” Id. at 15 n.4. But the Ninth Circuit stated that this time “may be compensable if the task is determined to be a principal activity in and of itself.” Id. The court remanded for me to “determine whether shutting down the computers is compensable under any circumstances.” Id. The court also remanded the issues of whether the time booting up and shutting down the computers is not compensable under the de minimis doctrine or because the employer did not know of the alleged overtime, as CC argued both in its original motion for summary judgment and on appeal. Id. at 20-22. On remand, I advised the parties that I would address their previously filed motions without the need for additional briefing. ECF No. 126. Consequently, the following motions are presently before me: CC’s motion to decertify the conditionally certified FLSA collective action

(ECF No. 80); CC’s motion for summary judgment (ECF No. 78), which JanOne Inc. joins; and JanOne’s summary judgment motion (ECF No. 79). The parties are familiar with the facts, so I repeat them here only where necessary to resolve the motions. I grant CC’s motion for summary judgment because no genuine dispute remains that the time spent to boot up and shut down the computers was either de minimis or, when not de minimis, was not done with the employer’s knowledge of unpaid time because employees could and did notify CC of delayed logins or logouts, and the employees’ time was adjusted accordingly. I therefore deny as moot the motion to decertify and JanOne’s summary judgment motion.

I. CC’S MOTION FOR SUMMARY JUDGMENT (ECF No. 78) In its summary judgment motion, CC argues that the FLSA claim fails because the time booting up and shutting down is de minimis and because the defendants did not know about the alleged overtime if employees did not avail themselves of the means to correct inaccuracies in their time.2 The plaintiffs respond that the time it took to perform these tasks is not de minimis, and although employees were aware that they could alert supervisors about problems clocking in

2 CC also asserts two arguments specific to individual plaintiffs. CC contends that Cummings and Brandon Cadena are not due overtime because they worked less than 40 hours a week, so their FLSA claim for unpaid overtime fails. CC also asserts that Kinyon should be judicially estopped from pursuing his claim because he failed to disclose it in his bankruptcy. Given my rulings, I need not address these issues. or out, they were unsure if the changes were made or if their pay was accurate. The plaintiffs also contend that instead of recording the time that the plaintiffs first started logging in, they or their supervisor would put their scheduled start time. Summary judgment is appropriate if the movant shows “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P.

56(a). A fact is material if it “might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A dispute is genuine if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. The party seeking summary judgment bears the initial burden of informing the court of the basis for its motion and identifying those portions of the record that demonstrate the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The burden then shifts to the non-moving party to set forth specific facts demonstrating there is a genuine issue of material fact for trial. Sonner v. Schwabe N. Am., Inc., 911 F.3d 989, 992 (9th Cir. 2018) (“To defeat summary judgment, the nonmoving party must produce evidence of a

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