Calderon v. GEICO General Insurance

279 F.R.D. 337, 19 Wage & Hour Cas.2d (BNA) 607, 2012 U.S. Dist. LEXIS 18724
CourtDistrict Court, D. Maryland
DecidedFebruary 14, 2012
DocketCivil No. RWT 10cv1958
StatusPublished
Cited by7 cases

This text of 279 F.R.D. 337 (Calderon v. GEICO General Insurance) 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
Calderon v. GEICO General Insurance, 279 F.R.D. 337, 19 Wage & Hour Cas.2d (BNA) 607, 2012 U.S. Dist. LEXIS 18724 (D. Md. 2012).

Opinion

MEMORANDUM OPINION

ROGER W. TITUS, District Judge.

On July 19, 2010, Plaintiffs filed a one-count complaint on behalf of a collective class to recover overtime pay allegedly withheld by Defendants in violation of the Fair Labor Standard Act (“FLSA”). Doc. No. 1. Plaintiffs maintain that the position of Security Investigator was improperly classified by Defendants as exempt from overtime under the FLSA. Defendants filed their answer on August 10,2010. Doc. No. 10. Plaintiffs moved for Conditional Certification and Judicial Notice pursuant to 29 U.S.C. § 216(b) on October 22, 2010. Doc. No. 23. This Court granted the motion on January 12, 2011. Doc. Nos. 31, 32. Plaintiffs’ counsel mailed the court-approved judicial notice to the putative opt-in plaintiffs on January 26, 2011, and the notice period ended ninety days later on April 26, 2011. There are now forty-nine current and former Security Investigators participating in this case.

Following the close of the notice period, the parties filed a stipulation permitting Plaintiffs to amend the Complaint, Doc. No. 56, which this Court granted on June 1, 2011. Doc. No. 57. The Amended Complaint added a claim for overtime pay by opt-in Plaintiff Tom Fitzgerald under New York state law and sought certification of that claim as a class action pursuant to Federal Rule of Civil Procedure 23. Doc. No. 56. Defendants answered the Amended Complaint on June 7, 2011. Doc. No. 58. On June 15, 2011, Plaintiffs filed a Motion to Certify Class Under Rule 23. Doc. No. 61. On September 12, 2011, Defendants filed their opposition, Doc. No. 63, to which Plaintiffs replied on September 26, 2011. Doc. No. 64. The Court held a hearing on the motion on January 30, 2012. For the reasons discussed below, this Court will grant Plaintiffs motion to certify the Rule 23 class.

I. Background

On July 19, 2010, Plaintiff Samuel Calderon filed a collective action complaint alleging that, during his employment with GEICO in Florida as a Security Investigator, he was improperly classified as exempt from overtime pay under the Fair Labor Standards Act (“FLSA”). Doc. No. 1. Security Investigators are employed in eight regions across the country. Doe. No. 61 at 3. Outside of California, Defendants employ approximately 250 Security Investigators. Id. at 4. There are currently forty-nine plaintiffs, nine of whom work (or worked) in New York. Id.

The primary job of Security Investigators is to investigate insurance claims involving questionable, suspect, or fraudulent activities.1 Id. They “review facts, gather information, and present that information so that the claims adjuster can make an informed decision on how to handle a claim.” Id. The investigatory process involves an administratively regulated four-step procedure: (1) receive an assignment, (2) create a plan of action, (3) gather evidence, and (4) create a written report memorializing the investiga[340]*340tion. Id. at 6. Plaintiffs allege that “Security Investigators have no authority to deviate from this process without pre-approval from management.” Id. Defendants require Security Investigators “to adhere to a number of policies and procedures which dictate how they conduct investigations and report them.” Id. at 9. Defendants focus on standardization involves manuals, revisions, and a one-week “academy” for further training. Id. at 10.

Plaintiffs maintain that the supervisors of the Security Investigators ensure that they follow protocol. They review final reports for quality and accuracy. Id. at 8. Supervisors also approve or reject reports and grade them on a scale of one through five. Id. Once the report is approved, it is sent to the claims adjuster who “also has the ability to reject a final report and order the Security Investigator to perform additional work.” Id.

Defendants have classified all Security Investigators outside of California as exempt from overtime payments under the FLSA since at least 2001. Id. at 10. Defendants allegedly reviewed the position in either late 2004 or early 2005 and affirmed their classification decision. Id. at 11. Additionally, New York Security Investigators are classified as exempt employees and none receives overtime pay. Id. GEICO has not and does not maintain records of the hours worked by Security Investigators. Id.

Nine of the forty-nine Plaintiffs were employed in the state of New York. Doc. No. 63 at 2. They include Thomas Fitzgerald, who filed his consent to the FLSA collective action on January 11, 2011. Id. Six of the New York Plaintiffs, including Fitzgerald, amended the complaint effective June 1, 2011, to add claims under the New York state overtime law. Id. The New York Plaintiffs seek class certification pursuant to Rule 23 for Security Investigators employed in the state of New York for state law overtime claims on behalf of a class which would include seventy-seven present and former New York employees, in addition to the nine who have already opted-in to the FLSA claim. Id. The seventy-seven include seventy who were on the mailing list for the FLSA collective action but did not file consents. Id. It also includes seven who were not employed during the period covered by the FLSA but would be covered by New York’s longer statute of limitations. Id.

II. Analysis

Plaintiffs move to certify a class of New York Security Investigators who worked in the State of New York between July 19, 2004 and the present pursuant to Rule 23. Plaintiffs maintain that they satisfy the numerosity, commonality, typicality, and adequacy of representation requirements. They contend that the questions of law or fact common to class members predominate over any questions affecting only individual members and that a class action is the superior method to deciding the claims.

Defendants raise two arguments in opposition. First they maintain that the consent requirement of FLSA § 216(b) bars certification of a state law class under Rule 23 in FLSA actions. Additionally, Defendants argue that Plaintiffs fail to satisfy the numerosity requirement of Rule 23(a), and that § 216(b) precludes a finding that a class action is superior to other means of resolving the dispute.

The Court will address Defendants’ arguments regarding the compatibility of § 216(b) and Rule 23 before addressing Plaintiffs motion to certify pursuant to Rule 23.

a. Rule 23 Classes Asserting Violations of State Law are not Inherently Incompatible With FLSA Claims

Defendants argue that Rule 23 classes are “inherently incompatible” with the FLSA and that the FLSA consent requirement bars certification of a Rule 23 class. Doc. No. 63 at 7. Defendants maintain that § 216(b) precludes a court from certifying a state class pursuant to Rule 23. Additionally, Defendants argue that this Court should not exercise supplemental jurisdiction over the Rule 23 claim.

Plaintiffs maintain that there is nothing in the law or facts of this case that prohibits the Court from certifying a class and collective [341]*341action. Plaintiffs rely on a recent opinion of Chief Judge Chasanow, Butler v. DirectSat USA LLC,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
279 F.R.D. 337, 19 Wage & Hour Cas.2d (BNA) 607, 2012 U.S. Dist. LEXIS 18724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calderon-v-geico-general-insurance-mdd-2012.