Carlino v. CHG Medical Staffing, Inc.

District Court, E.D. California·Decided October 6, 2022·No. 1:17-cv-01323·Unknown

Opinion

JACQUELINE CARLINO, an individual No. 1:17-cv-01323-DAD-BAK (EPG) on behalf of herself and others similarly situated, Plaintiff, ORDER GRANTING PLAINTIFF’S MOTION TO AMEND CLASS AND COLLECTIVE v. DEFINITIONS AND DENYING DEFENDANT’S MOTION FOR CHG MEDICAL STAFFING, INC., RECONSIDERATION OR, IN THE ALTERNATIVE, DECERTIFICATION Defendant. (Doc. Nos. 71, 73) This matter is before the court on plaintiff’s motion to amend the certified class and collective definitions, filed on September 29, 2021, and defendant’s motion for reconsideration of the court’s order granting partial summary judgment in favor of plaintiff, or in the alternative, for decertification of the class and collective, filed on September 15, 2021.1 (Doc. Nos. 71, 73.)

1 The undersigned apologizes for the excessive delay in the issuance of this order. This court’s overwhelming caseload has been well publicized and the long-standing lack of judicial resources in this district long-ago reached crisis proportion. While that situation was partially addressed by the U.S. Senate’s confirmation of district judges for two of this court’s vacancies on December 17, 2021 and June 21, 2022, another vacancy on this court with only six authorized district judge positions was created on April 17, 2022. For over twenty-two months the undersigned was left presiding over approximately 1,300 civil cases and criminal matters involving 735 defendants. That situation resulted in the court not being able to issue orders in submitted civil matters within an acceptable period of time and continues even now as the undersigned works through the predictable backlog. This has been frustrating to the court, which fully realizes how incredibly frustrating it is to the parties and their counsel. Pursuant to General Order No. 617 addressing the public health emergency posed by the COVID- 19 pandemic, the motions were taken under submission on the papers. (Doc. No. 74.) For the reasons explained below, the court will grant plaintiff’s motion to amend the class and collective definitions and deny defendant’s motion for reconsideration, or in the alternative, decertification. On September 29, 2017, plaintiff Jacqueline Carlino, a traveling nurse, filed a class and collective action complaint on behalf of herself and others similarly situated against her employer, defendant CHG Medical Staffing Inc. (“CHG”), alleging that CHG violated the Fair Labor Standards Act (“FLSA”) and California state law by failing to pay overtime wages to its staff of traveling nurses and technicians (“travelers”). (Doc. No. 1.) In particular, plaintiff alleges that CHG does not include the value of a weekly per diem (a stipend for meals, incidentals, and housing that travelers receive in addition to their weekly wages) (the “per diem”) in determining a traveler’s regular rate for the purpose of calculating that traveler’s overtime pay, which is one-and-a-half times the traveler’s regular rate. (Id. at ¶¶ 12, 16.) On February 28, 2019, the court granted plaintiff’s motion for class certification pursuant to Federal Rule of Civil Procedure 23(a) and 23(b)(3) and conditional certification of an FLSA collective, certifying the following: [Rule 23 Class:] All non-exempt hourly healthcare professionals employed in California through the RN Network division of CHG Medical Staffing, Inc., who, at any time from September 29, 2013 through the date of certification, worked overtime and had the value of their meals and incidental stipends, housing allowance, and/or housing accommodation excluded from their regular rate for purposes of calculating overtime pay. [FLSA Collective:] All non-exempt hourly healthcare professionals employed in the United States through the RN Network division of CHG Medical Staffing, Inc. who, at any time within the three years preceding certification, worked in excess of 40 hours in one or more workweeks and had the value of their meals and incidentals stipend, housing allowance, and/or housing accommodation excluded from their regular rate for purposes of calculating overtime pay. (Doc. No. 25 at 17–18.) ///// On May 15, 2022, the court issued an order denying defendant’s motion for summary judgment and granting plaintiff’s motion for partial summary judgment as to defendant’s liability, in part. (Doc. No. 58.) Specifically, the court concluded that “the weekly per diem that CHG furnishes to a traveler constitutes remuneration for hours worked and its value must therefore be included in the traveler’s regular rate for the purpose of calculating her overtime pay.” (Id. at 14.) In reaching this conclusion, the court considered not only the fact that the per diem payments are “tied to the number of hours worked in a given week,” but also that several other indicators suggested that the per diems functioned as renumeration for hours worked, including that: “the per diems are included in the employee’s weekly electronic deposit or paycheck and appear as two separate line items on traveler’s weekly paystub; travelers are not required to provide verification of actual expenses incurred in order to receive the per diem; and CHG does not restrict how the travelers spend the per diems.” (Id. at 10–13.) Accordingly, the court granted “summary judgment in plaintiff’s favor on the issue of CHG’s liability” as to plaintiff’s overtime claims and her derivative claim brought under the Unfair Competition Law (“UCL”). (Id.) The relevant undisputed facts are as follows. Defendant CHG staffs travelers on short-term travel assignments, primarily at hospitals across the United States. (Doc. No. 32 at 2.) Between October 2015 and August 2016, CHG staffed plaintiff Carlino, a permanent resident of Pennsylvania, on three 13-week travel assignments, two in Wisconsin and one in Bakersfield, California. (Id. at 4.) The typical travel assignment lasted thirteen weeks and required employees to be away from their homes for the duration of the assignment. (Id. at 2.) Travelers incurred meal, incidental, and lodging expenses while away from their permanent residences at their assignment locations. (Id.) In addition to their weekly wages, travelers were provided weekly per diem payments covering seven days’ worth of meals, incidentals, and housing in the form of a housing allowance or company-provided housing. (Id.) To determine the per diem, CHG used the federal government’s Continental United States per diem rates set by the General Services Administration and the Internal Revenue Service. (Id.) The per diems were included in travelers’ weekly electronic deposits or paychecks and appeared as two separate line items on their weekly paystubs. (Id.) Travelers were not required to provide verification of actual expenses in order to receive per diems, and CHG did not restrict how travelers spent their per diems. (Id.) Whether a traveler is entitled to the full weekly per diem each week is conditioned on whether she has worked the specified minimum weekly hours required by CHG, which is generally thirty-six hours consisting of three twelve-hour shifts. (Id. at 3.) If a traveler satisfies her weekly hours requirement, she receives her full weekly per diem. (Id.) If, however, she does not satisfy the requirement for any reason other than the client facility cancelling a scheduled shift, her weekly per diem is adjusted by CHG pursuant to a Missed Shift Adjustment (“MSA”). (Id.) The MSA adjusts a specific proportional amount of per diems downward when travelers’ weekly hours fall short of their minimum hours requirement. (Id.) On September 15, 2021, defendant filed the pending motion for reconsideration of the court’s order granting partial summary judgment in plaintiff’s favor as to defendant’s liability on plaintiff’s overtime claims and derivative UCL claim. (Doc. No. 71.) In the alternative, defendant moved for an order decertifying the Rule 23 class and FLSA col

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Carlino v. CHG Medical Staffing, Inc., (E.D. Cal. 2022).

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