Chin v. Tile Shop, LLC

57 F. Supp. 3d 1075, 2014 U.S. Dist. LEXIS 151960, 2014 WL 5461891
CourtDistrict Court, D. Minnesota
DecidedOctober 27, 2014
DocketCase No. 13-cv-2969 (SRN/JSM)
StatusPublished
Cited by22 cases

This text of 57 F. Supp. 3d 1075 (Chin v. Tile Shop, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chin v. Tile Shop, LLC, 57 F. Supp. 3d 1075, 2014 U.S. Dist. LEXIS 151960, 2014 WL 5461891 (mnd 2014).

Opinion

MEMORANDUM OPINION AND ORDER

SUSAN RICHARD NELSON, District Judge.

This matter is before the Court on Plaintiffs Motion for FLSA Conditional Certification and Judicial Notice [Doc. No. 23]. For the reasons that follow, the Court grants Plaintiffs Motion.

[1079]*1079I. BACKGROUND

On October 29, 2013, Plaintiff Christopher Chin (“Plaintiff’ or “Chin”) filed this action against Defendant The Tile Shop (“Defendant” or “The Tile Shop”) to recover alleged unpaid minimum wage and overtime on behalf of himself and others similarly situated pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq. “The Tile Shop is a leading specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States.” (Compl. ¶ 1 [Doc. No. 1].) As of May 2, 2014, Defendant operated 90 retail stores in 28 states. (Def.’s Mem. in Opp’n at 2 [Doc. No. 31].) The Tile Shop is headquartered in Plymouth, MN. (Id.)

Plaintiff was employed as a Sales Associate and as an Assistant Store Manager from approximately February 15, 2013 through August 15, 2013 at The Tile Shop in Sterling, Virginia. (Compl. ¶4 [Doc. No. 1].) According to the The Tile Shop’s website, Sales Associates, who are also known as Manager Trainees, are responsible for “[s]elling tile and related products to exceed customer expectations” and “restocking store inventory.” (Id. ¶ 13.) Chin alleges that Sales Associates do not regularly supervise the work of two or more employees, nor do they “exercise discretion and independent judgment as to matters of significance or perform office work related to The Tile Shop’s general business operations.” (Id. ¶ 22.) Additionally, Chin alleges that Sales Associates “have no advanced knowledge in a field of science or learning which requires specialized instruction which is required to perform their jobs.” (Id.)

Like Sales Associates, Assistant Store Managers are also responsible for “selling tile and related products.” (See, e.g., Lessner Decl. ¶ 8; Reliford Deck ¶ 7; Cornell Deck ¶ 7; Chin Deck ¶ 7 [Doc. No. 26-2].) However, Assistant Store Managers also perform other non-sales rélated tasks such as “loading and filling customer orders, performing inventory, and cleaning the store and bathrooms.” (Id.)

Sales Associate/Manager Trainee employees are expected to work evenings and weekends, for a total of 45-55 hours per week. (Compl. ¶ 13 [Doc. No. 1].) Plaintiff alleges that he and other Sales Associates and Assistant Store Managers “routinely worked more than 40 hours in [a] work week.” (Id. ¶ 17.) In fact, Chin claims that he and other Sales Associates would sometimes work more than 60 hours a week. (Id.) The exact number of hours each employee works is tracked by The Tile Shop on “bi-monthly check stubs.” (Id.)

Chin not only contends that all Sales Associates employed by Defendant nationwide are similarly situated, but he also asserts that all Sales Associates are similarly situated to all Assistant Store Managers, nationwide, because they share common job duties, job descriptions, and pay. (Id. ¶ 25.) As to proof of similarity among Sales Associates across the country, Plaintiff presents evidence that The Tile Shop uses the same job posting to advertise for the Sales Associate/Manager Trainee job position nationwide. (Id. ¶ 26.) As to evidence of uniformity among Sales Associates and Assistant Store Managers, Chin points to declarations by former employees who have opted into this suit and who previously served as both Sales Associates and Assistant Store Managers. (Ph’s Mem., Ex. 2 [Doc. No. 26-2].) The four other employees, April Cornell, Carlos Ga-leas, Donald Lessner, and Antonio Reli-ford, collectively worked in at least six stores in at least three states. (Lessner Deck; Reliford Deck; Cornell Deck; Ga-leas Deck [Doc. No. 26-2].) In these declarations, the employees allege that the [1080]*1080duties they performed as Sales Associates were nearly identical to those performed when they were Assistant Store Managers. (Id.)

Five additional former Store managers who worked in at least 15 stores in at least five states have also submitted supporting declarations. (Pl.’s Mem., Ex. 3 [Doc. No. 27].) Plaintiff contends that these declarations, coupled with Plaintiffs Complaint and Defendant’s nationwide pay plans and job postings, “establish that Sales Associates and pre-2012 Assistant Store Managers are similarly situated because they have the same job duties and are paid pursuant to the same pay plan throughout the United States.” (Pl.’s Mem. at 4 [Doc. No. 26].) However, at least one distinction between Sales Associates and Assistant Store Managers exists. In addition to working in a sales capacity, Assistant Store Managers are also responsible for helping the Store Manager supervise the retail store. (PL’s Mem., Ex. 3 _¶¶ 7-8 [Doc. No. 27]; Behrman Aff. ¶ 3 [Doc. No. 32].)

Sales Associates and Assistant Store Managers not only have similar job duties, but they also are compensated in the same manner. Leigh Behrman, Defendant’s Vice President of Human Resources and Compliance, explains that “Assistant Managers and [S]ales [Associates are compensated primarily by commission.” (Behrman Aff. ¶ 4 [Doc. No. 32].) According to Carl Ran-dazzo, Defendant’s Senior Vice President of Retail, employees’ commissions are based on the gross profit of the sales orders employees procure, once the customer has paid in full. (Randazzo Aff.' ¶¶ 3, 15 [Doc. No. 31].) However, if a customer returns product, The Tile Shop deducts from the employee’s next paycheck to compensate for the loss in profit from the return.. (Id. ¶ 16.) Chin alleges that “The Tile Shop frustrated the ability of its Sales Associates and Assistant Store Managers to sell products and thus earn commissions by requiring them to perform many non-sales related [administrative and cleaning] tasks.” (Compl. ¶ 20 [Doc. No. 1].)

In addition to commission, Assistant Store Managers and Sales Associates are paid a bi-monthly draw or subsidy. Before 2012, regardless of the number of hours an employee worked, Sales Associates’ and Assistant Store Managers’ bimonthly draw was $866.67. (Id. ¶ 15.) After 2012, regardless of the number of hours an employee worked, Sales Associates’ and Assistant Store Managers’ bimonthly draw was $1,000. (Id. ¶ 16.) Although the monthly draw is ostensibly consistent, The Tile Shop deducts future compensation in excess of the draw amount if a Sales Associate or Assistant Store Manager receives a commission amount during a period that is less than the draw amount for that period.1 (Behrman Aff. ¶ 4 [Doc. No. 32].) Although Assistant Store Managers have the same “recoverable draw against commissions” as Sales Associates, Assistant Store Managers are also eligible for bonuses based upon store performance. (Compl. ¶ 18 [Doc. No. 1].)

Pursuant to the FLSA, Defendant is considered an “employer,” and Plaintiff and all Sales Associates and Assistant Store Managers were “employees” of The Tile Shop. See 29 U.S.C. § 203(d), (e). Therefore, The Tile Shop is subject to the FLSA overtime provisions. The FLSA re[1081]

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57 F. Supp. 3d 1075, 2014 U.S. Dist. LEXIS 151960, 2014 WL 5461891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chin-v-tile-shop-llc-mnd-2014.