Cortez v. Casa do Brasil, LLC

CourtDistrict Court, S.D. Texas
DecidedDecember 19, 2022
Docket4:21-cv-03991
StatusUnknown

This text of Cortez v. Casa do Brasil, LLC (Cortez v. Casa do Brasil, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cortez v. Casa do Brasil, LLC, (S.D. Tex. 2022).

Opinion

UNITED STATES DISTRICT COURT December 19, 2022 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

NATHALY CORTEZ, § § Plaintiff, § § VS. § CIVIL ACTION NO. 4:21-CV-03991 § CASA DO BRASIL, LLC, § § Defendant. §

MEMORANDUM & ORDER Now pending before the Court is Plaintiff’s Motion to Authorize Notice to Potential Plaintiffs. (Doc. 45.) On December 9, 2022, the Court held a hearing on the Motion. For the reasons set forth below, the Court GRANTS IN PART and DENIES IN PART the Motion. I. FACTUAL BACKGROUND Casa do Brasil is a Brazilian-style steakhouse operating restaurants in Texas. Plaintiff Nathaly Cortez alleges that she worked as a hostess and server at Defendant’s College Station restaurant from June through October 2019, and again from November 2020 through April 2021. (Doc. 45-2 at 2-3.) In December 2021, Plaintiff filed suit on behalf of herself and all others similarly situated, seeking redress for alleged violations of the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. (“FLSA”), by Defendant. In March 2022, this Court granted limited pre-notice discovery. As directed, Defendant produced Jarbas Gottardo, a customer service representative (“CSR”) and Cameron Rogenby, a manager, for deposition. Defendant also produced time adjustment records for several anonymized employees. Two additional former employees filed consent to join the action in September 2022. (Docs 39, 40.) Joseph Felan previously served as a bartender for Defendant, while Mario Candiani worked as a server. (Docs. 45-11, 45-12.) Plaintiff now requests that this Court authorize notice to “[a]ll Servers, Bartenders, and Gauchos1 employed by Casa Do Brasil at its College Station location within the last three (3) years prior to the filing of the Complaint.” (Doc. 45 at 6.)

The parties agree that Defendant’s servers, bartenders, and gauchos were all tipped employees who were required to participate in the tip pooling system alongside CSRs. Id. at 7-9. Plaintiff argues that the management and structure of this tip pool violated the FLSA. First, Plaintiff alleges that, when employees made mistakes, Defendant occasionally deducted cash tips prior to distribution of the tip pool. Id. at 14. Second, she alleges Defendant required tipped workers to participate in an invalid tip pool that included CSRs who did not customarily receive tips. Id. at 14-17. Third, Plaintiff alleges Defendant failed to properly notify employees of the tip pooling system. Id. at 17. Fourth, Plaintiff alleges that managers regularly edited employees’ time records without their permission to shave off overtime and otherwise avoid paying employees time

and one half for all hours in excess of forty in a workweek. Id. at 13-14. As evidence for her arguments, Plaintiff provides, among other documents, the following: • Declarations from Plaintiff Cortez (Doc. 45-2) and opt-ins Felan and Candiani (Docs. 45-11, 45-12) describing their experiences working for Defendant as servers and bartenders. • Time sheets (Docs. 45-3, 45-4), earning statements (Doc. 45-5), and time edit logs, (Doc. 45-6). • Tip pooling notices and agreements distributed at various times throughout Plaintiff’s employment. (Docs. 45-7, 45-8, 45-9, 45-10.) • A CSR job description. (Doc. 45-11.) • Transcripts from the depositions of Rogneby and Gottardo. (Docs. 45-14, 45-15.) • An employee handbook and server training manual. (Docs. 45-17, 45-25.)

1 “Gauchos are servers who circulate around the dining tables with skewers of meat in order to slice and serve meat to guests at their tables.” (Doc. 1 at 2.) Plaintiff seeks authorization to notify potential collective action members. She asks the Court to direct Defendant to provide names, addresses, emails, telephone numbers, dates of birth, and the last four digits of their social security numbers. (Doc. 45 at 24-25.) She further moves for the court to authorize dissemination of the notice by mail and email and reminders by text. Id. at 26-30. She proposes the following schedule: Id. at 31.

• 7 days from order approving notice: Defendant will produce required information in a usable electronic format • 14 days from order: Plaintiff will send Notice to employees over mail, e-mail, and text. Defendant will post the Notice and Consent form at its facilities for sixty days at an open and obvious location. Plaintiffs have 60 days to opt in. • 30 days from date notice is mailed: Plaintiff can send a text and email reminder II. LEGAL STANDARD A. FLSA Requirements for Tipped Workers The FLSA requires employers to pay their employees the federal minimum wage. 29 U.S.C. § 206(a). Tipped employees must be paid a wage equal to the federal minimum wage, but the tips they receive can count towards that wage if they are paid by employers a minimum of $2.13 per hour. 29 U.S.C. § 203(m)(1-2); 29 C.F.R. § 531.50(a). This is referred to as a “tip credit.” An employer using tip credits is required to have (1) informed its employee that it will take a tip credit and (2) allowed tipped employees to keep the tips they received. 29 C.F.R. § 531.50(a). The statute provides an exception to this rule, permitting “the pooling of tips among employees who customarily and regularly receive tips.” 29 U.S.C. § 203(m)(2)(A)(ii). But “[i]f an employee is required to share tips with an employee who does not customarily and regularly receive tips, the employer may not legally take a tip credit.” Montano v. Montrose Rest. Assocs., 800 F.3d 186, 189 (5th Cir. 2015); see also 29 C.F.R. § 531.50(c). This prohibition applies to employers’ managers and supervisors. 29 C.F.R. § 531.52(b)(2). B. Collective Actions Under FLSA The FLSA authorizes plaintiffs to bring collective actions against their employers on behalf of themselves and other “similarly situated” employees: An action to recover the liability [for violations of the FLSA] may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and on behalf of himself or themselves and other employees similarly situated. 29 U.S.C. § 216(b). Section 216(b) collective actions are intended “to avoid multiple lawsuits where numerous employees have allegedly been harmed by a claimed violation or violations of the FLSA by a particular employer.” Sandoz v. Cingular Wireless LLC, 553 F.3d 913, 919 (5th Cir. 2008). To become a party plaintiff, each person must affirmatively opt into the collective action by providing a written, filed consent. Id. sat 916. To facilitate this opt-in process, courts have the discretion to facilitate notice to potential plaintiffs early in litigation. Hoffmann-La Roche Inc. v. Sperling, 493 U.S. 165, 171 (1989).

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Cortez v. Casa do Brasil, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cortez-v-casa-do-brasil-llc-txsd-2022.