Costa v. Apple, Inc.

District Court, N.D. California·Decided November 21, 2023·No. 3:23-cv-01353·Unknown

Opinion

FRANCIS COSTA, AMANDA Case No. 23-cv-01353-WHO HOFFMAN, and OLIVIA MCILRAVY- ACKERT, individually and on behalf of others similarly situated, ORDER GRANTING PLAINTIFFS' MOTION FOR DISTRIBUTION OF Plaintiffs, JUDICIAL NOTICE v. Re: Dkt. No. 78 APPLE, INC., Defendant.

INTRODUCTION Plaintiffs Francis Costa, Amanda Hoffman, and Olivia McIlravy-Ackert are or were hourly paid, overtime eligible employees of defendant Apple, Inc., who contend that Apple should have included the value of vested restricted stock units (“RSUs”) as compensation in its calculation of their overtime rate of pay. They move here for distribution of judicial notice, or conditional certification, pursuant to the Fair Labor Standards Act, 29 U.S.C. § 216(b) (“FLSA”). The standard for ordering notice to others similarly situated at this stage is lenient, and the plaintiffs have met it. Modified as described in this Order, the plaintiffs’ motion to distribute notice is GRANTED.1 BACKGROUND I. Factual Background Apple is a California corporation that “designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services.” Apple Inc. Form 10-K at p.1 (2022). Plaintiffs Costa, Hoffman, and McIlravy-Ackert worked (and in the latter’s case, still work) for Apple as hourly, non-exempt, eligible for overtime pay employees. Third Amended Complaint (“TAC”) [Dkt. No. 86] ¶¶s 9, 11, 13, and 25. The plaintiffs allege that in addition to their hourly pay, Apple paid them compensation in the form of RSUs, which they understand to have a three-year vesting period. TAC ¶¶s 27, 32, 37, 39, 42, 44; Mot. 3:17-23. They allege that Apple did not include the value of what they refer to as their “vested RSU compensation” when calculating the regular rate for overtime hours that the plaintiffs work. See generally TAC; Motion for Distribution of Judicial Notice (“Mot.”) [Dkt. No. 78] 3:17-23. The plaintiffs argue that this is a violation of FLSA and California and New York state laws. II. Procedural History On March 23, 2023, Francis Costa filed this lawsuit on behalf of himself and the putative Fair Labor Standard Act (“FLSA”) Collective. Dkt. No. 1. After motion practice over the pleadings, Apple answered the TAC, denying liability and asserting affirmative defenses. Dkt. No. 92. On September 28, 2023, the plaintiffs filed the instant motion for Distribution of Judicial Notice. See generally Mot. They sought an order directing issuance of Court-authorized notice and that Apple produce an Excel or similarly formatted list within 10 to 20 days of the order of all employees that Apple classifies as “non-exempt, overtime eligible” whom Apple paid “compensation in the form of RSUs,” who worked for Apple “at any time within three years prior to this action’s filing date through the date of the order.” Id. The plaintiffs proposed that the list should include “each person’s name, unique-employee identifier,” and “address, cell-phone number, and personal-email address.” Id. The plaintiffs seek permission to send notice of this action by mail, email, and text message. Id. They also want to send a reminder postcard and email. Id. During the briefing of this motion, plaintiffs have agreed to various modifications that will be discussed later in this Order. plaintiffs who signed arbitration agreements. Motion to Compel Arbitration (“Mot. to Compel”) [Dkt. No. 83]. That hearing is set for January 10, 2024. Workers may litigate jointly if they “(1) claim a violation of the FLSA, (2) are “similarly situated,” and (3) affirmatively opt in to the joint litigation, in writing.” Campbell v. City of Los Angeles, 903 F.3d 1090, 1100 (9th Cir. 2018); 29 U.S.C. § 216(b). The Ninth Circuit has adopted the “two-step approach” for “determining whether the [FLSA] collective mechanism is appropriate.” Campbell, 903 F.3d 1090, 1108–10. The first step is that plaintiffs will “move for preliminary certification,” which “refers to the dissemination of notice to putative collective members, conditioned on a preliminary determination that the collective … satisfies the ‘similarly situated’ requirement of section 216(b).” Id. at 1109. The Ninth Circuit defines “similarly situated” as “alike with regard to some material aspect of their litigation,” meaning alike “in ways that matter to the disposition of their FLSA claims.” Id. at 1114. “[W]hat matters is not just any similarity between party plaintiffs, but a legal or factual similarity material to the resolution of the party plaintiffs’ claims, in the sense of having the potential to advance these claims, collectively, to some resolution.” Id. at 1115. “Determining whether a suit properly may be maintained as a FLSA collective action is within the discretion of the court.” Litvinova v. City & Cnty. of San Francisco, 2019 WL 1975438- RS, at *2 (N.D. Cal. Jan. 3, 2019). The plaintiff bears the burden of providing “substantial allegations” that the collective class members “were together the victims of a single decision, policy, or plan.” Id. While the standard for conditional certification is lenient, it does “require[] at least some evidence to support the ‘substantial allegations’ in the complaint.” Id. at *4 (emphasis added). If the plaintiff’s burden is met, the court will grant conditional certification and consider the form of notice proposed by the plaintiff. Id. at *5. “‘The sole consequence’ of a successful motion for preliminary certification is ‘the sending of court-approved written notice’ to workers who may wish to join the litigation as individuals.” Campbell, 903 F.3d at 1101. A. The Plaintiffs Have Shown That They Are Similarly Situated When moving for conditional certification under FLSA and seeking authorization to contact similarly situated employees using a judicially approved form of notice, the plaintiff bears the burden to show that she and the putative collective action members are “similarly situated.” See Campbell, 903 F.3d 1090, 1100–01; Rivera v. Saul Chevrolet, Inc., No. 16-CV-05966-LHK, 2017 WL 3267540, at *2 (N.D. Cal. Jul. 31, 2017). Here, the plaintiffs meet this standard. Apple’s first argument against judicial notice is that the plaintiffs have failed to meet “even the ‘lenient’ standard for conditional certification in the Ninth Circuit” because the evidence they have produced is insufficient. Oppo. 6:16-18. It contends that the 12 declarations that the plaintiffs submitted are entitled to “no evidentiary weight” because they are “virtually identical” and “repeat verbatim vague contentions.” Id. 8:15-16. This argument is unpersuasive. Courts in this district have declined to consider arguments that declarations submitted in support of conditional certification are “boilerplate” because at the conditional certification stage, the question is “simply whether plaintiffs have made an adequate threshold showing,” not whether the evidence they produce regarding commonality is believable. See Gonzales v. Charter Commc'ns, LLC, 2020 WL 8028108, at *4 (C.D. Cal. Dec. 4, 2020). To require more would be contrary to the lenient level of consideration required by the Ninth Circuit in Campbell. Id. The declarations that the plaintiffs have submitted alongside their motion are sufficient to support conditional certification. They show that the declarants all worked as hourly paid, non- exempt, overtime eligible employees during the three-year FLSA statutory period. They also show that they received RSUs that vested during that per

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Costa v. Apple, Inc., (N.D. Cal. 2023).

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