Dieffenbauch v. Rhinehart Railroad Construction, Inc.

District Court, N.D. New York·Decided February 25, 2021·No. 8:17-cv-01180·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK JAMES DIEFFENBAUCH, individually and on behalf of all similarly situated

Plaintiff(s), -against- 8:17-CV-1180 (LEK/CFH) RHINEHART RAILROAD CONSTRUCTION, INC., Defendant. MEMORANDUM-DECISION AND ORDER I. INTRODUCTION James Dieffenbauch (the “Named Plaintiff”) brought this action on behalf of himself and all similarly situated against Rhinehart Railroad Construction, Inc. Dkt. No. 1 (“Complaint”). In the Complaint, Named Plaintiff alleges Defendant violated the Fair Labor Standards Act (the “FLSA”), 29 U.S.C. §§ 201 et seq. See generally id. Named Plaintiff specifically asserts that, by not compensating travel time, Defendant violated § 207(a)(1), an FLSA provision governing overtime pay. Before the Court is Plaintiffs’ motion for summary judgment. Dkt. No. 78-1 (“Motion”).1 Plaintiffs seek summary judgment on four issues: (1) that they were not properly compensated for travel under 29 C.F.R. § 785.38; (2) that they were not properly compensated for travel under 29 C.F.R. § 785.39; (3) that Defendant’s violations of those regulations resulted in weeks in which Plaintiffs worked more than forty hours but did not receive overtime pay; and (4) that Defendant cannot show good-faith compliance with the FLSA to avoid the 1 Pages 4–18 of the Motion contain Plaintiffs’ statement of material facts. See Mot. at 4–18. In this Memorandum-Decision and Order, the Court cites to that portion of the Motion as “Plaintiffs’ Statement of Material Facts” or “Plaintiffs’ SMF”. imposition of liquidated damages. See Mot. at 1–2. Defendant opposes the Motion. Dkt. Nos. 90 (“Opposition”), 90-3 (“Defendant’s Statement of Material Facts” or “Defendant’s SMF”); 90-2 (“Richard Rhinehart Affidavit”).2 For the reasons discussed below, the Court denies Plaintiffs’ Motion.

II. BACKGROUND A. Factual History The following facts are undisputed, except where otherwise noted. 1. The Parties Named Plaintiff and the forty-three others who have opted in to this lawsuit are current and former employees of Defendant.3 See Pls.’ SMF ¶ 2; Def.’s SMF ¶ 2. Defendant is in the business of building and maintaining railroad tracks across the United States. See Pls.’ SMF ¶ 1; Def.’s SMF ¶ 1. 2. Plaintiffs’ Job Functions

Plaintiffs shared the same primary duties: building and repairing railroad tracks. See Pls.’ SMF ¶ 3; Def.’s SMF ¶ 3. Depending on a customer’s needs, the Plaintiffs were assigned to work either as operators or laborers. See Pls.’ SMF ¶ 4; Def.’s SMF ¶ 4. Both roles involved manual labor. See Pls.’ SMF ¶ 5; Def.’s SMF ¶ 5. Plaintiffs were paid by the hour.

2 Plaintiffs argue that the Richard Rhinehart Affidavit is “self-serving” and therefore “insufficient to preclude summary judgment[.]” Dkt. No. 93 (“Reply”) at 2. “However, there is nothing wrong with self-serving affidavits and declarations, provided they are supported by the facts in the record and satisfy the usual requirements for affidavits and declarations . . . . The self- serving nature of testimony raises a credibility issue for the factfinder, not an admissibility issue for the court.” 11 MOORE’S FEDERAL PRACTICE - CIVIL § 56.94[3]. 3 In this Memorandum-Decision and Order, the Court refers to the forty-three individuals who opted in as the “Opt-In Plaintiffs” and to all plaintiffs collectively simply as “Plaintiffs”. 2 See Pls.’ SMF ¶ 7; Def.’s SMF ¶ 7. Supervisors inputted hours worked into an application known as eSub. See Pls.’ SMF ¶ 40; Def.’s SMF ¶ 40. Plaintiffs assert that their “work hours varied wildly from one day to the next.” Pls.’ SMF ¶ 12. Defendant notes that “[e]ach job typically had its own schedule” and that “[i]n rare

circumstances, a particular job’s work schedule was in the evening.” Def.’s SMF ¶ 12. In any event, Plaintiffs’ work schedules were set each week during a weekly conference call by Richard and Brandon Rhinehart, Defendant’s vice president and secretary, respectively. See Pls.’ SMF ¶ 14; Def.’s SMF ¶ 14; see also Dkt. No. 78-2, Ex. A (“Richard Rhinehart Deposition”) at 16; id., Ex. H (“Brandon Rhinehart Deposition”) at 20.4 Unexpected “emergency situations” could cause deviations from the set schedule. See Pls.’ SMF ¶ 17; Def.’s SMF ¶ 17. Each job was classified as either prevailing wage or non-prevailing wage. See Pls.’ SMF ¶ 20; Def.’s SMF ¶ 20. According to Plaintiffs, “[a] prevailing wage job refers to a job on

which [Defendant’s] customer is a governmental entity that is required by statute or by the contract, or both, to pay certain rates, also known as prevailing rates, to the employees who perform work on the job.” Pls.’ SMF ¶ 21. Defendant’s records reflected whether each job paid the prevailing wage. See Pls.’ SMF ¶ 22; Def.’s SMF ¶ 22. 3. Travel Practices and Compensation Plaintiffs were required to travel to the job sites to which they were assigned. See Pls.’ SMF ¶ 26; Def.’s SMF ¶ 26. Plaintiffs assert, and Defendant disputes, that they were not

4 Where the Court cites to deposition testimony, it refers to the deposition pagination, not the page numbers generated by CM/ECF. 3 compensated for all of their hours worked. See Pls.” SMF 4 8 (citing Dkt. No. 78-2, Ex. G (“Cullen Deposition”) at 14); Def.’s SMF 4 8. Specifically, Plaintiffs argue that they were not compensated for all of their travel time, and as a result, they “routinely” worked more than forty hours in a week without receiving overtime pay. See Pls.’ SMF ¥ 10. Defendant denies this. See Def.’s SMF ¥ 10. The parties dispute whether Plaintiffs were required to report to one of Defendant’s three yards—two of which are in Maryland and one of which is in Pennsylvania—to collect tools before departing for a job. Compare Pls.’ SMF §] 46 with Def.’s SMF 4 46. Defendant has no written policy regarding travel time compensation. See Pls.” SMF □□ 27; Def.’s SMF § 27. Plaintiffs argue that, under an unwritten policy, Defendant compensated only one-way travel on non-prevailing wage jobs and did not compensate travel at all on prevailing wage jobs. See Pls.’ SMF 4 28. Defendant disputes this. See Def.’s SMF 4[f 28, 33. Plaintiffs complained about travel time compensation to their supervisors. See Pls.” SMF ¥ 34. Plaintiffs assert that prevailing wage travel time was compensated only on one occasion and to only one employee after a particularly vocal complaint. See Pls.” SMF 4 37. B. Procedural History Named Plaintiff initiated this action by filing the Complaint on October 23, 2017. Docket. On August 30, 2018, this Court granted conditional certification as an FLSA collective action. See generally Aug. 2018 Mem.-Decision and Order. The conditionally certified class consisted of: All persons employed by Rhinehart Railroad Construction, Inc. as “Railroad Workers” (“Operators/Laborers”’) in Pennsylvania, North Carolina, New York, Massachusetts, and/or Maryland from October 2014 to the present, who worked more than forty (40) hours per

week and were paid an hourly rate but were not paid for travel time from: (a) their home to an assigned project location; (b) one assigned project location to another assigned project location; and/or (c) an assigned project location[] back to their home.

Id. at 12. Plaintiffs filed their Motion on July 7, 2020. See Docket. On February 3, 2021, this Court denied Defendant’s motion to decertify the class. See Dkt. No. 114. III. LEGAL STANDARD Rule 56 of the Federal Rules of Civil Procedure

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Dieffenbauch v. Rhinehart Railroad Construction, Inc., (N.D.N.Y. 2021).

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