DIFLAVIS v. CHOICE HOTELS INTERNATIONAL, INC.

CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 6, 2020
Docket2:18-cv-03914
StatusUnknown

This text of DIFLAVIS v. CHOICE HOTELS INTERNATIONAL, INC. (DIFLAVIS v. CHOICE HOTELS INTERNATIONAL, INC.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DIFLAVIS v. CHOICE HOTELS INTERNATIONAL, INC., (E.D. Pa. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA GINA DIFLAVIS, : Plaintiff : CIVIL ACTION v. : CHOICE HOTELS INTERNATIONAL, : INC. et al., : NO. 18-3914 Defendants : MEMORANDUM PRATTER, J. FEBRUARY 3, 2020 INTRODUCTION During her brief tenure as a housekeeper at a Clarion Hotel, Gina DiFlavis alleges that she was not compensated for the overtime hours she regularly worked. She alleges that all other housekeepers working at Clarion Hotels across the nation were subjected to the same treatment. She brings a collective action under the Fair Labor Standards Act (FLSA)! and a class action under the Pennsylvania Minimum Wage Act (PMWA).” The defendants deny that Ms. DiFlavis worked in excess of 40 hours per week during any week of her employment. The defendants now move for summary judgment as to Ms. DiFlavis’ overtime compensation claims. Choice Hotels International, Inc. also moves for summary judgment on the basis that it is not Ms. DiFlavis’ joint employer. Rama Construction Company owns and operates the Clarion Hotel in Essington, Pennsylvania where Ms. DiFlavis worked. Ms. DiFlavis asserts that Choice

Ms. DiFlavis brings this claim on an opt-in basis on behalf of herself and all Clarion Hotel housekeepers who have worked on a full-time, hourly basis during the maximum limitations period (the “FLSA collective”). 2 Ms. DiFlavis brings this claim on an opt-out, class action basis pursuant to Fed. R. Civ. P. 23 on behalf of herself and all Pennsylvania residents who have worked as full-time, hourly Clarion Hotel housekeepers and been denied overtime premium wages for overtime hours worked during the maximum limitations period.

Hotels International, Inc. was her joint employer under the FLSA because (1) Rama operated the hotel under a franchise agreement with Choice Hotels; (2) Choice Hotels created the employment policies contained in the Employee Handbook and other documents relating to her employment; and (3) her supervisors were employed by Choice Hotels. Choice Hotel counters that the franchise agreement does not contain any provision authorizing it to maintain the control over housekeepers necessary to establish a joint employer relationship. Both defendants assert that the Employee Handbook and employment-related documents Ms. DiFlavis relies on to support her claim were created by Rama, not Choice Hotel. Similarly, the defendants contend that Ms. DiFlavis’ supervisors are solely employed by Rama. Finally, Ms. DiFlavis moves for conditional certification of an FLSA collective action on behalf of herself and all Clarion Hotel housekeepers who have worked on a full-time, hourly basis during the maximum limitations period. The defendants argue that Ms. DiFlavis fails to present any evidence that allows the Court to infer that other Clarion Hotel housekeepers, at the Essington location and nationwide, are subjected to the same allegedly unlawful policies and practices. For the reasons outlined in this Memorandum, the Court grants summary judgment in favor of Choice Hotels, denies summary judgment in favor of Rama, and denies granting conditional certification. BACKGROUND A. The Parties Ms. DiFlavis was briefly employed as a full-time, hourly housekeeper at the Clarion Hotel & Conference Center in Essington, Pennsylvania before being terminated after failing to report to work for two consecutive days. Ms. DiFlavis states that she worked at the Clarion Hotel from

early June 2018 until late August 2018. According to the time records and pay stubs, Ms. DiFlavis was employed from June 27, 2018 to August 3, 2018. Choice Hotels is a Delaware corporation based in Rockville, Maryland. The company owns a dozen hotel and motel brands totaling about 6,400 properties worldwide, including roughly 300 Clarion Hotels in 39 states. Rama is a Pennsylvania corporation based in Essington, Pennsylvania. It owns and operates the Clarion Hotel in Essington where Ms. DiFlavis worked. B. Ms. DiFlavis’ Compensation Allegations The housekeepers at the Clarion Hotel in Essington are required to clean hotel rooms. Housekeepers, infer alia, make beds, replace towels, vacuum, and clean hotel rooms. Full-time housekeepers are scheduled to work five 8 4 hour shifts per week, with each shift including a 30- minute meal break. The scheduled shifts run from 8:00 a.m. to 4:30 p.m. Mondays through Saturdays and 9:00 a.m. to 5:30 p.m. on Sundays. At the start of each work day, housekeepers are given a list of 16 or more rooms, and supervisors can add to this list throughout the day. Housekeepers must work until they have serviced all of their assigned rooms per day. Ms. DiFlavis contends that her supervisors routinely added additional rooms to her list as the day went on. Housekeepers are paid an hourly rate of $9.00 plus $5.00 per each additional room they service above 16 rooms ina day. Pursuant to the Employee Handbook, housekeepers are paid an overtime rate of $13.50 per hour worked in excess of 40 hours per week. The Employee Handbook provides that the hotel’s general policy is to avoid overtime and requires department head approval for any overtime hours worked. Ms. DiF lavis testifies that she was never informed either in writing or verbally of such a policy.

Ms. DiFlavis asserts that although on average she worked five shifts per week, cleaned 20 to 22 guest rooms per day, and worked 10 to 11 hours per day, or 50 to 55 hours per week, the defendants never compensated her for the overtime hours she worked. She points out that Rama’s time clock was broken during her first couple weeks of her employment. During this time period, employees or supervisors would handwrite when housekeepers began and stopped working for the day. According to Ms. DiFlavis, the defendants are aware that they violated their own overtime policy because of their general ownership and management of the hotels, creation of the job description and relevant policies, control over staff schedules and assignments, and control over the timekeeping system. The defendants, however, contend that Ms. DiFlavis never worked more than 40 hours during any week, as shown in time records and pay stubs. Rama’s time records show that Ms. DiFlavis worked at the hotel 26 times during a six-week employment, working between 17.75 and 39,25 hours during those six weeks.’ Oreta Brooks, the Housekeeping Manager at the Clarion Hotel in Essington and Ms, DiFlavis’ direct supervisor, stated that Ms. DiFlavis never reported that her paycheck inaccurately reflected her hours or that she was not paid for hours she worked. C. The Franchise Agreement and Clarion Rules and Regulations Franchisee Rama entered into a franchise agreement with franchisor Choice Hotels to operate the Clarion Hotel in Essington. In the franchise agreement, Rama acknowledged and agreed that it was an “independent contractor” and “solely responsible for exercising ordinary business control over the Hotel, including personnel matters of Hotel employees.” Franchise Agreement at § 19(c) (Doc. No. 57-1). Rama, through written admissions, and Choice Hotels,

3 Specifically, the time records show that Ms. DiFlavis worked 39.25 hours during her first week, 38.5 hours during her second week, 37.5 hours during her third week, 37.75 hours during her fourth week, 34 hours during her fifth week, and 17.75 hours during her sixth week.

through the declaration of Stuart Kriendler, Choice Hotel’s Assistant General Counsel, state that Choice Hotels had no part in various aspects of the employment of Ms. DiFlavis or any other housekeepers. Under the franchise agreement, Rama must comply with the Clarion Rules and Regulations which “contain[{], among other things, [Choice Hotels’] standards and requirements for constructing, equipping, furnishing, supplying, operating, maintaining and marketing the hotel.” Id.

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Bluebook (online)
DIFLAVIS v. CHOICE HOTELS INTERNATIONAL, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/diflavis-v-choice-hotels-international-inc-paed-2020.