Dunn v. Hamra Enterprises

CourtDistrict Court, N.D. Illinois
DecidedSeptember 16, 2022
Docket1:20-cv-04329
StatusUnknown

This text of Dunn v. Hamra Enterprises (Dunn v. Hamra Enterprises) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunn v. Hamra Enterprises, (N.D. Ill. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION TIMOTHY DUNN,

Plaintiff, No. 20 C 04329

v. Judge Thomas M. Durkin

HAMRA ENTERPRISES and HAMRA MANAGEMENT COMPANY, LLC,

Defendants.

MEMORANDUM OPINION AND ORDER Timothy Dunn sued Hamra Enterprises and Hamra Management Company, LLC (collectively, “Hamra”), alleging retaliation in violation of the Fair Labor Standards Act (“FLSA”) and retaliatory discharge under Illinois law. Hamra has moved for summary judgment on all claims. For the reasons set forth below, Hamra’s motion is denied. Background The following facts are undisputed except where otherwise indicated. Hamra is a franchisee of various restaurants and hotels, including Wendy’s, Panera Bread, Noodles & Company, and Holiday Inn Express & Suites. R. 62 ¶ 2. Dunn was originally hired by Hamra in the position of facilities manager in July 2001. R 62 ¶ 6. In 2013, he was promoted to Director of Maintenance. Id. In 2016, he assumed the position of Regional Director of Facilities (“RDF”) for the Chicago area. Id. At the time Dunn assumed the Chicago RDF role, Hamra also employed RDFs in its two other markets: New England and Missouri. R. 62 ¶ 7. Dunn held the RDF position until his employment with Hamra was terminated on May 14, 2020. R. 62 ¶ 1. Dunn’s direct supervisor at the time of his termination was Ben Kaplan. R. 62 ¶ 15. Dunn’s position as RDF entailed supervising several technicians who reported

to him, managing the facilities in his region, managing budgets, and providing oversight on capital projects. R 62 ¶ 8. His duties also included vendor relations, site inspections, and ensuring regulatory compliance. Id. At the time of his termination, Dunn supervised four field technicians in the Chicagoland area. R 62 ¶ 14. Dunn was typically responsible for tracking, collecting, and submitting hours worked by the field technicians and other employees that

reported to him. R 62 ¶ 10. His team would record their hours on timesheets, which were then entered electronically and sent to Hamra’s payroll department by Dunn. R. 62 ¶ 11. In early February of 2020, Kaplan exchanged emails with Hamra management regarding the “Reorganization of Development / Construction Leadership.” R. 62 ¶ 17. Kaplan’s email proposed that he “oversee all development which includes construction” and that “facilities leadership remains the same.” R. 56-2. It also made

other proposals concerning a “facilities / construction point person” in each market. Id. At some point in February 2020, Kaplan was asked to take over facilities leadership for Hamra. R. 62 ¶ 15. The start of the COVID-19 pandemic brought with it a host of rapid changes. Beginning March 16, 2020, Kaplan directed the facilities department to stop all non- essential work due to COVID. R. 62 ¶ 18. Kaplan told the department that Hamra would authorize work necessary to keep its restaurants open. Id. Kaplan also told Dunn to have his team prepare the Panera Bread restaurants for outdoor dining and to install signs and banners. R. 62 ¶ 36. Kaplan was aware that this task might

require Dunn’s team to work overtime. R. 62 ¶ 37. However, according to Dunn, Kaplan instructed him not to record any of the team’s overtime hours on their timecards for submission. R. 72 ¶ 6. Kaplan denies ever telling Dunn to omit overtime hours. Id. At least some of Hamra’s restaurants saw a decline in sales in the early weeks of the pandemic. R. 62 ¶ 19. On March 22, 2020, Kaplan emailed Hamra management to discuss the

immediate reduction of facilities team hours to 20 per week. R. 62 ¶ 20. Two days later, Kaplan submitted a proposal for reduced hours and restructuring on the facilities team to Hamra management. R. 62 ¶ 21. The proposal included laying off the administrative assistant and warehouse repair technician on Dunn’s team, but kept Dunn in place as the Chicago RDF. Id.; R. 56-5. According to Dunn, he first raised the issue of nonpayment of overtime around this time. Dunn allegedly asked Kaplan if he could add unpaid overtime hours to a

laid-off employee’s final timecard so it would be included in his final pay, and that Kaplan said no. R. 72 ¶ 7. Dunn objected and said the employee was owed the money, having put in the overtime hours. Id. Kaplan denies telling Dunn this overtime could not be paid. Id. Additional developments soon followed. Hamra’s RDF for the New England market retired on March 27, 2020 and his position was not filled. R. 62 ¶¶ 22, 30. Kaplan sent an email to Hamra management on April 1, 2020, indicating that none of the facilities technicians in Chicago were HVAC certified, requiring Hamra to bring in outside vendors for maintenance work. R. 62 ¶ 23; R. 56-7. Dunn testified at his

deposition that he was HVAC certified, and that one of his technicians had received HVAC certification while employed by Hamra. R. 52, at 50:20-51:4. Two days later, Kaplan emailed Hamra management and several other employees, including Dunn, to say that Chad Halley would be taking over as RDF for Southern Bread (a collection of restaurant locations in Mississippi, Tennessee, and Arkansas), removing this from Dunn’s area of responsibility. R. 62 ¶ 24. The email thanked Dunn for his “awesome

continued leadership.” R. 56-8. Dunn alleges that he raised the unpaid overtime issue again after certain employees’ pay was reduced in early April. R. 72 ¶ 8. He claims to have asked Kaplan how the pay reduction would affect the overtime that was still owed, and that Kaplan told him Hamra was not going to pay that overtime. Id. Kaplan denies saying this. Id. Dunn allegedly raised the issue a third time later in April, after Hamra received a Paycheck Protection Program loan from the government. R. 72 ¶ 9. Dunn asked

Kaplan whether the receipt of the loan meant that Hamra was going to pay Dunn’s team for their overtime, and Kaplan said no. R. 72 ¶ 9. Kaplan likewise denies this. Id. On April 27, 2020, Kaplan sent an email to Hamra management informing them of imminent plans to move the Chicagoland facility warehouse to a new location in Carpentersville that was closer to the restaurants it serviced. R. 56-9. In the email, Kaplan said, “At one point I was thinking that [Dunn] might quit over this change.” Id. Kaplan also suggested that at least some of the Chicago area technicians spent multiple hours per day driving to and from work and said he would “deal with this

once we come out of this crisis.” Id. By May of 2020, Kaplan had decided that Hamra’s facilities infrastructure needed to be restructured to improve cost-effectiveness. R. 62 ¶ 26. In a May 2 email, Kaplan proposed promoting Halley (then the RDF for Missouri and Southern Bread) to Senior Director of Facilities, a newly created position. R. 62 ¶ 27. Under the proposal, the RDFs for each market, including Dunn, would report to Halley. Id. At

the time, Kaplan was also in the process of reviewing the qualifications of all Hamra’s technicians, with the stated goal of each having experience in some or all of several relevant facilities disciplines, apparently in order to cut down on the expense of hiring outside vendors. R. 62 ¶ 28. A member of Hamra’s management asked whether a director was needed in each market given that Halley would be overseeing the entire department under Kaplan’s proposal. R. 62 ¶ 29. Kaplan said yes and that it would be “good to have someone in each market as a leader.” R. 56-11.

On May 7, Dunn sent an email to Kaplan expressing several concerns. First, he said his team was unhappy with recent scheduling changes. R. 72 ¶ 11. Next, he said that members of his team were concerned about the lack of hygiene facilities (restrooms and sinks) at the new maintenance facility in Carpentersville. Id.

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