Edward Monroe v. FTS USA, LLC

815 F.3d 1000, 2016 FED App. 0054P, 26 Wage & Hour Cas.2d (BNA) 137, 2016 U.S. App. LEXIS 3859, 2016 WL 814329
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 2, 2016
Docket14-6063
StatusPublished
Cited by7 cases

This text of 815 F.3d 1000 (Edward Monroe v. FTS USA, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward Monroe v. FTS USA, LLC, 815 F.3d 1000, 2016 FED App. 0054P, 26 Wage & Hour Cas.2d (BNA) 137, 2016 U.S. App. LEXIS 3859, 2016 WL 814329 (6th Cir. 2016).

Opinions

STRANCH, J., delivered the opinion of the court in which BOGGS, J., joined. SUTTON, J. (pp. 1024-32), delivered a separate opinion concurring in part and dissenting in part.

OPINION

STRANCH, Circuit Judge.

Edward Monroe, Fabian Moore, and Timothy Williams brought this Fair Labor Standards Act (FLSA) claim, on behalf of themselves and others similarly situated, against their employers, FTS USA, LLC and its parent company, UniTek USA, LLC. FTS is a cable-television business for which the plaintiffs work or worked as cable technicians. The district court certified the case as an FLSA collective action, allowing 293 other technicians (collectively, the FTS Technicians) to opt in. FTS Technicians allege that FTS implemented a company-wide time-shaving policy that required its employees to systematically underreport their overtime hours. A jury returned verdicts in favor of the class, which the district court upheld before calculating and awarding damages. We AFFIRM the district court’s certification of the case as a collective action and its finding that sufficient evidence supports the jury’s verdicts. We REVERSE the district court’s calculation of damages and REMAND the case for recalculation of damages consistent with this opinion.

I. BACKGROUND

A. Facts

FTS contracts with various cable companies, such as Comcast and Time Warner, to provide cable installation and support, primarily in Tennessee, Alabama, Mississippi, Florida, and Arkansas. To offer these services, FTS employs technicians at local field offices, called “profit centers.” FTS’s company hierarchy includes a company CEO and president, regional directors, project managers at each profit center, and a group of supervisors. FTS Technicians report to the supervisors and project managers. FTS’s parent company, UniTek, is in the business of wireless, telecommunication, cable, and satellite services, and provides human resources and payroll functions to FTS.

All FTS Technicians share substantially similar job duties and are subject to the same compensation plan and company-wide timekeeping system. FTS Technicians report to a profit center at the beginning of each workday, where FTS provides job assignments to individual technicians and specifies two-hour blocks in which to complete certain jobs. Regardless of location, “the great majority of techs do the same thing day in and day out which is install cable.” Time is recorded by hand, and FTS project managers transmit technicians’ weekly timesheets to UniTek’s director of payroll. FTS Technicians are paid pursuant to a piece-rate compensation plan, meaning each assigned job is worth a set amount of pay, regardless of the amount of time it takes to complete the job. The record shows that FTS Technicians are paid by applying a .5 multiplier to their regular rate for overtime hours.

FTS Technicians presented evidence that FTS implemented a company-wide time-shaving policy that required technicians to systematically underreport their overtime hours. Managers told or encouraged technicians to underreport time or even falsified timesheets themselves. To underreport overtime hours in compliance with FTS policy, technicians either began working before their recorded start times, recorded lunch breaks they did not take, or continued working after their recorded end time.

[1006]*1006FTS Technicians also presented documentary evidence and testimony from technicians, managers, and an executive showing that FTS’s time-shaving policy originated with FTS’s corporate office. Technicians testified that the time-shaving policy was company-wide, applying generally to all technicians, though not in an identical manner. At meetings, managers instructed groups of technicians to un-derreport their hours, and managers testified that corporate ordered them to do so. One former manager, Anthony Louden, offered testimony regarding high-level executive meetings. Louden identified overtime and fuel costs as the two leading items that an FTS executive felt it “should be able to manage and cut in order to make a bigger profit.” Louden also stated that FTS executives circulated and reviewed technicians’ timesheets, “go[ing] into detail on which technician had overtime, and, you know, go[ing] over why this guy had too much overtime and why he didn’t have overtime.” Technicians testified that they often complained about being obligated to underreport, and FTS’s human resources director testified that she received such complaints. No evidence was presented that managers or technicians were disciplined for underreporting time.

B. Procedural History

A magistrate judge recommended conditional certification as a FLSA collective action, which the district court adopted. The district court also authorized notice of the collective action to be sent to all potential opt-in plaintiffs. The notice defined eligible class members as any person employed by FTS as a technician at any location across the country in the past three years to the present who were paid by piece-rate and did not receive overtime compensation for all hours worked over 40 per week during that period. A total of 293 technicians ultimately opted in to the collective action.1

The parties originally agreed on a discovery and trial plan, which the trial court adopted by order. Under the parties’ agreement, discovery would be limited “to a representative sample of fifty (50) opt-in Plaintiffs,” with FTS Technicians choosing 40 and FTS and UniTek choosing 10. The parties also agreed to approach the district court after discovery regarding “a trial plan based on representative proof’ that “will propose a certain number of Plaintiffs from the pool of fifty (50) representative sample Plaintiffs that may be called as trial witnesses.”

Following the 'completion of discovery, the district court denied FTS and Uni-Tek’s motions to decertify the class and for summary judgment, finding that the class members were similarly situated at the second stage of certification. In light of the parties’ agreement and. the district court’s resulting order — under which the litigation proceeded — the court held that it could not “accept Defendants’ contention that the parties’ stipulated agreement to limit discovery to fifty representative plaintiffs did not also manifest Defendants’ acquiescence to a process by which the remaining members of the class would not have to produce evidence as a prerequisite to proceeding to trial on their claims.” (R. 238, PagelD 5419.) The district court also denied FTS and UniTek’s pretrial motion to preclude representative proof at trial because “the class representatives identified by Plaintiff[s] sufficiently represent the class” and “[t]o deny the use of representative proof in this case would under[1007]*1007mine the purpose of class wide relief, and would have the effect of decertifying the class.” (R. 308, PagelD 6822.)

Accordingly, the collective action proceeded to trial on a representative basis. FTS Technicians identified by name 38 potential witnesses and called 24 witnesses, 17 of whom were class-member technicians. FTS and UniTek identified all 50 representative technicians as potential witnesses, but called only four witnesses — all FTS executives and no technicians.

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815 F.3d 1000, 2016 FED App. 0054P, 26 Wage & Hour Cas.2d (BNA) 137, 2016 U.S. App. LEXIS 3859, 2016 WL 814329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-monroe-v-fts-usa-llc-ca6-2016.