Edward Monroe v. FTS USA, LLC

860 F.3d 389, 2017 FED App. 0131P, 27 Wage Hour & Leave Rep. (BNA) 620, 27 Wage & Hour Cas.2d (BNA) 620, 2017 WL 2662418, 2017 U.S. App. LEXIS 10962
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 21, 2017
Docket14-6063
StatusPublished
Cited by152 cases

This text of 860 F.3d 389 (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, 860 F.3d 389, 2017 FED App. 0131P, 27 Wage Hour & Leave Rep. (BNA) 620, 27 Wage & Hour Cas.2d (BNA) 620, 2017 WL 2662418, 2017 U.S. App. LEXIS 10962 (6th Cir. 2017).

Opinions

STRANCH, J., delivered the opinion of the court in which BOGGS, J., joined, and SUTTON, J., joined in part. SUTTON, J. (pp. 416-25), 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, FTS Technicians) to opt in. FTS Technicians allege that FTS implemented a company-wide time-shaving policy that required its employees to systematically un-derreport their overtime hours. A jury returned verdicts in favor of the class, which the district court upheld before calculating and awarding damages. On appeal, we affirmed the district court’s certification of the case as a collective action and its finding that sufficient evidence supported the jury’s verdicts, but reversed the district court’s calculation of damages.

FTS and UniTek filed a petition for a writ of certiorari, and the Supreme Court issued a grant, vacate, and remand order (GVR)—granting the petition, vacating our opinion, and remanding the case to this court for further consideration in light of Tyson Foods, Inc. v. Bouaphakeo, 577 U.S. -, 136 S.Ct. 1036, 194 L.Ed.2d 124 (2016), which the Supreme Court decided after we issued our opinion. See FTS USA, LLC v. Monroe, — U.S.-, 137 S.Ct. 590, 196 L.Ed.2d 471 (2016) (mem.). “[0]ur law is clear that a GVR order does not necessarily imply that the Supreme Court has in mind a different result in the case, nor does it suggest that our prior decision was erroneous.” In re Whirlpool Corp. Front-Loading Washer Prods. Liab. Litig., 722 F.3d 838, 845 (6th Cir. 2013) (collecting cases). Rather, our task following the GVR in this case is to “determine whether our original decision ... was correct or whether [Tyson] compels a different resolution.” Id.

Upon reconsideration, we find that Tyson does not compel a different resolution; instead, Tyson’s ratification of the Mt. Clemens legal framework and validation of the use of representative evidence support our original decision. Therefore, consistent with that opinion, we AFFIRM the district court’s certification of the ease 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 di[394]*394rectors, 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.

FTS 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

[395]*395The 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.”

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860 F.3d 389, 2017 FED App. 0131P, 27 Wage Hour & Leave Rep. (BNA) 620, 27 Wage & Hour Cas.2d (BNA) 620, 2017 WL 2662418, 2017 U.S. App. LEXIS 10962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-monroe-v-fts-usa-llc-ca6-2017.