Felps v. Mewbourne Oil Company, Inc.

CourtDistrict Court, D. New Mexico
DecidedMay 18, 2020
Docket2:18-cv-00811
StatusUnknown

This text of Felps v. Mewbourne Oil Company, Inc. (Felps v. Mewbourne Oil Company, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Felps v. Mewbourne Oil Company, Inc., (D.N.M. 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW MEXICO

JONATHAN FELPS, Individually and On Behalf of All Others Similarly Situated,

Plaintiffs,

v. No. 18-811 MV/GJF

MEWBOURNE OIL COMPANY, INC.

Defendant.

MEMORANDUM OPINION AND ORDER

THIS MATTER comes before the Court on Plaintiff’s Amended Motion for Expedited Conditional Certification of Collective Action and Judicially-Supervised Notice Under Section 216(b) and Brief in Support (“Amended Motion”) [Doc. 44]. The Court, having considered the Amended Motion and relevant law, finds that the Amended Motion is well-taken and will be granted. BACKGROUND Defendant Mewbourne Oil Company is an oil and gas production company doing business in New Mexico, Oklahoma, and Texas. Doc. 36 ¶ 16. From 2014 to October 2016, Plaintiff Jonathan Felps worked as a Lease Operator, or Pumper, for Defendant at its Hobbs, New Mexico location. Id. ¶¶ 17-18. All of Defendant’s Lease Operators perform the same job duties, namely, outdoor manual labor, including operating oilfield equipment, inspecting and maintaining oilfield equipment, monitoring oilfield equipment, and collecting and relaying data to supervisors for analysis. Id. ¶ 25. 1 In August 2016, the United States Department of Labor (“DOL”) commenced an investigation into Defendant’s practices of classifying its employees, through which it determined that Defendant had been misclassifying its Lease Operators as exempt from the overtime protections of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201, et seq. Id. ¶ 57. Based on this misclassification, all Lease Operators employed by Defendants, including

Plaintiff, were paid only a base salary and received no additional compensation for hours worked in excess of 40 hours a week. Id. ¶ 23. As a result of the DOL investigation, Defendant made back-wage payments to 53 of its Lease Operators and obtained DOL-approved releases from them. Doc. 12 at 5. Further, in October 2016, Defendant reclassified its Lease Operators as hourly, non-exempt employees entitled to overtime. Doc. 36 ¶ 58. It was not until June 21, 2017, however, that Defendant began paying its Lease Operators overtime for hours worked in excess of 40 hours a week. Doc. 44 at 2-3. Plaintiff did not receive any funds as a result of the DOL investigation and did not sign

any release of claims. Doc. 36 ¶ 61. Nor did Jammie Hobbs, who similarly worked as a Lease Operator at Defendant’s Hobbs, New Mexico location, or Keenan Senter, who worked as a Lease Operator at Defendant’s Canadian, Texas location. Id. ¶¶ 62-63. Plaintiff commenced this action “individually and on behalf of all others similarly situated” against Defendant, asserting violations of both the FLSA and the New Mexico Minimum Wage Act. Doc. 36. Soon thereafter, Plaintiff filed a motion seeking conditional certification of an FLSA collective action [Doc. 12], which he amended via the instant Amended Motion [Doc. 44]. Specifically, Plaintiff requests conditional certification of a class of “[a]ll persons who worked as a Lease Operator[] or Pumper for Defendant at any time between

2 October 31, 2015 and June 21, 2017.” Doc. 44 at 3. Defendant opposes Plaintiff’s request for conditional class certification. STANDARD Under the FLSA, employers are required to pay overtime wages to regular employees for any work in excess of forty hours a week. 29 U.S.C. § 207(a). If an employer fails to comply

with this requirement, an employee may bring an action to recover “unpaid overtime compensation” and “an additional equal amount as liquidated damages . . . for and in behalf of himself [] and other employees similarly situated.” 29 U.S.C. § 216(b). The FLSA thus “provides for a class action where the complaining employees are ‘similarly situated.’” Thiessen v. Gen. Elec. Cap. Corp., 267 F.3d 1095, 1102 (10th Cir. 2001). Unlike “opt out” class actions under Rule 23 of the Federal Rules of Civil Procedure, however, “collective actions under the FLSA require affirmative consent by a current or former employee to join the class.” Aguilar v. Mgm’t & Training Corp., No. 16-cv-050, 2017 WL 4277139, at *3 (D.N.M. Jan. 27, 2017); see 29 U.S.C. § 216(b) (“No employee shall be a party plaintiff to any such action unless

he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.”). Thus, in order for putative plaintiffs to join an FLSA collective action, they “must affirmatively ‘opt-in’ to do so.” Aguilar, 2017 WL 4277139, at *3. Although Section 216(b) does not define the term “similarly situated,” the Tenth Circuit has adopted a two-step approach to determine, “on an ad hoc case-by-case basis, whether plaintiffs are ‘similarly situated.’” Thiessen, 267 F.3d at 1102. With this approach, the court “makes an initial ‘notice stage’ determination of whether plaintiffs are ‘similarly situated.’” Id. “That is, the court determines whether a collective action should be certified for purposes of

3 sending notice of the action to potential class members.” Aguilar, 2017 WL 4277139, at *3 (citation omitted); see also Foster v. Nova Hardbanding, LLC, No. 15-cv-1047, 2016 WL 4492829, at *2 (D.N.M. Apr. 20, 2016) (“The purpose of this first step is for the court to determine whether the certification is appropriate for purposes of sending notices and consent forms to potential plaintiffs.”) (citation omitted).

At the “initial notice” stage, “a court requires nothing more than substantial allegations that the putative class members were together the victims of a single decision, policy, or plan.” Thiessen, 267 F.3d at 1102. This is a “lenient standard” that “typically results in conditional certification of a representative class.” Aguilar, 2017 WL 4277139, at *3 (citation omitted). Accordingly, “the court does not weigh evidence, resolve factual disputes, or rule on the merits of the plaintiff’s claims.” Id. (citation omitted). “In general, if putative class members are employees with similar positions, allegations that the defendants engaged in a pattern or practice of not paying overtime [are] sufficient to allege that plaintiffs were together the victims of a single decision, policy, or plan.” Foster, 2016 WL 4492829, at *2.

DISCUSSION I. Conditional Certification is Appropriate at this Initial Notice Stage. On the instant motion, Plaintiff asks the Court to conditionally certify a class of “all persons who worked as a Lease Operator[] or Pumper for Defendant at any time between October 31, 2015 and June 21, 2017.” Doc. 44 at 3. In support of this request, Plaintiff argues that his declaration and the declarations of Senter and Hobbs, in addition to DOL investigation records, establish that (1) Defendant’s Lease Operators had similar job duties and regularly worked more than 40 hours a week and (2) Defendant misclassified its Lease Operators as FLSA exempt and refused to pay them any overtime compensation. Doc. 12 at 8-9. Based on this

4 evidence, Plaintiff further argues that he has met his lenient burden of setting forth “substantial allegations that the putative class members were together the victims of a single decision, policy, or plan,” thereby establishing that the proposed class members are similarly situated and that conditional certification thus is appropriate. Id. at 9.

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Felps v. Mewbourne Oil Company, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/felps-v-mewbourne-oil-company-inc-nmd-2020.