Flores v. Elite Staffing Services LLC

District Court, D. Arizona·Decided April 3, 2025·No. 2:24-cv-02241·Unknown

Opinion

WO

Viridiana Avendano Flores, No. CV-24-02241-PHX-DWL

Plaintiff, ORDER

v.

Elite Staffing Services LLC, et al.,

Defendants. Pending before the Court is a motion for conditional certification (“the preliminary certification motion”)1 of a collective action under the Fair Labor Standards Act (“FLSA”) filed by Viridiana Avendano Flores (“Plaintiff”). (Doc. 27.) For the reasons that follow, the motion is granted. On August 28, 2024, Plaintiff filed this FLSA action against Defendants Elite Staffing Services, LLC (“Elite Staffing”), CP Boulders LLC (“CP Boulders”), Columbia Sussex Corporation (“Columbia Sussex”), Dulce Matias (“Matias”) and John Doe Matias, a married couple, Joseph Rodriguez (“Rodriguez”) and Jane Doe Rodriguez, a married couple, and various unknown “Doe” corporations. (Doc. 1.) The facts alleged are as follows. Defendants CP Boulders, Columbia Sussex, and the unknown “Doe” corporations (together, “the Boulders Defendants”) own, operate, or

1 Courts in the Ninth Circuit use the terms “conditional certification” and “preliminary certification” interchangeably. manage The Boulders Resort & Spa Scottsdale (“the Resort”). (Id. ¶ 9.) Defendants Elite Staffing, Matias, and Rodriguez (together, “the Elite Staffing Defendants”) own and operate “an employment placement agency” that provides the Boulders Defendants with workers (“the Workers”) who work in the Resort’s restaurants, kitchens, housekeeping, and other departments, including Plaintiff, who performed “kitchen-related duties.” (Id. ¶¶ 8, 10, 68.) “[I]n theory,” and in an effort to “avoid employment-related liability,” the Boulders Defendants pay the Elite Staffing Defendants to manage the Workers, but “in reality,” the Boulders Defendants control the Workers’ “day-to-day functions” and “the work being performed,” handle “the disciplining and firing” of the Workers, and “set and communicate” work schedules. (Id. ¶¶ 11-12, 47, 72-74, 108.) Thus, the complaint asserts that “the Elite Staffing Defendants and [t]he Boulders Defendants comprise a ‘vertical joint employment’ relationship under the FLSA” and operate “as a ‘single enterprise’ within the meaning of Section 203(r)(1) of the FLSA.” (Id. ¶¶ 36-42.) Plaintiff and the other Workers “worked for an hourly wage,” “were generally scheduled to, and did, work in excess of 40 hours per week,” and were not compensated “one and one-half times their regular rate of pay for all hours worked in excess of 40 hours in a workweek”—rather, they were paid “their regular, straight-time rate” for overtime hours. (Id. ¶¶ 102-05.) For example, Plaintiff, who was hired in March 2023, was paid a regular rate of approximately $19 per hour and was scheduled to work and did work between 60 and 95 hours per week, a minimum of six days per week, but regardless of how many hours of overtime she worked, Plaintiff was always paid her regular hourly rate of approximately $19 per hour for every hour she worked. (Id. ¶¶ 67-71, 75-85.) As such, Plaintiff brings this action on behalf of herself and a proposed collective:

All current or former Hourly Employees (or individuals with other similar job duties or titles), who were provided by Elite Staffing Services, LLC, or any of the Elite Staffing Defendants to work for The Boulders Resort & Spa Scottsdale and/or who did not receive an overtime premium of one and one- half times their regular rates of pay for time spent working in excess of 40 hours in at least one workweek at any time during the past three years before the filing of the Complaint up to the present. (Id. ¶ 106.) On October 25, 2024, the Boulders Defendants2 filed an answer and a cross claim against Elite Services and Rodriguez. (Doc. 14.) On November 5, 2024, the Boulders Defendants filed an amended answer and cross claim. (Doc. 18.) On December 16, 2024, Plaintiff filed the preliminary certification motion. (Doc. 27.) On January 3, 2025, following a short stipulated deadline extension, the Boulders Defendants responded to the preliminary certification motion. (Doc. 32.)3 On January 6, 2025, Plaintiff filed a reply. (Doc. 33.) Neither side requested oral argument. I. Legal Standard The FLSA provides “similarly situated” employees with the “right” to bring a collective action against their employer:

An action . . . may be maintained against any employer . . . by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. 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. . . . The right . . . to bring an action by or on behalf of any employee, and the right of any employee to become a party plaintiff to any such action, shall terminate upon the filing of a complaint by the Secretary of Labor . . . . 29 U.S.C. § 216(b). The seminal Ninth Circuit case regarding FLSA collective actions is Campbell v. City of Los Angeles, 903 F.3d 1090 (9th Cir. 2018). In Campbell, the Ninth Circuit 2 The unknown “Doe” corporations have not been served and have not participated. Pursuant to the Court’s September 3, 2024 order (Doc. 5 at 6-7), those defendants are dismissed without prejudice for failure to serve. From this point forward, “the Boulders Defendants” refers only to CP Boulders and Columbia Sussex. 3 The Court permitted service via alternative means as to the Elite Services Defendants. (Doc. 21.) Those Defendants were served with the complaint and cross claim on November 22, 2024 (Docs. 22-25) and have not answered, responded to the preliminary certification motion, or otherwise participated in this action. However, neither Plaintiff nor the Boulder Defendants have applied for the entry of a default as to the Elite Services Defendants. explained that § 216(b) provides that “workers may litigate jointly if they (1) claim a violation of the FLSA, (2) are ‘similarly situated,’ and (3) affirmatively opt in to the joint litigation, in writing.” Id. at 1100. The court further explained that this right “has two permutations”: (1) “[t]he right . . . to bring an action by or on behalf of any employee”; and (2) “the right of any employee to become a party plaintiff to any such action”—“that is, the right to bring the collective litigation and the right to join it.” Id. Turning to the procedures and standards governing FLSA collective actions, the Campbell court noted that a judicially-crafted “two-step ‘certification’ process” had become “near-universal” and therefore chose to “adhere” to the terms “preliminary certification” and “decertification” in the FLSA context because they are “widespread,” with the caveat that adherence to this terminology does not “imply that there should be any particular procedural parallels between collective and class actions.” Id. at 1100-02. The court further clarified that, under the two-step certification process, “plaintiffs will, at some point around the pleading stage, move for ‘preliminary certification’ of the collective action, contending that they have at least facially satisfied the ‘similarly situated’ requirement,” and then “[l]ater, after the necessary discovery is complete, defendants will move for ‘decertification’ of the collective action on the theory that the plaintiffs’ status as ‘similarly situated’ was not borne out by the fully developed record.” Id. at 1100. Although the court acknowledged that both steps involve evaluating whether the plaintiffs are “similarly situated,” it emphasized that the district court applies different standards at each step:

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