Frazier v. PJ Iowa, L.C.
This text of 337 F. Supp. 3d 848 (Frazier v. PJ Iowa, L.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
JAMES E. GRITZNER, Senior Judge
This matter is before the Court on a Motion for Conditional Fair Labor Standards Act (FLSA),
I. BACKGROUND1
PJ Iowa operates twenty-six Papa John's pizza restaurant franchises in Iowa, Illinois, and South Dakota. Twenty-one of these are in Iowa, two are in Moline, Illinois, and three are in Sioux Falls, South Dakota.
PJ Iowa employed Frazier as an hourly tipped delivery driver in Cedar Rapids, Iowa, from September 15, 2016, until April 10, 2017. PJ Iowa never paid Frazier minimum wage in Iowa, which at the relevant time was $7.25 an hour. Instead, as PJ Iowa clarifies, Frazier was paid a base cash wage of $5.25 or $5.75 per hour (wage increased on January 5, 2017), plus tips. PJ Iowa is allowed to pay this seemingly subminimum wage under the FLSA's "tip credit" policy. That is, for employees who regularly receive over $30 in tips a month, the FLSA allows employers to deduct a chosen amount from the otherwise-mandatory minimum wage. See
PJ Iowa employed Kearns in Marion, Iowa, as an hourly tipped delivery driver during two separate time periods: May 14, 2014, to October 16, 2014, and July 4, 2016, to February 17, 2018. Instead of paying Kearns the minimum wage, PJ Iowa paid her a base hourly wage of $5.35, $5.50, or *859$5.90 per hour, plus tips. PJ Iowa applied a tip credit against Kearns's minimum wage. Therefore, PJ Iowa also provided Kearns with notice of her hourly rate of pay, the amount of tip credit claimed by PJ Iowa per hour ($2.00, $2.00, and $2.50, aligned with wage increases), and Kearns's right to retain all tips.
On April 13, 2017, Frazier filed a Petition in the Iowa District Court of Polk County against PJ Iowa for violation of the FLSA, the Iowa Minimum Wage Law (IMWL), Iowa Code § 91D, and the Iowa Wage Payment Collection Law (IWPCL), Iowa Code § 91A. PJ Iowa timely removed the case to this Court based on federal question jurisdiction,
Relevant to this Motion, Plaintiffs make three class-based claims.4 Count I, which is brought under the FLSA, and Count II, which is brought under the IMWL and the IWPCL, allege that PJ Iowa improperly applied a tip credit to wages of delivery drivers who spent over 20% of their time performing non-tipped duties or performed duties unrelated to their tipped duties. Count III alleges that PJ Iowa's vehicle reimbursement policy resulted in net wages below the minimum wage in violation of the FLSA.
Plaintiffs now move for conditional certification of Counts I and III as an FLSA collective action of PJ Iowa delivery drivers during the applicable limitations period, including Kearns's subcollective of PJ Iowa delivery drivers who used their personal vehicles for deliveries. Plaintiffs also seek class certification of the IMWL and the IWPCL claims-Count II-under Rule 23, as to the class of PJ Iowa delivery drivers during the applicable limitations period.
A. Dual Jobs Claim
Counts I and II are based on the same alleged circumstances, which are contemplated by the Department of Labor regulations on "dual jobs." Typically, dual jobs regulations are at issue when an employee has two occupations with an employer, one requiring the performance of tipped duties and the other requiring performance *860of non-tipped duties. See
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JAMES E. GRITZNER, Senior Judge
This matter is before the Court on a Motion for Conditional Fair Labor Standards Act (FLSA),
I. BACKGROUND1
PJ Iowa operates twenty-six Papa John's pizza restaurant franchises in Iowa, Illinois, and South Dakota. Twenty-one of these are in Iowa, two are in Moline, Illinois, and three are in Sioux Falls, South Dakota.
PJ Iowa employed Frazier as an hourly tipped delivery driver in Cedar Rapids, Iowa, from September 15, 2016, until April 10, 2017. PJ Iowa never paid Frazier minimum wage in Iowa, which at the relevant time was $7.25 an hour. Instead, as PJ Iowa clarifies, Frazier was paid a base cash wage of $5.25 or $5.75 per hour (wage increased on January 5, 2017), plus tips. PJ Iowa is allowed to pay this seemingly subminimum wage under the FLSA's "tip credit" policy. That is, for employees who regularly receive over $30 in tips a month, the FLSA allows employers to deduct a chosen amount from the otherwise-mandatory minimum wage. See
PJ Iowa employed Kearns in Marion, Iowa, as an hourly tipped delivery driver during two separate time periods: May 14, 2014, to October 16, 2014, and July 4, 2016, to February 17, 2018. Instead of paying Kearns the minimum wage, PJ Iowa paid her a base hourly wage of $5.35, $5.50, or *859$5.90 per hour, plus tips. PJ Iowa applied a tip credit against Kearns's minimum wage. Therefore, PJ Iowa also provided Kearns with notice of her hourly rate of pay, the amount of tip credit claimed by PJ Iowa per hour ($2.00, $2.00, and $2.50, aligned with wage increases), and Kearns's right to retain all tips.
On April 13, 2017, Frazier filed a Petition in the Iowa District Court of Polk County against PJ Iowa for violation of the FLSA, the Iowa Minimum Wage Law (IMWL), Iowa Code § 91D, and the Iowa Wage Payment Collection Law (IWPCL), Iowa Code § 91A. PJ Iowa timely removed the case to this Court based on federal question jurisdiction,
Relevant to this Motion, Plaintiffs make three class-based claims.4 Count I, which is brought under the FLSA, and Count II, which is brought under the IMWL and the IWPCL, allege that PJ Iowa improperly applied a tip credit to wages of delivery drivers who spent over 20% of their time performing non-tipped duties or performed duties unrelated to their tipped duties. Count III alleges that PJ Iowa's vehicle reimbursement policy resulted in net wages below the minimum wage in violation of the FLSA.
Plaintiffs now move for conditional certification of Counts I and III as an FLSA collective action of PJ Iowa delivery drivers during the applicable limitations period, including Kearns's subcollective of PJ Iowa delivery drivers who used their personal vehicles for deliveries. Plaintiffs also seek class certification of the IMWL and the IWPCL claims-Count II-under Rule 23, as to the class of PJ Iowa delivery drivers during the applicable limitations period.
A. Dual Jobs Claim
Counts I and II are based on the same alleged circumstances, which are contemplated by the Department of Labor regulations on "dual jobs." Typically, dual jobs regulations are at issue when an employee has two occupations with an employer, one requiring the performance of tipped duties and the other requiring performance *860of non-tipped duties. See
The regulations give employers flexibility to apply a tip credit for time spent on non-tipped duties that are incidental to the employee's tipped occupation. DOL Handbook § 30d00(f)(2) (citing
PJ Iowa's delivery drivers spend most of their time delivering pizzas to customers. This is a tipped occupation, for which PJ Iowa pays cash wages below the minimum wage and applies a tip credit. Delivery drivers are generally "responsible for delivering customers' orders to the customers' specified delivery locations." Donaldson Decl. ¶ 3 - Ex. 1 to Def.'s Opp'n, ECF No. 55-1. PJ Iowa also employs general managers, assistant managers, and restaurant team employees, all of whom spend their working hours inside restaurant locations. Restaurant team employees are paid at least the minimum wage, are not tipped, and are without need for a tip credit. Each restaurant location uses a list of cleaning and miscellaneous tasks, which must be completed regularly. Local managers assign these tasks. Tasks can be assigned to delivery drivers when drivers are at the store between deliveries. Management tracks employee time spent delivering ("road hours") and in the store ("store hours") through daily reports. The daily reports do not track the specific tasks completed during store hours.
Plaintiffs allege that, prior to May 29, 2017,6 PJ Iowa required drivers to engage in a substantial amount of non-tipped duties while paying them as if they were being tipped. Plaintiffs allege that this practice resulted in delivery drivers failing *861to receive the minimum wage, in violation of (1) the twenty-percent rule, and (2) the rule against applying a tip credit to work not incidental to the regularly tipped occupation. Specifically, Plaintiffs allege that delivery drivers spent over 20% of their "working time engaged in non-tipped labor and/or performing duties not incidental to their tipped occupation," including "folding pizza boxes, washing dishes, sweeping, mopping, scrubbing the freezer, working at the cut station, working at the preparation station, answering telephone calls, cleaning bathrooms, washing walls, ... and general maintenance," which should have been compensated by at least the minimum wage. First Am. Compl. ¶ 15, ECF No. 29.
B. Vehicle Reimbursement Claim
PJ Iowa's delivery drivers use their own cars to deliver pizza to customers. In doing so, they incur various expenses, most regularly for fuel. Drivers must also ensure that vehicles are kept in satisfactory condition. PJ Iowa reimburses drivers at the rate of 5% of net sales per each delivery. Kearns argues that this reimbursement formula results in drivers' wages falling below the minimum.7 Because this calculation does not reflect actual mileage, and because drivers are paid less than, or close to, minimum wage, Kearns argues that the reimbursement is inadequate and results in a wage under the minimum required by law.
II. DISCUSSION
A. Standard for Conditional Certification of an FLSA Collective Action
The FLSA sets a federal minimum wage that employers must pay employees.
When a plaintiff seeks to certify an FLSA collective, courts in this Circuit typically proceed in two stages: first, the conditional certification or notice stage; and second, the final certification (or decertification) stage. See Tegtmeier v. PJ Iowa, L.C.,
*862Saleen v. Waste Mgmt., Inc.,
Applying the two-part test, the Court first uses a lenient standard to determine whether similarly situated persons exist, and if appropriate, the class is conditionally certified. The second step occurs after notice, time for opting-in, and discovery have taken place. Applying a stricter standard, the Court makes a factual determination on the similarly situated question. The second inquiry is usually conducted upon a defendant's motion for decertification.
Freeman v. Wal-Mart Stores, Inc.,
At the notice stage, the main issue for the Court to determine is whether the named plaintiffs demonstrate that they are "similarly situated" to the proposed members of the collective. § 216(b). Plaintiffs "need merely provide 'some factual basis from which the court can determine if similarly situated potential plaintiffs exist.' " Robinson,
Given that neither the FLSA nor the Eighth Circuit Court of Appeals define "similarly situated" in this context, see Bouaphakeo,
*863B. Conditional Certification Analysis
Numerous courts, including this one, have considered-and granted-motions for FLSA collective action certification brought by plaintiff delivery drivers against defendant pizza delivery companies for minimum wage violations.11 These cases are instructive in showing the effect of the lenient notice-stage standard for conditional collective action certification. That is, "conditional certification of a representative class is generally granted." See Campbell v. Amana Co., L.P., No. C99-75 MJM,
1. Dual Jobs Claim (Count I)
Plaintiffs argue that conditional certification is appropriate because PJ Iowa's delivery drivers were subject to the practice of being required to perform non-tipped duties. Plaintiffs allege that this practice resulted in tipped employees spending more than 20% of work time on non-tipped duties, in violation of the twenty-percent rule. Plaintiffs also allege that this practice resulted in tipped employees performing non-tipped duties not incidental to their tipped occupation.
In support of their allegations, Plaintiffs provide "some factual basis from which the court can determine if similarly situated potential plaintiffs exist." See Tegtmeier,
PJ Iowa resists, arguing that its delivery drivers are not similarly situated because each location has a general manager who creates schedules and assigns job duties independently. "To be similarly situated, however, class members need not be identically situated." Fast v. Applebee's Int'l, Inc.,
PJ Iowa asks that this Court to adopt the analysis applied in Saleen v. Waste Management, Inc., Civ. No. 08-4959 (PJS/JJK),
Here, Plaintiffs do not make the argument that there is a "policy-to-violate-the-policy." Instead, Plaintiffs argue that the *865practice of using tipped drivers for non-tipped duties violates the FLSA in its implementation , not on the face of a particular policy. See Hussein,
Further, Saleen is distinguishable based on the amount of evidence available to the court. In Saleen, the district court analyzed 112 declarations of opt-in plaintiffs. Saleen,
PJ Iowa argues further that the "cookie cutter" declarations fail to support conditional certification. By this, PJ Iowa refers to the fact that the declarations include largely identical descriptions of Plaintiffs' work environments. However, whether this decreases the credibility of Plaintiffs' argument is not an appropriate inquiry at this time. "[S]igned declarations or affidavits provide appropriate support for motions to conditionally certify a class." Stouder v. Turblex, Inc., No. 10-3069-CV-S-DW,
PJ Iowa similarly argues that Plaintiffs should not be allowed to extrapolate from their own limited personal knowledge to the circumstances of all PJ Iowa delivery drivers. However, Plaintiffs' request typifies those made by named representatives for conditional certification of a collective action: They provide evidence of their own situation, provide evidence to support their belief that they are similarly situated to others, and then ask the Court to extrapolate. Of course, that is exactly the type of extension that the FLSA's broad remedial powers allow through the collective action. See
*866PJ Iowa also argues that its prior practice of compensating drivers at the same rate for store hours and road hours was not "facially illegal." This argument does not preclude conditional certification. Fast,
2. Vehicle Reimbursement Claim (Count III)
Kearns also seeks conditional certification for her claim that PJ Iowa's vehicle reimbursement policy reduces delivery drivers' wages to below minimum wage. Kearns argues the policy under-reimburses delivery drivers for actual driving expenses, resulting in PJ Iowa failing to ensure that delivery drivers make at least $7.25 per hour. Kearns argues that conditional certification is appropriate because she has shown that PJ Iowa's delivery drivers were subject to the uniform reimbursement policy.
In support, Kearns provided "some factual basis from which the court can determine if similarly situated potential plaintiffs exist." See Tegtmeier,
In opposition, PJ Iowa argues that this evidence is insufficient to show the reimbursement policy violates the FLSA. That, however, is not the question at this stage. "A plaintiff need not marshal facts in support of the merits of its claims." Tegtmeier,
PJ Iowa also argues that determining whether the reimbursement policy violates the FLSA requires individualized inquiry. But this Court has already determined that "the inherent variability of PJ Iowa's reimbursement formula" does not defeat conditional certification, at least where Kearns has shown that the same reimbursement policy applies to all PJ Iowa drivers. Tegtmeier,
C. Standard for Class Action Certification
Plaintiffs also seek class certification of their dual jobs claim under Iowa law. The factual background is the same as it was for Count I. However, Plaintiffs' request is analyzed under Rule 23.
Class action is "an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only." Califano v. Yamasaki,
D. Class Action Certification Analysis (Count II)
To maintain a class action pursuant to Rule 23(a), the plaintiff must establish four prerequisites: numerosity, commonality, typicality, and adequacy. See Fed. R. Civ. P. 23(a). If these requirements are met, the party moving for class certification must also fit into one category listed in Rule 23(b). See Fed. R. Civ. P. 23(b).
1. Rule 23(a)
The party seeking class certification bears the burden of meeting the Rule 23(a) requirements, which are:
(1) the class is so numerous that joinder of all members is impracticable;
(2) there are questions of law or fact common to the class;
(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and
(4) the representative parties will fairly and adequately protect the interests of the class.
Fed. R. Civ. P. 23(a). "A complaint's mere recital of questions that happen to be shared by class members is 'not sufficient to obtain class certification.' " Mielo v. Steak 'n Shake Operations, Inc.,
a. Numerosity
The numerosity inquiry requires that the class be "so numerous that joinder of all members is impracticable." Fed. R. Civ. P. 23(a)(1). "In addition to the size of the class, the court may also consider the nature of the action, the size of the individual claims, the inconvenience of trying individual suits, and any other factor relevant to the practicability of joining all the putative class members." Paxton v. Union Nat'l Bank,
The parties do not dispute the size of the potential class. PJ Iowa's interrogatory responses indicate that PJ Iowa employed 1250 delivery drivers in the last three years.14 This differs slightly, though not materially, from the figures PJ Iowa provided in its brief in resistance to this Motion.15 Plaintiffs admit that the class should be limited to delivery drivers who began working for PJ Iowa prior to May 2017 when PJ Iowa switched to a "dual jobs" system. The Court agrees. Since the proposed class is based on the claim that delivery drivers should have been paid a dual wage, those drivers who were paid the dual wage from the start of employment will not be eligible to be in the class. Since this claim is brought under Iowa law, it is also limited geographically to only those drivers employed in PJ Iowa's locations in the state of Iowa. Taking all of this into consideration, the Court finds that Plaintiffs have shown the class would likely include hundreds of current and former delivery drivers.
Size of the class not necessarily being dispositive, the parties disagree as to whether joinder is practicable. Plaintiffs argue that joinder is impracticable because the cost of bringing each claim outweighs its benefit, thus making joinder impracticable given the financial resources of putative class members. PJ Iowa argues that the potential class members are current or former employees whose addresses are readily identifiable, and therefore joinder is practicable.
A court can consider the financial resources of potential class members. Gries v. Standard Ready Mix Concrete, L.L.C.,
Given that PJ Iowa has confirmed the number of potential class members is in the hundreds, this Court is satisfied that the class is sufficiently numerous to make joinder impracticable. "In establishing numerosity, a plaintiff does not need to show the exact number of potential class members, only that the number is such that joinder is extremely difficult or inconvenient." Walls v. Sagamore Ins. Co.,
b. Commonality
"Rule 23(a)(2) requires that there be common questions of law or fact among the members of the class." Paxton,
In support of a finding of commonality, Plaintiffs state that Iowa minimum wage law is the same for each class member and that the same arguments Plaintiffs raised to support the finding of "similarly situated" class members (under the FLSA) apply to the commonality requirement. Further, Plaintiffs refer to "common questions" raised in their pleadings. PJ Iowa challenges the sufficiency of these arguments and argues that Plaintiffs have failed to meet their burden to show commonality.
This Court is not persuaded that Plaintiffs' minimal showing satisfies their burden under Rule 23(a)(2). While Plaintiffs are correct that Iowa's minimum wage law is applicable to all proposed class members, this fact does not ensure satisfaction of the commonality requirement. See Bennett,
Plaintiffs recite the common questions of their First Amended Complaint and argue they are the type of questions that prove commonality. This recitation, however, will not suffice. The Rule 23(a)(2) commonality requirement language is "easy to misread," Dukes,
What matters to class certification ... is not the raising of common 'questions'-even in droves-but, rather the capacity of a classwide proceeding to generate common answers apt to drive the resolution of the litigation. Dissimilarities within the proposed class are what have the potential to impede the generation of common answers.
Plaintiffs' demonstration at this stage is inadequate under Rule 23 to show that there is a common answer to a common question that will lead to a resolution of this litigation. In support of their showing for commonality, Plaintiffs state that their First Amended Complaint "identifies several common factual and legal issues." Pls.' Br. 21, ECF No. 49. The Complaint states that common questions include, but are not limited to:
1. Whether Defendant should have paid Plaintiffs and the putative collective and class as regular, instead of tipped, employees for purposes of United States and Iowa minimum wage law during those times when Plaintiffs and the putative collective and class engaged in non-tipped labor.
2. Whether Defendant is liable to Plaintiffs and the putative collective or class for liquidated damages.
First Am. Compl. ¶ 19, ECF No. 29.
Question one, given the broadest reading, goes to Plaintiffs' claim that PJ Iowa required Plaintiffs to spend more than 20% of their time engaged in duties that did not produce tips and spend time completing tasks not related to their tipped occupation. The merits of this claim cannot be resolved without determining, at least: (1) "which specific duties are subject to the 20 percent limit for related duties in [the delivery driver] occupation," Fast,
Here, Plaintiffs produce limited evidence, which-though it was sufficient for purposes of FLSA conditional certification-does not meet the higher standards under Rule 23. The job duty documents, when analyzed as support for commonality, show local discretion and individual preferences of restaurant managers, rather than a common policy by PJ Iowa to use delivery drivers for non-tipped duties in the restaurants. Notably, Plaintiffs are unable to assert that the same supervisor, or same common set of directives caused them to spend over 20% of their time doing non-tipped duties. Instead, the two appended declarations assert nothing in detail and include only weak anecdotal evidence. Anecdotes of illegal conduct are not sufficient to establish a company-wide practice, especially where the proposed class members are spread out across twenty-one stores. See Dukes,
What the record does support is a finding that local managers had discretion in assigning sidework to delivery drivers. This undermines Plaintiffs' argument for commonality. In Dukes, Wal-Mart appealed the certification of a class of female employees who sought damages under Title VII for discriminatory promotion practices. Dukes,
Here, as in Dukes,
*872[t]he only corporate policy that the plaintiffs' evidence convincingly establishes is [PJ Iowa's] "policy" of allowing discretion by local supervisors over employment matters. On its face, of course, that is just the opposite of a uniform employment practice that would provide the commonality needed for a class action; it is a policy against having uniform employment practices.
Question two asks whether PJ Iowa is liable to Plaintiffs and the putative class for liquidated damages. This goes to the issue of available remedies. Under the IWPCL, successful plaintiffs may recover "unpaid wages or expenses, court costs and usual and necessary attorney's fees incurred in recovering the unpaid wages or expenses." Iowa Code § 91A.8. Additionally, liquidated damages-generally limited to "the amount of the unpaid wages,"
c. Typicality
To satisfy the typicality requirement, the proponent of certification must show that the "claims or defenses of the representative parties are typical of the claims or defenses of the class." Fed. R. Civ. P. 23(a)(3). Typicality is generally established by a showing that the claims of all proposed members of the class "arise from a single event or share the same legal theory." In re Teflon,
Plaintiffs contend that Frazier and Kearns bring claims that are typical of the claims of the proposed class. In support, they present the same arguments that they raised under commonality. The Court, once again, finds these arguments to be lacking. As stated above, anecdotes of illegal conduct are not sufficient to establish a company-wide practice, especially where the proposed class members are spread out across twenty-one stores. Dukes,
d. Adequacy
The fourth requirement under Rule 23(a) is that "the representative parties will fairly and adequately protect the interests of the class." Fed. R. Civ. P. 23(a)(4). For these purposes, adequacy requires both that class counsel be "qualified, experienced, and generally able to conduct the proposed litigation," and that the named plaintiffs not have interests "antagonistic to those of the class." Maxwell v. Tyson Foods, Inc., No. 1:08CV00017-JAJ-TJS,
While not disputing adequacy of counsel, PJ Iowa does dispute Plaintiffs' adequacy as the class representatives. PJ Iowa argues that Frazier and Kearns "appear to rely solely on their individual experiences and the documents or information provided to them by counsel during the course of this litigation." Def.'s Opp'n 27, ECF No. 55. In reply, Plaintiffs argue that class representatives are "not required to *874possess a high level of knowledge about the case." Pls.' Reply 16, ECF No. 59. Plaintiffs cite various out-of-circuit cases to support their argument, but they need not look so far. In Maxwell, the court faced similar challenges to a single class representative whose experience limited her knowledge to a few positions she held during only a portion of the period that fell within the applicable statute of limitations. Maxwell,
Plaintiffs fail to meet their burden under Rule 23(a). Because the Court has found that Plaintiffs have not met the threshold requirements of Rule 23(a), the Court need not discuss the Rule 23(b) requirements.17 Plaintiffs' motion as to Rule 23 certification of IMWL and IWPCL class action claim asserted in Count II must be denied.
E. Notice to Potential Plaintiffs in the FLSA Collective Actions18
Plaintiffs request the Court approve the proposed Notice of Collective Action Lawsuit (the proposed Notice) and Opt-in Consent Form (Consent Form), as appended to the motion for conditional certification. In appropriate cases, such as the present, district courts have discretion in facilitating notice to potential plaintiffs in FLSA collective actions. Hoffmann-La Roche,
The proposed Notice, which is written in Times New Roman 12-point font, contains eight sections: Introduction, Description of the Lawsuit, Your Right to Participate in this Suit, Who Can Join, Effect of Joining this Suit, No Legal Effect in Not Joining this Suit, No Retaliation Permitted, and Further Information. Defendant objects to the font, format, and location of the disclaimer contained in the last paragraph of the second section, on page two of the proposed Notice. The contested paragraph, which is written in the same Times New Roman font used in the body of the Notice, states:
The United States District Court for the Southern District of Iowa has made no determination and takes no position on the merits of the plaintiffs' claims or any other potential claims by other delivery drivers employed by the PJ Iowa, L.C. There is no assurance at this time that any relief will be granted, nor if granted, the nature and amount of relief.
Proposed Collective Action Lawsuit Notice 2, Pls.' App. 88, ECF No. 44. PJ Iowa asserts that this language should be bold or otherwise made prominent. Because the Court "must scrupulously avoid endorsing or appearing to endorse the merits of the underlying claim,"
*875Martinez v. Cargill Meat Sols.,
PJ Iowa also objects to the absence of language informing potential plaintiffs of the possible costs they might incur as members of the collective action. However, the proposed Notice already states: "if the lawsuit is unsuccessful, the plaintiffs' attorneys will not seek reimbursement of any advanced expenses and will pay all court costs that may be assessed against you and the other members of this collective action." Proposed Collective Action Lawsuit Notice 3, Pls.' App. 89, ECF No. 44. Because this language clarifies that costs may be assessed and how they will be distributed, that is, not to the plaintiffs, any additional language would only serve the purpose of "chilling potential plaintiffs' participation in this lawsuit." Williams v. U.S. Bank Nat'l Ass'n,
PJ Iowa's third objection is that the Consent Form automatically designates counsel. PJ Iowa argues that the consent form should either allow plaintiffs to designate their own counsel, or include no counsel designation. The proposed Notice informs recipients they "are free to hire an attorney of your choosing, but you may have to pay that lawyer, and you will have to file your own separate lawsuit." Proposed Collective Action Lawsuit Notice 3, Pls.' App. 89, ECF No. 44. Potential plaintiffs will receive the Consent Form together with the Notice, and therefore, the Court finds that the language of the Notice is sufficient to inform potential plaintiffs of their right to hire separate counsel. This Court previously authorized collective action consent forms and notices with similar language. See Ex. 36 to Mot. To Cert. Class at 1, Tegtmeier,
PJ Iowa also argues that potential plaintiffs should be advised they have the option of submitting their forms to this Court instead of to counsel. This Court sees no reason to alter the standard practice of instructing potential plaintiffs to send their consent forms to Plaintiffs' counsel. PJ Iowa cites cases from district courts in New York, which have directed class members to send consent forms to the applicable Clerk of Court. There is currently no such practice in Iowa, and this Court will not attempt to create it here. Plaintiffs' chosen counsel will be charged with filing Consent Forms submitted to them with the Court.
Concerning the timing of the notice process, PJ Iowa requests that this Court set an opt-in period of 45 days. In the related Tegtmeier case, this Court reasoned that "60 days is sufficient time to notify putative class members and allow them to decide whether to opt-in." Tegtmeier,
Finally, regarding the limitations period, the Court will toll the statute of limitations from the date the motion for conditional certification was filed on March 16, 2018, until the date the opt-in period begins to run in order to account for court delay. See Vinsant v. MyExperian, Inc., No. 2:18-CV-02056,
III. CONCLUSION
For the reasons provided above:
1. Plaintiffs' Motion, ECF No. 42, is granted in part and denied in part . Plaintiffs' motion is granted as to conditional certification of the FLSA collective action claims asserted in Counts I and III, but denied as to Rule 23 certification of IMWL and IWPCL class action claim asserted in Count II.
2. Notice of pendency of the collective action shall be sent to all individuals who worked for PJ Iowa as a delivery driver between March 16, 2015, and the present time.
3. The Notice and Consent Form, as set forth in exhibits to the Motion are approved , with the exception of the changes ordered above.
4. Plaintiffs' counsel shall have 10 days from receipt of the information listed above to circulate the Notice and Consent Form via U.S. Mail.
5. Putative opt-in plaintiffs shall have 60 days from the circulation of the Notice and Consent Form to opt in to this action.
6. The statute of limitations will be equitably tolled for potential opt-in plaintiffs from March 16, 2018, until the 60-day opt-in period begins to run.
IT IS SO ORDERED.
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