Frlekin v. Apple Inc.

309 F.R.D. 518, 25 Wage & Hour Cas.2d (BNA) 230, 2015 U.S. Dist. LEXIS 92768, 2015 WL 4365374
CourtDistrict Court, N.D. California
DecidedJuly 16, 2015
DocketNo. C 13-03451 WHA (lead), No. C 13-04727 WHA (consolidated)
StatusPublished
Cited by4 cases

This text of 309 F.R.D. 518 (Frlekin v. Apple Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frlekin v. Apple Inc., 309 F.R.D. 518, 25 Wage & Hour Cas.2d (BNA) 230, 2015 U.S. Dist. LEXIS 92768, 2015 WL 4365374 (N.D. Cal. 2015).

Opinion

ORDER APPROVING CLASS CERTIFICATION

WILLIAM ALSUP, UNITED STATES DISTRICT JUDGE

INTRODUCTION

In this putative wage-and-hour class action, plaintiffs move for class certification. For the reasons stated below, plaintiffs’ motion is largely Granted.

STATEMENT

Named plaintiffs commenced this now-consolidated action on behalf of themselves and a putative class of over 12,400 current and former hourly-paid and non-exempt specialists, managers, and “genius bar” employees who worked in defendant Apple Inc.’s 52 retail stores in California since July 25, 2009. Plaintiffs seek compensation for time spent undergoing exit searches pursuant to Apple’s bag-search and technology-card search policies and for time spent waiting for such searches to occur. These searches occurred when employees left the premises with a bag. Apple searched the bags to see if Apple goods were being pilfered. The issue is whether the time waiting for the exit searches to be completed was compensable under California law.

These now-consolidated actions commenced in July 2013 and included collective-action claims under the FLSA and class-action claims under California and New York law, based on the theory that the wait time for Apple’s bag-search policy was compensa-ble (Dkt. No. 1). In April 2014, Apple moved for summary judgment against all individually-named plaintiffs for all claims. Summary judgment as to plaintiffs’ California state-law claims was denied in light of varying fact patterns regarding wait times and reasons for bringing a bag. All other claims were stayed pending the Supreme Court’s review of Busk v. Integrity Staffing Solutions, Inc., 713 F.3d 525 (9th Cir.2013), which addressed the compensability of security screenings under the FLSA. The parties agreed that the laws of New York, Massachusetts, and Ohio mirrored the FLSA such that the Supreme Court’s decision would control in adjudication of those claims. The parties continued with discovery as to the California state-law claims.

In December 2014, the Supreme Court decided Integrity Staffing Solutions, Inc. v. Busk, 574 U.S.-, 135 S.Ct. 513, 518, 190 L.Ed.2d 410 (2014), holding that time spent during mandatory security screenings was [520]*520not compensable under the FLSA. Following that decision, plaintiffs’ FLSA claims, as well as New York, Massachusetts, and Ohio state-law claims were dismissed. Only California claims remained. The undersigned retained supplemental jurisdiction over the remaining California state-law claims. It is now time to decide whether to allow class certification.

* # *

Concerned with internal theft of its products, sometimes referred to as “shrinkage,” Apple implemented a written policy called the “Employee Package and Bag Searches” policy, which imposed mandatory searches of employees’ bags whenever they left the store (Shalov Deck, Exhs. 2,118):

Employee Package and Bag Searches
All personal packages and bags must be checked by a manager or security before leaving the store.
General Overview
All employees, including managers and Market Support employees, are subject to personal package and bag searches. Personal technology must be verified against your Personal Technology Card (see section in this document) during all bag searches.
Failure to comply with this policy may lead to disciplinary action, up to and including termination.
Do
• Find a Manager or member of the security team (where applicable) to search your bags and packages before leaving the store.
Do Not
• Do not leave the store prior to having your personal package or back [sic] searched by a member of management or the security team (where applicable).
• Do not have personal packages shipped to the store. In the event that a personal package is in the store, for any reason, a member of management or security (where applicable) must search that package prior to it leaving the store premises.

Employees’ “Personal Technology Cards” listed the serial numbers of their personal Apple devices, which served as proof of ownership that the employees owned the devices listed when those devices were searched under the policy (id., Exh. 3). The text of this policy was available to employees on various digital platforms — such as an interactive “PDF,” stored on an in-store computer or Apple’s internal communications website— however, there was no uniform manner in which it was communicated to employees (id., Exh. 1).

Apple also published guidelines for the procedure for conducting searches pursuant to the policy, although the record does not reflect how the guidelines were distributed (id. Exhs.l, 64):

• Ask the employee to open every bag, brief case, back pack, purse, etc.
• Ask the employee to remove any type of item that Apple may sell. Be sure to verify the serial number of the employee’s personal technology against the personal technology log.
• Visually inspect the inside of the bag and view its contents. Be sure to ask the employee to unzip zippers and compartments so you can inspect the entire contents of the bag. If there are bags within a bag, such as a cosmetics case, be sure to ask the employee to open these bags as well.
• At no time should you remove any items inside the bag or touch the employee’s personal belongings. If something looks questionable, ask the employee to move or remove items from the bag so that the bag check can be completed.
• In the event that a questionable item is found, ask the employee to remove the item from the bag. Apple will reserve the right to hold onto the questioned item until it can be verified as employee owned. (This will make the employee more aware to log in all items at start of shift.)
• If item cannot be verified by [the manager on duty], contact Loss Prevention —

Each of Apple’s 52 stores in California performed searches pursuant to the bag-[521]*521search policy at some point throughout the claim period, but enforcement of the policy may not have been uniform. For example, in some stores, searches were performed by the manager on duty, while in others the searches were performed by a security guard. Additionally, some stores had off-site break rooms in which employees could store their bags and Apple technology prior to entering the store, obviating the need to undergo a search upon exiting. The process in some stores changed throughout the claim period, as some stores hired security guards or constructed new off-site break rooms (e.g., id., Exhs. 65, 112; Boyer Deck, Exh. NN).

In stores where searches were performed by the manager on duty, some employees say they had to scour the store to find a manager and wait until that manager finished with other duties, such as assisting a customer. Where searches were performed by a security guard, some employees had to wait until a security guard became available. Some employees sometimes had to wait in line.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Valencia v. VF Outdoor, LLC
E.D. California, 2022
Rough v. Costco Wholesale Corp.
E.D. California, 2021
Moore v. Ulta Salon, Cosmetics & Fragrance, Inc.
311 F.R.D. 590 (C.D. California, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
309 F.R.D. 518, 25 Wage & Hour Cas.2d (BNA) 230, 2015 U.S. Dist. LEXIS 92768, 2015 WL 4365374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frlekin-v-apple-inc-cand-2015.