Gillespie v. Cracker Barrel Old Country Store Incorporated

District Court, D. Arizona·Decided January 30, 2024·No. 2:21-cv-00940·Unknown

Opinion

WO

Andrew Harrington, et al., No. CV-21-00940-PHX-DJH

Plaintiffs, ORDER

v.

Cracker Barrel Old Country Store Incorporated, Defendant. On March 31, 2023, the Court conditionally certified this matter as a collective action under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (“FLSA”) (the “Collective Certification Order”) (Doc. 82). Pending before the Court are five motions filed by Defendant Cracker Barrel Old Country Store Incorporated (“Cracker Barrel”), each of which concern rulings that stem from the Collective Certification Order: (1) Cracker Barrel’s “Motion for Clarification, or, in the Alternative, Reconsideration” (Doc. 83)1 (“Motion for Reconsideration”) regarding the putative collective definition that was established in the Collective Certification Order; (2) Cracker Barrel’s “Motion to Certify Interlocutory Appeal” (Doc. 84)2 of four questions arising out of the Collective Certification Order; (3) Cracker Barrel’s “Motion to Strike Plaintiffs’ Request for Equitable

1 The matter is fully briefed. Plaintiffs filed a Response (Doc. 90) in accordance with the Court’s April 17, 2023, Order (Doc. 88). 2 The matter is fully briefed. Plaintiffs did not file a Response, and the time to do so has passed. See LRCiv 7.2(c) (opposing party has 14 days after service within which to serve and file a responsive memorandum). Tolling” (Doc. 93)3, where the contended request appeared in Plaintiffs’ Response to Cracker Barrel’s Motion for Reconsideration (Doc. 90); (4) Cracker Barrel’s Motion to Stay Proceedings Pending Appeal (Doc. 96)4 of the Collective Certification Order to the Ninth Circuit (Doc. 91); (5) Cracker Barrel’s Motion to Strike Plaintiffs’ Notice of Supplemental Authority (Doc. 101)5 regarding Coinbase, Inc. v. Bielski, 599 U.S. 736 (2023). For the following reasons, the Court will modify the putative collective definition, certify for interlocutory appeal questions regarding arbitration and personal jurisdiction in FLSA collective actions, and stay the matter pending the Ninth Circuit’s review. I. Procedural History6 Cracker Barrel filed most of the pending motions within the span of twenty-one days, creating a complex procedural history. Below is a brief overview of the relevant rulings, motions, and arguments: In August 2022, Cracker Barrel filed its “Motion to Compel Arbitration and Dismiss Second Amended Complaint with Prejudice” (Doc. 77). Plaintiffs Andrew Harrington, Katie Liammaytry, Jason Lenchert, and Dylan Basch (collectively “Plaintiffs’”) also filed their “Second Amended Motion For Conditional Certification” (Doc. 76). In March 2023, the Court issued its Collective Certification Order, which denied Cracker Barrel’s Motion but granted Plaintiffs’ Motion. (See generally Doc. 82). In so doing, the Court 3 The matter is fully briefed. Plaintiffs filed a Response (Doc. 94). Cracker Barrel did not file a reply brief and the time to do so has passed. See LRCiv. 7.2(c).

4 The matter is fully briefed. Plaintiffs filed a Response (Doc. 97) and Cracker Barrel filed a Reply (Doc. 98). 5 The matter is fully briefed. Plaintiffs filed a Response (Doc. 102). Cracker Barrel did not file a reply brief and the time to do so has passed. See LRCiv. 7.2(c).

6 The Court incorporates by reference the Background Section of its Collective Certification Order (Doc. 82 at 2–4), which contains a comprehensive history of Plaintiffs’ prior amended complaints (Docs. 1; 57; 74) and prior motions for certification (Docs. 8; 58; 76). conditionally certified the present action as a collective under Section 216(b) of the FLSA. (Id.) The Court defined the following putative collective for notice purposes: “all current and former Cracker Barrel servers who worked for Cracker Barrel from May 28, 2018, to the present in states where Cracker Barrel pays its employees under the 29 U.S.C. § 203(m) tip credit scheme.” (Id. at 28).7 The Court also authorized Plaintiffs’ Notice and Consent to Join forms (Docs. 76-13; 76-14) (the “Notice Forms”) to be disseminated in compliance with the Court’s directives. (Doc. 82 at 19–28). On April 14, 2023, Cracker Barrel filed its Motion for Reconsideration on the bounds of the putative collective for notice purposes. (Doc. 83). Cracker Barrel concurrently filed a Motion to Certify Interlocutory Appeal (Doc. 84) and a “Motion to Stay Deadlines for Answer and Production of Employee Data” (Doc. 85). In its April 17, 2023, Order, the Court noted some merit in Cracker Barrel’s position on the defined putative collective, and thus ordered the parties to meet and confer on possible stipulated language for the terms of notice. (Doc. 88 at 1). If no agreement could be reached, the Court ordered Plaintiffs to respond to Cracker Barrel’s Motion for Reconsideration. (Id.) Consequently, the Court stayed the notice deadlines established in the Collective Certification Order pending a ruling on Cracker Barrel’s Motion for Reconsideration. (Id. at 2). On April 28, 2203, Plaintiffs filed their Response to Cracker Barrel’s Motion for Reconsideration (Doc. 90) agreeing to a “slight modification” of the Collective Certification Order. (Id. at 1). On April 30, 2023, instead of waiting for the Court to review the parties’ arguments on the Collective Certification Order and rule on the related Motion for Reconsideration, Cracker Barrel appealed the Collective Certification Order to the Ninth Circuit. (Doc. 91). Thereafter, Cracker Barrel moved to strike Plaintiffs’ request for equitable tolling as set forth in Plaintiffs’ Response to Cracker Barrel’s Motion for Reconsideration. (Doc. 93). Cracker Barrel also moved to stay the case pending the appeal of the Collective

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