Gordon v. TBC Retail Group, Inc.

134 F. Supp. 3d 1027, 2015 U.S. Dist. LEXIS 132490, 2015 WL 5770521
CourtDistrict Court, D. South Carolina
DecidedSeptember 30, 2015
DocketNo. 2:14-cv-03365-DCN
StatusPublished
Cited by11 cases

This text of 134 F. Supp. 3d 1027 (Gordon v. TBC Retail Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. TBC Retail Group, Inc., 134 F. Supp. 3d 1027, 2015 U.S. Dist. LEXIS 132490, 2015 WL 5770521 (D.S.C. 2015).

Opinion

ORDER

DAVID C. NORTON, UNITED STATES DISTRICT JUDGE

This matter is before the court on plaintiffs’ motion for conditional class certification. Plaintiffs seek conditional certification of a putative class pursuant to the collective action provision of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b). For the reasons set forth below, the court grants plaintiffs’ motion.

I. BACKGROUND

Plaintiffs Andrew Gordon, Tavis McNeil, Donald Wrighton, Nicholas Cole, Jacob Grisson, and Dawn Dewey (collectively “Plaintiffs”) were employed by defendant TBC Retail Group, Inc., d/b/a Tire Kingdom (“TBC”) as mechanics in TBC’s South Carolina stores. Pis.’ Compl. ¶ 1. Plaintiffs and other mechanics employed by TBC during the relevant time period were responsible for inspecting, diagnosing, repairing, and servicing automobiles. Id. at ¶¶ 13 and 14. All mechanics employed by TBC during the relevant time period were, and continue to be, paid pursuant to the same compensation plan. Pis.’ Compl. ¶ 16; Def.’s Answer ¶¶ 15, 16, 19, 22, 23, and 31. Under this plan, a mechanic’s total compensation is composed of two basic components. First, each mechanic is paid an amount determined by multiplying the particular mechanic’s “flat rate” — an hourly pay rate assigned to each mechanic based on that mechanic’s particular skill, experience, and certifications — by the mechanic’s “turned hours” — a pre-established amount of time designated by TBC for each mechanical task — for all tasks com[1030]*1030pleted by the mechanic during the relevant pay period. Def.’s Answer at ¶ 16; Def.’s Resp. 5. Thus, this “turned hours” component of a mechanic’s compensation (hereinafter, “Turned Hours Pay”) does not account for the actual time spent working on a particular task or during the pay period overall. Def.’s Resp. 5. Instead, Turned Hours Pay is based exclusively on the number of tasks completed and the preassigned “turned hours” for such tasks. Id. at 5-6. The same measure of “turned hours” used to form a mechanic’s Turned Hours Pay for a particular task is used as the basis for the labor costs charged to the customer1 for that task, though the rates paid by the customers are, of course, greater than mechanics’ “flat rates.” Id. at 5.

When the amount of a mechanic’s Turned Hours Pay earned over a given pay period is less than one and one-half times the statutory minimum wage2 multiplied by the mechanic’s actual hours worked during the same period, TBC pays a supplemental amount, referred to as “differential pay.” Def.’s Answer ¶ 19; Def.’s Resp. 6. This “differential pay” is set at whatever amount is needed to render the mechanic’s total compensation — i.e. Turned Hours Pay plus “differential pay” — equal to $11.02 per hour for all actual hours worked during the period. Def.’s Answer ¶ 19; Def.’s Resp. 6. As a result, if a mechanic’s “turned hours” fall below a certain percentage3 of their actual hours, TBC compensates the mechanic as if they earned a straightforward wage of $11.02 per hour. This “differential pay” is designed to insure that mechanics always earn at least one and one-half time the statutory minimum wage for all actual hours worked. Def.’s Answer ¶ 19; Def.’s Resp. 6.

On August 20, 2014, plaintiffs filed their original complaint against TBC on behalf of themselves and “all other similarly situated employees including but not limited to each and every mechanic who suffered damages as a result of [TBC]’s” FLSA violations. Pis.’ Complaint ¶ 2. Plaintiffs allege that TBC violated the minimum wage and overtime provisions of the FLSA by utilizing a compensation plan that did not provide compensation at a rate of one and one-half times their regular rate of pay when plaintiffs and similarly situated employees worked more than forty (40) hours in a workweek. Id. at ¶ 23. On October 27, 2014, TBC filed its answer to plaintiffs’ complaint, arguing that plaintiffs and other similarly situated employees were paid under a bona fide flat-rate commission plan and were therefore not entitled to overtime compensation pursuant to Section 7(i) of the FLSA. Def.’s Answer ¶¶ 15-16. On April 15, 2015, plaintiffs filed the instant motion for conditional class certification, seeking authorization to proceed as a collective action on behalf of “all current and former [mjechanies who worked during the time period beginning August 20, 2011 through the present.” Pis.’ Mot. ¶ 8. Plaintiffs also ask the court to require TBC to provide the names, addresses, and telephone numbers of all potential opt-in plaintiffs, and to authorize [1031]*1031the mailing of the proposed notice to all potential opt-in plaintiffs. Id. at 3.

II. DISCUSSION

A. Ordinary Standard

Under the FLSA, plaintiffs may institute a collective action against their employer on behalf of themselves and other similarly situated employees. Section 216(b) of the FLSA states,

An action ... may be maintained against any employer ... in any Federal or State court of competent jurisdiction 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.

29 U.S.C. § 216(b). The mechanism outlined in § 216(b) is designed to facilitate the efficient adjudication of similar claims by “similarly situated” employees by permitting the consolidation of individual claims and the pooling of resources in prosecuting such actions against their employers. See Hoffmann-La Roche Inc. v. Sperling, 493 U.S. 165, 170, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989); LaFleur v. Dollar Tree Stores, Inc., 30 F.Supp.3d 463, 467(E.D.Va.2014); Lynch v. United Servs. Auto. Ass’n, 491 F.Supp.2d 357, 367 (S.D.N.Y.2007). In deciding whether the named plaintiffs in an FLSA action are “similarly situated” to other potential plaintiffs, courts generally employ a two-stage approach. Purdham v. Fairfax Cnty. Pub. Sch., 629 F.Supp.2d 544, 547 (E.D.Va.2009) (quoting Parker v. Rowland Express, Inc., 492 F.Supp.2d 1159, 1164 (D.Minn.2007)); see also Pelczynski v. Orange Lake Country Club, Inc., 284 F.R.D. 364, 367 (D.S.C.2012); Simons v. Pryor’s, Inc., No. 3:11-cv-0792, 2011 WL 6012484, at * 1 (D.S.C. Nov. 30, 2011).

The first step in this process, which is the subject of the instant motion, is the “notice,” or “conditional certification,” stage. Purdham, 629 F.Supp.2d at 547. With regard to this conditional certification stage, “[t]he Supreme Court has held that, in order to expedite the manner in which collective actions under the FLSA are assembled, ‘district courts have discretion[,] in appropriate cases[,] to implement ... § 216(b) ... by facilitating notice to potential plaintiffs.’ ” Purdham, 629 F.Supp.2d at 547 (quoting Hoffmann-La Roche, Inc., 493 U.S. at 169, 110 S.Ct. 482); see Genesis Healthcare Corp. v. Symczyk, — U.S. -, 133 S.Ct.

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134 F. Supp. 3d 1027, 2015 U.S. Dist. LEXIS 132490, 2015 WL 5770521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-tbc-retail-group-inc-scd-2015.