Gould et al v. First Student Management

2017 DNH 161
CourtDistrict Court, D. New Hampshire
DecidedAugust 29, 2017
Docket16-cv-359-PB
StatusPublished

This text of 2017 DNH 161 (Gould et al v. First Student Management) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gould et al v. First Student Management, 2017 DNH 161 (D.N.H. 2017).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Darryl Gould, et al.

v. Civil No. 16-cv-359-PB Opinion No. 2017 DNH 161 First Student Management, LLC, et al.

MEMORANDUM AND ORDER

A group of bus drivers and driver assistants has filed a

class action alleging that their employer, First Student

Management, LLC (“First Student”), failed to pay wages due under

the Fair Labor Standards Act (“FLSA”) and New Hampshire’s wage

and hour laws. First Student has challenged the complaint in a

motion to dismiss for failure to state a claim.

I. BACKGROUND

First Student provides busing services to schools in New

Hampshire. For several years, First Student has employed the

plaintiffs as bus drivers and driver assistants. Their

employment agreement entitles them to compensation “for all time

spent in the service of” First Student, including an overtime

premium of one-and-a-half times their regular rate for all hours

worked over forty in a week. Doc. No. 1 at 6, 17, 25–26. To track and calculate the compensation due, First Student

uses a computer program. See id. at 18–22. Upon contracting

with a school district, First Student estimates the time

required to drive each route. Id. at 18. Estimated route times

are then inputted into a computer, which assigns each driver a

daily schedule and projects the amount of time the driver will

work in a given week. Id. at 19.

The drivers base their complaint on three of First

Student’s payment practices. First, the drivers claim that they

are not compensated for preliminary and “postliminary”

activities that they must perform before and after driving. See

id. at 19–20. Before commencing a bus route, the drivers must

appear at First Student’s bus yard at a designated time, wait in

line to receive their assignments and keys, proceed to the

buses, and log in to an equipment inspection system. Id. These

activities take approximately six minutes each day. Id.

Although the preliminary activities are an essential feature of

the drivers’ duties, they are not recorded or compensated. Id.

at 19. Similarly, once the drivers complete a bus route, they

must return to the bus yard and again log in to the inspection

system. Id. at 20. At that moment, their credited working time

ends, yet they are still required to conduct postliminary

activities, including inspecting and cleaning the buses,

2 returning equipment, and reporting issues to the First Student

office. Id. These uncompensated activities take another six

minutes each day. Id.

The drivers next claim that First Student substantially

undercompensates its employees by refusing to pay for time spent

on trips that exceed preset limits. Id. at 20–21. Immediately

before and after driving a bus route, a driver must log into a

system that tracks the time elapsed while driving. Id. If the

time elapsed falls within a preset tolerance range, the driver

is paid for the estimated time that First Student established

for that particular route. Id. at 21. If the actual elapsed

time exceeds the tolerance range, the system generates an

exception report. Id. Exception reports are routinely ignored,

with drivers receiving compensation only for the preassigned

estimate, not the amount of time they actually spent driving.

Id.

The third way in which First Student allegedly

undercompensates its employees is by miscounting the hours they

work on charter routes. Id. at 22. To evade its obligation to

pay overtime for hours worked above the forty-hour threshold,

First Student sometimes improperly shifts time an employee

devotes to a charter route from one pay period into a later pay

period. Id. First Student also separates employees’ driving

3 time into “Charter” and “Regular” categories, and refuses to pay

any overtime unless the employee works more than 40 hours in a

week within one or both categories. As a result, an employee

may fail to receive overtime for a given week even if she works

more than forty weekly hours when the time across both

categories is combined. Id. at 23. Compounding this problem,

First Student does not compensate employees for “dead time”

between regular routes and charter routes. Id. at 22.

The drivers assert that First Student uses these payment

practices to avoid its duty to pay both overtime and regular

hourly wages, known as “straight time.”

II. STANDARD OF REVIEW To survive a motion to dismiss for failure to state a

claim, plaintiffs must make factual allegations sufficient to

“state a claim to relief that is plausible on its face.”

Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell

Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim

is facially plausible if it pleads “factual content that allows

the court to draw the reasonable inference that the defendant is

liable for the misconduct alleged.” Id.

In deciding a motion to dismiss, I employ a two-step

approach. See Ocasio–Hernández v. Fortuño–Burset, 640 F.3d 1,

4 12 (1st Cir. 2011). First, I screen the complaint for

statements that “merely offer legal conclusions couched as fact

or threadbare recitals of the elements of a cause of action.”

Id. (citation, internal quotation marks, and alterations

omitted). A claim consisting of little more than “allegations

that merely parrot the elements of the cause of action” may be

dismissed. Id. Second, I credit as true all non-conclusory

factual allegations and the reasonable inferences drawn from

those allegations, and then determine if the claim is plausible.

Id. The plausibility requirement “simply calls for enough fact

to raise a reasonable expectation that discovery will reveal

evidence” of illegal conduct. Twombly, 550 U.S. at 556. The

“make-or-break standard” is that those allegations and

inferences, “taken as true, must state a plausible, not a merely

conceivable, case for relief.” Sepúlveda–Villarini v. Dep’t of

Educ., 628 F.3d 25, 29 (1st Cir. 2010); see Twombly, 550 U.S. at

555 (“Factual allegations must be enough to raise a right to

relief above the speculative level . . . .”).

III. ANALYSIS The drivers seek damages for straight time and overtime

that First Student failed to pay them in violation of both New

5 Hampshire’s wage and hour laws and the FLSA. I address First

Student’s challenges to each type of claim in turn.1

A. Straight-Time Claims

1. State Law Straight-Time Claim New Hampshire law requires employers to pay “all wages

due.” N.H. Rev. Stat. Ann. (“RSA”) § 275:43, I (2016) (since

amended); see Gruda v. Fred H. Hamblet, Inc., No. 11-CV-053-JD,

2011 WL 1792715, at *1 (D.N.H. May 11, 2011) (“Although the

statute refers to the timing and means of paying wages, it is

used to claim unpaid wages from employers.”). The drivers

argue, straightforwardly, that First Student violated the

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