Green v. Harbor Freight Tools USA, Inc.

888 F. Supp. 2d 1088, 2012 WL 3563977, 2012 U.S. Dist. LEXIS 115985
CourtDistrict Court, D. Kansas
DecidedAugust 17, 2012
DocketCase No. 09-CV-2380-JAR-JPO
StatusPublished
Cited by20 cases

This text of 888 F. Supp. 2d 1088 (Green v. Harbor Freight Tools USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green v. Harbor Freight Tools USA, Inc., 888 F. Supp. 2d 1088, 2012 WL 3563977, 2012 U.S. Dist. LEXIS 115985 (D. Kan. 2012).

Opinion

MEMORANDUM AND ORDER

JULIE A. ROBINSON, District Judge.

Plaintiffs bring this collective action under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b), against Defendant Harbor Freight Tools (“Harbor Freight”), claiming they were misclassified as exempt from the FLSA’s overtime requirements and are owed overtime compensation. This matter is before the Court on Harbor Freight’s Motion to Decertify Plaintiffs’ Claims (Doc. 433), on the grounds that Plaintiffs are not similarly situated for purposes of a collective action under § 216(b) of the FLSA. The parties do not request a hearing, and after reviewing the extensive submissions and record, the Court determines that a hearing would not significantly assist in the determination of this matter. For the reasons explained in detail below, Harbor Freight’s motion to decertify is granted.

I. Procedural Background

Harbor Freight sells tools and related products and accessories at retail stores throughout the United States. All Harbor Freight Store Managers are governed by the same job description. Store Managers are the highest ranking employees working at each store, and directly report to District Managers, each of whom oversees approximately eight stores. The Store Manager position is classified as exempt from the FLSA overtime requirements.

Plaintiffs Stephanie Green, Brent Foster, Trey Pace, Dennis Collins and Andy VanMeter pursue their claims on their own behalf and on behalf of others who are “similarly situated.” On August 17, 2010, this Court conditionally certified the following class:

Individuals employed by Harbor Freight Tools USA, Inc. and any predecessors from the time period three years from the date of the Court’s order to the present with the title Store Manager at any Harbor Freight Tools retail store.1

On September 15, 2010, the Court approved the parties’ proposed Notice and Consent Form and the 90-day opt-in period began to run October 4, 2010.2 Eighty-one (81) additional plaintiffs filed consents to join this action. By stipulation, fifty (50) of the total eighty-six (86) claims were dismissed without prejudice, leaving thirty-six (36) Plaintiffs.

Each of the thirty-six remaining Plaintiffs has responded to written discovery. Harbor Freight has deposed all current Plaintiffs as well as obtained declaration testimony from non-opt-in Store Managers. Harbor Freight has responded to written discovery requests and produced two corporate representatives to provide deposition testimony under Fed.R.Civ.P. 30(b)(6). Plaintiffs also deposed two former Harbor Freight District Managers.

[1094]*1094II. Standard

A. Similarly Situated

As set forth in the Order granting conditional certification, the Tenth Circuit has not specifically defined the term “similarly situated” but has upheld the use of a two-step ad hoc method for determining whether a suit may proceed as a collective action under the FLSA.3 The Court completed the first stage when it determined that certification was proper for purposes of sending notice of the action to potential collective action members, giving them the opportunity to opt-in to the action, and conditionally certifying the class as “similarly situated.”4 In so ruling, this Court joined other judges in this District in declining to consider the individualized nature of factual inquiries regarding whether an employee is exempt until the second-stage analysis.5

During the second stage, which occurs at the conclusion of discovery, a defendant typically files a motion to decertify the collective action.6 Upon ruling on the motion to decertify, “the court then makes a second determination, utilizing a stricter standard of ‘similarly situated.’ ”7 If the claimants are indeed similarly situated, “the district court allows the representative action to proceed to trial.’ ”8 “If the claimants are not similarly situated, the district court decertifies the class, [] the opt-in plaintiffs are dismissed without prejudice,” and “[t]he class representatives — i.e. the original plaintiffs — proceed to trial on their individual claims.”9 In determining whether plaintiffs have satisfied their burden to establish they are similarly situated, “a court reviews several factors, including (1) disparate factual and employment settings of the individual plaintiffs; (2) the various defenses available to defendant which appear to be individual to each plaintiff; [and] (3) fairness and procedural considerations.”10 The decision whether to decertify a collective action is within the district court’s discretion.11

B. Executive Exemption

In order to determine whether members of the class are similarly situated, the Court must consider the salient factors in an exemption analysis. Under the FLSA, the general rule is that any employee who works more than forty hours in a workweek must receive overtime compensation.12 Employers need not pay overtime, however, if the employee is “employed in a bona fide executive, administrative, or professional capacity” as defined by the regulations promulgated by the Secretary of Labor.13 While it is the employee’s burden to prove that the employer is violating the FLSA,14 it is the defendant employer’s burden to prove that [1095]*1095the employee falls within one of these exceptions, all of which are narrowly construed against it.15 Under the Department of Labor regulations, an employee qualifies for the executive exemption if the employee: (1) is paid a salary not less than $455 per week; (2) has a primary duty of management; (8) regularly directs two or more employees; and (4) has “authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees are given particular weight.”16 In this case, the second and fourth criteria are in dispute.

The FLSA regulations include the following illustrative list of management activities:

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Cite This Page — Counsel Stack

Bluebook (online)
888 F. Supp. 2d 1088, 2012 WL 3563977, 2012 U.S. Dist. LEXIS 115985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-harbor-freight-tools-usa-inc-ksd-2012.