HAGANS v. NATIONAL MENTOR HEALTHCARE, INC.

CourtDistrict Court, D. New Jersey
DecidedMarch 17, 2023
Docket1:22-cv-00128
StatusUnknown

This text of HAGANS v. NATIONAL MENTOR HEALTHCARE, INC. (HAGANS v. NATIONAL MENTOR HEALTHCARE, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HAGANS v. NATIONAL MENTOR HEALTHCARE, INC., (D.N.J. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY CAMDEN VICINAGE

JOHN HAGANS and VIVIAN HAGANS, HONORABLE KAREN M. WILLIAMS individually and on behalf of all others similarly situated, Civil Action Plaintiffs, No. 22-00128-KMW-SAK

v. OPINION NATIONAL MENTOR HEALTHCARE, INC., and NATIONAL MENTOR HEALTHCARE, LLC,

Defendants.

APPEARANCES: ANDREW R. FRISCH, ESQUIRE MORGAN & MORGAN, P.A. 600 NORTH PINE ISLAND ROAD SUITE 400 PLANTATION, FL 33324

Counsel for Plaintiffs John Hagans and Vivian Hagans

MONICA T. NUGENT, ESQUIRE BALLARD SPAHR LLP 700 EAST GATE DRVE SUITE 330 MOUNT LAUREL, NJ 08054

Counsel for Defendants National Mentor Healthcare, Inc., and National Mentor Healthcare, LLC

WILLIAMS, District Judge: I. INTRODUCTION This matter comes before this Court on Plaintiffs John Hagans and Vivian Hagans’ Motion to Conditionally Certify Collective Action and Facilitate Notice to Potential Class Members pursuant to 29 U.S.C. § 216(b), (ECF No. 35). Plaintiffs assert that Defendants National Mentor Healthcare, Inc., and National Mentor Healthcare LLC have violated the Fair Labor Standards Act (“FLSA”) by misclassifying “Community Care Providers” (“CCPs”) as independent contractors, denying CCPs overtime compensation, and paying below the applicable

minimum wage. For the reasons that follow, the Court will GRANT Plaintiffs’ Motion to Conditionally Certify Collective Action and Facilitate Notice to Potential Class Members, (ECF No. 35), subject to the Court’s discretion regarding notice. II. BACKGROUND Defendants operate an in-come care service company, formerly known as “The Mentor Network,” which is now known by the trade name of “Sevita Health.” (ECF No. 36 at 3). Defendants serve thousands of people in over 40 states by operating community-based networks to help care for intellectually and developmentally disabled people. (Id.) Plaintiffs allege that Defendants contract through the state of New Jersey and employ CCPs who host Defendants’ patients in their homes, providing direct care and community interaction. (Id. 3-4)

Plaintiffs John Hagans and Vivian Hagans, individually and on behalf of those similarly situated, filed their Complaint on January 11, 2022, alleging violations of the FLSA by Defendants. Plaintiffs assert that Defendants have a “longstanding policy” of misclassifying their CCP employees as independent contractors, and subsequently violate state and federal wage and hour laws, paying Plaintiffs below the applicable minimum wage, and not providing overtime compensation. (ECF No. 1 at 1-2); see also (ECF No. 36 at 1-2). On July 13, 2022, Plaintiffs filed the instant motion to have this Court conditionally certify a class for collective action pursuant to 29 U.S.C. § 216(b). (ECF No. 36 at 2). Plaintiffs argue that Defendants uniformly misclassify their “mentors” or “CCPs” as independent contractors, pay them a daily rate that does not equal the state or federal minimum wage, and does not pay for overtime, and as such the CCPs are all similarly situated sufficiently to meet the “lenient burden” of conditional certification for a collective action. (Id. at 15). Plaintiffs further request that the Court allow for a 90-day notice period, permit Plaintiffs to engage in preliminary discovery to

assist in the notification process, and to permit Plaintiffs to notify potential class participants by email and text messaging. (Id. at 28-34). Defendants filed an opposition to this motion on August 1, 2022, (ECF No. 38), arguing that the Court should adopt the reasoning of a Fifth Circuit case as it relates to conditional certification for collective action, which would result in Plaintiffs failing to meet the burden required to certify a collective action, as well as asserting that the proposed class is inappropriate, that any proposed notice period should be limited to 30 days by first class mail only, and that Plaintiff’s class notice should be revised in relation to the costs associated with consenting to the collective action. (Id.). Plaintiff filed their reply on August 8, 2022, asserting that the Fifth Circuit case is not

binding on this court and, moreover, that it has not displaced the two-step conditional certification process as developed by Third Circuit precedent. (ECF No. 39 at 6-8). Plaintiffs further reasserted their position on notifying the potential collective class. (Id. at 9-15). On September 26, 2022, Plaintiffs provided the Court with supplementary authority. (ECF No. 45). Finally, on October 3, 2022, Defendants filed a letter in response, arguing that Plaintiffs’ filing was improper pursuant to Local Civil Rule 7.1.(d)(6) and that the supplemental authority was inapposite to this case. (ECF No. 46). The Court now finds the issue ripe for adjudication. III. LEGAL STANDARD The FLSA provides an avenue for individuals to bring a private cause of action on their own behalf or on behalf of other employees similarly situated for specific violations of the FLSA, such as a federal minimum wage, maximum-hour, and overtime guarantees that “cannot be

modified by contract.” See Fogg v. Clean Harbors Env’t Servs., No. 21-7626, 2023 U.S. Dist. LEXIS 20793 at *4 (D.N.J. Feb. 7, 2023) (citing Reinig v. RBS Citizens, N.A., 912 F.3d 115, 123 n.1 (3d Cir. 2018) (additional citation omitted). 29 U.S.C. § 216(b) provides in pertinent part that: Any employer who violates the provisions of section 6 [minimum wage] or section 7 [overtime] of this Act [29 USCS § 206 or 207] shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be . . . An action to receive the liability prescribed in the preceding sentences may be maintained against any employer (including a public agency) 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.

For employees to be found “similarly situated,” by a court, the members of a collective action must be subject to some common employer practice that, if proved, would help demonstrate a violation of the FLSA. Zavala v. WalMart Stores Inc., 691 F.3d 527, 538 (3d Cir. 2012). There are several relevant factors that courts may consider in finding a group of employees “similarly situated,” for example: whether plaintiffs are employed in the same corporate department, division, and location, whether they advance similar claims, whether they seek substantially the same form of relief, and whether they have similar salaries and circumstances of employment. See Pearsall- Dineen v. Freedom Mortg. Corp., 27 F.Supp.3d 567, 570 (D.N.J. 2014) (quoting Zavala, 691 F.3d at 536-37).1 The Third Circuit follows a two-step process for deciding whether an action may proceed as a collective action under the FLSA. See Camesi v. Univ. of Pittsburg Med. Ctr., 729 F.3d 239, 243 (3d Cir. 2013) (citing Zavala, 691 F.3d at 535).2 “Articulating the differences [between the]

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HAGANS v. NATIONAL MENTOR HEALTHCARE, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hagans-v-national-mentor-healthcare-inc-njd-2023.