Hanson v. McBride

CourtDistrict Court, M.D. Tennessee
DecidedNovember 22, 2019
Docket3:18-cv-00524
StatusUnknown

This text of Hanson v. McBride (Hanson v. McBride) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanson v. McBride, (M.D. Tenn. 2019).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

RICHARD HANSON, ) ) Plaintiff, ) ) v. ) Case No. 3:18-cv-00524 ) Judge Aleta A. Trauger JOHN MCBRIDE and JAM ) PRODUCTIONS d/b/a BLACKBIRD ) STUDIOS, ) ) Defendants. )

MEMORANDUM & ORDER

Richard Hanson has filed a Motion for Summary Judgment (Docket No. 30), to which John McBride and Jam Productions d/b/a Blackbird Studios (“Blackbird”) have filed a Response (Docket No. 40), and Hanson has filed a Reply (Docket No. 43). Mr. McBride and Blackbird have also filed a Motion for Summary Judgment (Docket No. 34), to which Hanson has filed a Response (Docket No. 37), and the defendants have file a Reply (Docket No. 42). For the reasons set out herein, both motions will be denied. I. BACKGROUND1

“The Fair Labor Standards Act of 1938 [‘FLSA’] sets forth employment rules concerning minimum wages, maximum hours, and overtime pay.” Kasten v. Saint-Gobain Performance Plastics Corp., 563 U.S. 1, 4 (2011). “[S]ubstantive rights under . . . the FLSA are non-waivable.” Logan v. MGM Grand Detroit Casino, 939 F.3d 824, 831 (6th Cir. 2019). The reasoning for such a rule, the Supreme Court has recognized, is to prevent employers from using

1 The facts laid out herein are, except where otherwise indicated, taken from the parties’ respective Responses to Statements of Undisputed Facts. Some facts are admitted for the purpose of one motion but may not be undisputed with regard to the other motion. The court’s analysis is not contingent on treating any fact conceded for the purposes of only one motion as necessary to the resolution of the other motion. their superior leverage to force workers to accept lesser pay, “‘nullify[ing] the purposes’ of the statute and thwart[ing] the legislative policies it was designed to effectuate.” Barrentine v. Ark.- Best Freight Sys., Inc., 450 U.S. 728, 740 (1981) (quoting Brooklyn Savings Bank v. O’Neil, 324 U.S. 697, 707 (1945)).

The principle that FLSA rights are non-waivable plays an important role in the overall scheme of the Act, but it is also in tension with the fact that voluntary, uncompensated work— for example, charitable work by volunteers or work by students pursuing an educational benefit— has long been a part of ordinary life. To account for these types of work, Congress and the courts have recognized exceptions to the Act’s definition of “employee” that carve out space for permissible uncompensated work in certain traditional settings. See, e.g., Brown v. N.Y. City Dep’t of Educ., 755 F.3d 154, 164 (2d Cir. 2014) (volunteers); Solis v. Laurelbrook Sanitarium & Sch., Inc., 642 F.3d 518, 531 (6th Cir. 2011) (vocational students). Courts, however, have also recognized that employers may sometimes attempt to evade the FLSA by artificially turning what would normally be compensated work into uncompensated

work in ways that exceed the intended scope of the relevant recognized exception. See, e.g., Walling v. Portland Terminal Co., 330 U.S. 148, 153 (1947) (addressing possibility of an employer’s using uncompensated trainees as “a way for evasion of” the FLSA). Despite decades of caselaw addressing the issue, it continues to be a challenge to determine where the FLSA ends and a permissible non-employment relationship begins. See, e.g., Solis, 642 F.3d at 522 (“The issue of the employment relationship does not lend itself to a precise test, but is to be determined on a case-by-case basis upon the circumstances of the whole business activity.”) (quoting Donovan v. Brandel, 736 F.2d 1114, 1116 (6th Cir. 1984)). One of the settings in which these issues often arise today is in the context of unpaid internships. See, e.g., Glatt v. Fox Searchlight Pictures, Inc., 811 F.3d 528, 534 (2d Cir. 2016). To assist employers, the U.S Department of Labor has promulgated guidelines setting forth factors relevant to whether a particular unpaid internship is permissible under the FLSA. Several

of the factors focus on whether the intern is receiving an educational benefit from the work performed, particularly a benefit that would complement the intern’s ongoing schooling. See U.S. Dep’t of Labor, Wage & Hour Div., Fact Sheet # 71, Internship Programs Under The Fair Labor Standards Act (January 2018).2 For example, the Department recommends considering “[t]he extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit” and “[t]he extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning.” The Department also suggests considering whether the interns are performing work that displaces paid employees. Id. Blackbird is a music production company owned by John McBride and his wife Martina McBride.3 (Docket No. 39 ¶ 1; Docket No. 41 ¶ 8.) On June 12, 2012, Blackbird hired Hanson as

its Operations Manager. (Docket No. 41 ¶ 1.) Hanson was supervised by Mr. McBride and Studio Manager/General Manager Rolff Zwiep. (Id. ¶ 7.) In early 2013, Hanson took over the responsibility of overseeing Blackbird’s unpaid internship program. (Docket No. 39 ¶ 3; Docket No. 41 ¶ 14.) In 2014, Hanson’s responsibilities expanded to include supervising paid assistant engineers. (Docket No. 39 ¶ 6.)

2 Available at http://www.dol.gov/whd/regs/compliance/whdfs71.pdf. The Department’s criteria related to unpaid interns are cited by Hanson in his briefing. (Docket No. 31 at 3.) Hanson refers to six factors, although there are now seven.

3 The defendants deny that Ms. McBride plays any role in the day-to-day operations of Blackbird. (Docket No. 41 ¶ 8.) After taking over the unpaid internship program, Hanson became concerned that interns were being used for personal errands and custodial work that offered no educational benefit to them and, therefore, undermined the argument that they were not FLSA employees. (Id. ¶ 17.) For example, Hanson has produced an email he received on April 12, 2014, from Connor

Thuotte, an unpaid intern. (Docket No. 33-2 at 1.) Thuotte describes being required to search Mr. McBride’s house, armed with a loaded firearm, searching for a suspected intruder. Thuotte wrote that he was “shaken up” about how the situation “could have played out.” “I just hope it’s understood,” Thuotte wrote, “that this is not what we are here to do and a line needs to be drawn somewhere.” (Id.) In an email from another intern during Hanson’s time at Blackbird, the intern complained to Hanson, “I feel as if I am working for free and not getting anything in return.” (Id. at 4.) He described a “lack of learning opportunities” and time spent on tasks such as “installing and organizing electrical and computer wires.” (Id.) An eventual U.S. Department of Labor investigation obtained statements from other former Blackbird interns, confirming similar

potential issues with the program. (See, e.g., id. at 8 (“I was not taught anything of note while interning there.”).) Hanson first raised his concerns regarding the internship program to Mr. McBride in 2013. (Docket No. 39 ¶ 16.) He did not raise the issue again until May 31, 2015, when he sent an email to Mr.

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Hanson v. McBride, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanson-v-mcbride-tnmd-2019.