Harris v. Chipotle Mexican Grill, Inc.

49 F. Supp. 3d 564, 2014 U.S. Dist. LEXIS 125766, 2014 WL 4449669
CourtDistrict Court, D. Minnesota
DecidedSeptember 9, 2014
DocketCase No. 13-cv-1719 (SRN/SER)
StatusPublished
Cited by12 cases

This text of 49 F. Supp. 3d 564 (Harris v. Chipotle Mexican Grill, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Chipotle Mexican Grill, Inc., 49 F. Supp. 3d 564, 2014 U.S. Dist. LEXIS 125766, 2014 WL 4449669 (mnd 2014).

Opinion

MEMORANDUM OPINION AND ORDER

SUSAN RICHARD NELSON, District Judge.

I. INTRODUCTION

This matter is before the Court on Defendant’s Objections [Doc. No. 93] to the April 10, 2014 Report and Recommendation (“R & R”) on Plaintiffs’ Motion for Conditional Collective Action Certification. The Magistrate Judge recommended that the motion be granted in part and denied in part. For the reasons set forth below, Defendant’s objections are sustained in part and overruled in part, and the Court adopts the R & R in part.

II. BACKGROUND

The factual and procedural background of Plaintiffs’ case is well documented in the Magistrate Judge’s R & R and is incorporated herein by reference.1 In this lawsuit, Plaintiffs Marcus Harris, Julius Caldwell, DeMarkus Hobbs, and Dana Evenson (collectively, “Plaintiffs”) brought claims, on behalf of themselves and all others similarly situated, against Defendant Chi-potle Mexican Grill, Inc. (“Defendant”) pursuant to the Fair Labor Standards Act, 29 U.S.C. §§ 201-219, and the Minnesota Fair Labor Standards Act, Minn.Stat. §§ 177.21-177.35.2 (Consolidated Am. Class Action Compl. [Doc. No. 31] (“Am. Compl.”) ¶ 1.) Plaintiffs allege that Defendant has a company-wide policy of requiring hourly-paid employees to work “off the clock” and without pay, and they seek to [568]*568recover allegedly unpaid overtime compensation and other wages. (See id. ¶¶ 3-4.)

A. Defendant’s Business

Defendant operates more than 1,500 Mexican food restaurants, in 43 states and the District of Columbia, as well as internationally. (Gottlieb Decl. [Doc. No. 50] ¶¶ 4, 7.) Defendant’s domestic restaurants are divided into seven geographic regions, and regional directors or executive team directors are responsible for the operations of the restaurants within their region. (Id. ¶¶8-9.) The staffing in each restaurant may include, in order of descending authority, a general manager, one or more apprentice managers, one or more service managers, one or more kitchen managers, and 15 to 35 crew members. (Id. ¶ 13.) Service managers, kitchen managers, and crew members are paid on an hourly basis. (Id. ¶ 18.) Defendant currently employs more than 40,000 hourly employees in the United States, approximately 1,600 of whom work in Minnesota. (Id. ¶ 17.) However, in any given year, Defendant employs roughly 90,000 hourly employees in the United States. (Id.)

Defendant has a formal “timekeeping/time punch policy,” which states that “[a]ll hourly employees are paid for all time worked. This is the law and Chipo-tle’s policy.” (Id., Ex. 1 (Crew Handbook), at 22; id., Ex. 3 (Restaurant Management Handbook), at 19.)3 It also states that “[h]ourly employees must always work on the clock, not ‘off the clock’.” (Id., Ex. 1 (Crew Handbook), at 23; id., Ex. 3 (Restaurant Management Handbook), at 20.)4 In addition, the policy provides a procedure for editing the time .recorded in the timekeeping system. (See id., Ex. 1 (Crew Handbook), at 23-24; id., Ex. 3 (Restaurant Management Handbook), at 20-22.)5 Defendant’s timekeeping system, called “Aloha,” records the hourly-employees’ time. (Id. ¶ 33.) This system automatically re-sets at 12:30 a.m., which has the effect of clocking out any employee who was clocked in when the re-set occurred. (Id. ¶ 41.)

B. The Named Plaintiffs and Their Allegations

The named Plaintiffs are each current or former hourly-paid employees at Defendant’s Crystal, Minnesota restaurant. (See Supplemental Harris Decl. [Doc. No. 64] ¶¶ 2-3; Supplemental Caldwell Decl. [Doc. No. 63] ¶ 2; Hobbs Decl. [Doc. No. 39] ¶¶ 3-5; Evenson Decl. [Doc. No. 40] ¶¶ 3-5; Gottlieb Decl. ¶¶ 20-23.)6 While [569]*569Plaintiffs Harris and Hobbs were employed solely as crew members, Plaintiffs Caldwell and Evenson were both employed first as crew members and later as kitchen and service managers. (See Supplemental Harris Decl. ¶ 3; Supplemental Caldwell Decl. ¶¶ 3-5; Hobbs Decl. ¶ 5; Evenson Decl. ¶ 5; Gottlieb Decl. ¶¶ 20-23.) As stated in their Amended Complaint, Plaintiffs allege that, in order to reduce its payroll budget, Defendant “maintains a company-wide policy of not paying hourly-paid restaurant employees for all time worked, and encouraging its general managers to require that work be performed off the clock.” (Am. Compl.K 25.) Plaintiffs further allege that Defendant implements this policy by setting payroll budgets such that they can only be met if hourly employees work off the clock, and by rewarding general managers for staying within their payroll budget. (Id. ¶ 26.) Therefore, according to Plaintiffs, hourly employees are required to punch out (or are automatically punched out by Defendant’s timekeeping system) although they must continue working. (Id. ¶ 29.) Plaintiffs claim that these directives are issued from Defendant’s corporate offices in Colorado and are carried out by general managers at its restaurants nationwide. (Id. ¶ 32.) Finally, Plaintiffs allege that they are similarly situated to other putative members of the collective action because they:

(a) worked for Chipotle during the applicable time period; (b) performed the same or similar duties; (c) had limited or no administrative responsibilities; (d) were and are not professionals within the meaning of the FLSA; and (e) were required to work off the clock, without compensation.

(Id. ¶ 56.)

C. Plaintiffs’ Motion

Plaintiffs filed their motion for conditional collective action certification on October 23, 2013, seeking conditional certification of the following class:

All current and former hourly-paid restaurant employees of Chipotle Mexican Grill, Inc. who, on or after [July 2, 2010],7 were automatically punched off the clock and continued to work, or who otherwise worked “off the clock,” resulting in non-payment of regular wages or overtime wages.

(Mem. in Supp. of Pls.’ Mot. for Conditional Collective Action Certification and for Judicial Notice to Class [Doc. No. 35] (“Pls.’ Mem.”), at 1-2.) In support of their motion, they each submitted a declaration stating that they had been “forced to work off the clock.” (Harris Decl. [Doc. No. 37] ¶ 6; Caldwell Decl. [Doc. No. 38] ¶ 6; Hobbs Decl. ¶ 6; Evenson Decl. ¶ 6.) Plaintiffs Harris and Hobbs stated that they were not compensated for time worked after being made to punch out at the end of a shift, that Defendant’s timekeeping system would automatically punch them out even when they continued working, that Defendant would cut their hours for the following week if they complained about not being paid for all of the hours they worked, and that they witnessed other employees being subjected to the same treatment. (Harris Decl. ¶¶ 7-10; Hobbs [570]*570Decl.

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49 F. Supp. 3d 564, 2014 U.S. Dist. LEXIS 125766, 2014 WL 4449669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-chipotle-mexican-grill-inc-mnd-2014.