Harris v. Wehco Video Inc

CourtDistrict Court, E.D. Arkansas
DecidedSeptember 30, 2024
Docket2:21-cv-00040
StatusUnknown

This text of Harris v. Wehco Video Inc (Harris v. Wehco Video Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Wehco Video Inc, (E.D. Ark. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS DELTA DIVISION

JOHNNY HARRIS PLAINTIFF

v. Case No. 2:21-cv-00040-LPR

WEHCO VIDEO, INC., et al. DEFENDANTS ORDER This is a race discrimination case. Plaintiff Johhny Harris was a salesman for Defendant East Arkansas Video, Inc., starting in 2012.1 For most of his tenure, Mr. Harris was paid only via commissions and had no minimum sales requirement.2 In 2020, however, Mr. Harris’s non- salaried-commission-only position was eliminated.3 At this time, Mr. Harris was transferred to a position with a salary (in addition to commissions) and a minimum sales requirement.4 But, Mr. Harris was given this position subject to certain probationary conditions.5 Before he could receive the salary, he first needed to prove that he could consistently meet the position’s bi-weekly minimum sales requirement.6 Long story short, Mr. Harris was not able to consistently meet the minimum sales requirement,7 he never received the salary,8 and he ultimately resigned.9

1 Resp. to Statement of Undisputed Facts (Doc. 76) ¶ 2. WEHCO Video, Inc. is the parent company of East Arkansas Video, Inc. Id. ¶ 3. 2 Id. ¶¶ 10–11. 3 Id. ¶ 15. 4 Id. ¶¶ 17–27. 5 See id. ¶ 26. 6 Id. ¶¶ 24–26; see also Ex. 6 (Part 1 of Defs.’ Doc. Production) to Defs.’ Mot. for Summ. J. (Doc. 67-6) at 42. 7 See Resp. to Statement of Undisputed Facts (Doc. 76) ¶¶ 37, 49–50; Ex. 6 (Part 1 of Defs.’ Doc. Production) to Defs.’ Mot. for Summ. J. (Doc. 67-6) at 45. 8 See Harris Dep. (Doc. 90) at 163–64. 9 Resp. to Statement of Undisputed Facts (Doc. 76) ¶ 2. This case concerns Mr. Harris’s pay and treatment between his mid-2020 transfer and his August 2021 resignation. In January of 2021, Mr. Harris filed an Amended Charge of Discrimination with the EEOC alleging that East Arkansas Video was paying Mr. Harris (who is Black) less than its white salesmen.10 Mr. Harris further alleged that he was being denied access to East Arkansas Video’s customer relations management software—called PipeDrive—which

made it more difficult for him to meet his minimum sales quota.11 On April 16, 2021, Mr. Harris filed the instant lawsuit, asserting a host of claims, including discrimination and retaliation claims.12 On June 9, 2022, Mr. Harris amended his Complaint, adding a constructive discharge claim.13 Pending before the Court is Defendants’ Motion for Summary Judgment.14 Following a hearing on the Motion, the Court—with the agreement of Mr. Harris—granted summary judgment to Defendants on all claims except for the following: (1) race discrimination, retaliation, and constructive discharge claims against East Arkansas Video and WEHCO Video under Title VII, § 1981, and ACRA, and (2) race discrimination, retaliation, and constructive discharge claims against Lori Haight, Don Deem, Charlotte Dial, and Paul Morbeck under § 1981.15 Shortly

thereafter, the Court stayed the case and delayed a summary judgment ruling on the remaining claims in anticipation of the Supreme Court’s decision in Muldrow v. City of St. Louis.16

10 Ex. 13 (Jan. 4, 2021 EEOC Charge) to Defs.’ Mot. for Summ. J. (Doc. 67-13). 11 Id. 12 Compl. (Doc. 1). 13 Second Am. Compl. (Doc. 47) ¶¶ 65–67. 14 Defs.’ Mot. for Summ. J. (Doc. 67). 15 Oct. 24, 2023 Order (Doc. 87); Oct. 23, 2023 Hr’g Tr. (Rough) at 12:10:20–12:11:46, 12:14:30–12:16:02, 13:21:55–13:22:57. 16 Jan. 5, 2024 Order (Doc. 88). Muldrow has since been decided, and the Court thus lifted the stay.17 This Motion is now ready for final resolution. For the reasons described below, the Court GRANTS Defendants’ Motion for Summary Judgment.18 I. BACKGROUND FACTS On summary judgment, the Court is supposed to consider the record in a very particular

way. First, the Court adopts and considers all undisputed facts.19 Second, as to each genuinely disputed fact that is material to the outcome of the case, the Court adopts and considers the version of the fact that is most favorable to the non-moving party.20 (A fact is genuinely disputed if a reasonable jury could decide the fact in favor of either Plaintiff or Defendants.21) From all the facts discussed above, the Court then draws all reasonable inferences that are most favorable to the non-moving party.22 All this is to say that the story presented below is the most Plaintiff- friendly rendition of the facts that a reasonable jury could conclude occurred. East Arkansas Video is a cable television and internet service provider.23 Starting in 2012, Mr. Harris worked for the company as a sales representative.24 At that time, and for much of his tenure at the company, Mr. Harris earned the entirety of his pay through commissions.25 He had

17 601 U.S. 346 (2024); July 24, 2024 Order (Doc. 89). 18 Defs’ Mot. for Summ. J. (Doc. 67). 19 See Erickson v. Nationstar Mortg., LLC, 31 F.4th 1044, 1047–48 (8th Cir. 2022). 20 See Quinn v. St. Louis Cnty., 653 F.3d 745, 750 (8th Cir. 2011). 21 See Morrow v. United States, 47 F.4th 700, 704 (8th Cir. 2022). 22 See Quinn, 653 F.3d at 750. 23 Resp. to Statement of Undisputed Facts (Doc. 76) ¶ 4. 24 Id. ¶¶ 2, 9. 25 Id. ¶ 10. no required hours and could work as much or as little as he desired.26 This position had no minimum sales requirement.27 From 2018 to 2020, the company’s parent (WEHCO Video) hired 13 business class sales representatives—eight were white, three were Black, and two were Hispanic or Latino.28 The new business class sales representatives received a greater commission on sales than Mr. Harris

had been receiving.29 They also got a base salary of $400 per pay period plus a $125 per month transportation expense stipend.30 These new business class sales representatives also had a bi-weekly minimum sales requirement.31 If they failed to meet this requirement, they could face termination.32 From 2012 through the end of 2019, Mr. Harris remained in his non-salaried-commission- only role.33 Then, in February of 2020, Ms. Haight (WEHCO Video’s Vice President of Marketing and Client Care) told Mr. Harris that his non-salaried-commission-only position was being eliminated.34 Subsequently, Don Deem (WEHCO Video’s Sales Manager) met with Mr. Harris and informed him that, should he wish to continue his employment with East Arkansas

26 Id. ¶ 11. 27 Id. ¶ 10. 28 Id. ¶¶ 6–7, 14. 29 See id. ¶ 17; Harris Dep. (Doc. 90) at 105. 30 Resp. to Statement of Undisputed Facts (Doc. 76) ¶ 17; Harris Dep. (Doc. 90) at 92; Ex. 6 (Part 1 of Defs.’ Doc. Production) to Defs.’ Mot. for Summ. J. (Doc. 67-6) at 11–13. See also Oct. 23, 2023 Hr’g Tr. (Rough) at 13:23:29– 13:26:30; 13:32:32–13:33:54. There is a discrepancy in the record as to whether the base salary was around $10,000 per year or $12,000 per year. That discrepancy is not material to any issues the Court needs to decide in this Order. 31 Ex. 6 (Business Class Representative Performance Policy) to Pl.’s Resp. to Defs.’ Mot. for Summ. J. (Doc. 77-6). 32 Id. 33 See Resp. to Statement of Undisputed Facts (Doc. 76) ¶¶ 9–10, 15. 34 Harris Dep. (Doc. 90) at 107–08; Resp. to Statement of Undisputed Facts (Doc. 76) ¶¶ 5, 15. Video, Mr. Harris would need to transition to a business class sales representative position with a salary and minimum sales quota.35 Mr. Harris agreed to the transition in March of 2020.36 Before Mr. Harris could be transitioned over to a salaried position, Paul Morbeck (WEHCO Video’s President) objected to Mr. Harris’s transition on the grounds that Mr. Harris wouldn’t “produce sufficiently to justify that payment.”37 Between 2012 and 2019, Mr. Harris’s

commission earnings were as follows: $1,006 (2012), $4,769 (2013), $6,807 (2014), $5,120 (2015), $2,370 (2016), $5,265 (2017), $4,515 (2018), and $3,290 (2019).38 This record evidence does not tell us exactly how much Mr.

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Harris v. Wehco Video Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-wehco-video-inc-ared-2024.