Hill v. Xerox Corporation

CourtDistrict Court, W.D. Washington
DecidedAugust 28, 2020
Docket2:12-cv-00717
StatusUnknown

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

Bluebook
Hill v. Xerox Corporation, (W.D. Wash. 2020).

Opinion

THE HONORABLE JOHN C. COUGHENOUR 1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE 9 TIFFANY HILL, individually and on behalf of CASE NO. C12-0717-JCC others similarly situated, 10 ORDER 11 Plaintiff, v. 12 XEROX BUSINESS SERVICES, LLC, a 13 Delaware Limited Liability Company, LIVEBRIDGE, INC., an Oregon Corporation, 14 AFFILIATED COMPUTER SERVICES, INC., 15 a Delaware Corporation, and AFFILIATED COMPUTER SERVICES, LLC, a Delaware 16 Limited Liability Company, 17 Defendants. 18 19 This matter comes before the Court on Defendants’ motion to decertify the class (Dkt. 20 No. 189) and Defendants’ motion to compel arbitration and to partially decertify the class 21 (Dkt. No. 169). Having thoroughly considered the parties’ briefing and the relevant record, the 22 Court finds oral argument unnecessary and hereby DENIES Defendants’ motion to decertify 23 the class (Dkt. No. 189) and GRANTS in part and DENIES in part Defendants’ motion to 24 compel arbitration and to partially decertify class (Dkt. No. 169) for the reasons explained 25 Ih.erein. BACKGROUND 26 The Court has previously summarized the factual background of this case and will only 1 repeat those facts relevant to the motions. (See Dkt. No. 116 at 1–3.) Defendants operate call 2 centers at which agents respond to calls for third-party clients such as phone companies, airlines, 3 and hotels. (Dkt. Nos. 56 at 5, 39 at 9–10.) Defendants use a compensation system known as 4 Achievement Based Compensation (“ABC”), which Plaintiff alleges violates Washington’s 5 Minimum Wage Act (“MWA”). (See Dkt. No. 23 at 7, 10.) One aspect of this system is ABC 6 Pay. (Dkt. No. 56 at 7–8.) To receive this type of compensation, agents track all time spent on 7 certain activities, such as receiving calls or performing follow-up work. (Id.) Some of these 8 activities—such as receiving inbound calls—are paid on a per-minute basis; each minute is 9 referred to as a “production minute.” (Dkt. Nos. 54-7 at 13, 56 at 8, 57 at 32–34.) 10 Agents also record their time for “non-productive” activities, which can include activities 11 like waiting for a call or documenting a completed call. (See, e.g., Dkt. No. 57 at 33–34.) These 12 non-productive activities are not compensated on a per-minute basis. (Id.) Instead, under the 13 ABC Pay system, Defendants use workweek averaging to calculate whether an employee’s 14 hourly rate fell below Washington’s minimum wage. (Dkt. No. 39 at 16.) If that hourly rate is 15 less than the minimum wage, agents receive subsidy pay. (Dkt. No. 56 at 8.) 16 On July 10, 2014, the Court denied Defendants’ motion for partial summary judgment 17 and granted in part Plaintiff’s motion for class certification. (Dkt. No. 116 at 13.) Defendants 18 filed a motion for reconsideration, asking the Court to reconsider both its denial of Defendants’ 19 motion for partial summary judgment and its certification of the ABC class. (See generally Dkt. 20 No. 117.) The Court denied Defendants’ motion for reconsideration but amended its order to 21 certify an immediate interlocutory appeal of the Court’s denial of Defendants’ motion for partial 22 summary judgment. (Id. at 3.) Defendants subsequently appealed and the Court stayed this case 23 pending the resolution of the appeal. (See Dkt. Nos. 128, 131.) 24 The Ninth Circuit certified the question of whether a plan with a production minute 25 metric qualifies as a piecework plan to the Washington Supreme Court. See Hill v. Xerox 26 Business Servs., 868 F.3d 758, 763 (9th Cir. 2017). The Washington Supreme Court answered 1 that such a plan is not a piecework plan. Hill v. Xerox Business Servs., 426 P.3d 703, 708–10 2 (Wash. 2018). On July 3, 2019, the Ninth Circuit affirmed this Court’s order denying 3 Defendants’ motion for partial summary judgment. (See Dkt. Nos. 139,140). 4 After the Ninth Circuit issued its mandate, the Court lifted the stay in this case and 5 defined the scope of the ABC class. (Dkt. No. 157 at 4.) The Court found that a class settlement 6 agreement from a similar lawsuit (the “Sump settlement”) barred class claims that accrued prior 7 to June 4, 2010. (Id.) The Court defined the ABC class as follows: 8 All persons who have worked at Defendants’ Washington call centers under an “Activity Based Compensation” or “ABC” plan that paid “per minute” rates for 9 certain work activities between June 5, 2010, and the date of final disposition of this action. 10 (Id.) In addition, the Court excluded from the ABC class any employees who were hired after 11 September 27, 2012, and who signed arbitration agreements as part of Defendants’ revised 2012 12 Dispute Resolution Program (“DRP”). (Id.) 13 Defendants now move to decertify the ABC class. (Dkt. No. 189.) Defendants also move 14 to compel class members who signed arbitration agreements subject to a 2002 DRP to arbitrate 15 their claims individually and partially decertify the class as to those members. (Dkt. No. 169.) 16 II. DISCUSSION 17 A. Motion to Decertify ABC Class 18 A district court is empowered to decertify a class when it finds that a class no longer 19 meets the requirements of Federal Rule of Civil Procedure Rule 23. Fed. R. Civ. P. 23(c)(1)(C); 20 see Officers for Justice v. Civil Serv. Comm’n of City & Cty. of San Francisco, 688 F.2d 615, 21 633 (9th Cir. 1982) (“[B]efore entry of a final judgment on the merits, a district court's order 22 respecting class status is not final or irrevocable, but rather, it is inherently tentative.”). For 23 example, subsequent developments in litigation may warrant a court’s decision to revisit its 24 decision to certify a class. United Steel, Paper & Forestry, Rubber, Mfg. Energy, Allied Indus. & 25 Serv. Workers Int’l Union, AFL-CIO, CLC v. ConocoPhillips Co., 593 F.3d 802, 809 (9th Cir. 26 1 2010). A court has broad discretion to determine whether decertification is appropriate. Marlo v. 2 United Parcel Serv., Inc., 639 F.3d 942, 946 (9th Cir. 2011). 3 A plaintiff seeking to maintain class certification bears the burden of demonstrating that 4 the Rule 23 requirements are satisfied. Id. at 947. Under Rule 23, a plaintiff must affirmatively 5 satisfy the requirements of Rule 23(a) and the requirements of at least one of the categories under 6 Rule 23(b). Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 345 (2011). Rule 23(a) includes the 7 requirements of numerosity, commonality, typicality, and adequacy. See Fed. R. Civ. P. 23(a). In 8 addition, Rule 23(b)(3) requires that the common questions of law and fact predominate over 9 those questions affecting individual members and that a class action be a superior method for 10 fairly and efficiently adjudicating the controversy. See Fed. R. Civ. P. 23(b)(3). To satisfy Rule 11 23(b)(3), a plaintiff must show both (1) that the existence of individual injury arising from the 12 defendant’s alleged actions is “capable of proof at trial through evidence . . .

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Hill v. Xerox Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-v-xerox-corporation-wawd-2020.