Hollis v. R&R Restaurants, Inc

CourtDistrict Court, D. Oregon
DecidedMay 2, 2022
Docket3:21-cv-00965
StatusUnknown

This text of Hollis v. R&R Restaurants, Inc (Hollis v. R&R Restaurants, Inc) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hollis v. R&R Restaurants, Inc, (D. Or. 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF OREGON PORTLAND DIVISION

ZOE HOLLIS, individually and on behalf of all others similarly situated,

Plaintiff, Case No. 3:21-cv-00965-YY

v. OPINION AND ORDER

R & R RESTAURANTS, INC dba SASSY’S, an Oregon corporation; STACY MAYHOOD, an individual; IAN HANNIGAN, an individual; FRANK FAILLACE, an individual; and DOES 1 through 10, inclusive,

Defendants.

YOU, Magistrate Judge. Plaintiff Zoe Hollis brings this putative collective action against defendants R & R Restaurants, Inc. dba Sassy’s, Stacy Mayhood, Ian Hannigan, Frank Faillace, and Does 1-10 (collectively “defendants”), alleging violations of the federal Fair Labor Standards Act (“FLSA”). Compl., ECF 1. The Complaint describes the collective action members as “all current and former exotic dancers who worked at Sassy’s . . . at any time starting three (3) years before this Complaint was filed, up to the present.” Id. ¶ 9. Plaintiff alleges four violations of the Fair Labor Standards Act (“FLSA”): failure to pay minimum wages (29 U.S.C. § 206), requiring illegal kickbacks (29 C.F.R. § 531.35), unlawfully taking tips (29 U.S.C. § 203), and forced tip sharing (29 C.F.R. § 531.35). See generally Compl., ECF 1. This court has federal question jurisdiction over these claims. See 28 U.S.C. § 1331. Plaintiff has moved for (1) conditional certification under 29 U.S.C. § 216(b) and (2) approval of a notice to putative collective action members. Mot., ECF 23. For the reasons

discussed below, the court GRANTS plaintiff’s motion for conditional certification. However, the court DENIES the implementation of plaintiff’s proposed order (ECF 23-3) and use of the proposed notice (Martinez Decl., Ex. 1, ECF 23-2) and instead directs the parties to confer and finalize a notice and proposed order that is (1) in accordance with this opinion and (2) distributed by a mutually agreed-upon third-party claims administrator.1 In her motion, plaintiff also seeks equitable tolling of the FLSA’s statute of limitations. Mot., ECF 23. Because the request for equitable tolling is a dispositive motion, it will be addressed in separate findings and recommendations. See, e.g., Reddy v. Morrissey, No. 3:18- CV-00938-YY, 2018 WL 4407248, at *1 n.1 (D. Or. Sept. 17, 2018) (citing cases).

1 There is a general split of authority as to whether granting a motion for conditional certification is a motion that is solely within a magistrate judge’s authority. “The weight of authority . . . conclude[es] that granting a motion for conditional certification is a nondispositive matter within a magistrate judge’s authority to resolve.” Lescinsky v. Clark Cty. Sch. Dist., 539 F. Supp. 3d 1121, 1125 (D. Nev. 2021); see also Geller v. Bowers, No. CV 11-874, , at *1 n.1 (N.D. Cal. Apr. 13, 2012) (noting because they seek a preliminary determination, motions for conditional certification may be decided by a magistrate judge); Bittencourt v. Ferrara Bakery & Café Inc., 310 F.R.D. 106, 110 n.1 (S.D.N.Y. 2015) (“A United States [M]agistrate Judge has the authority to rule on a motion to authorize a collective action.”); Esparza v. C & J Energy Servs. Inc., No. 5:15-CV-850, 2016 WL 1737147, at *1 (W.D. Tex. May 2, 2016) (“A motion for conditional class certification is nondispositive.”); Dimery v. Universal Prot. Serv., LLC, No. 6:15-cv-2064, 2016 WL 7666136, at *1 n.1 (M.D. Fla. Mar. 24, 2016) (“[A] motion for conditional certification under the Fair Labor Standards Act is a non-dispositive matter, and therefore appropriate for a magistrate to decide under 28 U.S.C. § 636(b)(1)(A).”). The court aligns with the “weight of authority” and accordingly issues this decision as an opinion and order. I. Background Facts Defendants are operators, representatives, or managers at Sassy’s, a club located in Portland, Oregon. Compl. ¶¶ 10-15, ECF 1. Plaintiff performed at Sassy’s from approximately 2017 to February 2019. Hollis Decl. ¶ 3, ECF 23-1.

Plaintiff alleges defendants employed her and all other dancers at Sassy’s as independent contractors. Id. ¶ 7. Defendants allegedly exercised a great deal of control over the dancers’ performances. Id. ¶ 11. Plaintiff and her fellow dancers were required to perform stage dances as part of their work at the club. Id. ¶ 12. Defendants also required dancers to complete their entire shift on their scheduled work days; performers who wished to leave early during a shift were subject to discipline by club management. Id. ¶¶ 14-15. In addition to enforcing these performance-related requirements, defendants also set a variety of procedures surrounding tipping and other fees. Defendants charged all entertainers, including dancers, a house fee to perform a shift. Id. ¶ 9. Lastly, defendants expected dancers to “tip out other employees[,] including DJs, bouncers, bar staff, and waitstaff.” Id. ¶ 10.

II. Conditional Certification A. Legal Standard The FLSA provides for a private right of action to enforce its provisions “by any one or more employees [on] behalf of [] themselves and other employees similarly situated.” 29 U.S.C. § 216(b). “Neither the FLSA, nor the Ninth Circuit, nor the Supreme Court has defined the term ‘similarly situated.’” Millan v. Cascade Water Servs., Inc., 310 F.R.D. 593, 607 (E.D. Cal. 2015). However, a majority of courts have adopted a two-step approach to evaluate whether potential plaintiffs are similarly situated. Margulies v. Tri-Cty. Metro. Transp. Dist. of Oregon, No. 3:13-CV-00475-PK, 2013 WL 5593040, at *15 (D. Or. Oct. 10, 2013); Gessele v. Jack in the Box, Inc., 2013 WL 1326538, at *3-*4 (D. Or. Apr.1, 2013); see also Thiessen v. Gen. Elec. Capital Corp., 267 F.3d 1095, 1105 (10th Cir. 2001) (concluding that the district court did not err in adopting the two-step approach). At this juncture, is it necessary to discuss only the first step, which requires the court to make an “initial ‘notice stage’ determination of whether plaintiffs are ‘similarly situated.’”2

Thiessen, 267 F.3d at 1102 (quoting Vaszlavik v. Storage Tech. Corp., 175 F.R.D. 672, 678 (D. Colo. 1997)). This analysis involves “‘nothing more than substantial allegations that the putative [collective] members were together the victims of a single decision, policy, or plan.’” Id. (quoting Bayles v. Am. Med. Response of Colo., Inc., 950 F. Supp. 1053, 1066 (D. Colo. 1996)). Accordingly, cases in this district have characterized this inquiry as a “less stringent standard than the requirements for certification under Rule 23” and “typically results in certification.” Dickerson v. Cable Commc'ns, Inc., 2013 WL 6178460, at *2 n.5 (D. Or. Nov. 25, 2013); Margulies, 2013 WL 5593040, at *15. B. Analysis

Defendants oppose conditional certification of the collective on four grounds. First, they argue that because plaintiff amended her complaint to include three individualized causes of action that are separate from her collective claims, she no longer shares “a common legal theory” with the collective. Opp. 7, ECF 24 (citing White v. Rakhra Mushroom Farm Corp., No. CV 08-

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Hollis v. R&R Restaurants, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollis-v-rr-restaurants-inc-ord-2022.