HOWARD v. SHIFTPIXY, INC.

CourtDistrict Court, D. New Jersey
DecidedMarch 7, 2023
Docket2:20-cv-17631
StatusUnknown

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

Bluebook
HOWARD v. SHIFTPIXY, INC., (D.N.J. 2023).

Opinion

Not for Publication

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

LORI HOWARD, Civil Action No. 20-17631 Plaintiff, OPINION v. SHIFTPIXY, INC.,

Defendant.

John Michael Vazquez, U.S.D.J. In this case, Plaintiff seeks to recover certain compensation from her former employer. Presently before the Court is Defendant’s motion for summary judgment, D.E. 46, and Plaintiff’s cross-motion to stay enforcement of any award, D.E. 58. Plaintiff opposed Defendant’s motion, D.E. 58, and Defendant filed a reply brief in further support of its motion and in opposition to Plaintiff’s cross-motion, D.E. 59. The Court reviewed all submissions1 made in support and opposition to the motions and considered the motions without oral argument pursuant to Fed. R.

1 The Court refers to Defendant’s brief in support of its motion, D.E. 46-1, as “Def. Br.”, Plaintiff’s brief in opposition and in support of her cross-motion, D.E. 58-5, as “Plf. Opp.”, and Defendant’s reply brief, D.E. 59, as “Def. Reply.” In addition, the Court refers to Defendant’s Statement of Material Facts Not in Dispute, D.E. 39-1, as “Def. SOMF”; Plaintiff’s response to Def. SOMF, D.E. 42, as “Plf. SOMF”; and Defendant’s Response to Plf. SOMF, D.E. 59-2, as “Def. Resp. SOMF.”

Plaintiff filed a revised statement of material facts with her opposition brief. See D.E. 58-4. Plaintiff did not seek leave to file a revised statement of material facts. In granting Defendant leave to file its motion for summary judgment, this Court instructed that the parties “shall refer to, and not refile” their statement of material facts submitted in conjunction with Defendant’s request for leave to file the motion. D.E. 44. Accordingly, the Court did not consider Plaintiff’s revised statement of material facts in deciding the instant motion. Civ. P. 78(b) and L. Civ. R. 78.1(b). For the reasons stated below, Defendant’s motion for summary judgment is GRANTED in part and DENIED in part, and the motion to stay is DENIED. I. FACTUAL BACKGROUND and PROCEDURAL HISTORY Defendant Shiftpixy, Inc. (“Shiftpixy” or the “Company”) is a staffing service provider for

part-time workforce demands, primarily in the restaurant, hospitality, and maintenance service fields. Plf. SOMF ¶¶ 4-5. Defendant employed Plaintiff from May 2018 through December 2019. Id. ¶¶ 1-3. Before starting, Plaintiff interviewed and negotiated her salary with Steve Holmes. Id. ¶¶ 10, 16. Holmes was involved with hiring, firing, and negotiating compensation for key members of the sales department. Plf. SOMF ¶ 13. Holmes’ business cards and email signature block also indicated that he was sales manager and co-founder of the Company. Id. ¶ 11. Defendant, however, maintains that Holmes’ business cards never indicated that he was the sales manager, and any reference to this title in his email signature block was an error. Def. Resp. SOMF ¶ 11. Defendant further contends that Plaintiff misstates, among other things, Holmes’

status within the Company. Id. Defendant maintains that Holmes was a co-founder, and during the relevant period, was a consultant to Shiftpixy. Def. SOMF ¶ 5; Def. Resp. SOMF ¶¶ 19-20. Defendant denies that Holmes was ever a Shiftpixy employee. Def. SOMF ¶ 5. Plaintiff executed an offer letter from Defendant on April 10, 2018 (the “Offer Letter”). Among other things, the Offer Letter set forth Plaintiff’s salary and commission structure. Plf. SOMF ¶ 17. A Shiftpixy representative also signed the Offer Letter on the same day. See Strand Cert., Ex. 1. From late March to April 9, however, Plaintiff and Holmes had conversations and exchanged drafts of an Addendum to the Offer Letter containing additional terms for Plaintiff’s employment and compensation. Plf. SOMF ¶ 18. These additional negotiations included Plaintiff receiving stock equal to twice her total annual compensation on a yearly basis (the “stock compensation”) and the promise of “commissions for life” if her clients remained with the company, even after Plaintiff left the company. Id. ¶ 24. Plaintiff states that she and Holmes agreed to these components before Plaintiff added them to an Addendum she sent to Holmes on April 5th (the “April 5th Addendum”). Id. ¶ 26. According to Plaintiff, Holmes then sent her a

marked-up copy of the April 5th Addendum with handwritten notes. The handwritten comments indicate that the Company accepted the “commissions for life” and the stock payout at a rate of twice her annual compensation, but the stock compensation could not be put into writing. Id. ¶¶ 29, 31. Mark Absher, Shiftpixy’s General Counsel, made the handwritten notes. Id. ¶ 32; see also Def. Resp. SOMF ¶ 32. Two documents entitled “Amendment to Offer of Employment,” dated April 6th and April 9th, incorporate at least the lifetime commissions aspect of Plaintiff’s negotiations with Holmes.2 See Strand Cert., Ex. 6; Howard Decl., Exs. N, O. Plaintiff signed the April 9th version and emailed a copy to Defendant on April 10, shortly after executing the Offer Letter. See Howard

Decl., Exs. O, Q. Defendant never countersigned the Amendment. On August 21, 2019, Defendant “supplemented” Plaintiff’s April 10 offer by giving Plaintiff an advance on her earned commissions. Strand Cert., Ex. 8. The August 21 Letter, however, provides that Plaintiff must repay the advance and that if Plaintiff’s employment ends before full repayment, Defendant can deduct the outstanding amount from her final commissions. Id. Both parties signed this document. Defendant maintains that Plaintiff failed to repay her draw in full. Def. SOMF ¶ 41. Plaintiff states that Absher and Holmes both told her that her obligation

2 Except for Plaintiff’s start date at Shiftpixy, the April 6th and 9th documents appear to be the same. Howard Decl., Exs. N, O. to repay was forgiven when Defendant sold part of its business. Plf. Resp. to Def. SOMF ¶ 41. In 2020, Plaintiff filed her Complaint alleging that she is entitled to commissions for life and the stock compensation, asserting breach of contract, fraud, labor violations, and quasi- contract claims. Defendant removed the matter to this Court, D.E. 1, and then filed its Answer and Counterclaim. Through the Counterclaim, Defendant seeks to recover Plaintiff’s unpaid

commission advance through breach of contract and unjust enrichment claims. D.E. 6. On July 7, 2022, Defendant filed the instant motion for summary judgment as to all counts of the Complaint and its Counterclaim. D.E. 46. On September 15, 2022, Plaintiff filed her cross-motion seeking a stay, under Federal Rule of Civil Procedure 54, if the Court grants Defendant’s motion for summary judgment as to the Counterclaims. D.E. 58. II. SUMMARY JUDGMENT STANDARD A moving party is entitled to summary judgment where “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A fact in dispute is material when it “might affect the outcome of the suit

under the governing law” and is genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). Disputes over irrelevant or unnecessary facts will not preclude granting a motion for summary judgment. Id. “In considering a motion for summary judgment, a district court may not make credibility determinations or engage in any weighing of the evidence; instead, the nonmoving party’s evidence ‘is to be believed and all justifiable inferences are to be drawn in his favor.’” Marino v. Indus. Crating Co., 358 F.3d 241, 247 (3d Cir.

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