IN RE WAWA, INC. DATA SECURITY LITIGATION

District Court, E.D. Pennsylvania·Decided May 24, 2021·No. 2:19-cv-06019·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA : CIVIL ACTION

IN RE WAWA, INC. This document applies to the DATA SECURITY LITIGATION : Employee Track.

No. 19-6019 : and all related cases. MEMORANDUM PRATTER, J. May 24, 2021 Hackers hijacked Wawa, Inc. customer payment card information beginning in March 2019 and continuing over the next several months. The hackers accessed Wawa’s point-of-sale systems and installed malware that targeted in-store payment terminals and gas station fuel dispensers. This ill-gotten information was later made available for purchase on the “dark web.” Wawa, which operates a chain of convenience stores and gas stations throughout the eastern United States, disclosed the data breach in December 2019 and litigation followed. This case is proceeding with three distinct tracks for the class action litigation: the Consumer Track, the Employee Track, and the Financial Institution Track. This Memorandum addresses the Employee Track Plaintiffs’ motion for conditional class certification. Aside from their claims related to allegedly compromised payment card data and confidential employee information, the Employee Plaintiffs, including Shawn McGlade, also bring claims regarding alleged overtime violations. The Court has dismissed those overtime claims as time-barred. See In re Wawa, Inc. Data Security Litigation, No. 19-cv-6019, 2021 WL 1910887, at *3 (E.D. Pa. May 12, 2021). Because the Court writes for the benefit of the parties, it assumes

a basic familiarity with the Employee Plaintiffs’ overtime claims and incorporates by reference its prior discussion of those issues. Mr. McGlade, identified as one of the class representatives for the Employee Track case,! moves for conditional class certification, pursuant to the Fair Labor Standards Act, 29 U.S.C. § 216(b), with respect to his claim that Wawa allegedly forced its assistant general managers to work “off the clock,” which resulted in them not receiving overtime pay.” His collective action concerns all Wawa assistant general managers who were employed in the United States for three years from January 10, 2017 until January 10, 2020. As the Third Circuit Court of Appeals has explained, pursuant to Section 16(b) of the FLSA, 29 U.S.C. § 216(b), “an employee may bring an action against his employer individually, on his own behalf, and collectively, on behalf of other ‘similarly situated’ employees.” Camesi v. Univ. of Pittsburgh Med. Ctr., 729 F.3d 239, 242 (3d Cir. 2013) (quoting Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66, 69 (2013)). However, “[i]n order to become parties to a collective

Karen McGlade, Mr. McGlade’s wife, is the other named plaintiff in the Employee Track. 2 Mr. McGlade does not make any claims regarding employee misclassification in his motion for conditional class certification. In dismissing his previous allegation that Wawa had misclassified its assistant general managers as exempt from the FLSA’s overtime provisions when, based on the duties and tasks they performed, they should have been classified as non-exempt, the Court noted that such a claim was time-barred. Jn re Wawa, Inc., 2021 WL 1910887, at *3. In his class certification motion, Mr. McGlade only mentions that he did not opt in to a collective action and earlier settlement that resulted from a District of New Jersey case involving Wawa’s alleged misclassification of its assistant general managers as exempt from FLSA overtime requirements. See Gervasio v. Wawa Inc., No. 17-cv-245, 2018 WL 385189, at *1 (D.N.J. Jan. 11, 2018) (conditionally certifying FLSA class of former Wawa assistant general managers that worked at any time from January 10, 2015 through December 28, 2015). That court eventually approved a settlement in July 2019. See Gervasio, Doc. No. 112. Thus, the Court treats the motion in this case as one seeking conditional class certification for Mr. McGlade’s off-the-clock overtime claim.

action under Section 16(b), employees must affirmatively opt-in by filing written consents with the court.”? Jd. at 242-43. To put forth such a claim, Mr. McGlade must demonstrate and provide evidence that Wawa maintained a common unlawful policy that required its assistant general managers to work off the clock and that there are employees similarly situated to him. As explained below, Mr. McGlade has not done so. And, because the overtime claims in the Employee Plaintiffs’ Amended Complaint have been dismissed, Mr. McGlade does not have a claim or personal interest in representing a potential class with respect to his alleged overtime violations, thus mooting his motion for conditional class certification. Therefore, for the reasons that follow, the Court denies the motion for conditional class certification. LEGAL STANDARD “The FLSA authorizes an employee who has been denied overtime compensation to bring a claim on behalf of other ‘similarly situated’ employees affected by an employer’s common policy.” DiFlavis v. Choice Hotels Int'l, Inc., No. 18-cv-3914, 2020 WL 610778, at *14 (E.D. Pa. Feb. 6, 2020) (quoting 29 U.S.C. § 216(b)). “District courts in the Third Circuit determine whether a FLSA claim may proceed as a collective action in two steps: a conditional certification and a final certification determination.” Jd. The first step involves a relatively lenient standard whereby the “plaintiff must produce some evidence, beyond pure speculation, of a factual nexus between the manner in which the employer’s alleged policy affected her and the manner in which it affected other employees.” Jd. (quoting Banks v. Radioshack Corp., No. 13-cv-0685, 2014 WL 1724856, at *2 (E.D. Pa. Apr. 25, 2014)).

3. “This feature distinguishes the collective-action mechanism under Section 16(b) from the class- action mechanism under Federal Rule of Civil Procedure 23, where, once the class is certified, those not wishing to be included in the class must affirmatively opt-out.” Camesi, 729 F.3d at 243.

DISCUSSION I. Conditional Class Certification Mr. McGlade is currently the sole named plaintiff who asserted an “off-the-clock” overtime claim against Wawa. But, for the reasons discussed in the Court’s earlier Memorandum, the Court has dismissed Mr. McGlade’s overtime claims as time-barred. See In re Wawa, Inc., 2021 WL 1910887, at *3. Without an overtime claim, Mr. McGlade no longer has a personal interest in representing other, theoretically possible, opt-in plaintiffs, and no other appropriate representative plaintiffs (i.e., Wawa assistant general managers) are currently named parties to the Employee Track. In Symczyk, the U.S. Supreme Court stated that a plaintiff's proposed collective action “became moot when her individual claim became moot, because she lacked any personal interest in representing others” in that case and “the mere presence of collective-action allegations in [a] complaint cannot save the suit from mootness once the individual claim is satisfied.” 569 U.S. at 73 (noting that “even if respondent were to secure a conditional certification ruling on remand, nothing in that ruling would preserve her suit from mootness”). Here, Mr. McGlade’s own overtime claims were dismissed as untimely. Therefore, the Court cannot grant conditional class certification at this time because he was the only named plaintiff in that action and, given the dismissal of his own claim, his motion is now moot.

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IN RE WAWA, INC. DATA SECURITY LITIGATION, (E.D. Pa. 2021).

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