I.P. v. United States

CourtUnited States Court of Federal Claims
DecidedDecember 1, 2020
Docket19-95
StatusPublished

This text of I.P. v. United States (I.P. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
I.P. v. United States, (uscfc 2020).

Opinion

In the United States Court of Federal Claims No. 19-95C

(E-Filed: December 1, 2020)

) I.P., et al., ) ) Motion to Dismiss; RCFC 12(b)(6); Plaintiffs, ) Fair Labor Standards Act (FLSA), 29 ) U.S.C. §§ 201-19; Anti-Deficiency Act v. ) (ADA), 31 U.S.C. §§ 1341-42; ) Government Employees Fair THE UNITED STATES, ) Treatment Act of 2019 (GEFTA); Pub. ) L. No. 116-1, 133 Stat. 3 (2019). Defendant. ) )

Laura R. Reznick, Garden City, NY, for plaintiff.

Erin K. Murdock-Park, Trial Attorney, with whom were Joseph H. Hunt, Assistant Attorney General, Robert E. Kirschman, Jr., Director, Reginald T. Blades, Jr., Assistant Director, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, DC, for defendant. Ann C. Motto, of counsel.

OPINION AND ORDER

CAMPBELL-SMITH, Judge.

Plaintiffs in this putative collective action allege that the government, through several agencies, violated the Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201-19, by failing to timely pay their earned overtime and regular wages during the partial government shutdown and lapse of appropriations that began on December 22, 2018. See ECF No. 1 at 1-2 (complaint). On May 3, 2019, defendant moved to dismiss the complaint for failure to state a claim on which relief can be granted, pursuant to Rule 12(b)(6) of the Rules of the United States Court of Federal Claims (RCFC), on the basis that the Anti-Deficiency Act (ADA), 31 U.S.C. §§ 1341-42, prohibited the government from paying employees. See ECF No. 25.

In analyzing defendant’s motion, the court has considered: (1) plaintiffs’ complaint, ECF No. 1; (2) defendant’s motion to dismiss, ECF No. 25; (3) plaintiffs’ response to defendant’s motion, ECF No. 37; (4) defendant’s reply in support of its motion, ECF No. 44; (5) defendant’s first supplemental brief in support of its motion, ECF No. 46; (6) plaintiffs’ response to defendant’s first supplemental brief, ECF No. 49; (7) defendant’s second supplemental brief in support of its motion, ECF No. 57; (8) plaintiffs’ response to defendant’s second supplemental brief, ECF No. 65; (9) defendant’s third supplemental brief in support of its motion, ECF No. 67; and (10) plaintiffs’ response to defendant’s third supplemental brief, ECF No. 70. The motion is now fully briefed and ripe for ruling. 1 The court has considered all of the arguments presented by the parties, and addresses the issues that are pertinent to the court’s ruling in this opinion. For the following reasons, defendant’s motion is DENIED.

I. Background

Beginning on December 22, 2018, the federal government partially shut down due to a lack of appropriations. See ECF No. 1 at 5. The named plaintiffs in this case were, at the time of the shutdown, employees of the Transportation Security Administration, within the Department of Homeland Security. See id. at 3-4.

In their complaint, plaintiffs allege that they are “essential employees” or “excepted employees,” terms which refer to employees who “were required to report to work and perform their normal duties, but were not compensated for their work performed.” Id. at 1-2, 5. Plaintiffs also allege that, in addition to being excepted employees required to work during a shutdown, they were also “classified as FLSA non- exempt Federal Air Marshal[s].” Id. at 3-4. As a result of being categorized as non- exempt, excepted employees, plaintiffs were required to work during the shutdown, but were not paid minimum or overtime wages on their regularly scheduled paydays in violation of the FLSA. See id. at 5-7.

1 Defendant moves for dismissal of plaintiffs’ complaint for only one reason—“for failure to state a claim upon which relief may be granted.” ECF No. 25 at 6. In one of its supplemental briefs, defendant suggests that a recent decision issued by the Supreme Court of the United States, Maine Community Health Options v. United States, 140 S. Ct. 1308 (2020), a case that does not involve FLSA claims, indicates that this court lacks jurisdiction to hear this case because the FLSA “contains its own provision for judicial review.” ECF No. 67 at 2. In the same brief, defendant acknowledges binding precedent from the United States Court of Appeals for the Federal Circuit to the contrary. See id. (citing Abbey v. United States, 745 F.3d 1363 (Fed. Cir. 2014)). The court will not review this entirely new basis for dismissal, which was made for the first time in defendant’s third supplemental brief, and which defendant acknowledges contradicts binding precedent. If defendant believes this court lacks jurisdiction to continue exercising its authority in this case, it may file a motion properly raising the issue. See Rule 12(h)(3) of the Rules of the United States Court of Federal Claims (RCFC) (“If the court determines at any time that it lacks subject-matter jurisdiction, the court must dismiss the action.”).

2 According to plaintiffs, defendant’s failure to timely pay their minimum and overtime wages was “willful, and in conscious or reckless disregard of the requirements of the FLSA.” Id. at 6, 7. In support of this allegation, plaintiffs allege that “[d]efendant conducted no analyses to determine whether its failure to pay non-exempt [plaintiffs] the minimum wage for work performed during the [shutdown] complied with the FLSA and relied on no authorities indicating that its failure to pay [plaintiffs] the minimum wage for work performed during the [shutdown] complied with the FLSA,” id. at 6, and that “[d]efendant conducted no analyses to determine whether its failure to pay non-exempt [plaintiffs] overtime pay for work performed during the [shutdown] complied with the FLSA and relied on no authorities indicating that it could fail to pay overtime to non- exempt [plaintiffs] on the [s]cheduled [p]ayday,” id. at 7. Plaintiffs now seek payment of wages owed, liquidated damages, pre- and post-judgment interest, and reasonable attorneys’ fees. See id. at 10-11.

II. Legal Standards

When considering a motion to dismiss brought under RCFC 12(b)(6), the court “must presume that the facts are as alleged in the complaint, and make all reasonable inferences in favor of the plaintiff.” Cary v. United States, 552 F.3d 1373, 1376 (Fed. Cir. 2009) (citing Gould, Inc. v. United States, 935 F.2d 1271, 1274 (Fed. Cir. 1991)). It is well-settled that a complaint should be dismissed under RCFC 12(b)(6) “when the facts asserted by the claimant do not entitle him to a legal remedy.” Lindsay v. United States, 295 F.3d 1252, 1257 (Fed. Cir. 2002). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)).

III. Analysis

A. Relevant Statutes

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Brooklyn Savings Bank v. O'Neil
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Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Cary v. United States
552 F.3d 1373 (Federal Circuit, 2009)
Gould, Inc. v. The United States
935 F.2d 1271 (Federal Circuit, 1991)
Daniel A. Lindsay v. United States
295 F.3d 1252 (Federal Circuit, 2002)
Johnathan Daniel King v. United States
112 Fed. Cl. 396 (Federal Claims, 2013)
Abbey v. United States
745 F.3d 1363 (Federal Circuit, 2014)
Martin v. United States
117 Fed. Cl. 611 (Federal Claims, 2014)
Martin v. United States
130 Fed. Cl. 578 (Federal Claims, 2017)
Maine Community Health Options v. United States
140 S. Ct. 1308 (Supreme Court, 2020)
Jones v. United States
88 Fed. Cl. 789 (Federal Claims, 2009)
Biggs v. Wilson
1 F.3d 1537 (Ninth Circuit, 1993)

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I.P. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ip-v-united-states-uscfc-2020.