Jacob Thomas Hicks v. Colorado Hamburger Company

CourtColorado Court of Appeals
DecidedDecember 29, 2022
Docket22CA0968
StatusPublished

This text of Jacob Thomas Hicks v. Colorado Hamburger Company (Jacob Thomas Hicks v. Colorado Hamburger Company) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacob Thomas Hicks v. Colorado Hamburger Company, (Colo. Ct. App. 2022).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY December 29, 2022

2022COA149

No. 22CA0968, Hicks v Colorado Hamburger Company — Court and Court Procedure — Class Actions — Appeals of Grant or Denial of Class Certification; Labor and Industry — Colorado Overtime and Minimum Pay Standard Order

In this interlocutory appeal filed pursuant to section 13-20-

901, C.R.S. 2022, C.A.R. 3.3, and C.R.C.P. 23(f), a division of the

court of appeals considers whether the district court abused its

discretion in denying a proposed class certification for fast food

workers allegedly deprived of meal and rest breaks. Plaintiff’s

lawsuit is premised on purported violations of the Colorado

Overtime and Minimum Pay Standard Order, a Colorado

Department of Labor and Employment regulation that articulates

various protections for hourly wage earners.

We agree with the district court that Plaintiff’s claim based on

the deprivation of meal breaks cannot proceed because individual issues will predominate over common ones; however, we conclude

that because Plaintiff plans to use a viable class-wide means of

proving liability and damages for the alleged deprivation of rest

breaks, common issues will predominate over individual ones, thus

rendering class certification appropriate. COLORADO COURT OF APPEALS 2022COA149

Court of Appeals No. 22CA0968 La Plata County District Court No. 20CV30136 Honorable Todd P. Norvell, Judge

Jacob Thomas Hicks,

Plaintiff-Appellant,

v.

Colorado Hamburger Company, Inc., and JOBEC, Inc.,

Defendants-Appellees.

ORDER AFFIRMED IN PART, REVERSED IN PART, AND CASE REMANDED WITH DIRECTIONS

Division III Opinion by JUDGE FOX Tow and Yun, JJ., concur

Announced December 29, 2022

The Law Offices of Brian D. Gonzales, PLLC, Brian D. Gonzales, Fort Collins, Colorado; Hood Law Office PLLC, Alexander Hood, Denver, Colorado, for Plaintiff-Appellant

Fisher & Phillips LLP, Micah D. Dawson, Jeffrey H. McClelland, Denver, Colorado, for Defendants-Appellees ¶1 This is an interlocutory appeal filed pursuant to section 13-20-

901, C.R.S. 2022; C.A.R. 3.3; and C.R.C.P. 23(f). Plaintiff, Jacob

Thomas Hicks, challenges the district court’s order denying his

motion to certify a class of fast-food workers. Hicks alleges that he

and other similarly situated individuals were deprived of statutorily

mandated rest and meal breaks and are therefore owed back pay.

¶2 Although we agree with the district court that Hicks failed to

satisfy the C.R.C.P. 23 class certification requirements for the

alleged deprivation of meal breaks, we conclude that he has

satisfied those requirements for the alleged deprivation of rest

breaks. Accordingly, we reverse the order in part and remand the

case with directions to enter an order certifying a class premised on

the denial of rest breaks.

I. Background

¶3 Defendants, Colorado Hamburger Company, Inc., and JOBEC,

Inc. (jointly, Colorado Hamburger), own and operate three

McDonald’s restaurant franchises in Durango, Cortez, and Pagosa

1 Springs, Colorado.1 Hicks was employed at the Durango location

from approximately February 2020 through June 2020.

¶4 In September 2020, Hicks filed a class action complaint

against Colorado Hamburger. Hicks’ lawsuit was premised on

Colorado Hamburger’s purported violation of a Colorado

Department of Labor and Employment (CDLE) regulation that

articulates various protections for hourly wage earners. Colo.

Overtime & Minimum Pay Standards Order No. 36, 7 Code Colo.

Regs. 1103-1 (effective Mar. 16, 2020-Dec. 31, 2020) (COMPS

Order). More precisely, Hicks claimed Colorado Hamburger violated

the COMPS Order by failing to provide (1) ten-minute compensated

rest breaks for every four hours worked, and (2) thirty-minute

uncompensated meal breaks for every five consecutive hours

worked.

¶5 As part of discovery, both sides submitted copies of Colorado

Hamburger’s employee handbook. Employees must acknowledge

their understanding of the handbook as a condition of employment.

1 Colorado Hamburger and JOBEC are owned by the same individual, Michael Bronson.

2 ¶6 Two aspects of that handbook are relevant here. First,

employees must clock in and out — at the beginning and end of

their shift, and for rest and meal breaks — using a biometric

electronic timekeeping system. Employees press their thumb onto

a pad, which automatically creates an entry for their profile.

Second, employees must abide by the break policy, which provides:

If schedules and workloads permit, our Company provides [rest and meal breaks consistent with the COMPS Order]. Employees should not ask to take a break. Managers determine when breaks may be taken based on the required workload.

(Emphases added.)

¶7 Among other things, Colorado Hamburger provided seventy

affidavits of current and former employees. In pertinent part, these

affidavits uniformly state:

I record my time through our electronic system. For each day that I work, I record my hours and my total time worked. For each day that I work, I clock in and clock out at the start and end of my shift, and I also clock in and out for lunch or for rest breaks. This creates a record of my hours and my total time worked.

(Emphasis added.)

3 ¶8 At Hicks’ request, the court ordered Colorado Hamburger to

supply unredacted timesheets for the seventy employees who

provided the affidavits. Hicks’ meta-analysis of these timesheets

showed a dramatic decrease in missed breaks after Hicks filed his

lawsuit in September 2020.2

¶9 Hicks argued that the absence of a recorded break showed

that the employer failed to authorize and permit a break. Colorado

2These tables were submitted by Hicks’ counsel with his declaration.

4 Hamburger countered that the timesheets could not support such

an inference; rather, the employees could have waived a break,

failed to record it, or did not receive one but were compensated on

the back end by the manager’s manual adjustment.

¶ 10 Although the court determined that Hicks’ proposed class

satisfied the requirements of C.R.C.P. 23(a), it further concluded

that Hicks failed to meet C.R.C.P. 23(b)(3)’s requirement that

common questions predominate over individual ones. For this

reason, the court denied class certification without conducting an

evidentiary hearing.

II. Hourly Wage Law

¶ 11 Two Colorado statutes establish the foundational wage

protections for hourly workers: the Colorado Minimum Wage Act,

§§ 8-6-101 to -120, C.R.S. 2022, and the Colorado Wage Claim Act,

§§ 8-4-101 to -125, C.R.S. 2022. The CDLE is empowered to

promulgate an annual regulation that implements these two

statutes. COMPS Order, 7 Code Colo. Regs. 1103-1. Hicks’ claim is

based on Colorado Hamburger’s purported violation of the

regulations pertaining to rest and meal breaks.

5 ¶ 12 With respect to rest breaks, the COMPS Order provides that

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Jacob Thomas Hicks v. Colorado Hamburger Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacob-thomas-hicks-v-colorado-hamburger-company-coloctapp-2022.