Jacob Thomas Hicks v. Colorado Hamburger Company

Colorado Court of Appeals·Decided December 29, 2022·No. 22CA0968·Published

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

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.

¶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.)

¶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.

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.

¶ 12 With respect to rest breaks, the COMPS Order provides that “[e]very employer shall authorize and permit a compensated 10-minute rest period for each 4 hours of work, or major fractions thereof, for all employees.” Id. at Rule 5.2. It then elaborates on the rationale behind and implication of this rule, noting that

[w]hen an employee is not authorized and permitted a required 10-minute rest period, his or her shift is effectively extended by 10 minutes without compensation. Because a rest period requires 10 minutes of pay without work being performed, work during a rest period is additional work for which additional pay is not provided. Therefore, a failure by an employer to authorize and permit a 10-minute compensated rest period is a failure to pay 10 minutes of wages at the employee’s agreed-upon or legally required (whichever is higher) rate of pay.

Id. at Rule 5.2.4.

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