Jessica Douglas v. QSR Enterprises Admin, LLC, et al.

District Court, N.D. Ohio·Decided May 18, 2026·No. 1:25-cv-00928·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO

Jessica Douglas, Case No. 1:25-cv-00928-PAB

Plaintiff,

-vs- JUDGE PAMELA A. BARKER

QSR Enterprises Admin, LLC, et al.,

Defendants. MEMORANDUM OPINION & ORDER

This case concerns alleged violations of the Fair Labor Standards Act by three entities that operate 24 McDonald’s restaurants in northeast Ohio. Plaintiff alleges that Defendants QSR Enterprises Admin, LLC, QSR Executive Enterprises, LLC and QSR Enterprises Norwalk, LLC (“Defendants”) collectively operate the McDonald’s restaurants, and that they are her joint employer. Plaintiff has filed this action, on behalf of herself, and a proposed collective to recover damages for Defendants’ alleged FLSA violations. This opinion concerns two threshold issues that were briefed by the parties: (1) whether FLSA-notice discovery pursuant to Clark, et al. v. A&L Homecare, 68 F.4th 1003 (6th Cir. 2023) is appropriate solely for Defendant QSR Enterprises Norwalk, LLC as opposed to all the limited liability companies and McDonald’s locations referenced in the Amended Complaint, and (2) whether these issues should be decided immediately as a threshold issue prior to FLSA-notice discovery commencing or as a merits issue after FLSA notice has occurred. As explained in detail below, the Court finds that FLSA-notice discovery is appropriate at the 24 McDonald’s restaurants alleged in the Amended Complaint, and that the employment status of the employees at those restaurants is a merits issue that will be resolved after notice has occurred. I. Background On May 8, 2025, Plaintiff filed her Class and Collective Action Complaint (the “Complaint”) against Defendants and Jason Payne. (Doc. No. 1.) Therein, Plaintiff alleges that Defendants violated the Fair Labor Standards Act’s overtime provisions and the Ohio Minimum Fair Wage Standards Act’s overtime provisions. Plaintiff alleges that Defendants are “joint employers of Plaintiff and those similarly situated.” (Id. at ¶ 22.) On July 7, 2025, Defendants filed their Answer to the Complaint. (Doc. No. 8.) On July 22, 2025, Plaintiff filed her Amended Class and Collective Action Complaint (the “Amended Complaint”). (Doc. No. 12.) Like her initial Complaint, Plaintiff alleges

that Defendants are “joint employers of Plaintiff and those similarly situated.” (Id. at ¶ 22.) On July 29, 2025, the Court conducted a status conference with counsel. That same day the Court issued the following Minutes of Proceedings: The Court conducted a telephonic conference on July 29, 2025. Attorney Robi J. Baishnab participated on behalf of Plaintiff. Attorney Donald G. Slezak participated on behalf of Defendants. During the telephonic conference, the Court discussed with counsel the various new issues raised in the parties Supplemental Joint Status Report (Doc. No. 13) regarding: (i) whether Defendant Jason Payne (“Payne”) employed Plaintiff within the meaning of the Fair Labor Standards Act (“FLSA”); (ii) Defendant Payne’s ownership interests in the various limited liability companies and McDonald’s locations referenced in the Amended Complaint (see Doc. No. 12 at PageID #77); (iii) whether FLSA-Notice discovery pursuant to Clark, et al. v. A&L Homecare, 68 F.4th 1003 (6th Cir. 2023) is appropriate solely for Defendant QSR Enterprises Norwalk, LLC as opposed to all the limited liability companies and McDonald's locations referenced in the Amended Complaint (see id.); and (iv) whether these issues should be decided immediately as a threshold issue prior to FLSA-Notice discovery commencing or as a merits issue after FLSA-Notice has occurred. Following a discussion with the parties, the Court ordered as follows. First, the parties shall submit simultaneous briefing on the aforementioned issues within fourteen (14) days from the date of this Order. Second, concurrently with their simultaneous briefing, the parties shall schedule the deposition of Defendant Payne on the limited issues relating to his status as an employer under the FLSA and ownership interests in the limited liability companies and McDonald’s locations referenced in the Amended Complaint. (See Doc. No. 12 at PageID #77.) This deposition of Defendant Payne 2 does not preclude Plaintiff from taking the deposition of the 30(b)(6) witness on behalf of Defendants. Third, Defendants shall respond to Plaintiff’s discovery requests relating to time records and random sampling for the Norwalk and Sandusky locations. If Defendants’ counsel discovers that the Sandusky location is not owned, controlled, or managed by Defendants such that Defendants are unable to provide such records, Defendants’ counsel shall file a notice on the docket indicating as such. Finally, Defendants shall provide Plaintiff with information relating to Plaintiff’s discovery requests, including an organizational chart of the relevant entities and information regarding whether Opt-In Plaintiff Danielle Lyons was an hourly or salaried employee.

On August 6, 20205, Defendants filed their Answer to the Amended Complaint. (Doc. No. 15.) On August 22, 2025, the parties filed their briefs concerning the issues identified in the Court’s July 29, 2025 Minutes. Before the Court could decide the issues raised in the parties’ briefing, on September 9, 2025, the Court issued the following order: The Court is in receipt of an email from counsel for both parties in the instant case. Therein, counsel represent that the parties have agreed to pursue private mediation and are in the process of discussing mediator selection, scheduling, and time/pay data production. Counsel also represent that the parties will file a joint Rule 21 motion to dismiss Defendant Jason Payne, without prejudice, by Monday September 22, 2025. In addition, counsel requested a stay of 90-days and asked that the status conference set for September 16, 2025 be canceled. Based on these representations, the telephonic status conference set for September 16, 2025 is hereby cancelled. The parties shall file a joint motion to stay pending mediation by close of business on September 16, 2025.

Then, on September 16, 2026, the parties filed a Joint Motion to Stay Pending Mediation. (Doc. No. 26.) The Court granted the Joint Motion and stayed the matter for 90 days. Six days later, the parties filed a Joint Rule 21 Motion to Dismiss requesting that the Court dismiss Jason Payne from the litigation. (Doc. No. 27.) That same day the Court granted that Joint Motion and dismissed Jason Payne without prejudice. The parties then filed two joint requests to extend the stay, which were both granted by the 3 Court. Through these Orders, the Court extended the stay through April 27, 2026, and ordered the parties to file a joint status report regarding the results of the mediation by that date. On April 27, 2026, the parties filed a Joint Status Report indicating that mediation was unsuccessful and requested that they be permitted fourteen days to file a proposed discovery schedule. (Doc. No. 36.) The next day, the Court entered the following non-document Order: The Court has reviewed the parties’ Joint Status Report (Doc. No. 36). Based upon the Court’s review of the Joint Status Report, the Court hereby sets an in-person status conference for May 19, 2026 at 2:30 p.m. in Chambers 16A. By no later than May 12, 2026, the parties shall file a Joint Status Report addressing the parties’ views on the following: (1) whether the issues raised at the July 29, 2025 telephonic conference, which the parties briefed (Doc. Nos. 20 , 21), have resolved, (2) what matters discovery should proceed on, and (3) a proposed discovery schedule.

On May 12, 2026, the parties filed a Joint Status Report and Proposed Schedule.

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Jessica Douglas v. QSR Enterprises Admin, LLC, et al., (N.D. Ohio 2026).

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