Johnson v. RGIS Inventory Specialists

554 F. Supp. 2d 693, 2007 U.S. Dist. LEXIS 97023, 2007 WL 5185481
CourtDistrict Court, E.D. Texas
DecidedMay 29, 2007
Docket1:05-cv-00389
StatusPublished
Cited by11 cases

This text of 554 F. Supp. 2d 693 (Johnson v. RGIS Inventory Specialists) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. RGIS Inventory Specialists, 554 F. Supp. 2d 693, 2007 U.S. Dist. LEXIS 97023, 2007 WL 5185481 (E.D. Tex. 2007).

Opinion

MEMORANDUM AND ORDER

MARCIA A. CRONE, Judge.

Pending before the court is Defendant RGIS Inventory Specialists’s (“RGIS”) Motion for Summary Judgment (# 83). RGIS seeks summary judgment on Plaintiff Joél Johnson’s (“Johnson”) claims against RGIS for purported violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201-219. Having reviewed the pending motion, the submissions of the parties, the pleadings, and the applicable law, the court is of the opinion that summary judgment should be granted in part and denied in part.

I. Background

This lawsuit was filed on June 7, 2005, to challenge the compensation practices of RGIS and recover allegedly unpaid over *696 time and minimum wages pursuant to the FLSA’s collective action provision. See 29 U.S.C. § 216(b). RGIS is the nation’s largest provider of inventory services to the retail industry, employing individuals to count and record merchandise for its customers. Johnson, on her own behalf and on behalf of others similarly situated, alleges that RGIS has engaged, and continues to engage, in a willful policy, pattern, or practice of denying its employees working as “auditors” full compensation for all hours worked.

On June 27, 2006, the court conditionally certified a class of non-exempt, hourly auditors working within District 166 during the three-year period prior to the filing of Johnson’s lawsuit and authorized Johnson to send notice to said individuals. 1 Twenty-four opt-in plaintiffs consented to participate in this action. On March 23, 2007, however, the court decertified the class upon motion by RGIS because the class members were not sufficiently similar to each other or to Johnson to warrant collective treatment. Accordingly, the opt-in plaintiffs were dismissed without prejudice and Johnson proceeds on her individual claims against RGIS.

Johnson was employed by RGIS from December 18, 1996, until October 25, 2004, when RGIS terminated her employment. She was initially hired as an auditor, which is an hourly position held by employees trained in the use of RGIS equipment to count merchandise at retail stores. Auditors are entry-level employees who are supervised during an inventory by a team leader, area manager, district manager, or any combination thereof. Although Johnson was promoted to team leader approximately three months after she was hired, she requested to step down from that position and resumed her duties as an auditor on July 21, 2001. 2 Because the relevant time period in this case is from June 7, 2002, until Johnson’s termination on October 25, 2004, only her experiences as an auditor are at issue.

Due to the diverse locations of RGIS’s customers, the stores are categorized by the district manager as either “local stores” or “travel stores.” While RGIS has no specific policy with regard to designating certain stores as local and others as travel, locations more than twenty miles from Beaumont are generally considered travel stores and those less than twenty miles from Beaumont are ordinarily deemed local stores. According to Johnson, approximately half of her inventories were completed at local stores and half were completed at travel stores. She acknowledged that this ratio was different for other employees and that some employees opted to work only at local stores. Johnson described working at travel stores within a one hour to two-and-one-half hour drive from Beaumont, in locations such as Lake Charles, Louisiana, Lufkin, Texas, and Houston, Texas.

Generally, auditors are expected to provide their own transportation directly to the job site when an inventory is scheduled at a local store. For travel stores, District 166 uses the Beaumont district office as a “meet site” and offers free transportation to and from the inventory. A meet site may also be designated for a local inventory if concerns such as limited parking, toll roads, or multi-store inventories in scattered locations pose a problem. As John *697 son explained at deposition, when her schedule indicated a meet site was offered, she had the option of arriving at the meet site and riding in an RGIS van, arriving at the meet site and taking her own vehicle or riding in another auditor’s vehicle, or notifying her supervisor that she wished to transport herself to the inventory directly rather than use the meet site. Johnson typically chose to utilize the meet site and company transportation.

If a meet site is designated, whether the inventory is at a local or travel store, RGIS’s travel and commute policy applies. RGIS implemented two different travel and commute policies between 2002 and 2004, which compensated auditors for certain hours spent traveling to and from inventories. Prior to March 2004, RGIS paid for travel time if there was a meet site designated and the employee reported to the meet site. 3 The rate paid to auditors was based on a varying number of cents per mile, less twenty miles per round trip, or a minimum of $4.00 per hour, whichever rate was higher. After March 2004, however, RGIS modified its travel policy to pay auditors a flat rate of $5.15 per hour, minus the first hour of travel from the meet site to the inventory and the first hour of travel from the inventory back to the meet site. RGIS classified the two unpaid hours as noncompensable “commute time.” In situations where an auditor worked at more than one store during a particular shift (“multi-store shift”), she continued to receive her inventory rate if the travel between job sites equaled one hour or less; if such travel exceeded one hour, the auditor received travel pay.

Additionally, RGIS management lists a “meet time” on auditors’ schedules when a meet site is designated for an inventory. According to the RGIS Auditor’s Handbook, the meet time represents the time that the company van is scheduled to leave the meet site. Thus, auditors are expected to arrive at the meet site promptly to enable the van to depart on schedule. Johnson alleges that the district manager, Ronald Eckerle (“Eckerle”), and area manager, Aleda Montgomery (“Montgomery”), frequently asked her to arrive at the meet site at least fifteen minutes prior to the scheduled meet time. Johnson contends that she complied with such requests but was not paid for arriving early. Rather, her travel pay commenced at the scheduled meet time. 4 Similarly, Johnson asserts that management asked her to arrive at least fifteen minutes early at local inventories but she was not paid until the time the inventory was scheduled to begin. Although RGIS disputes that Johnson was required to arrive early at inventories or *698 meet sites, it does not contest that travel pay commenced at the scheduled meet time and inventory pay commenced at the scheduled inventory start time or, in some cases, the actual start time if the inventory began ahead of schedule.

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Bluebook (online)
554 F. Supp. 2d 693, 2007 U.S. Dist. LEXIS 97023, 2007 WL 5185481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-rgis-inventory-specialists-txed-2007.