Jose J. Ayala, Jr. v. Nissan North America, Inc.

CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 8, 2024
Docket23-11027
StatusUnpublished

This text of Jose J. Ayala, Jr. v. Nissan North America, Inc. (Jose J. Ayala, Jr. v. Nissan North America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jose J. Ayala, Jr. v. Nissan North America, Inc., (11th Cir. 2024).

Opinion

USCA11 Case: 23-11027 Document: 39-1 Date Filed: 02/08/2024 Page: 1 of 20

[DO NOT PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 23-11027 Non-Argument Calendar ____________________

JOSE J. AYALA, JR., JEFF SANTOS, on behalf of themselves and as representatives of other class members similarly situated, Plaintiffs-Appellants, versus NISSAN NORTH AMERICA, INC., a California corporation, and wholly owned subsidiary of Nissan Motor Company of Japan, d.b.a. Nissan USA,

Defendant-Appellee. USCA11 Case: 23-11027 Document: 39-1 Date Filed: 02/08/2024 Page: 2 of 20

2 Opinion of the Court 23-11027

Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 6:20-cv-01625-RBD-RMN ____________________

Before WILSON, LUCK, and ANDERSON, Circuit Judges. PER CURIAM: Jose Ayala and Jeff Santos (“Technicians”) appeal the district court’s denial of their motions for class certification and FLSA col- lective action and its grant of the Nissan North America’s (“Nis- san”) motion for summary judgment in this Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201, case. On appeal, the Technicians argue that the district court erred in granting summary judgment because it failed to consider all admissible record evidence that they presented. They also argue that the court erred in denying their motions for collective action 1 and class certification. We review the grant of summary judgment de novo, apply- ing the same legal standards as the district court. Alvarez v. Royal Atl. Developers, Inc., 610 F.3d 1253, 1263 (11th Cir. 2010). Summary judgment is proper if the evidence shows “that there is no genuine dispute as to any material fact and the movant is entitled to judg- ment as a matter of law.” Fed. R. Civ. P. 56(a). A factual dispute is

1 The FLSA authorizes collective actions against employers accused of violat- ing the FLSA. 29 U.S.C.A. § 216(b). USCA11 Case: 23-11027 Document: 39-1 Date Filed: 02/08/2024 Page: 3 of 20

23-11027 Opinion of the Court 3

genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). “The mere existence of a scintilla of evi- dence in support of the plaintiff’s position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Id. at 252. We review a district court’s § 216(b) certifica- tion for abuse of discretion. Morgan v. Fam. Dollar Stores, Inc., 551 F.3d 1233, 1260 (11th Cir. 2008). We review the denial of class cer- tification under Rule 23 for abuse of discretion, reviewing factual determinations for clear error and legal determinations de novo. Cherry v. Dometic Corp., 986 F.3d 1296, 1300 (11th Cir. 2021). We write only for the parties who are already familiar with the facts. Accordingly, we include only such facts as are necessary to understand our opinion. Briefly, the Technicians filed suit against Nissan, alleging violations of the FLSA and the Florida Min- imum Wage Act (“FMWA”), Fla. Stat. § 448.110, for failure to pay wages as required by law. They also sought treatment as a collec- tive action pursuant to the FLSA and as a Class Action pursuant to Federal Rule of Civil Procedure 23. Technicians were automotive service employees working at Florida Nissan dealerships, where they allege they performed vehi- cle repair and maintenance on behalf of Nissan but allegedly were not compensated as required by law. Specifically, they point to Nissan’s Assurance Products Resource Manual (“APRM”) and Dealership Agreements which determine how much Nissan will pay dealerships for warranty work conducted by technicians, USCA11 Case: 23-11027 Document: 39-1 Date Filed: 02/08/2024 Page: 4 of 20

4 Opinion of the Court 23-11027

regardless of how long the work takes. Pursuant to the APRM and the Dealership Agreements, Nissan agrees with each dealership to reimburse the dealership according to the “flat-rate” system. Un- der those contractual arrangements, Nissan and each dealership agree upon an “approved labor rate” (negotiated with each dealer- ship). Nissan determines how long each specific repair service usu- ally takes, the “flat-rate time.” Nissan agrees with each dealership to reimburse the dealership for warranty work by multiplying the “flat-rate time” by the “approved labor rate.” The Technicians ar- gue that—when the warranty work takes longer than the “flat-rate time” determined by Nissan, thus limiting Nissan’s reimbursement to the dealership—the result is that they are underpaid by the deal- ership. The Technicians argue that Nissan is a joint employer, along with each technicians’ dealership, and thus are also liable for violations of the FLSA. Nissan argues, and the district court agreed, that it is not the joint employer along with the respective dealerships, and thus it has no liability for any FLSA violations that might have resulted from the dealerships’ independent decisions with respect to wage payments to their employees, the Technicians. We address first this dispositive issue with respect to the Technicians’ challenge to the district court’s summary judgment ruling, and then their chal- lenge to the district court’s denial of their motions for collective action and class certification. I. Discussion A. Joint Employer USCA11 Case: 23-11027 Document: 39-1 Date Filed: 02/08/2024 Page: 5 of 20

23-11027 Opinion of the Court 5

The Fair Labor Standards Act provides that an employer is “any person acting directly or indirectly in the interest of an em- ployer in relation to an employee,” and that an entity is an em- ployer if it “suffer[s] or permit[s]” a person to work. 29 U.S.C. § 203(d), (g). To determine whether an entity is an employer “we ask if, as a matter of economic reality, the individual is dependent on the entity.” Layton v. DHL Express (USA), Inc., 686 F.3d 1172, 1175 (11th Cir. 2012) (internal quotation marks omitted). Under the FLSA, a person may have more than one employer as a matter of economic reality. Id. Whether there is “joint employment . . . depends upon all the facts in the particular case.” Id. (internal quo- tation marks omitted). We have developed an eight-factor test that is guided by five principles for evaluating whether an employment relationship exists under the Act. Id. at 1176–77. Those five principles that have guided our use of the factors are as follows. “First, the question . . . is not whether the worker is more economically dependent on the independent contractor or the alleged employer with the winner avoiding responsibility as an employer;” rather, “the focus . . . must be on each employment relationship . . . between the worker and the . . . asserted . . . joint employer.” Id. at 1177 (internal quotation marks omitted) (altera- tion adopted). Second, no factor controls the outcome. Id.

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Jose J. Ayala, Jr. v. Nissan North America, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jose-j-ayala-jr-v-nissan-north-america-inc-ca11-2024.