KIm v. Detroit Medical Informatics, LLC d/b/a DMI

District Court, E.D. Michigan·Decided November 25, 2019·No. 2:19-cv-11185·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

ANDREW KIM and JONATHAN ROLLINS, Individually and on behalf of all others similarly situated,

Plaintiffs, Civil Case No. 19-11185 v. Honorable Linda V. Parker

DETROIT MEDICAL INFORMATICS, LLC, d/b/a DMI,

Defendant. /

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR CONDITIONAL CERTIFICATION (ECF NO. 23) AND DENYING WITHOUT PREJUDICE PLAINTIFFS’ MOTION FOR EQUITABLE TOLLING (ECF NO. 30)

Plaintiffs bring this lawsuit under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and similar statutes in Illinois, Missouri, and Massachusetts. They allege that Defendant misclassified them and similarly situated workers as independent contractors to circumvent the protections of federal and state wage laws. Presently before the Court are Plaintiffs’ motion for conditional certification, filed July 2, 2019 (ECF No. 23), and Plaintiffs’ motion for equitable tolling, filed October 18, 2019. (ECF No. 30.) Finding the legal arguments sufficiently presented in the parties’ briefs, the Court is dispensing with oral argument with respect to both motions pursuant to Eastern District of Michigan Local Rule 7.1(f)(2). For the reasons that follow, the Court is granting in

part and denying in part Plaintiffs’ motion for conditional certification, but is denying without prejudice their motion for equitable tolling. I. Factual and Procedural Background

Defendant provides information technology education services for the healthcare industry across the United States. (Compl. ¶ 12, ECF No. 1 at Pg ID 3.) Between September 2016 and February 2018, Plaintiffs worked for Defendant as consultants, offering support and training to Defendant’s clients in using new

recordkeeping systems in Arizona, Massachusetts, Missouri, and Illinois. (Id. ¶ 7, Pg ID 3.) Plaintiffs specifically provided educational and support services to healthcare staff at hospitals in those states. (Id. ¶¶ 24, 25, Pg ID 6.)

Plaintiffs allege that Defendant classified them as independent contractors and paid them a set hourly rate for all hours worked. (Id. ¶ 26, Pg ID 26.) Plaintiffs further allege that they routinely worked more than forty hours a workweek without receiving overtime for hours worked in excess of forty hours.

(Id.) Plaintiffs assert that they were in fact employees of Defendant and not exempt from the overtime-pay requirements of the FLSA and similar state laws. (Id. ¶¶ 27-45, Pg ID 6-10.) According to Plaintiffs, Defendant’s violations of

federal and state law were willful. (Id. ¶¶ 50-51, Pg ID 12-13.) Plaintiffs initiated this action on April 24, 2019. On July 2, 2019, they filed their motion for conditional certification. (ECF No. 23.) In the motion, Plaintiffs

seek to represent the following class of workers in this action: All individuals who worked for Detroit Medical Informatics, LLC d/b/a DMI providing training and support to Detroit Medical Informatics, LLC d/b/a DMI’s clients in connection with the implementation of electronic recordkeeping systems in the United States and who did not receive overtime compensation for hours worked in excess of forty (40) per week from three years prior to the filing of this lawsuit to the present.

(Pls.’ Mot. at 1, ECF No. 23 at Pg ID 123.) Plaintiffs also seek the Court’s approval to (i) notify potential collective members of the lawsuit by regular United States mail and electronic mail, (ii) send reminder e-mails forty-five days after the original notice, (iii) allow potential collective members to electronically sign and return the court-approved notice to opt-in, and (iv) provide collective members ninety days to return the Opt-In form. Plaintiffs submit their declarations to explain why e-mail is the most practical method to inform collective members of this lawsuit. (Id. Exs. 1 & 2, ECF Nos. 23-2 & 23-3.) In response, Defendant does not challenge Plaintiffs’ request for conditional certification and “has agreed to conditional certification of a class of individuals alleged by Plaintiff[s] to be similarly-situated in this action ….” (Def.’s Resp. Br. at 6, ECF No. 28, at Pg ID 293, emphasis removed.) However, as Defendant’s proposed notice to the class reflects (see id. Ex. E, ECF No. 28-5), Defendant wants to limit the action to individuals who worked for Defendant two years prior to the order granting certification and authorizing notice. Defendant also contends

that Plaintiffs’ proposed notice is akin to direct advertising by their counsel in violation of the model rules and Michigan’s rules of professional conduct. (Def.’s Resp. Br. at 5-8, ECF No. 28 at Pg ID 292-96.)

Defendant further maintains that e-mail is an inappropriate method for communicating with potential collective members. Defendant asks the Court to strike the declarations provided by Drs. Kim and Rollins, arguing that their representations therein that regular mail is an inefficient and impossible method to

communicate with them is inconsistent with legal obligations to which they have bound themselves under Georgia and South Carolina law.1 Defendant also asks the Court to (i) limit the opt-in period to thirty days from the date of mailing, (ii)

preclude Plaintiffs from sending a reminder and collective members from opting-in by electronically signing and submitting the opt-in form, and (iii) prohibit either

1 Specifically, Defendant points out that Plaintiffs both interacted with Defendant through their corporate identities, which they registered under Georgia or South Carolina law; and, that Plaintiffs consented, under the laws of those states, to accept service via regular mail. (Def.’s Resp. Br. at 10-11, ECF No. 28 at Pg ID 297-98.) Defendant further points out that as medical doctors, Drs. Kim and Rollins are required to register their physical addresses with their state’s medical licensing board. (Id. at 12, Pg ID 299.) Although the Court is unclear how this impacts the issues before it, Defendant asserts that “[s]ociety benefits when we know where to find [professional workers like them which are held to a higher standard of conduct].” (Id.) party’s counsel from communicating with putative class members about the case until after the expiration of the court-approved notice period. Defendant’s

proposed notice also warns potential collective members that by opting-in, they “consent to bear [their] pro-rata share of any litigation costs assessed against [them] if [their] claim is unsuccessful.” (Def.’s Resp. Ex. E at 1, ECF No. 28-5 at

Pg ID 312.) On October 18, 2019, Plaintiffs filed their motion for equitable tolling, asking the Court to toll the statute of limitations in this case from the date they filed their motion for conditional certification until the date the Court rules on the

motion. (ECF No. 30.) Defendant argues in response that Plaintiffs’ request is premature. (ECF No. 31.) II. Conditional Certification & Notice

The FLSA requires all qualifying employers to pay employees no less than the minimum wage and to compensate employees for hours worked in excess of forty per workweek at a rate not less than one-and-a-half times the regular rate of pay. 29 U.S.C. §§ 206(a)(1), 207(a)(1). The statute authorizes collective actions

to recover damages for unpaid wages provided two conditions are satisfied: (1) the employees are “similarly situated” and (2) all plaintiffs provide written consent to becoming a party and such consent is filed with the court. 29 U.S.C. § 216(b).

Free access — add to your briefcase to read the full text and ask questions with AI

KIm v. Detroit Medical Informatics, LLC d/b/a DMI, (E.D. Mich. 2019).

KIm v. Detroit Medical Informatics, LLC d/b/a DMI (KIm v. Detroit Medical Informatics, LLC d/b/a DMI) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gulf Oil Co. v. Bernard
452 U.S. 89 (Supreme Court, 1981)
Baldwin County Welcome Center v. Brown
466 U.S. 147 (Supreme Court, 1984)
McLaughlin v. Richland Shoe Co.
486 U.S. 128 (Supreme Court, 1988)
Hoffmann-La Roche Inc. v. Sperling
493 U.S. 165 (Supreme Court, 1990)
Robertson v. Simpson
624 F.3d 781 (Sixth Circuit, 2010)
Charmel Allen v. Joan N. Yukins, Warden
366 F.3d 396 (Sixth Circuit, 2004)
Kim Comer v. Wal-Mart Stores, Inc.
454 F.3d 544 (Sixth Circuit, 2006)
O'BRIEN v. Ed Donnelly Enterprises, Inc.
575 F.3d 567 (Sixth Circuit, 2009)
Olivo v. GMAC Mortgage Corp.
374 F. Supp. 2d 545 (E.D. Michigan, 2004)
Baden-Winterwood v. Life Time Fitness
484 F. Supp. 2d 822 (S.D. Ohio, 2007)
Bobby Jackson v. United States
751 F.3d 712 (Sixth Circuit, 2014)
Truitt v. County of Wayne
148 F.3d 644 (Sixth Circuit, 1998)
Ruiz v. Citibank, N.A.
93 F. Supp. 3d 279 (S.D. New York, 2015)
Waggoner v. U.S. Bancorp
110 F. Supp. 3d 759 (N.D. Ohio, 2015)
Colley v. Scherzinger Corp.
176 F. Supp. 3d 730 (S.D. Ohio, 2016)
Brittmon v. Upreach, LLC
285 F. Supp. 3d 1033 (S.D. Ohio, 2018)
Hall v. U.S. Cargo & Courier Serv., LLC.
299 F. Supp. 3d 888 (S.D. Ohio, 2018)
Pritchard v. Dent Wizard International Corp.
210 F.R.D. 591 (S.D. Ohio, 2002)
Scholtisek v. Eldre Corp.
229 F.R.D. 381 (W.D. New York, 2005)