Kneppar v. The Elevance Health Companies

CourtDistrict Court, D. Maryland
DecidedMarch 18, 2024
Docket8:23-cv-00863
StatusUnknown

This text of Kneppar v. The Elevance Health Companies (Kneppar v. The Elevance Health Companies) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kneppar v. The Elevance Health Companies, (D. Md. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

LEAH KNEPPAR, on behalf of herself * and all those similarly situated, * Plaintiffs, * v. Civil Action No. MJM-23-863 * THE ELEVANCE HEALTH COMPANIES, INC., f/k/a THE ANTHEM COMPANIES, * INC. * Defendant. * * * * * * * * * *

MEMORANDUM Plaintiff Leah Kneppar (“Plaintiff”) filed this putative state-wide class and collective action on behalf of herself and similarly situated employees of The Elevance Health Companies, Inc., f/k/a The Anthem Companies, Inc. (“Defendant”) alleging denial of overtime compensation in violation of the Fair Labor Standards Act (“FLSA”), the Maryland Wage Hour Law, and the Maryland Wage Payment and Collection Law. ECF 1 (Compl.). Currently pending is Plaintiff’s Motion for Conditional Certification and Court-Authorized Notice under 29 U.S.C. § 216(b) (“the Motion”) seeking court-authorized notice of this action to Maryland-based medical management nurses and utilization reviewers employed by Defendant and an opportunity for these employees to opt-in to this action as plaintiffs. ECF 31. Defendant filed a Response in Opposition to the Motion, ECF 32, and Plaintiff filed a Reply in Support of the Motion, ECF 35, and Notice of Supplemental Authority, ECF 38. No hearing is necessary to resolve the Motion. Loc. R. 105.6. (D. Md. 2023). For reasons stated herein, the Motion will be granted. I. Background Plaintiff was employed by Defendant as a medical management nurse from approximately February 2019 to March 2023, working remotely from her home in Leonardtown, Maryland. Compl. ¶¶ 21–22; Pl. Decl. (ECF 31-3) ¶¶ 2–3. Defendant is a health insurance company that operates office locations in multiple states, including Maryland. Compl. ¶¶ 10–20; Answer (ECF

15) ¶¶ 10–20. Plaintiff alleges that she and similarly situated employees of Defendant were primarily responsible for conducting “medical necessity reviews” for “medical authorization requests submitted by healthcare providers against pre-determined guidelines and criteria for insurance coverage and payment purposes.” Compl. ¶¶ 26, 30–31. Plaintiff and similarly situated employees were paid a salary and treated as exempt from overtime pay. Id. ¶¶ 34–35. According to the Complaint, Defendant required Plaintiff and similarly situated employees to work long hours to complete all required tasks but did not provide overtime compensation for hours worked in excess of 40 hours per week. Id. ¶¶ 36–38. Plaintiff contends that Defendant was aware of employees’ unpaid overtime hours because she and others complained about the long work hours

and her managers routinely received emails from employees after business hours. Id. ¶ 39. Plaintiff alleges that Defendant failed to maintain and preserve adequate records of Plaintiff’s and similarly situated employees’ work hours. Id. ¶ 40. In the Motion, Plaintiff requests conditional certification of a putative collective of similarly situated employees and court authorization to distribute notices of this litigation to members of the collective and a period for them to opt-in to the case. Pl. Mem. (ECF 31); Pl. Reply (ECF 35). Defendant opposes the Motion, arguing that Plaintiff fails to demonstrate that members of Plaintiff’s proposed collective are similarly situated. Def. Opp’n (ECF 32). Defendant argues that the Court should set aside the two-step approach to FLSA collective action certification commonly employed by courts in this circuit and to make a conclusive determination whether the proposed collective is similarly situated before authorizing notice. Id. at 10–16 (citing Swales v. KLLM Trans. Servs., LLC, 985 F.3d 430 (5th Cir. 2021)). Plaintiff argues that the Court should adhere to the two-step certification process for FLSA collective actions and that she has met the lenient burden necessary to justify court-authorized notice to the proposed collective.

II. Applicable Legal Standard The FLSA requires employers to pay non-exempt employees at a rate one-and-one-half times their regular pay rate for any hours worked longer than forty hours in a workweek. 29 U.S.C. § 207(a). A non-exempt employee may, on her own behalf or on behalf of other “similarly situated” employees, file an action against an employer to recover unpaid overtime compensation and other forms of relief. 29 U.S.C. § 216(b). The statute establishes an “opt-in” scheme whereby similarly situated employees “notify the court of their intentions to be a party to the suit.” Quinteros v. Sparkle Cleaning, Inc., 532 F. Supp. 2d 762 (D. Md. 2008) (citing Camper v. Home Quality Mgmt., Inc., 200 F.R.D. 516, 519 (D. Md. 2000)). The remedial purposes of FLSA collective actions have

been summarized as follows: First, collective actions allow plaintiffs “the advantage of lower individual costs to vindicate rights by the pooling of resources.” . . . Second, collective actions allow the courts efficiently to resolve common issues in one proceeding. . . . Third, FLSA collective actions promote enforcement of the law by empowering employees to “join in their litigation so that no one of them need stand alone in doing something likely to incur the displeasure of an employer.” Jackson v. Am. Elec. Warfare Assocs., Inc., Civ. No. TDC-22-1456, 2023 WL 5154518, at *2 (D. Md. Aug. 10, 2023) (quoting Hoffman–La Roche, Inc. v. Sperling, 493 U.S. 165, 170 (1989)), and Pentland v. Dravo Corp., 152 F.2d 851 (3d Cir. 1945)). If a plaintiff pursues a collective action against an employer, “they may seek court- approved notice to inform similarly situated employees that they may join the litigation.” Santos v. E&R Servs., Inc., Civ. No. DLB-20-2737, 2021 WL 6073039, at *2 (D. Md. Dec. 23, 2021) (citing Hoffman–La Roche, 493 U.S. at 169–70). The district court, in its discretion, may “facilitate[e] notice to potential plaintiffs” in appropriate cases. Camper, 200 F.R.D. at 519 (quoting Hoffman–La Roche, 493 U.S. at 169); see also Biscardi v. Gov’t Emps. Ins. Co., Civ. No. GJH-21-2240, 2023 WL 155238, at *2 (D. Md. Jan. 11, 2023) (“Whether or not to conditionally

certify the collective action is a matter of court discretion.”). Courts in this circuit have generally adopted a two-stage certification process for FLSA collectives, which has been widely employed outside of this circuit. See, e.g., Butler v. DirectSAT USA, LLC, 876 F. Supp. 2d 560, 566 (D. Md. 2012); Santos, 2021 WL 6073039, at *2; Hernandez v. KBR Servs., LLC, No. 3:22-CV-530-HEH, 2023 WL 5181595, at *5 (E.D. Va. Aug. 11, 2023). At step one, the plaintiff must “make a preliminary factual showing that a similarly situated group of potential plaintiffs exists.” Quinteros, 532 F. Supp. 2d at 771 (internal quotation marks and citations omitted). This preliminary showing requires “more than ‘vague allegations with meager factual support[,]’” Santos, 2021 WL 6073039, at *3, but may be satisfied by a “modest factual

showing” that a group of similarly situated employees “were victims of a common policy or plan that violated the law.” Choimbol v. Fairfield Resorts, Inc., 475 F. Supp. 2d 557, 564 (E.D. Va.

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Related

Hoffmann-La Roche Inc. v. Sperling
493 U.S. 165 (Supreme Court, 1990)
Pentland v. Dravo Corporation
152 F.2d 851 (Third Circuit, 1945)
Quinteros v. Sparkle Cleaning, Inc.
532 F. Supp. 2d 762 (D. Maryland, 2008)
Houston v. URS Corp.
591 F. Supp. 2d 827 (E.D. Virginia, 2008)
Enkhbayar Choimbol v. Fairfield Resorts, Inc.
475 F. Supp. 2d 557 (E.D. Virginia, 2006)
Swales v. KLLM Transport Services
985 F.3d 430 (Fifth Circuit, 2021)
Butler v. DirectSAT USA, LLC
876 F. Supp. 2d 560 (D. Maryland, 2012)
Camper v. Home Quality Management Inc.
200 F.R.D. 516 (D. Maryland, 2000)
Brooke Clark v. A&L Homecare &Training Ctr.
68 F.4th 1003 (Sixth Circuit, 2023)

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Kneppar v. The Elevance Health Companies, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kneppar-v-the-elevance-health-companies-mdd-2024.