Knight v. Dakota 2000 Inc.

CourtDistrict Court, D. South Dakota
DecidedOctober 28, 2022
Docket3:21-cv-03025
StatusUnknown

This text of Knight v. Dakota 2000 Inc. (Knight v. Dakota 2000 Inc.) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knight v. Dakota 2000 Inc., (D.S.D. 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA CENTRAL DIVISION

AUSTON KNIGHT, INDIVIDUALLY AND 3:21-CV-03025-RAL ON BEHALF OF ALL OTHERS SIMILARLY SITUATED; Plaintiff, OPINION AND ORDER GRANTING IN PART MOTION TO CONDITIONALLY CERTIFY FLSA COLLECTIVE ACTION VS. DAKOTA 2000 INC., Defendant.

The Fair Labor Standards Act (FLSA) permits employees to bring their FLSA claims through a collective action on behalf of themselves and other “similarly situated” employees. 29 U.S.C. § 216(b). Employees wishing to participate in the collective action must opt in by filing written consent with the court. Id. Plaintiff Auston Knight filed this proposed collective action against Defendant Dakota 2000 Inc. (Dakota 2000), alleging that Dakota 2000 violated the FLSA by failing to pay overtime wages to him and other similarly situated employees. Doc. 1. Knight now moves for an order conditionally certifying this proposed collective action and directing that notice of the action be sent to potential plaintiffs so that they can decide whether to participate. This Court grants Knight’s motion to conditionally certify a collective action but will have a hearing to determine whether to define the action as broadly as Knight requests and to address certain issues with the proposed notice and reminder. Facts

Dakota 2000 is a construction company specializing in structured cabling, general contracting, and oilfield work. Doc. 17-1 at § 2. Knight worked as a production flow-back supervisor at Dakota 2000’s gas and oil worksites in North Dakota from approximately August 2018 to September 2019. Doc. 17-1 at §§ 1, 3. His main job duties involved performing manual labor on the oil and gas operations at Dakota 2000’s worksites. Doc. 17-1 at Among other things, Knight managed the worksites, fixed various mechanical issues on valves, separators, and storage tanks, and completed reports. Doc. 17-1 at § 3. According to Knight, he often worked more than 40 hours per week on a rotational schedule known as a “hitch.” Doc. 17-1 at Knight claims he would work 12-hour days under the hitch schedule for anywhere from 60 to 70 days straight, followed by several days off. Doc. 17-1 at §_7. Despite these long hours, Knight claims that Dakota 2000 paid him only a “day rate”! with no increase for overtime. Doc. 17-1 at §4 5, 8. Knight alleges that other Dakota 2000 employees with whom he worked on the worksites also frequently worked more than 40 hours a week and that they too received only a day rate without overtime pay. Doc. 17-1 at § 9. Knight filed this FLSA action in late 2021. Doc. 1. He claims that Dakota 2000 violated the FLSA by failing to pay him and other day-rate employees overtime. The FLSA generally requires employers to pay their employees no less than one and one-half times their regular rate of pay for any hours worked over 40 in a week. 29 U.S.C. § 207(a)(1). The Act exempts several

'Knight’s complaint and affidavit do not define “day rate,” but his briefing suggests that he means he was paid the same rate regardless of whether he worked overtime hours. Doc. 17 at 2. This is consistent with how courts in FLSA actions have used “day rate.” See Lee v. Vance Exec. Prot., Inc., 7 F. App’x 160, 165 (4th Cir. 2001) (per curiam) (finding that employees who were “paid a flat sum for a day’s work without regard to the number of hours worked in the day” were paid on a day-rate basis (cleaned up and citation omitted)); Dufrene v. Browning-Ferris, Inc., 207 F.3d 264, 266 (Sth Cir. 2000) (describing day-rate employees as those who were “guaranteed a day’s pay, regardless of the number of hours worked that day”). Dakota 2000 admits in its answer that it paid Knight “on a salary or a daily rate basis and not hourly.” Doc. 10 at § 13.

types of employees from this overtime requirement, however, including those in specific industries, see, e.g., 29 U.S.C. § 213(a)(3), (5), (6), (17), (b), and those “employed in a bona fide executive, administrative, or professional capacity,” Id. § 213(a)(1). According to Knight, neither he nor the potential collective action plaintiffs are exempt from the FLSA’s overtime requirement. Doc. | at §§ 13, 21. In early 2022, Plaintiff Rodney Smith consented to join this case. Docs. 14, 14-1. Smith worked as an oil and gas production flow watch at Dakota 2000’s worksites in North Dakota from approximately June 2018 to September 2019. Doc. 17-2 at 1, 3. He claims that his main job duties involved maintaining Dakota 2000’s oilfield facilities and performing manual labor on the oil and gas operations at its worksites. Doc. 17-2 at § 3. Smith says that he watched the oil and gas pressure levels, maintained the valves and separators, and would restart the wells if pumping operations were inoperative. Doc. 17-2 at §3. Like Knight, Smith alleges that he often worked more than 40 hours per week on the hitch schedule, that Dakota 2000 nevertheless paid him only a day rate with no increase for overtime, and that Dakota 2000 subjected his coworkers to this same policy. Doc. 17-2 at 4¥ 5-9. Knight now moves for conditional certification, asking this Court to certify the following collective action: All current and former non-exempt manual laborer employees of Defendant who were paid on a day rate basis without receiving overtime premium pay for all hours worked over forty in a workweek at any time within the three years prior to the date of the entry of an order from the Court granting Plaintiff's motion to the present. Doc. 16 at 2. Knight and Smith submitted affidavits in support of the motion and a “class list” Dakota 2000 apparently produced in discovery. Docs. 17-1, 17-2, 17-5. That document identifies 81 Dakota 2000 employees, including Knight and Smith. Doc. 17-5. It lists the “class” of these

employees as “flowback” and provides the rate of pay and “daily rate total” for each employee from July 1, 2018, to September 1, 2019. Doc. 17-5. Knight also asks this Court to direct that notice of the collective action be sent to potential plaintiffs and that Dakota 2000 produce the names and contact information for these plaintiffs. Dakota 2000 objects to any conditional certification of the proposed collective action. Doc. 18. Il. Analysis A. Test Applied to Potential FLSA Collective Actions Section 216(b) of the FLSA authorizes employees to bring collective actions to recover unpaid overtime. 29 U.S.C. § 216(b). The Supreme Court has interpreted § 216(b) as giving district courts the “authority to manage the process of joining multiple parties in a manner that is orderly, sensible, and not otherwise contrary to statutory commands or the provisions of the Federal Rules of Civil Procedure.” Hoffmann-La Roche Inc. v. Sperling, 493 U.S. 165, 170 (1989). This authority includes court supervision of the notice being sent to potential plaintiffs. Id. at 169-74. But neither Supreme Court decisions nor § 216(b) itself provide much guidance on when a collective action is appropriate and how such an action should proceed. Section 216(b) sets only two requirements for a collective action: the plaintiffs must be “similarly situated” and must opt in to the action by filing written consent with the court.?_ 29 U.S.C.

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Knight v. Dakota 2000 Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/knight-v-dakota-2000-inc-sdd-2022.