Knott v. Dollar Tree Stores, Inc.

897 F. Supp. 2d 1230, 2012 WL 4341816
CourtDistrict Court, N.D. Alabama
DecidedSeptember 19, 2012
DocketCivil Action Nos. 7:06-CV-1553-LSC, 7:08-CV-693-LSC
StatusPublished
Cited by4 cases

This text of 897 F. Supp. 2d 1230 (Knott v. Dollar Tree Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knott v. Dollar Tree Stores, Inc., 897 F. Supp. 2d 1230, 2012 WL 4341816 (N.D. Ala. 2012).

Opinion

MEMORANDUM OF OPINION

L. SCOTT COOGLER, District Judge.

I. Introduction

Plaintiffs, who worked at different Dollar Tree Stores throughout the country as store managers, filed the above actions pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., claiming that they were wrongfully classified as exempt and thus improperly denied overtime compensation. Pending before this Court is the Renewed Motion to Decertify the Collective Action (Doc. 503)1 filed by Defendant, Dollar Tree Stores, Inc., (“Dollar Tree”) as well as the responses thereto filed by Plaintiffs. After due consideration, the Motion will be granted.

II. Background

Dollar Tree owns and operates more than 7,000 retail stores throughout the United States. Dollar Tree’s stores range in size from 4,000 square feet to more than 20,000 square feet. On August 8, 2006, the complaint in this matter was filed as a collective action pursuant to 29 U.S.C. § 216(b), the FLSA’s class action provision. This Court initially granted class status to Plaintiffs2 on April 12, 2007, and simultaneously granted the motion to facilitate notice pursuant to section 216(b). (Doc. 63.)

From the beginning, this case has proceeded through what can only be described as a war between the parties over discovery. Regardless, the conflict seems to have moderated when the Eleventh Circuit Court of Appeals denied Plaintiffs’ petition for a writ of mandamus to block this Court’s order requiring them to turn over to Dollar Tree certain communications between their attorneys and the opt-in Plaintiffs. (Doc. 475.) These communications arguably demonstrate an effort by Plaintiffs’ counsel to influence answers on special interrogatories ordered by this Court.3 Dollar Tree filed a motion for sanctions against Plaintiffs (Doc. 468), based on what it described as Plaintiffs’ efforts to “present false evidence that all Plaintiffs do manual labor and not managerial duties.” (Doc. 480 at 7.) This Court denied Dollar Tree’s motion for sanctions, pending the briefing of Dollar Tree’s decertification motion, with leave to renew the motion following this Court’s ruling on the motion to decertify.

Dollar Tree asserts in its present motion (Doc. 503), that the originally certified class is due to be decertified because the members of the class are not “similarly situated.” Dollar Tree contends the evidence indicates dissimilar responsibilities and duties among the opt-in Plaintiffs and argues that it should not be forced to defend the current class action with and [1234]*1234against representative evidence and testimony. Not surprisingly, Plaintiffs see the members of the present class as sufficiently similar in that they, for the most part, operate under a system of detailed upper management control with little discretion. Plaintiffs assert that Dollar Tree applies the same operational controls to every store regardless of size and because of limited labor budgets, forces all of its managers to spend substantially more than fifty percent of their time performing manual labor. (Doc. 507.)

III. Discussion

A. The Certification Standard

Section 216(b) provides that “[a]n action ... may be maintained against any employer ... by any one or more employees for and on behalf of himself or themselves and other employees similarly situated.” (emphasis added.) Thus it is necessary, in order to maintain a collective action under the FLSA, for Plaintiffs to demonstrate that they are similarly situated. Anderson v. Cagle’s Inc., 488 F.3d 945, 952 (11th Cir.2007).

There is no guidance in the FLSA for determining how similar a group of plaintiffs must be before a collective action may proceed, nor has the Eleventh Circuit precisely defined the term “similarly situated.” Morgan v. Family Dollar Stores, Inc., 551 F.3d 1233, 1259 (11th Cir.2008). The Eleventh Circuit has, however, suggested a two-tiered approach to dealing with collective action certification and notice pursuant to § 216(b). See Hipp v. Liberty Nat’l Life Ins. Co., 252 F.3d 1208, 1218 (11th Cir.2001). When this Court addressed class certification “at the initial stage, [it] applied] a ‘fairly lenient standard’ for determining whether the plaintiffs are truly similarly situated.” Anderson, 488 F.3d at 953. At that stage, “plaintiffis] ha[d] the burden of showing a ‘reasonable basis’ for [their] claim that there [were] other similarly situated employees.” Morgan, 551 F.3d at 1260-61.

At the current stage, “triggered by an employer’s motion for decertification ... [the standard is] ... less lenient, and the plaintiffis] bear[] a heavier burden.” Id. at 1261. The Eleventh Circuit has “refused to draw bright lines in defining similarly, but explained that as more legally significant differences appear amongst the opt-ins, the less likely it is that the group of employees is similarly situated.” Id. (emphasis added). The Eleventh Circuit has also observed that “the ‘ultimate decision rests largely within the district court’s discretion,’ and ... in order to overcome the defendant’s evidence, a plaintiff must rely on more than just ‘allegations and affidavits.’ ” Morgan, 551 F.3d at 1261 (quoting Anderson, 488 F.3d at 953). Further, “although the FLSA does not require potential class members to hold identical positions ..., the similarities necessary to maintain a collective action under § 216(b) must extend ‘beyond the mere facts of job duties and pay provisions.’ ” Anderson, 488 F.3d at 953 (citing White v. Osmose, Inc., 204 F.Supp.2d 1309, 1314 (M.D.Ala.2002)). To properly address the issue, this Court must consider several factors, such as: “(1) disparate factual and employment settings of the individual plaintiffs; (2) the various defenses available to defendant] [that] appear to be individual to each plaintiff; [and] (3) fairness and procedural considerations.” Morgan, 551 F.3d at 1261 (hereinafter, these three factors will be referred to as the “Morgan analysis”).

The three factors of the Morgan analysis are not mutually exclusive — there is considerable overlap among them. Each factor directly influences the others. For example, the ability of Dollar Tree to assert its executive exemption defense depends on the experiences and job duties of [1235]*1235each individual employee. Also, the more dissimilar Plaintiffs are and the more individuated Dollar Tree’s executive exemption defense is, the greater doubts there are about the fairness of a ruling on the merits that is reached on the basis of purportedly representative evidence.

The executive exemption criteria set forth in the Department of Labor’s regulations must be considered, as the executive exemption is a defense at issue in this case. The executive exemption, which applies to “any employee employed in a bona fide executive capacity,” 29 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
897 F. Supp. 2d 1230, 2012 WL 4341816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knott-v-dollar-tree-stores-inc-alnd-2012.