McCartt v. Kellogg USA, Inc.

139 F. Supp. 3d 843, 2015 U.S. Dist. LEXIS 139455, 99 Empl. Prac. Dec. (CCH) 45,414, 2015 WL 5972426
CourtDistrict Court, E.D. Kentucky
DecidedOctober 14, 2015
DocketCivil Action No. 5:14-318-DCR
StatusPublished
Cited by8 cases

This text of 139 F. Supp. 3d 843 (McCartt v. Kellogg USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCartt v. Kellogg USA, Inc., 139 F. Supp. 3d 843, 2015 U.S. Dist. LEXIS 139455, 99 Empl. Prac. Dec. (CCH) 45,414, 2015 WL 5972426 (E.D. Ky. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

Danny C. Reeves, United States District Judge

This matter is pending for consideration of Defendants Kellogg USA, Inc.’s and Kellogg Sales Company’s (jointly, “Kellogg”) motion for summary judgment. [Record No. 48] Plaintiff James B. McCartt asserts claims of age-related discrimination and retaliation in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq., and the Kentucky Civil Rights Act (“KCRA”), KRS Chapter 344, et seq. [Record No. 1, pp. 3-6] He also alleges that he is owed back pay and overtime under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201, et seq., and the Kentucky wage statute, KRS § 337.010, et seq. {Id., pp. 9-11] In addition, McCartt asserts a public policy claim premised on the alleged ADEA and FLSA violations. [Id., p. 12]

For the reasons outlined below, the Court will grant summary judgment in favor of Kellogg regarding the plaintiffs claims of retaliation (Counts III and IV), violation of the FLSA and Kentucky wage statute (Counts V, VI, and VIII), and public policy violations (Count VII). However, Kellogg’s motion will be denied with respect to the remaining ADEA and KCRA claims (Counts I and II).

I.

As outlined in the opinion addressing the defendants’ in limine motion [Record No. 69], Kellogg USA, Inc. and Keebler Foods Company (“Keebler”) manufacture food products. [Record No. 48-1, p. 5] McCartt was hired by Keebler in 1979 as a Territory Manager (“TM”) for the Lexington, Kentucky area. [Record No. 53-2, p. 5] Kellogg acquired Keebler in 2000. Following that acquisition, McCartt’s title was changed to the Retail Sales Representative (“RSR”) of District 797, which includes the greater Lexington area. [Record No. 53-2, p. 7] The RSR position was functionally similar to the TM position, except for an emphasis on sales starting in April 2011. [Id., pp. 7, 10, 15, 19; Record No. 48-6, “Job Profile”] RSR duties included: merchandising orders, making incremental sales, building displays, and managing merchandisers. [Record No. 53-2, pp. 8-9] The plaintiff alleges that he worked 95% of weekends, resulting in a work-week of over sixty hours. [Id., p. 26] He further [847]*847claims that he generally did not take meal or rest breaks. [Record No. 1, ¶ 68]

RSRs’ direct supervisors were District Managers, whose supervisors, in turn, were Senior Retail Managers (or Zone Managers). [Record No. 53-2, pp. 11-12] District Managers performed mid-year assessments of the RSRs. [Record No. 53-2, p. 15] McCartt’s mid-year evaluation in 2012 demonstrated that he was using only 68% of his variable labor and that he was $19,000 behind budget. [Id., p. 18; Record No. 48-11, “Performance Development Plan”] McCartt achieved only 91.7% of his sales goals in 2012. However, in the final month of 2012, he was the highest-ranked RSR in his district. [Record No. 48-10, “Period 12, 2012 Regional Score Card”]

In early 2013, Kellogg restructured its sales force, combining its “Morning Foods” sales force with its “Snacks” sales force. [Record No. 48-12, ¶ 4, “Anderson Decl.”] As a result, fewer overall RSR roles were available. In January, all the Zone Managers convened in Chicago to assess the RSR sales force. [Id., ¶ 5] However, they were not told the reasons for the assessment. [Id.] As part of this process, Zone Managers assessed each RSR in his or her zone according to technical and Kellogg Business Leader Model (“KBLM”) competencies, giving each.a score.of one to five. [7d] The Zone Managers were instructed to rely on employee “scorecards,” which contained objective figures, as well as their personal experience with the RSRs. [Record No. 48-14, ¶ 5, “Grzanka Deck”]

Next, the Human Resources (“HR”) department created pools of RSRs for comparison purposes. [Record No. 48-12, ¶ 6] Essentially, HR compared all Snacks RSRs who had over 50% of their assigned stores within 25 miles of a particular Morning Foods RSR’s residence. [Id.] The RSR with the lowest average score in each pool was displaced. [Id.] Megan Anderson was the HR person responsible for pooling assessments in the Cincinnati Zone, which included McCartt. [Id.," ¶ 8] Because Grzanka’s assessment of McCartt was the lowest in his pool, HR decided to terminate him.- [Id., ¶ 91-

In February 2013, interim District Manager Andrew Hart and Zone Manager Kevin Grzanka met with McCartt to inform him that a rumored “list of targeted employees” did not exist. [Record No. 53-2, p. 20] During that time, McCartt’s prior District Manager, John Taylor, allegedly informed McCartt of a comment by Grzan-ka regarding the plaintiff. [Record No. 53-2, p. 23] The conversation between Grzan-ka and Taylor purportedly occurred during Taylor’s. midyear evaluation (summer 2012), after Taylor remarked positively on McCartt but stated that he-could be more “aggressive” about displays. [Record No. 53-13, pp. 36-37, “Taylor Deposition”] During his deposition, Taylor alleges that Grzanka' responded, “Mr. McCartt is too old- and set in his ways to make the changes necessary. We need to, more or less, move in different directions.” [Id., p. 37] In his Complaint, the plaintiff alleged that he reported this comment to his superiors prior to his termination. [Record No. 1, ¶ 34] However, in his deposition, he denies reporting the comment at any time prior to his termination. [Record No. 53-2, p. 25]

On March 5, 2013, one month after Taylor informed McCartt of the allegedly-biased statement, Hart and Grzanka informed McCartt of his termination, which was effective April 12, 2013; [Id., p. 22; Record No. 48-17] The plaintiff was over sixty years-old at the time of his termination. [Record No. 1-6, p. 3, ¶ 9] McCartt believed that his termination was the result of age discrimination, and he claims that he informed HR of his belief. [Record No. 1, ¶ 34] He further reports that HR [848]*848then told him that Kellogg would not consider him for rehire. [Record No. 53, p. 26]

At the time of McCartt’s separation from the company, Kellogg offered him a severance benefit package in exchange for him signing a release of any claims he might'háve. [Record No. 53-2, p. 25] He refused 'to sign the severance agreement, but Kellogg' began sending him checks. [Id., p. 26] Once McCartt informed Kellogg of the error, the payments stopped. [Id.]

McCartt claims age-related discrimination and retaliation by Kellogg in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621, et seq., and the Kentucky Civil Rights Act (“KCRA"), KRS Chapter 344, et seq. [Record No. 1-6, pp. 3-9] He also alleges that he is owed back pay and overtime under the Pair-Labor Standards Act (“FLSA”), 29 U.S.C. § 201, et seq., and the Kentucky wage statutes, KRS § 337.010, et seq. [Id., p.

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139 F. Supp. 3d 843, 2015 U.S. Dist. LEXIS 139455, 99 Empl. Prac. Dec. (CCH) 45,414, 2015 WL 5972426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccartt-v-kellogg-usa-inc-kyed-2015.