McFalls v. NCH Healthcare System, Inc.

District Court, M.D. Florida·Decided March 13, 2024·No. 2:23-cv-00572·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA FORT MYERS DIVISION

LAUREN MCFALLS, individually, and on behalf of all others similarly situated and the Proposed Rule 23 Class,

Plaintiff,

v. Case No.: 2:23-cv-572-SPC-KCD

NCH HEALTHCARE SYSTEM, INC. and NAPLES COMMUNITY HOSPITAL, INC.,

Defendants. / ORDER Before the Court is Plaintiff’s Motion to Certify Class for Conditional Collective Certification and Issuance of Court-Approved Notice. (Doc. 53.)1 Defendants have responded in opposition. (Doc. 58.) For the reasons stated below, the motion is granted in part and denied in part. I. Background Plaintiff Lauren McFalls is a registered nurse. (Doc. 1 ¶ 65.) In May 2021, she accepted a position working for Defendants NCH Healthcare System, Inc. and Naples Community Hospital, Inc. (Id. ¶ 25.) McFalls also accepted a

1 Unless otherwise indicated, all internal quotation marks, citations, and alterations have been omitted in this and later citations. position in Defendants’ Specialty Fellowship Program (“Fellowship Program”). (Id. ¶ 71.) In “consideration for the training” she would receive, McFalls agreed

to work for Defendants for two years. (Id. ¶ 74.) And she agreed to “pay back the [Fellowship Program] fee of $5,000” if she did not complete her two-year commitment. (Doc. 1-2 at 2.) McFalls left Defendants’ employment after eleven months. (Doc. 1 ¶ 95.)

In response, Defendants deducted $477.90 from her final paycheck and refused to pay out “35 hours of accrued paid time off in the amount of $897.91.” (Id. ¶¶ 99-100.) Defendants then forwarded the outstanding balance of the Fellowship Program fee to a debt collector. (Id. ¶ 101.)

McFalls now sues Defendants under the Fair Labor Standards Act (“FLSA”). She claims the $5,000 training repayment agreement provision is a “trap” that prevents nurses in the program from leaving before completing their two-year commitments. (Id. ¶¶ 13, 15, 20, 61.) And the repayment

provision violates the FLSA because nurses are not paid “the minimum wage free and clear.” (Id. ¶ 116.) She also claims Defendants violated the FLSA when they withheld her wages and sought to recover the outstanding part of the program fee. (Doc. 53 at 2.)

According to McFalls, these allegations are not unique to her. Rather, each nurse who participated in Defendants’ program agreed to pay the $5,000.00 program fee if they did not stay for two years. And she believes there are other, similarly situated nurses who would join her FLSA claims.

That brings us to the current motion. McFalls seeks to conditionally certify a collective of plaintiffs who: “(1) were employed by Defendants during the period between July 31, 2020, until trial; (2) participated in Defendants’ Specialty Fellowship Program; and (3) were subject to the Specialty Fellowship

Program Employment Agreement.” (Id. at 1.) II. Legal Standards “The FLSA authorizes collective actions against employers accused of violating” its requirements. Morgan v. Fam. Dollar Stores, Inc., 551 F.3d 1233,

1258 (11th Cir. 2008). “In the Eleventh Circuit, certification of an FLSA collective action proceeds in two stages: the conditional certification or notice stage and the decertification stage.” Johnsey v. BAL TK, LLC, No. 2:18-CV- 00643-MHH, 2019 WL 3997072, at *2 (N.D. Ala. Aug. 23, 2019). We are at the

first stage. For conditional certification, a court “must determine—usually based solely on the pleadings and any affidavits of record—whether notice of the action should be provided to possible class members.” Raffo v. OS Rest. Servs.,

LLC, No. 8:22-CV-1999-TPB-CPT, 2023 WL 5279496, at *2 (M.D. Fla. Aug. 1, 2023). “In evaluating whether conditional certification is appropriate, this Court considers: (1) whether there are other employees who desire to opt-in, and (2) whether these other employees are similarly situated to [the claimant] with respect to their job requirements and with regard to their pay provisions.”

Poggi v. Humana at Home 1, Inc., No. 817CV1234T24JSS, 2017 WL 4877431, at *4 (M.D. Fla. Oct. 30, 2017). McFalls bears the burden of showing there is a reasonable basis to believe both requirements are met. Reese v. Fla. Bc Holdings, LLC, No.

617CV1574ORL41GJK, 2018 WL 1863833, at *3 (M.D. Fla. Mar. 16, 2018). But this is a “fairly lenient standard.” O’Day v. Inv. at Lake Diamond, LLC, No. 5:23-CV-59-GAP-PRL, 2023 WL 3456926, at *2 (M.D. Fla. Apr. 21, 2023). “Where discovery has not been completed, a motion to conditionally certify a

collective action under the FLSA and send out court authorized notice is typically granted.” Grajeda v. Verified Moving Pros, LLC, No. 0:22-CV-61471- WPD, 2022 WL 17987191, at *1 (S.D. Fla. Sept. 22, 2022). III. Discussion

A. McFalls has Shown Other Employees Desire to Opt-In As mentioned, “[t]he first requirement for conditional certification is that Plaintiff demonstrate that other employees desire to opt-in.” Thomas v. Waste Pro USA, Inc., 360 F. Supp. 3d 1313, 1321 (M.D. Fla. Mar. 12, 2019). “Evidence

of other employees who desire to opt in may be based on affidavits, consents to join the lawsuit, or expert evidence on the existence of other similarly-situated employees.” Id. Stephanie Kumetz, another nurse formerly employed by Defendants, has filed a notice of consent to join the lawsuit. (Doc. 52, Doc. 53-1.) In conjunction

with McFalls’ declaration that there are other similarly situated employees, this evidence is enough. Indeed, a number of “courts have conditionally certified collective actions with as few as one or two individuals expressing a desire to opt-in.” Raffo, 2023 WL 5279496, at *3; see also O’Day, 2023 WL

3456926, at *4. McFalls has satisfied her “fairly lenient burden” to show other employees are interested in joining the suit. B. Substantially Similar Next, the Court must determine whether the proposed collective

members are “similarly situated to [McFalls] with respect to their job requirements and with regard to their pay provisions.” Poggi, 2017 WL 4877431, at *4. In making this assessment, courts commonly consider several factors:

(1) whether the plaintiffs all held the same job title; (2) whether they worked in the same geographical location; (3) whether the alleged violations occurred during the same time period; (4) whether the plaintiffs were subjected to the same policies and practices, and whether these policies and practices were established in the same manner and by the same decision-maker; [and] (5) the extent to which the actions which constitute the violations claimed by plaintiffs are similar.

Thomas, 360 F. Supp. 3d at 1321-22. McFalls bears the burden here, but again, the bar is not particularly high. Calderone v. Scott, 838 F.3d 1101, 1104 (11th Cir. 2016). At this stage,

“opt-in plaintiffs need show only that their positions are similar, not identical, to the positions held by the putative class members.” Id. And “variations in specific duties, job locations, working hours, or the availability of various defenses are examples of factual issues that are not considered at [the notice]

stage.” Vondriska v. Premier Mortg. Funding, Inc., 564 F. Supp. 2d 1330, 1335 (M.D. Fla. 2007). First, McFalls seeks to certify a collective of nurses currently and formerly employed by Defendants. (Doc. 1 ¶ 114.) Although the proposed

collective would encompass nurses who worked in several departments (Doc. 53-3), they all participated in the Fellowship Program.

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