Moshtagh v. The Home Depot USA Inc

District Court, W.D. Washington·Decided May 13, 2021·No. 2:19-cv-01205·Unknown

Opinion

UNITED STATES DISTRICT COURT AT SEATTLE STEVE MOSHTAGH, an individual, on behalf of No. 2:19-cv-01205-RSM himself and others similarly situated, Plaintiffs, DEFENDANT’S MOTION FOR PARTIAL vs. SUMMARY JUDGMENT

THE HOME DEPOT U.S.A., INC. a Delaware Corporation, Defendant.

This matter comes before the Court on Defendant Home Depot U.S.A., Inc. (“Home Depot”)’s Motion for Partial Summary Judgment. Dkt. #73. Home Depot moves for summary judgment on Plaintiff Steve Moshtagh’s claims for: (1) unlawful wage deductions for donations to The Homer Fund (First Cause of Action); (3) unpaid wages for off-the-clock waiting time after store closing (Third Cause of Action); (4) double damages for willful withholding of wages (Fourth Cause of Action); and (5) violation of Washington’s Consumer Protection Act (Fifth Cause of Action). Id. at 7. Mr. Moshtagh has filed an opposition. Dkt. #135. The Court has determined that oral argument is unnecessary, and, for the reasons stated below, GRANTS IN PART this Motion. Class certification in this matter is still pending. See Dkt. #39. II. BACKGROUND In 2014 Plaintiff Moshtagh first started working for Home Depot in a Palm Springs, California store. Dkt. #76-1, Ex. A (“Moshtagh Dep.”), 13:12-16, 26:1-7. In February of 2016, Mr. Moshtagh submitted his resignation so he could move closer to his sick mother, who lived in Kirkland, Washington. Id. at 27:2-20; 116:5-24. Home Depot instead offered to transfer him to a store location in Bothell, Washington, and he accepted the transfer. Id. At the Bothell store, Mr. Moshtagh worked in “special services” for about six months, then on the freight team, then as a cashier. Id. at 144:21-145:1. During his employment in Washington, plaintiff earned an hourly wage of $11.25 or more. Dkt. #75 (“Dixon Decl.”), ¶ 4. In March 2019, Mr. Moshtagh called the Home Depot hotline (AwareLine) to report that he was not getting rest breaks when he worked a five-hour shift. Moshtagh Dep. at 69:11-13. Home Depot conducted an investigation, finding that many witnesses disputed Mr. Moshtagh’s account, and that Mr. Moshtagh’s statements were “contradictory.” See Dkt. #73 at 10–11. Mr. Moshtagh stopped reporting to work in April of 2019 and was fired. Id. at 76:20-22. Mr. Moshtagh filed a proposed class action in King County Superior Court on June 28, 2019. Dkt. #1-2. The case was removed to this Court on August 1, 2019. Dkt. #1. He alleges the following causes of action: Unlawful Wage Deductions for Home Depot’s policy and practice of deducting money from paychecks for The Homer Fund charity, failure to provide rest breaks, failure to pay for all time on duty, willful withholding of wages, and a Washington Consumer Protection Act (“CPA”) claim. Additional facts for these claims are discussed in greater detail below. III. DISCUSSION A. Legal Standard for Summary Judgment Summary judgment is appropriate where “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247 (1986). Material facts are those which might affect the outcome of the suit under governing law. Anderson, 477 U.S. at 248. In ruling on summary judgment, a court does not weigh evidence to determine the truth of the matter, but “only determine[s] whether there is a genuine issue for trial.” Crane v. Conoco, Inc., 41 F.3d 547, 549 (9th Cir. 1994) (citing Federal Deposit Ins. Corp. v. O’Melveny & Meyers, 969 F.2d 744, 747 (9th Cir. 1992)). On a motion for summary judgment, the court views the evidence and draws inferences in the light most favorable to the non-moving party. Anderson, 477 U.S. at 255; Sullivan v. U.S. Dep't of the Navy, 365 F.3d 827, 832 (9th Cir. 2004). The Court must draw all reasonable inferences in favor of the non-moving party. See O’Melveny & Meyers, 969 F.2d at 747, rev’d on other grounds, 512 U.S. 79 (1994). However, the nonmoving party must make a “sufficient showing on an essential element of her case with respect to which she has the burden of proof” to survive summary judgment. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). B. The Homer Fund Deduction Claims The Homer Fund is a nonprofit charity, established in 1999, funded mainly by voluntary donations from Home Depot employees for the purpose of providing emergency financial assistance to Home Depot employees in need. Dkt. #76-1 Ex. D (“Robinson Dep.”) at 9:3-6, 94:21- 25. The Homer Fund is affiliated with THDF II, Inc., a registered 501(c)(3) organization not legally part of Home Depot. Id. at 9:7-16; Dkt. #74 (“Robinson Decl.”), ¶¶ 3, 4. The Homer Fund maintains separate bank accounts from Home Depot and from The Home Depot Foundation, a separate charitable part of THDF II, Inc. Robinson Dep. at 25:13-25, 42:2-23; Robinson Decl. ¶¶ 3, 4.2. Mr. Moshtagh claims that Home Depot deducted money from his paycheck for the Homer Fund in violation of WAC 296-126-028, RCW 49.46 et seq., RCW 49.48 et seq., and RCW 49.52 et seq. Dkt. #1-2 at 11. He alleges that the Homer Fund is “an agent and instrumentality” that is controlled entirely by Home Depot. Id. at 4. He alleges that employees “are heavily pressured to sign forms authorizing such deductions.” Id. at 5. Although the Homer Fund is a charity set up to assist Home Depot employees in need, Mr. Moshtagh claims that “only a small fraction of employees who ‘donate’ actually receive charity from The Homer Fund,” and that “[g]iving to The Homer Fund is no guarantee that an employee will actually receive money from The Homer Fund.” Id. at 6. Mr. Moshtagh alleges that Home Depot derives “substantial benefit” from these payroll deductions, mainly by getting good public relations by advertising about the charity. Id. As an initial matter, the Court finds that Mr. Moshtagh has abandoned his claims that the Homer Fund deductions violate RCW 49.46 and 49.48. Home Depot points out in a footnote that “plaintiff has apparently abandoned these allegations,” and that in any event “plaintiff was paid an hourly rate of $11.25 or more, which exceeded the minimum wage even after the deduction of his $0.50 per week donation during the brief period he contributed to the Homer Fund.” Dkt. #73 at 13-14 n.4. Mr. Moshtagh does not contest this characterization and otherwise fails to make a sufficient showing on these claims. WAC 296-126-028 states that “an employer may deduct wages when the employee expressly authorizes the deduction in writing and in advance for a lawful purpose for the benefit of the employee,” and that “the employer… can [not] derive any financial profit or benefit from any of the deductions under this regulation.” Under the Wage Rebate Act, RCW 49.52.050, an employer may not “collect or receive from any employee a rebate of any part

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