Myers v. Gilead Sciences, Inc.

District Court, N.D. California·Decided March 20, 2025·No. 3:24-cv-02668·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 AMELIA MYERS, et al., Case No. 24-cv-02668-AMO Plaintiffs, 8 ORDER GRANTING MOTION FOR 9 v. COURT-AUTHORIZED NOTICE 10 GILEAD SCIENCES, INC, et al., Re: Dkt. No. 22 Defendants. 11 12 13 Before the Court is Plaintiffs Amelia Myers and Fatoumata Barry Yapo’s motion for court- 14 authorized notice to the collective. ECF 22. This Order assumes familiarity with the facts and 15 procedural history of the case. Plaintiffs’ motion is fully briefed and was heard before this Court 16 on February 6, 2025. Having read the papers filed by the parties and carefully considered the 17 arguments therein and those made at the hearing, as well as the relevant legal authority, the Court 18 hereby GRANTS Plaintiffs’ motion, subject to the modifications discussed herein. 19 I. DISCUSSION 20 Plaintiffs argue they meet the lenient standard for conditional certification and that the 21 Court should authorize notice to the collective. Defendants argue conditional certification is 22 improper because Plaintiffs have not met their evidentiary burden and Plaintiffs’ proposed 23 collective is vague and overbroad. Defendants additionally contend that the Court should not 24 authorize notice because the method and substance of Plaintiffs’ proposed notice contain certain 25 defects. The Court first considers whether conditional certification of the collective is proper, and 26 concluding it is, takes up the form of notice to the collective. 27 // 1 a. Legal Standard 2 Under the Fair Labor Standards Act (“FLSA”), “workers may litigate jointly if they (1) 3 claim a violation of the FLSA, (2) are ‘similarly situated,’ and (3) affirmatively opt in to the joint 4 litigation, in writing.” Campbell v. City of Los Angeles, 903 F.3d 1090, 1100 (9th Cir. 2018); 29 5 U.S.C. § 216(b). 6 FLSA plaintiffs can seek “dissemination of notice to putative collective members, 7 conditioned on a preliminary determination that the collective . . . satisfies the ‘similarly situated’ 8 requirement of section 216(b).” Campbell, 903 F.3d at 1109. “Similarly situated” means “alike 9 with regard to some material aspect of their litigation . . . in ways that matter to the disposition of 10 their FLSA claims.” Id. at 1114. “[W]hat matters is not just any similarity between party 11 plaintiffs, but a legal or factual similarity material to the resolution of the party plaintiffs’ claims, 12 in the sense of having potential to advance these claims, collectively, to some resolution.” Id. at 13 1115 (emphasis in original). The standard is lenient, but it is the plaintiff’s burden to present “at 14 least some evidence to support the ‘substantial allegations’ in the complaint” that the collective 15 members “were together the victims of a single decision, policy, or plan.” Litvinova v. City & 16 Cnty. of San Francisco, 2019 WL 1975438, at *2-4 (N.D. Cal. Jan. 3, 2019). Courts’ analyses are 17 “typically focused on a review of the pleadings but may sometimes be supplemented by 18 declarations or limited other evidence.” Campbell, 903 F.3d at 1109. “Determining whether a suit 19 properly may be maintained as a FLSA collective action is within the discretion of the court.” 20 Litvinova, 2019 WL 1975438, at *2; see also Campbell, 903 F.3d at 1110 (citing Hoffman-La 21 Roche v. Sperling, 493 U.S. 165, 174 (1989) (“[T]he proper means of managing a collective 22 action – the form and timing of notice, the timing of options, the extent of discovery before 23 decertification is addressed – is largely a question of ‘case management,’ and thus a subject of 24 substantial judicial discretion.”)). 25 b. Conditional Certification 26 Plaintiffs seek conditional certification of a collective defined as “[a]ll persons who 27 worked for Gilead as non-exempt employees who were paid incentive awards and/or granted 1 between May 3, 2021 and the present.” ECF 22-8. 2 Plaintiffs argue the putative collective members are similarly situated. They support their 3 motion with a declaration from each named Plaintiff; a page from Gilead’s website titled 4 “Compensation, Benefits and Wellbeing”; several Gilead job postings; Gilead’s Securities and 5 Exchange Commission (SEC) incentive plan summary; and sample earnings statements. See ECF 6 22. Plaintiffs contend that these “together demonstrate Defendants’ uniform policy of failing to 7 include supplemental remuneration paid to Collective Members in the regular rate calculation for 8 overtime wages.” Id. at 9. 9 The Court agrees. In their declarations, Myers and Yapo attest they worked as hourly, 10 non-exempt employees during the three-year FLSA statutory period, that they received restricted 11 stock units (“RSUs”) that vested during that period, and that they were subject to Defendants’ 12 policy of not including the value of the vested RSUs in overtime pay calculations, see ECF 22-2, 13 22-3, and their sample earnings statements confirm they received restricted stock and worked 14 overtime, see ECF 22-7. The remaining submissions evidence that Defendants award 15 supplemental remuneration on a company-wide level that amounts to a single policy or plan. The 16 SEC Incentive Plan Summary describes the purposes and structure of the incentive compensation 17 plan, noting that “unless otherwise determined by the Plan Administrator, all Company employees 18 . . . are eligible to participate,” and that payment is based “on the attainment of corporate and 19 individual performance goals and metrics,” which are “establish[ed] in writing . . . generally 20 within 90 days of the beginning of the performance year.” ECF 22-6. The page from Gilead’s 21 website titled “Compensation, Benefits and Wellbeing” describes that Gilead is a “pay-for- 22 performance company” with “base pay, bonus and stock awards.” ECF 22-4. Thus, the Court 23 finds that “Plaintiffs’ pleadings and supporting evidence are sufficient to meet the ‘lenient’ burden 24 required to demonstrate that Plaintiffs and putative collective action members shared similar job 25 duties and a similar compensation scheme.” See Herrera v. EOS IT Mgmt. Sols., Inc., 2020 WL 26 7342709, at *7 (N.D. Cal. Dec. 14, 2020) (finding burden met where plaintiffs provided five 27 declarations that, despite being “repetitive and uniform,” supported plaintiffs’ allegations, offered 1 description outlining the duties of the relevant role). 2 Defendants argue Plaintiffs have not shown conditional certification is proper for three 3 reasons. First, Defendants argue Plaintiffs’ proffered evidence is insufficient. Defendants insist 4 Plaintiffs’ declarations “are entitled to no evidentiary weight” as they are “virtually identical and 5 repeat vague speculations.” ECF 29 at 17. However, as the relevant inquiry is “simply whether 6 plaintiffs have made an adequate threshold showing,” courts have rejected arguments that 7 declarations submitted in support of conditional certification are “boilerplate.” See Costa v. Apple, 8 Inc., 2023 WL 8101980 (N.D. Cal. Nov. 21, 2023) (citing Gonzalez v. Charter Commc’ns, LLC, 9 2020 WL 8028108, at *4 (C.D. Cal. Dec. 4, 2020)). 10 The cases Defendants cite in arguing Plaintiffs have not met their evidentiary burden are 11 easily distinguishable. In Litvinova v. City and County of San Francisco, the court denied 12 conditional certification. 2019 WL 1975438, at *4 (N.D. Cal. Jan. 3, 2019).

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