NOLL v. FLOWERS FOODS INC

District Court, D. Maine·Decided August 3, 2020·No. 1:15-cv-00493·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MAINE

TIMOTHY NOLL, individually and, ) on behalf of similarly situated ) individuals, ) ) Plaintiff, ) ) v. ) Case No. 1:15-cv-00493-LEW ) FLOWERS FOODS INC, LEPAGE ) BAKERIES PARK STREET, LLC., and ) CK SALES CO., LLC, ) ) Defendants. )

ORDER ON DEFENDANTS’ MOTION FOR DECERTIFICATION OF FLSA COLLECTIVE ACTION

The matter is before the Court on Defendants’ Motion for Decertification of the FLSA Collective Action (ECF No. 268). For reasons set out in this Order, Defendants’ Motion is granted. BACKGROUND This civil action presents “collective” claims for recovery of unpaid overtime wages pursuant to the federal Fair Labor Standards Act (FLSA). Plaintiff Timothy Noll contends Defendants Flowers Foods, Lepage Bakeries, and CK Sales misclassified the members of the collective as independent contractors and thereby deprived those individuals of overtime wages throughout the claim period. On March 20, 2019, I certified the following FLSA collective: All persons who, at any time from December 2, 2012, continuing through entry of judgment in this case, worked as distributors for Flowers Foods, Inc., Lepage Bakeries, Inc., and/or CK Sales Co., LLC, and personally serviced one or more territories in the state of Maine and were classified as independent contractors under their distribution agreements.

Class Certification Order (ECF No. 219). On May 31, 2019, the parties filed motions for summary judgment. On January 29, 2020, based on the summary judgment record, I found that the distribution activity at issue in this case is subject to the Motor Carrier Act (MCA) exemption to the FLSA, unless a given distributor can establish that his or her use of a personal vehicle is within the Technical Corrections Act’s exception to the MCA exemption. Although Plaintiff Noll’s summary judgment presentation was not calibrated to make the TCA showing, I denied Defendant’s request for collective-wide summary judgment on the FLSA claim and a related claim for declaratory judgment because I concluded, based on some of the evidence contained in the record, that there are some members of the FLSA class who likely could demonstrate that they conducted some product distribution services in personal vehicles and, consequently, could be entitled to overtime wages for certain weeks of the claim period.1 Specifically, I worded my conclusion as follows: The record supports the finding that at least some of the members of the FLSA class have on occasion driven personal vehicles to deliver interstate products to their customers. In particular, it appears that pull up or recall duties can involve the delivery of products to restock customers’ shelves. Based on this evidence, the finder of fact could conclude, through an exercise

1 I granted summary judgment in favor of Defendants on the state law claims. 2 of inferential reasoning, that there are some individuals who will, in some work weeks, use personal vehicles to deliver in-bound products ….

Summary Judgment Order at 22. Nevertheless, because Defendants carried their burden of demonstrating that the distribution activity was subject to the Secretary of Transportation’s jurisdiction under the MCA, such that each and every class member would only be entitled to relief if he or she delivered product in a personal vehicle during any weeks in the class period in which his or her hours exceeded 40, and because the summary judgment record failed to demonstrate that lead Plaintiff Timothy Noll would be able to make such a showing, I granted Defendants leave to file a motion to decertify the FLSA class. DISCUSSION

Defendants’ Motion for Decertification of the FLSA Collective Action (ECF No. 268) is founded on the following factors and contentions: 1. Plaintiff Timothy Noll has provided deposition testimony that indicates he never used a personal vehicle to deliver product to his customers; 2. For the opt-in Plaintiffs, a recovery is only possible if they transported product

in their personal vehicles to satisfy existing orders; 3. The burden to make this showing is Plaintiffs’ burden, because the showing is necessary to overcome the MCA exemption for which Defendants have already carried their burden at the summary judgment stage; and 4. Plaintiffs cannot make this showing with representative evidence because each

plaintiff’s conduct in any given week is an individualized inquiry and Plaintiffs failed to 3 develop a record that would permit the finder of fact to determine that plaintiffs’ activities in this regard were in any way uniform or typical across the collective.

In opposition to the motion, Plaintiff Noll argues the TCA exception to the MCA overtime exemption “can largely be determined with representative evidence, and this Court can efficiently handle individualize factfinding, should it be required.” Opposition at 1 (ECF No. 274-1 (unredacted version)). Noll observes, correctly, that Courts regularly engage in individualized fact finding in FLSA matters. Id. He asserts, too, that “Plaintiffs’ work pulling and transporting stale product, which they uniformly do, constitutes the

continuation of interstate transportation under the TCA,” and that “[a]ll Plaintiffs are similarly situated with regard to this legal issue,” and also with regard to issues related to the nature of their work and their common law employee status. Id. Should I disagree that the TCA exception can be demonstrated through representative evidence involving pulling stale product, Noll argues I should certify a small collective comprised of only those opt in

plaintiffs who delivered product in personal vehicles. Id. at 2, 17-19. A. The TCA’s Interstate Requirement In the Summary Judgment Order, I reached a conclusion of law that the distributors’ intrastate transportation activity is subject to regulation by the Secretary of the Department of Transportation, and therefore within the scope of the MCA exemption from the FLSA’s

overtime provision, 29 U.S.C. § 213(b), because it involves the carriage of property, in commercial vehicles, in interstate commerce. See 49 U.S.C. §§ 13102(15)(A), 13501. As to the interstate commerce component, based on Department of Labor regulations, I 4 concluded that the distributors’ use of commercial vehicles is part of Defendants’ interstate transportation program because the distributors’ deliveries are part of “a practical

continuity of movement of the out-of-state goods through [Defendants’] distribution point to [their] customers,” U.S. Dep’t of Labor, Field Operations Handbook § 24d02(b) (Rev. 690, May 23, 2016), available at https://www.dol.gov/whd/FOH/FOH_Ch24.pdf, “in fulfillment of existing orders.” Summary Judgment Order at 21-22, 24 (emphasis added). That conclusion, I am confident, was sound. I then considered whether the so-called Technical Corrections Act exception (what

I will here call the “small vehicle exception”) would permit the distributors, as a collective, to escape the MCA exemption. I concluded that a given distributor might demonstrate entitlement to FLSA overtime wages, if the distributor delivered fresh bakery products to the customers who ordered them, using a “personal vehicle” rather than a commercial box truck, and the record suggested to me that there are some distributors who might be able to

do so for some weeks in the claim period. However, nothing in the record suggested to me that personal vehicle deliveries are typical for the collective, calling into question whether it would be fair to determine collective-wide liability based on representative evidence that, frankly, Plaintiff Noll never put forward in his summary judgment statements.

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