Ottaviano v. Home Depot, Inc., USA

701 F. Supp. 2d 1005, 2010 U.S. Dist. LEXIS 27279, 2010 WL 1195627
CourtDistrict Court, N.D. Illinois
DecidedMarch 23, 2010
DocketCivil Action 1:09-cv-05125
StatusPublished
Cited by16 cases

This text of 701 F. Supp. 2d 1005 (Ottaviano v. Home Depot, Inc., USA) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ottaviano v. Home Depot, Inc., USA, 701 F. Supp. 2d 1005, 2010 U.S. Dist. LEXIS 27279, 2010 WL 1195627 (N.D. Ill. 2010).

Opinion

MEMORANDUM OPINION AND ORDER

ROBERT M. DOW, JR., District Judge.

This matter is before the Court on Defendant Home Depot’s Motion to Dismiss or Alternatively for Partial Summary Judgment [10]. Plaintiffs Gary Ottaviano, Cruz Plaza, and Jenny Macias, on behalf of themselves individually and on behalf of others similarly situated, allege that while employed by Home Depot, they were deliberately misclassified as “exempt” employees for the purpose of state overtime laws, both during their time as Assistant Store Managers in training (the “ASM training period”) and during their time as Assistant Store Managers (the “ASM period”). Plaintiffs allege that Defendant violated the Illinois Minimum Wage Law, 820 ILCS 105/1, et seq., and seek to recover wages allegedly owed by the Defendant. Defendant contends that Plaintiffs’ complaint should be dismissed for failure to state a claim upon which relief can be granted because Home Depot’s policies, even under the facts as alleged, do not rise to a violation of the statute; alternatively, Defendant contends that summary judgment should be granted because some or all of Plaintiffs’ claims may be time-barred.

With respect to Plaintiffs’ claim that they were deliberately misclassified as “exempt” employees for the purpose of state overtime laws, the Court need not consider *1007 matters outside the complaint and the parties’ briefing; thus, the Court will proceed on the motion to dismiss as to that claim. The issue of whether some or all claims are time-barred relies on materials outside the complaint. Because the parties have complied with the requirements of Local Rule 56. 1, the Court will proceed on Defendant’s motion for summary judgment as to those claims. For the following reasons, the Court dismisses the “ASM period” claims brought by Plaintiffs Ottaviano and Macias, and grants Defendant’s motion for summary judgment [10] with regard to all claims brought by Plaintiff Plaza and the “ASM training period” claims brought by Plaintiffs Ottaviano and Macias.

I. Background

Plaintiffs Gary Ottaviano, Cruz Plaza, and Jenny Macias were employed by Defendant Home Depot as Assistant Store Managers (ASMs) at various retail locations throughout Illinois. Compl. ¶ 8. Plaintiffs are Illinois residents, and Defendant is a Delaware corporation with its principal executive offices located in Atlanta, Georgia. Id. ¶ 5. Defendant identified Plaintiffs as “exempt” employees for purposes of the Illinois Minimum Wage Law, and Plaintiffs were paid a salary (as opposed to being paid by the hour). Id. ¶ 11. While employed at Home Depot, Plaintiffs were required to work at least fifty-five hours a week and did not receive additional compensation for the time worked in excess of forty hours a week. Id. ¶¶ 9-10. According to Plaintiffs and not disputed by Defendant (for purposes of the motion to dismiss), Home Depot has a policy whereby it terminates ASMs who regularly work less than the fifty-five hours for which they are scheduled. Id. ¶ 11. Additionally, Home Depot requires newly hired ASMs to undergo a training period lasting between two and eight weeks prior to assuming the full responsibilities of an ASM. Id. ¶ 13. During that training period, ASMs also are paid a salary and not compensated for time worked in excess of forty hours a week, even though they do not perform “exempt” work during that time. Id. ¶ 14-15. Plaintiff Ottaviano worked as an ASM from April 2005 until December 21, 2006; Plaintiff Macias from March 2001 until January 29, 2007; and Plaintiff Plaza from March 2004 until June 2006. Def.’s UMF ¶¶ 5-7, Ex. 1-3. All three Plaintiffs have filed consents to join the pending lawsuit in Elmaghmby v. Home Depot, U.S.S., Inc., No. 04-CV-4100 (D.N.J. Aug. 25, 2004), a collective action filed against Defendant in federal court in New Jersey under the Fair Labor Standards Act, 29 U.S.C. 201, et seq. Def.’s UMF ¶ 4.

II. Discussion

A. ASMs were properly characterized as “exempt” under IMWL

The Court will treat Defendant’s argument that Plaintiffs were not misclassified under the standards for ruling on a motion to dismiss. Generally, “[a]ffirmative defenses do not justify dismissal under Rule 12(b)(b).” Doe v. GTE Corp., 347 F.3d 655, 657 (7th Cir.2003). However, this rule does not apply when a party has included in its complaint “facts that establish an impenetrable defense to its claims.” Tamayo v. Blagojevich, 526 F.3d 1074, 1086 (7th Cir.2008). “If the plaintiff voluntarily provides unnecessary facts in her complaint, the defendant may use those facts to demonstrate that she is not entitled to relief.” Id.; see also Hecker v. Deere & Co., 556 F.3d 575, 588 (7th Cir. 2009) (affirming dismissal of claims because complaint “so thoroughly anticipated” an affirmative defense that dismissal was appropriate). In this case, Plaintiffs have put Defendant’s exemption defense “in play.” Hecker, 556 F.3d at 588. Instead of simply pleading an overtime claim *1008 under Illinois law, Plaintiffs specifically-challenged their exempt status on the basis that “the ASM position does not meet the salary basis test,” and alleged detailed facts in support of their claim. Specifically, Plaintiffs contend (and, for purposes of this motion, Defendant does not dispute) that Home Depot has a policy whereby it terminates ASMs who regularly work less than the fifty-five hours for which they are scheduled and that this policy does not pass muster under the salary basis test. Id. ¶ 11. Plaintiffs’ opposition leaves no doubt that this is the only ground upon which Plaintiffs challenge their exempt status. See, e.g., Pis. Opp. at 2-3, 7, 11, 14. Whether termination for failure to work an assigned schedule constitutes a “reduction in pay due to the quantity or quality of work performed” is a legal question that can be addressed on a motion to dismiss; thus, the Court proceeds to the salary basis issue.

Illinois employers are not required to pay overtime wages to employees who would have been exempted under the federal Fair Labor Standards Act (FLSA) and accompanying regulations, as they existed on March 30, 2003. 820 ILCS 105/4a(2)(E) (2004). The “short test” for exempt status under the prior FLSA regulations requires that three conditions be met: (1) the employee must be paid on a “salary basis” of at least $455 a week; (2) the employee must primarily manage a customarily recognized department or subdivision of the employer; and (3) the employee must customarily or regularly direct the work of two or more employees. See 29 C.F.R. § 541.1(f) (July 1, 2003), superseded by 29 C.F.R.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Arrizon v. TransUnion, LLC
2025 IL App (1st) 231911 (Appellate Court of Illinois, 2025)
Buccini v. Carrasco
N.D. Illinois, 2025
Dewey v. Bechthold
384 F. Supp. 3d 971 (E.D. Wisconsin, 2019)
Bland v. Edward D. Jones & Co.
375 F. Supp. 3d 962 (E.D. Illinois, 2019)
Wilkins v. Just Energy Group, Inc.
171 F. Supp. 3d 798 (N.D. Illinois, 2016)
Barryman-Turner v. District of Columbia
115 F. Supp. 3d 126 (District of Columbia, 2015)
Ellis v. J.R.'s Country Stores, Inc.
779 F.3d 1184 (Tenth Circuit, 2015)
Adedje v. Westat, Inc.
75 A.3d 401 (Court of Special Appeals of Maryland, 2013)
Strait v. Belcan Engineering Group, Inc.
911 F. Supp. 2d 709 (N.D. Illinois, 2012)
Stevens v. Novartis Pharmaceuticals Corp.
2010 MT 282 (Montana Supreme Court, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
701 F. Supp. 2d 1005, 2010 U.S. Dist. LEXIS 27279, 2010 WL 1195627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ottaviano-v-home-depot-inc-usa-ilnd-2010.