Paulette Wedding v. Madisonville Health & Rehabilitation LLC, et al.

CourtDistrict Court, W.D. Kentucky
DecidedOctober 15, 2025
Docket4:24-cv-00097
StatusUnknown

This text of Paulette Wedding v. Madisonville Health & Rehabilitation LLC, et al. (Paulette Wedding v. Madisonville Health & Rehabilitation LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paulette Wedding v. Madisonville Health & Rehabilitation LLC, et al., (W.D. Ky. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY OWENSBORO DIVISION

PAULETTE WEDDING PLAINTIFF

v. No. 4:24-cv-97-BJB

MADISONVILLE HEALTH & DEFENDANTS REHABILITATION LLC, ET AL. * * * * * OPINION REGARDING DISMISSAL In an earlier-filed but still-ongoing lawsuit, Paulette Wedding sued Madisonville Health & Rehabilitation, her former employer, for alleged labor-law violations. Then Madisonville counterclaimed for money it said she owed under her employment contract. Wedding moved to dismiss the counterclaim on the grounds that the contract was fake, her signature was forged, and Madisonville actually owed her money. But because these disputed factual questions turned on testimony, not pleadings, the Court denied her motion. That case headed into discovery, where it remains today—mired in still another discovery dispute. Undeterred, Wedding filed a second lawsuit advancing similar arguments under a different banner: she now alleges that Madisonville’s counterclaim was itself unlawful retaliation subject to liability under the Fair Labor Standards Act and the Kentucky Wages and Hours Act. Precedent governing such “retaliation-by-lawsuit” claims, however, requires Wedding to show that Madisonville’s counterclaim was factually baseless, legally frivolous, and motivated by retaliatory purpose. To win this second lawsuit, in other words, she’d effectively have to prove what the first lawsuit had already rejected: that Madisonville’s counterclaim was entirely meritless. As discussed during a previous hearing and memorialized here, Wedding’s arguments fare no better the second time around. I. BACKGROUND A. The First Case: Wedding I This litigation began in April 2024, when Wedding filed a putative collective action under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and the Kentucky Wages and Hours Act, K.R.S. § 337.275 et seq., against a slew of related defendants. What united them all, according to Wedding’s complaint, was that the defendants ran 1 a nursing home, Madisonville Health and Rehabilitation LLC, which “failed to pay” its nurses “full overtime rate of pay.” No. 4:24-cv-44 (“Wedding I”) Complaint (DN 1) ¶ 1.1 According to Wedding, she worked at Madisonville Health “from February 14, 2023 until February 14, 2024.” ¶ 8. For her labors, she received overtime pay based on a “regular rate” of hourly pay, ¶¶ 27–29, which didn’t include “sign-on bonus compensation,” ¶¶ 77, 79–81; see also Bonus Contract (DN 11-1). This, Wedding alleged, violated the FLSA, which requires employers to “includ[e]” bonuses like hers when “calculat[ing] overtime rates of pay.” ¶ 76. And Wedding added that Madisonville Health also excluded a 15% pay premium that she received in exchange for opting out of the company’s employee health insurance policy. ¶¶ 87–97.2 Her time with Madisonville Health ended in “termination on February 14, 2024.” ¶ 49. For its part, Madisonville Health answered that it had paid Wedding (and its other employees) in compliance with the law. Wedding I Answer (DN 12) at 15. And Madisonville Health—alone among the Defendants—pled a counterclaim against Wedding. Wedding, it alleged, was entitled to a $7,000 sign-on bonus under their contract only if she “remain[ed] employed for one year at the[ir] facility.” Amended Counterclaim (DN 12) ¶ 8. But if she left before one year passed, she “had a duty to reimburse Madisonville Health pursuant to the Agreement for the total amount of sign on bonus.” ¶ 14. And contrary to Wedding’s claim that she was fired on February 14, one year to the day after she started, Madisonville Health pled that she was fired two days earlier, on February 12. ¶ 9. Despite allegedly working for less than one year, “she failed to reimburse Madisonville Health” for $5,250 in bonus installments that she’d already received and so breached her contract. ¶¶ 10, 15. And even if Wedding’s failure to reimburse weren’t breach of contract, Madisonville pled in the alternative, it should recover the $5,250 “benefit” to prevent Wedding from being “unjustly enriched.” ¶ 18. Wedding, in turn, moved to dismiss the counterclaim (Wedding I DN 11), and for judgment on the pleadings with respect to her own claims (Wedding I DN 22).

1 In Wedding I and here, the parties advance a host of arguments about which defendants—individuals and entities with assorted ownership interests in Madisonville Health—are proper. But all agree that at least Madisonville Health is a proper defendant. And nothing in this opinion turns on—or rules on—any other defendant. Likewise, this opinion takes no position on the question—still outstanding in Wedding I—whether Wedding can proceed on behalf of a class and join as defendants other nursing homes associated with the individual defendants. See Wedding I Complaint ¶ 17. 2 Although not relevant here, Wedding also alleged that Madisonville Health made similar missteps with respect to other employees in her position. ¶¶ 111–32. 2 After procedural developments not relevant here, and while discovery disputes raged, the Court denied both motions at a hearing. See DN 99. Wedding’s claims, the Court held, “rest[ed] on factual matters outside the pleadings”—like “grainy pay stub images” and contract documents not yet in the record—and couldn’t be decided without “hear[ing] from a witness” and resolving “factual dispute[s].” Hearing Transcript (DN 102) at 10, 20–21; see also id. at 21 (“I’ve got to see what was the agreed rate of pay.… I need to see a contract.”). So too for Madisonville Health’s counterclaim. The Court held that this claim turned upon: 1. a factual dispute about when Wedding was fired (and thus whether she reached the alleged one-year threshold to keep her bonus), id. at 14; 2. a “contractual ambiguity” about whether the bonus clawback threshold was six months or one year, id. at 16; see also Motion to Dismiss Counterclaim at 2 (“[T]he contract, as written, is ambiguous regarding whether or not Plaintiff must work for six months or one year [and whether] this ambiguity should be construed against Defendant as the drafter.”); and 3. whether any contract provision promised Wedding a sign-on bonus in the first place (and whether Madisonville Health should be judicially estopped from arguing otherwise), Hearing Transcript at 16–18; see also Motion to Dismiss Counterclaim at 4. Because each of these questions turned upon disputed facts, the Court held, Madisonville Health’s counterclaim couldn’t be dismissed on the pleadings alone. In response to that decision, Wedding answered the counterclaim (DN 100), maintaining that she: 1. “was employed by Defendant Madisonville Health … until February 14, 2024,” Answer to Counterclaim at 1; 2. was “promised … sign-on bonus installments if she worked long enough” but had never “entered into any agreement” with Madisonville Health because she never made any reciprocal promise, id. at 3; and 3. never “signed or was shown the document” that Madisonville Health filed and described as their contract, compare id., with Bonus Contract (DN 11-1). Put another way, her pleadings asserted (apparently for the first time) that her apparent signature on the contract Madisonville Health filed was a forgery, that she’d never “even discussed” the clawback provision Madisonville invoked, and that Madisonville had “paid [her] sign-on bonus compensation totaling $5,250 during her employment” as a mere gratuity. Answer to Counterclaim at 4–5. Discovery in Wedding I continues, and neither party has yet moved for summary judgment. 3 B. This Litigation: Wedding II Rather than litigate these questions in due course, however, Wedding filed this lawsuit. It reiterates the disputed story from Wedding I: that she never signed a contract, had no obligation to repay her bonus if she worked less than a year, and worked for a full year anyway.

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Bluebook (online)
Paulette Wedding v. Madisonville Health & Rehabilitation LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/paulette-wedding-v-madisonville-health-rehabilitation-llc-et-al-kywd-2025.