Perry v. Randstad General Partner (US) LLC

876 F.3d 191
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 20, 2017
Docket16-1010
StatusPublished
Cited by12 cases

This text of 876 F.3d 191 (Perry v. Randstad General Partner (US) LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perry v. Randstad General Partner (US) LLC, 876 F.3d 191 (6th Cir. 2017).

Opinions

WHITE, J., delivered the opinion of the court in which MOORE and SUTTON, JJ., joined in part. ,MOORE, J. (pp. 216-18), delivered a separate opinion concurring in part and dissenting from the court’s opinion regarding matchmaking duties. SUTTON, J. (pp; 218-20), delivered a ’ separate opinion concurring in part and dissenting from the court’s opinion 1 ■ regarding sales duties.

OPINION

HELENE N. WHITE, Circuit Judge.

In this putative collective action under the Fair Labor Standards Act (FLSA), Judith Perry, Erin Lane, and Aimee Dool-ing (Plaintiffs) ■ appeal the district court’s grant of summary judgment to their employer, Randstad General Partner (US) LLC (Randstad), rejecting them argument that Randstad improperly classified them as exempt employees not entitled to overtime pay. We AFFIRM IN PART and REVERSE IN PART.

I. BACKGROUND

Randstad is a staffing company; it recruits temporary ■ workers (talent) and hires them out to other companies (clients). Plaintiffs were in-house Randstad employees (not temporary workers hired out) in the company’s Troy, Michigan, office. Each Plaintiff held multiple positions over the course of her employment with Randstad, but Plaintiffs’ responsibilities generally included marketing and selling Randstad’s services; recruiting and evaluating workers and placing them with clients; overseeing those placements; and various administrative and clerical tasks. Randstad tracked Plaintiffs’ performance using a poihts-based system called the Work Planning Index (WPI). Each work activity earned a set number of points, e.g., two points for interviewing a recruit and one point for completing reference checks. Plaintiffs were required to accrue 100 points each week. Of those 100 points, Plaintiffs were expected to.earn a certain number in particular categories, such as sales and recruiting; Randstad maintained a progressive discipline system for employees who did not meet the 100-point quota each week, with penalties up to and' including termination. . <

Randstad also held-periodic “contests,” which required Plaintiffs to perform a particular task a specified number of times in a given week, e.g., make 40 telephone coni-nections with potential new customers via cold calls. According to Plaintiffs, participation, in these contests was mandatory for all. employees in the Troy branch, regardless of job description, or title, even if the “contest” task was not within an employee’s regular duties, thereby taking time away from meeting the category quotas. Further, while all employees accrued points for the contest activities, their category quotas did not change simply because a contest was taking place. Thus, if a contest required an employee to perform tasks outside her regular duties, she might have to earn more than 100 points total in order to accrue enough points in each category to meet all her quotas.

According to Plaintiffs, the quotas set by Randstad and enforced through the WPI system were impossible to meet working only 40 hours per week. As a result,, Plaintiffs regularly worked significantly more than '40 hours per week, and Randstad managers were aware they did so.

II. PROCEDURAL HISTORY

Perry, Lane, Dooling, and a fourth plaintiff, Suhaima Choudhury, filed this suit in March 2014. The one-count complaint seeks unpaid overtime and liquidated damages under. the FLSA, attorneys’ fees, costs, and a declaratory judgment that Randstad’s practices are unlawful. Plaintiffs styled their complaint as a collective action, and sought to represent all similarly-situated staffing employees who worked for Randstad in the three years prior to the commencement of the lawsuit.

Randstad answered' the complaint in May 2014, and the parties spent several months engaging in discovery.. Subsequently, Plaintiffs .filed a motion for. conditional class certification, and Randstad filed a motion for summary judgment seeking the dismissal of all four named plaintiffs’ claims. After a joint hearing on both motions, the district court granted summary judgment to Randstad on the claims brought by Dooling, Lane, and Perry, but allowed Choudhury’s claims to proceed. Based on Plaintiffs’ own testimony, the court found that Dooling, Lane, and Perry exercised discretion and independent judgment, and therefore were covered by. the administrative exemption to the FLSÁ.1 The court also found that Randstad was insulated from any liabihty because it relied, reasonably and in good faith, on an opinion letter issued by the Department of Labor’s. (DOL) Wage and Hour Division. (WHD). Finally, the court denied the . certification motion on the merits as to Choudhury, and as moot as to the other Plaintiffs.

Plaintiffs timely filed a Rule 60 motion for relief from the order granting summary judgment. Plaintiffs argued that certain WPI-related report's produced by Randstad after summary judgment was granted constituted new evidence sufficient to justify relief. Plaintiffs reasoned the reports showed Randstad' used the WPI to compare and evaluate employees, and created a triable fact issue regarding how much discretion Plaintiffs had. The district court denied the motion, concluding that ranking employees based on how many points they earn “is not inconsistent with those employees using independent judgment and discretion in how they complete their work.” (R. 104, PID 2416.)

Finally, after Choudhury’s claims were resolved by the parties and voluntarily dismissed, the remaining parties stipulated to the. entry of judgment. This appeal followed.

III. DISCUSSION

Plaintiffs contend the district court erred both in finding Randstad eligible for the good-faith-reliance defense and in finding the FLSA’s administrative exemption applicable.2,3

A. Standard of Review

We review the district court’s decision granting summary judgment de novo. Foster v. Nationwide Mut. Ins. Co., 710 F.3d 640, 643 (6th Cir. 2013) (citations omitted). “Summary judgment is appropriate if, examining the record and drawing all inferences in a light most favorable to the non-moving party, there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Schaefer v. Ind. Mich. Power Co., 358 F.3d 394, 399 (6th Cir. 2004).

B. The Administrative Exemption

' 1. Applicable Law

The FLSA was enacted “to compensate those who labored in excess of the statutory maximum number of hours for the wear and tear of extra work and to spread employment through inducing employers to shorten hours because of the pressure of extra cost.” Bay Ridge Operating Co. v. Aaron, 334 U.S. 446, 460, 68 S.Ct. 1186, 92 L.Ed. 1502 (1948).

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876 F.3d 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-v-randstad-general-partner-us-llc-ca6-2017.