Preston v. World Travel Holdings, Incorporated

CourtDistrict Court, D. Massachusetts
DecidedFebruary 9, 2024
Docket1:23-cv-12389
StatusUnknown

This text of Preston v. World Travel Holdings, Incorporated (Preston v. World Travel Holdings, Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Preston v. World Travel Holdings, Incorporated, (D. Mass. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

) PHAEDRA PRESTON, ) ) Plaintiff, ) ) v. ) No. 1:23-cv-12389-JEK ) WORLD TRAVEL HOLDINGS, ) INCORPORATED, ) ) Defendant. ) )

MEMORANDUM AND ORDER ON DEFENDANT’S MOTION TO DISMISS COUNTS II AND III AND MOTION TO STRIKE RULE 23 CLASS ALLEGATIONS, AND PLAINTIFF’S MOTION FOR CONDITIONAL CERTIFICATION AND COURT- AUTHORIZED NOTICE PURSUANT TO 29 U.S.C. § 216(b)

KOBICK, J. This is a putative collective and class action brought against World Travel Holdings, Inc., a travel agency, for nonpayment of wages to agents who assist customers with booking travel. The plaintiff, Phaedra Preston, alleges that World Travel has violated the Fair Labor Standards Act (“FLSA”) by failing to pay her and other potential collective members overtime at the appropriate rate when they work over forty hours per week. Preston also asserts common law claims of breach of contract and unjust enrichment because, she alleges, World Travel does not fully compensate its employees at their hourly rate when they work forty hours per week or less. Her complaint seeks class certification under Federal Rule of Civil Procedure 23 of these common law claims. World Travel moves to dismiss the common law claims and to strike the Rule 23 class allegations. Preston opposes those motions and moves for conditional certification of her FLSA claim under 29 U.S.C. § 216(b). For the reasons explained below, World Travel’s motions will be denied and Preston’s motion will be granted in part and denied in part. The FLSA does not, as World Travel argues, preempt Preston’s breach of contract or unjust enrichment claims because those claims seek relief that is unavailable under the FLSA—namely, recovery for non-payment of wages when employees work forty hours per week or less. Preston has also satisfied the lenient standard for conditional certification of her FLSA claim because she has sufficiently demonstrated,

at this stage, that she is similarly situated to the members in her proposed collective. BACKGROUND The pertinent facts, as alleged in the complaint, are as follows. World Travel is a travel agency that employs non-exempt,1 hourly agents to help customers plan trips. ECF 1, ¶¶ 35, 96. Some agents work in World Travel’s call centers, while others, like Preston, work remotely. Id. ¶¶ 28, 34. Preston served as a remote agent from September 2022 through July 2023. Id. ¶ 28. She alleges that she and similarly situated employees had contracts with World Travel to be paid at a pre-established hourly rate—most recently, for Preston, $15 per hour—in exchange for performing their work responsibilities. Id. ¶¶ 28, 171, 184. Preston alleges that World Travel fails to compensate its agents for their time spent at the

start of each shift booting up their computers and logging in, as well as after meals and rest breaks, before they have a chance to sign onto the company’s timekeeping system. Id. ¶¶ 7-8, 49, 55, 60, 65-66, 81, 85. She estimates that she and other agents regularly perform 22 to 33 minutes or more per shift of such unpaid “off-the-clock” work. Id. ¶ 160. Because the agents’ hours for this “off- the-clock” work are not properly reported in the system, she alleges, the hours reflected on their paystubs are inaccurate as well. Id. ¶ 59. Preston thus claims that World Travel is liable for failing to pay her and other agents for all of the work that they perform, including overtime when they

1 Employees classified as “non-exempt” are covered by the FLSA’s minimum wage and overtime pay provisions. See 29 U.S.C. §§ 206(a), 207(a)(1), 213. work over forty hours per week and regular wages when they work under forty hours in a week. Id. ¶¶ 17, 59, 91, 124, 126, 179. The complaint raises three claims. In Count I, Preston asserts a claim under the FLSA, 29 U.S.C. §§ 207(a)(1), 215(a), for failure to compensate her and similarly situated employees at

1.5 times their regular rate of pay for work performed in excess of forty hours in a given workweek. ECF 1, ¶¶ 15-18, 150-69. She seeks designation as a collective action under 29 U.S.C. § 216(b) for this claim. Id. ¶¶ 125-40. In Count II, Preston asserts a breach of contract claim for World Travel’s alleged failure to pay her and similarly situated employees the contractual hourly wage for off-the-clock work performed in weeks when they work no more than forty hours. Id. ¶¶ 89- 91, 170-81. Count III similarly alleges that World Travel was unjustly enriched by failing to pay employees for off-the-clock work performed in weeks when they work no more than than forty hours. Id. ¶¶ 182-91. Preston requests nationwide class certification under Federal Rule of Civil Procedure 23 of her breach of contract and unjust enrichment claims. Id. ¶¶ 141-49. DISCUSSION

I. World Travel’s Motion to Dismiss the Common Law Claims. Contending that the FLSA supplies the exclusive remedy for enforcement of rights protected in that statute, and that Preston’s state common law claims seek to improperly circumvent that exclusive remedial scheme, World Travel seeks dismissal of Preston’s breach of contract and unjust enrichment claims. In evaluating a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court must determine “whether, construing the well-pleaded facts of the complaint in the light most favorable to the plaintif[f], the complaint states a claim for which relief can be granted.” Cortés-Ramos v. Martin-Morales, 956 F.3d 36, 41 (1st Cir. 2020) (quoting Ocasio-Hernández v. Fortuño-Burset, 640 F.3d 1, 7 (1st Cir. 2011)). The complaint must allege “a plausible entitlement to relief.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 559 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “While legal conclusions can provide the framework of a complaint, they

must be supported by factual allegations.” Id. at 679. A. Scope of FLSA Preemption. “The Fair Labor Standards Act was designed to protect employees from excessive hours and substandard wages, ‘which endangered national health and efficiency and as a result the free movement of goods in interstate commerce.’” Doctors Hosp. v. Silva Recio, 558 F.2d 619, 623 (1st Cir. 1977) (quoting Brooklyn Savings Bank v. O’Neil, 324 U.S. 697, 706-07 (1945)). To meet these objectives, the statute sets a minimum wage for employees engaged in commerce, 29 U.S.C. § 206

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