Putnam v. Galaxy 1 Marketing, Inc.

276 F.R.D. 264, 2011 U.S. Dist. LEXIS 98282, 2011 WL 4072388
CourtDistrict Court, S.D. Iowa
DecidedAugust 23, 2011
DocketNo. 3:10-cv-00072-JAJ-RAW
StatusPublished
Cited by21 cases

This text of 276 F.R.D. 264 (Putnam v. Galaxy 1 Marketing, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Putnam v. Galaxy 1 Marketing, Inc., 276 F.R.D. 264, 2011 U.S. Dist. LEXIS 98282, 2011 WL 4072388 (S.D. Iowa 2011).

Opinion

ORDER

JOHN A. JARVEY, District Judge.

This matter comes before the Court pursuant to Plaintiffs’ motion for conditional certification of a collective action pursuant to the Fair Labor Standards Act (“FLSA”), filed on March 17, 2011. [Dkt. No. 57.] Plaintiffs Terry Putnam and Rob Putnam, and all others similarly situated are collectively referred to as “Plaintiffs.” Defendant HD Connection LLC (“HD Connection”) and Defendants Galaxy 1 Marketing, Inc. (“Galaxy”), Dennis Voss, and David Williams filed responses on April 18, 2011. [Dkt. Nos. 63 & 64.] Plaintiffs replied to Defendants’ responses on May 2 and 3, 2011. [Dkt. Nos. 65 & 68.]

In their motion, Plaintiffs ask the Court to grant their request to issue “Opt-in Notice” pursuant to Section 216(b) of the Fair Labor Standards Act, 29 U.S.C. § 216(b), to similarly-situated persons who performed satellite installation work for Galaxy and were classified as independent contractors. Plaintiffs state that the Defendants have refused consent to an opt-in notice, and as a result, ask this Court to conditionally certify a class. Plaintiffs specifically ask the Court to enter an Order: (1) permitting Plaintiffs to issue Notice of this Lawsuit to all other satellite installation technicians who performed work for Galaxy from February 2, 2007, to the present; (2) toll the limitations period from the date the Complaint was filed; (3) approve the form of the Notice, as submitted to the Court; (4) permit the Plaintiffs to issue such Notice via U.S. Mail, employee pay envelopes, and a workplace posting at Galaxy offices during the notice period; and (5) order the Defendants to produce a complete class list of all persons who have performed work for Galaxy as satellite installation technicians [267]*267between February 2, 2007, and the present, and who were classified as independent contractors.

I. Procedural History

Plaintiffs originally filed their complaint in this matter on February 2, 2010, in the District Court for the Northern District of Illinois, Eastern Division. [Dkt. No. 1.; original case number 10:cv:700.] Plaintiffs filed an Amended Complaint on February 15, 2010, and Defendants filed a Motion to Dismiss based on Forum Non Conveniens, and Alternatively Motion to Transfer Venue on May 10, 2010. [Dkt. Nos. 6, 14, 15.] Judge Ruben Castillo held a hearing on May 20, 2010, and granted the motion to transfer venue to the Southern District of Iowa. [Dkt. No. 24.] The case was transferred into the Southern District of Iowa on June 7, 2010. [Dkt. No. 26.]

On September 30, 2010, Magistrate Judge Ross A. Walters entered an order granting the proposed scheduling order and discovery plan. [Dkt. Nos. 46 & 47.] Specifically, Magistrate Judge Walters’ order limited discovery related to the appropriateness of issuing collective action notice under Section 216(b) of the FLSA to be completed by 1/31/2011; fact discovery to be completed within 180 days after the opt-in period expires; and the dispositive motion deadline to be May 17, 2011.1 On January 31, 2011, Plaintiffs filed a motion for Leave to File Second Amended Complaint, which Defendants resisted, and Magistrate Judge Walters granted on March 22, 2011. [Dkt. Nos. 53, 54, 55, 58, 59.]

On March 17, 2011, Plaintiffs filed the present motion for conditional certification of a collective action pursuant to the FLSA. [Dkt. No. 47.] To date, six (6) consents to join this lawsuit pursuant to the FLSA have been filed. [Dkt. Nos. 48,49, 52, 56.]

II. Factual Background2

Plaintiff Terry Putnam was employed by Defendants as a satellite installation technician between approximately January 2009 and November 3, 2009. He is a resident of Illinois. Plaintiff Rob Putnam was employed by Defendants as a satellite installation technician between approximately September 2009 and November 4, 2009. He is a resident of Iowa. Both plaintiffs state that they performed work for Defendants in the states of Illinois and Iowa, within the three years pri- or to the filing of this complaint. Three additional opt-in plaintiffs worked out of Galaxy’s Rolling Meadows, Illinois office, and one opt-in plaintiff worked out of Galaxy’s offices in Missouri and Bettendorf, Iowa.

Defendant Galaxy is an Illinois corporation and employs satellite installation technicians in Iowa, Illinois, Indiana, Michigan, Colorado, and Missouri. Galaxy’s corporate headquarters is located at 4038 Utica Ridge Road, Bettendorf, Iowa. Galaxy classified its satellite installation technicians as independent contractors.3 Galaxy provides installation services to DISH Network (“DISH”) customers in twelve states.

Defendants David Williams and Dennis Voss are involved in the day to day business operations of Defendant Galaxy. Both Williams and Voss have the authority to hire and fire employees, direct and supervise the work of employees, and participate in decisions regarding employee compensation and capital expenditures.

Defendant HD Connection is a Missouri limited liability company and employs satellite installation technicians who perform work in Iowa, Illinois, and Missouri. On January 18, 2009, Galaxy and HD Connection entered into an Independent Contractor Agreement (“ICA”), whereby HD Connection would install DISH satellite systems and Gal[268]*268axy would pay HD Connection for each system installation. HD Connection only operated out of Galaxy’s Bettendorf, Iowa, office, and ceased doing business in December 2009.

Plaintiffs, and the class of persons they seek to represent, state that they perform satellite installation duties for Galaxy and HD Connection. Defendants classified Plaintiffs and other satellite installation technicians as independent contractors. Plaintiffs Terry and Rob Putnam were required to sign ICAs with HD Connection.4

Defendants did not compensate Plaintiffs, or other satellite installation technicians, at a rate of one and one-half times their regular rate of compensation for the time worked in excess of forty (40) hours per individual workweek. Galaxy’s satellite installation technicians were paid varying job rates, depending on the type of installation or repair, and not by the hour. Satellite installation technicians were placed into three levels depending on quality of job, customer satisfaction, and connectivity. All technicians at each level were paid identical rates and a technician’s experience, or time with the company, was not a factor in determining a technician’s level. For a New Conneet/l Receiver, a Level One IC would be paid $77.00, a Level Two IC would be paid $83.00, and a Level Three IC would be paid $89.00. Galaxy had total control of the levels and could advance or demote a technician without notification. Galaxy also had discretion in determining which order to distribute to each technician.

Plaintiffs state that their classification as independent contractors, instead of employees, was not due to any unique factor related to their employment and that they do not have the business skills or initiative necessary to elevate their status to that of independent contractors. Plaintiffs claim they were not required to have specialized or unusual skills to work for Defendants in the cable installation, removal, and repair business.

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Cite This Page — Counsel Stack

Bluebook (online)
276 F.R.D. 264, 2011 U.S. Dist. LEXIS 98282, 2011 WL 4072388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/putnam-v-galaxy-1-marketing-inc-iasd-2011.