R Alexander Acosta v. Austin Elec. Servs. LLC

322 F. Supp. 3d 951
District Court, D. Arizona·Decided August 17, 2018·No. No. CV-16-02737-PHX-ROS·Published·Cited by 3 cases

Opinion

Honorable Roslyn O. Silver, Senior United States District Judge

Plaintiff Secretary of Labor ("Plaintiff") alleges Defendants Austin Electric Services LLC and Toby Thomas, Austin Electric's President, (collectively "Defendants") violated the Fair Labor Standards Act ("FLSA") by failing to pay employees overtime compensation and by failing to keep employee records. (Doc. 1). Plaintiff moved, pursuant to Federal Rule of Civil Procedure 65(b), for a temporary restraining order and preliminary injunction preventing Defendants from interviewing their employees regarding this litigation and from obtaining their employees' declarations, (Doc. 119), and Plaintiff's supplemental briefing requests a variety of additional relief. (Doc. 153). For the foregoing reasons, Plaintiff's motion will be granted in part and denied in part.

BACKGROUND

Plaintiff's complaint alleges Defendants failed to pay their employees overtime compensation and failed to keep employee records, in violation of the FLSA. (Doc. 1). Although discovery is closed,1 Defendants-apparently without notifying their counsel in this litigation-hired separate *953counsel, Mses. Pace and Sellers, who then began interviewing Defendants' employees, allegedly in connection with a company-wide, neutral human resources audit (the "audit"). According to Defendants, this audit was an appropriate administrative function of the company in that it sought employee input on a variety of matters including safety practices, anti-discrimination and anti-harassment policies, equipment, timekeeping, paid time off, and paid sick leave. During the audit, Defendants' employees were gathered together for interviews, following which employees were given declarations to sign. These declarations purportedly addressed the topics discussed in the interview: safety practices, anti-harassment/anti-discrimination, and, of significance here, timekeeping practices. (Doc. 124).

Plaintiff alleges Defendants subverted the administrative audit's alleged neutral purpose by using it to take from employees information about this lawsuit, specifically whether employees previously gave information to Plaintiff relevant to this case and, if so, the nature of the information provided. Plaintiff further alleges employees were not informed the interviews were voluntary, and that the declarations employees were asked to sign were to be used in this litigation as waivers of employees' claims to back-pay. As such, Plaintiff requested that this Court enjoin Defendants from continuing the audit.

The Court reviewed the parties' initial filings in connection with Plaintiff's motion and held a hearing on June 1, 2018. (Doc. 135). At that hearing, counsel for both parties surprisingly stated that neither of them had seen or reviewed the employee declarations that were the subject of Plaintiff's request for a preliminary injunction. Because the declarations' content was crucial to resolving Plaintiff's motion, the Court ordered Defendants to produce a random sampling of declarations for the Court's and Plaintiff's review. (Doc. 135).2 Defendants submitted the declarations on June 8, 2018, (Doc. 146), which the Court and Plaintiff reviewed.

There are three types of declarations, each concerning one of three subjects: safety, professional workplace conduct, and timekeeping/pay. The declarations were allegedly available in both English and Spanish, and interpreters were provided. Since only the timekeeping/pay declaration is relevant here, it will be discussed.

The timekeeping/pay declaration appears to follow two formats. Defendants do not explain the reasons for using one format as opposed to the other, but the primary difference between the two is temporal. Thus, the first declaration format is retrospective in that it asks employees to state, under penalty of perjury, that they "record all the hours [they] work on a timesheet," that they "do not work extra hours unless they are included on [the] timesheet," that "[n]o one has instructed [them] to underreport the hours [they] work," and, finally, that they "have been paid for all hours that [they] worked at the Company." (Doc. 146). This format is reproduced below:

*954DECLARATION OF

I, _______________________________, declare under penalty of perjury that the following is true and correct. If called to testify in Court about these matters, I could and would competently testify to the following:

1. I am over the age of 18 and a resident of ____________ County, Arizona.

2. I have personal knowledge of the matters stated in this Declaration.

3. I am a _________________________ with Austin Electric Services, LLC (the "Company").

4. I record all the hours I work on a timesheet that I complete and give to the Company each week. I do not work extra hours unless they are included on my timesheet.

5. I have never been told by anyone to not record the hours I work on my timesheet.

6. No one has instructed me to underreport the hours I work.

7. I understand that the Company requires employees to accurately record the hours they work each day.

8. I have been paid for all hours that I worked at the Company.

Dated this ____ day of___________, 2018.

Signature: ______________________

In some instances, however, employees made changes or additions to the retroactive declaration format that have some relevancy. (Docs. 146 at 61, 65; 159 at 4). For example, it is telling that one employee amended the retroactive declaration format with the words "[g]oing forward" so paragraph 4 read "Going forward, I record all the hours I work on a timesheet that I complete and give to the Company each week ...."

The second timekeeping/pay declaration format is forward-looking, and asks employees to state, under penalty of perjury, that they "will record all the hours [they] work on a timesheet," "will not work extra hours unless they are included on [the] timesheet," and will notify human resources or their field operations manager if someone instructs them to underreport their hours. Based upon the sample set of declarations Defendants produced, it appears this format was used far less frequently since, of the twenty-one timekeeping/pay declarations Defendants produced, only four were forward-looking. The forward-looking declaration format is shown below:

*955DECLARATION OF _______________________

I, __________________________________, declare under penalty of perjury that the following is true and correct. If called to testify in Court about these matters, I could and would competently testify to the following:

1. I am over the age of 18 and a resident of ______________ County, Arizona.

2. I have personal knowledge of the matters stated in this Declaration.

3. I am a ________________________ with Austin Electric Services, LLC (the "Company").

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R Alexander Acosta v. Austin Elec. Servs. LLC, 322 F. Supp. 3d 951 (D. Ariz. 2018).

322 F. Supp. 3d 951 (R Alexander Acosta v. Austin Elec. Servs. LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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