Rael v. Q3 Contracting, Inc.

CourtDistrict Court, D. Minnesota
DecidedJuly 30, 2024
Docket0:23-cv-03720
StatusUnknown

This text of Rael v. Q3 Contracting, Inc. (Rael v. Q3 Contracting, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rael v. Q3 Contracting, Inc., (mnd 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Richard Rael, Case No. 23-CV-03720 (JMB/DJF)

Plaintiff,

v. ORDER

Q3 Contracting, Inc.,

Defendant.

Michele R. Fisher, Nichols Kaster PLLP, Minneapolis, MN; Richard Burch, pro hac vice, Bruckner Burch PLLC, Houston, TX; Michael Josephson, pro hac vice and Richard M. Schreiber, pro hac vice, Josephson Dunlap LLP, Houston, TX; for Plaintiff Richard Rael. Gina K. Janeiro and Jennell K. Shannon, Jackson Lewis P.C., Minneapolis, MN; Melisa H. Panagakos, pro hac vice, Jackson Lewis, P.C. Denver, CO; Allan S. Rubin, Jackson Lewis, P.C., Southfield, MI; for Defendant Q3 Contracting, Inc.

This matter is before the Court on Defendant Q3 Contracting, Inc.’s (Q3C) motion to dismiss Plaintiff Richard Rael’s Complaint. In the Complaint, Rael alleges that Q3C, his former employer, violated the Fair Labor Standards Act (FLSA) and Colorado Wage Collection Act (CWCA) by failing to pay certain overtime and regular wages for time spent conducting required safety inspections on a company vehicle and commuting to job sites, among other things. For the reasons discussed below, the Court grants Q3C’s motion in part, and denies it in part. BACKGROUND Q3C is a “full-service construction provider” in energy, traffic, and other specialty industries. (Doc. No. 1 [hereinafter “Compl.”] ¶ 55.) Q3C operates throughout the country with a “highly mobile workforce” of more than 1,500 employees, and has “[m]ajor operations centers in St. Paul, Minnesota, and Denver, Colorado.” (Id. ¶ 55 & n.1.)

From March 2023 through July 2023, Q3C employed Rael as a utility locator “in and around Denver, Colorado.” (Id. ¶¶ 22, 62.) Utility locators provide underground utility-locating services to Q3C’s clients, which services include identifying whether a utility location conflicts with proposed excavation locations. (Id. ¶¶ 56, 64.) Utility locators use company vehicles to travel to and from their “tickets,” or various inspection locations, throughout their workdays. (See, e.g., id. ¶ 71.) Q3C monitors its utility

locators’ workflow throughout the day via its company-wide ticketing system. (Id. ¶ 106.) Q3C maintains GPS tracking devices on its company vehicles to monitor its employees’ movement and locations. (Id. ¶ 107.) Q3C classifies Rael and its other utility locators as “non-exempt” under both the FLSA and CWCA (i.e., not-exempt from the requirement to pay overtime for hours worked) and paid him on an hourly basis. (Id. ¶¶ 23, 57.)

In connection with his use of his company vehicle, Rael was required by Q3C and the U.S. Department of Transportation to perform two fifteen-minute vehicle inspections per day; once before commuting to his first ticket of the day, and once after commuting home after his last ticket of the day. (Id. ¶ 71; see also id. ¶¶ 90, 91, 104.) The Complaint alleges that these vehicle inspections include the following tasks: “walking around the

vehicle and conducting a visual inspection, checking the undercarriage, checking the brakes, checking the oil, checking the tires, checking all mirrors, and ensuring the lights and horn function properly.” (Id. ¶ 91.) According to company policy, Rael and other utility locators must provide “weekly reports to Q3C confirming they completed their mandatory pre- and post-shift vehicle inspections every shift they worked.” (Id. ¶ 105.) Rael also alleges that utility locators signed “Vehicle Agreements” related to their use and

maintenance of Q3C’s vehicles. (Id. ¶ 104.) Q3C applies a uniform “ticket to ticket” timekeeping policy to all utility locators. (Id. ¶¶ 60, 61, 68, 82.) Under this policy, utility locators may not clock in until they arrive at their first ticket location, and they must clock out before their commute home from their final ticket location of the day. (Id. ¶¶ 71–73, 88.) In other words, utility locators cannot be clocked in during the required vehicle inspections or during their commutes to and from

home at the start and end of each workday. (See id.) The Complaint alleges that Rael’s commutes to his first-assigned and last-assigned tickets of the day, together, averaged approximately one to two hours per day, or four to ten hours per week. (Id. ¶ 73.) Completion of the twice daily vehicle inspections added an additional thirty minutes to the workday, amounting to between two-and-a-half and three hours per week. (Id. ¶ 72.) The

Complaint also alleges that the time Rael spent commuting and conducting pre- and post- commute vehicle inspections were “primarily for the benefit of Q3C’s business.” (See id. ¶¶ 94, 95, 102, 181, 186, 231.) Q3C’s timekeeping policy also requires utility locators to clock out for thirty minutes each day for a meal break. (Id. ¶¶ 76, 114.) In fact, utility locators’ timesheets

will not be approved unless they reflect these meal-time clock-outs. (Id. ¶ 116.) Because of Q3C’s strict productivity requirements, Rael and other utility locators routinely perform utility-location work during these meal breaks, including “completing tickets, driving from one ticket to another, taking/making calls to Q3C’s clients, and/or route planning.” (Id. ¶¶ 78, 120, 123.) These unpaid meal breaks amount to up to two-and-a-half hours per week. (See id. ¶¶ 76, 105.) Altogether, the Complaint alleges that, while employed at

Q3C, Rael typically worked about sixty hours per week—around fifty “on the clock,” and another ten hours, comprising overtime, unpaid and “off the clock.” (Id. ¶¶ 67, 80.) On December 4, 2023, Rael filed his three-count Complaint against Q3C, in which he claims that Q3C violated the FLSA by failing to pay required overtime wages for time spent conducting vehicle inspections, commuting to and from the first and last tickets of the day, and for performing work during unpaid meal breaks (Count I). Rael also claims

that Q3C violated the CWCA by failing to pay required overtime wages (Count II) and regular wages (Count III) for time spent conducting vehicle inspections, commuting to and from the first and last tickets of the day, and for performing work during unpaid meal breaks. Rael purports to bring these claims on behalf of himself, an FLSA collective class, and an FLSA Colorado class. (Id. ¶¶ 35–38, 132–63.)

DISCUSSION Q3C now moves for partial dismissal of Rael’s claims, arguing that, to the extent Rael alleges that time spent on vehicle inspections and home-and-back commutes are compensable under the FLSA and CWCA, they fail as a matter of law because the tasks Rael alleges that he performed are not compensable under either statutory scheme.1

1 Q3C does not move to dismiss any portion of Rael’s claims related to any unpaid overtime or regular wages related to work allegedly performed during unpaid meal breaks. When reviewing a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court considers all facts alleged in the complaint to be true and then

determines whether they state a “claim to relief that is plausible on its face.” Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 594 (8th Cir. 2009) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). A pleading has facial plausibility when its factual allegations “allow[] the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. In this analysis, the Court construes the allegations and draws inferences from them in the light most favorable to the plaintiff.

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