REYNOLDS v. CHESAPEAKE & DELAWARE BREWING HOLDINGS, LLC

District Court, E.D. Pennsylvania·Decided May 19, 2020·No. 2:19-cv-02184·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

CHRISTINA MARY REYNOLDS, : on behalf of herself and all others : CIVIL ACTION similarly situated : : No. 19-2184 v. : : CHESAPEAKE & DELAWARE : BREWING HOLDINGS, LLC, et al. :

MEMORANDUM Juan R. Sánchez, C.J. May 19, 2020 Plaintiff Christina Mary Reynolds, a former server at Iron Hill Brewery and Restaurant, alleges her former employers failed to pay her (and other servers) the minimum wage because they improperly calculated her pay using a tip credit for time she spent performing untipped side work. Reynolds brings this putative collective and class action against her former employers, alleging violations of the Fair Labor Standards Act (FLSA) and the Pennsylvania Minimum Wage Act (PMWA). Reynolds now moves to certify two classes. First, Reynolds moves for conditional collective certification of a federal class under the FLSA. See 29 U.S.C. § 216(b). Second, Reynolds moves for class certification of a PMWA class under Federal Rule of Civil Procedure 23. Because Reynolds has made a modest factual showing of a nexus between her and other servers, the Court will grant Reynolds’s motion and conditionally certify her FLSA class. However, because Reynolds has failed to show predominance of common questions for the PMWA class, the Court will deny her motion to certify the class. BACKGROUND Defendants Chesapeake & Delaware Brewing Holdings, LLC and Iron Hill Brewery, LLC own 16 restaurants doing business as Iron Hill Brewery & Restaurant. There are ten restaurants located in Pennsylvania and the rest are located in New Jersey, Delaware, and South Carolina. At each restaurant, Defendants employ servers to wait on customers, take orders, deliver food, and ensure customers enjoy their dining experience. Defendants consider servers to be front of house employees who receive tips directly from customers. Servers clock in and out of their shifts using Defendants’ Aloha time clock system. In the Aloha system, there is a job code for servers. Employees who clock in under the server job code

are paid an hourly rate of $2.83 per hour. Defendants then use a tip credit to make up the difference between the $2.83 hourly wage and the $7.25 minimum wage. The tips servers receive directly from customers are thus applied to their wages to ensure they are paid at least minimum wage. In addition to serving customers, servers at Iron Hill are required to perform “side work.” Servers are expected to perform side work during their shifts and are trained on how to complete side work tasks, including, but not limited to, cleaning, filling condiments and dressings, rolling silverware, bussing tables, refilling napkins and other products, preparing dressings and sauces, and running dishes. These tasks are disbursed amongst the working servers on each shift. The type of side work servers perform varies based on a particular shift. Defendants use “side work books”

to list the tasks servers must collectively complete at each location, designated by day, shift, and section of the restaurant. Although all servers are required to perform side work, Defendants do not track servers’ individual side work responsibilities. As a result, there is no record of what side work tasks were assigned to which servers, or how long a server spent performing the assigned tasks. Reynolds worked as a server at the Iron Hill restaurant in North Wales, Pennsylvania from January 17, 2019, until March 30, 2019. Reynolds spent 10 days training as a server in which she was paid $7.25 per hour. On February 8, 2019, Reynolds began working as a server and she was paid $2.83 per hour plus tips. Reynolds testified that throughout her tenure at Iron Hill, she was required to complete excessive amounts of side work. According to Reynolds, when working the opening shift, she was required to clock in before the restaurant opened and complete side work before she was assigned a table. During these shifts, Reynolds contends she completed side work from the time she clocked in until approximately 15 minutes after the restaurant opened while she waited to get her first table

assignment. Without a table assignment, Reynolds had no ability to earn a tip during this time. There were also times in the middle of her shift where she did not have any table assignments. During these “lulls,” Reynolds was required to complete side work tasks. At a certain point in her closing shift, Reynolds would get “cut” and would no longer receive new tables. Defs.’ App. A26–A27. Once Reynolds was cut, she would finish serving her assigned tables and perform side work. Reynolds contends she was often cut approximately two or three hours before she clocked out for her shift. When working a closing shift, Reynolds was required to complete side work after the restaurant was closed and she was no longer assigned a table. As a result, she had no ability to earn a tip during this time. Regardless of the amount of time

Reynolds spent performing side work, she was paid $2.83 per hour for every hour she worked while clocked in as a server. On May 20, 2019, Reynolds filed this class action Complaint against Defendants alleging violations of the FLSA because Defendants paid her and other servers less than minimum wage for hours in which she spent performing untipped side work. She asserts an identical claim under the PMWA. On February 5, 2020, Reynolds moved to conditionally certify a collective “FLSA Class” pursuant to the FLSA. Reynolds’s proposed collective FLSA Class is defined as: All servers who have worked for Chesapeake & Delaware Brewing Holdings, LLC and Iron Hill Brewery, LLC at any one or more of their Iron Hill Brewery & Restaurant locations at any point from May 20, 2016 through the present.

Reynolds also asks the Court to approve dissemination of notice to class members and direct Defendants to produce a list of contact information for servers employed within the class definition and paid using a tip credit. Reynolds also moves for class certification of a “PMWA Class” pursuant to Rule 23(a) and (b). The proposed PMWA Class is defined as: All current and former servers who have worked for Iron Hill Brewery & Restaurants in the Commonwealth of Pennsylvania during the statutory period covered by this Amended Complaint and who do not opt-out of this action.

Defendants oppose both motions. DISCUSSION Although collective actions behave in many ways like class actions, a collective action under the FLSA is fundamentally different from a class action under Federal Rule of Civil Procedure 23. See Halle v. West Penn Allegheny Health Sys. Inc., 842 F.3d 215, 223 (3d Cir. 2016). A complaint with FLSA collective action allegations thus does not give rise to Rule 23 class actions. See id. at 224. As a result, the Court will address each of Reynolds’s motions in turn. I. Conditional Collective Certification The Court will grant Reynolds’s motion for conditional collective certification because there is a factual nexus between her and other servers employed at Iron Hill. The FLSA provides that an action may be brought “by any one or more employees for and in behalf of himself or themselves and other employees similarly situated.” 29 U.S.C. § 216(b).

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REYNOLDS v. CHESAPEAKE & DELAWARE BREWING HOLDINGS, LLC, (E.D. Pa. 2020).

REYNOLDS v. CHESAPEAKE & DELAWARE BREWING HOLDINGS, LLC (REYNOLDS v. CHESAPEAKE & DELAWARE BREWING HOLDINGS, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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