Rindfleisch v. Gentiva Health Services, Inc.

24 F. Supp. 3d 1234, 2013 U.S. Dist. LEXIS 187897, 2013 WL 8541675
District Court, N.D. Georgia·Decided November 4, 2013·No. Civil Action No. 1:10-cv-03288-SCJ·Published·Cited by 6 cases

Opinion

ORDER

STEVE C. JONES, District Judge.

This matter is before the Court on Gen-tiva Health Services, Inc.’s (“Gentiva”) Motion to Amend and Certify the Court’s July 26, 2013 Order for Interlocutory Appeal [Doc. No. 634], For the reasons explained in this order, Gentiva’s motion is DENIED.

1. FACTUAL AND PROCEDURAL BACKGROUND

Gentiva provides home healthcare services to patients throughout the United States [Doc. No. 508, l].1 To provide these services, Gentiva employs registered nurses and physical or occupational therapists to provide in-home healthcare to Gentiva’s patients (collectively “Clinicians”) [id.]. Since December of 2008, Gentiva has paid the majority of its Clinicians on a pay per-visit plan (the “PPV Plan”) [Doc. No. 586, 4-5]. Under the PPV Plan, Clinicians are paid a set fee for a “routine visit” to a patient’s home (“visit fees”) [id. at 14]. These visit fees do not vary based on the time it takes Clinicians to complete a specific in-home visit [id. at 15]. In addition, Clinicians under the PPV Plan are also paid on what Gentiva describes as a “flat rate” for non-visit related work (“non-visit fees.”) [id. at 19]. In setting the amount of non-visit fees, Gentiva factors in the amount of time it takes Clinicians to perform a specific non-visit related activity [id.].

Gentiva, believing the PPV Plan constituted a “fee basis” payment, classified all of its Clinicians compensated under the PPV Plan as professional employees exempt from overtime compensation under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq. [id. at 10].

On May 10, 2010, former Clinicians Lisa' Rindfleisch, Tiffany Melendez, Michelle Gentile, Laurie Baker, and Christina Nelmes (collectively “named plaintiffs”) filed this action, on behalf of themselves and other similarly situated individuals, against Gentiva seeking overtime wages under the FLSA [Doc. No. 1, l].2 In sup[1236]*1236port of their FLSA claim, named plaintiffs assert that the PPV Plan, because the amount of the hon-visit fees incorporates the time it takes Clinicians to complete a specific non-visit related activity, constitutes payment on both a fee basis and hourly basis [Doc. No. 502-1, 12-14]. Based on this allegation, named plaintiffs assert that the PPV Plan is a “hybrid compensation system” and, therefore, is not a valid fee basis payment that would exempt them or other Clinicians from receiving overtime pay [id.]. Therefore, named plaintiffs assert that Gentiva owes all former and current Clinicians paid under the PPV Plan overtime compensation under the FLSA [Doc. No. 1, 22]. On April' 13, 2011, this action was conditionally certified as a collective action under the FLSA, with the class consisting of all Clinicians employed three years prior to April 13, 2011 [Doc. No. 167,11-13].

On May 26, 2011, in order to expedite this proceeding, the undersigned entered an order (the “May 26th Order”) bifurcating this case into a liability phase and a damages phase [Doc. No. 194, 6]. At the close of the liability phase, both Plaintiffs and Gentiva filed dueling motions for partial summary judgment regarding the legality of the PPV Plan [Doc. No. 502, 1; Doc. No. 512, 1], On July 26, 2013, the undersigned entered an order (the “July 26th Order”) granting Plaintiffs motion for partial summary judgment and denying Gentiva’s motion for partial summary judgment [Doc. No. 631, 31]. Specifically, the July 26th Order articulates the undersigned’s determination that “Gentiva’s non-visit fees under the PPV Plan do not satisfy the salary basis test under 29 C.F.R. § 541.605, nor do they constitute extra payments under either subsection of 29 C.F.R. § 541.604” [id. at 28-29], As a result of the July 26th Order’s determination regarding the legality of the PPV Plan, this action has moved into the damages phase specified in the May 26th Order.

Gentiva filed its motion to amend the July 26th Order for interlocutory appeal on August 23, 2013 [Doc. No. 634, 30], In its motion, Gentiva requests that this Court certify for interlocutory appeal the issue of whether the non-visit fees under the PPV Plan constitute an extra payment under either subsection (a) or (b) of 29 C.F.R. § 541.604 [id. at 8-10].3 Additionally, Gentiva’s motion • requests “that all proceedings in this Court, .or alternatively, all damages discovery, be stayed pending disposition of any interlocutory appeal” [id. at 29]. Plaintiffs filed a response opposing this motion on September 6, 2013 [Doc. No. 636, 20]. Gentiva subsequently filed a reply in support of its motion seeking interlocutory appeal on September 23, 2013 [Doc. No. 637, 20]. Below, as it is ripe for adjudication, the Court addresses Gentiva’s motion to amend the July 26th Order for interlocutory appeal.

II. GENTIVA’S MOTION TO AMEND AND CERTIFY THE JULY 26TH ORDER FOR INTERLOCUTORY APPEAL

A. Legal Standard

28 U.S.C. § 1292(b) provides that a district court may certify an order for interlocutory appeal if the following three elements are. met: 1. the subject order “involves a controlling question of law;” 2. there must be a “substantial ground for difference of opinion” regarding the controlling question of law; and 3. an immedi[1237]*1237ate appeal from the subject order “may materially advance the ultimate termination of the litigation.” However, “[t]he proper division of labor between the district courts and the court of appeals and the efficiency of judicial resolution of cases are protected by the final judgment rule, and are threatened by too expansive use of the § 1292(b) exception to it.” McFarlin v. Conseco Servs., LLC, 381 F.3d 1251, 1259 (11th Cir.2004). Therefore, an interlocutory appeal under 28 U.S.C. § 1292(b) is reserved for “exceptional” cases. Caterpillar, Inc. v. Lewis, 519 U.S. 61, 74, 117 S.Ct. 467, 136 L.Ed.2d 437 (1996).

B. Discussion

In its motion* Gentiva argues that this Court should certify for interlocutory appeal the following legal questions: 1. whether subsection (a) of 29 C.F.R. § 541.604 only allows “extra” compensation for hours outside an employee’s normal workweek; and 2. whether a hypothetical compensation structure can be used to determine if the reasonable test under subsection (b) of 29 C.F.R. § 541.604 is satisfied.

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Rindfleisch v. Gentiva Health Services, Inc., 24 F. Supp. 3d 1234, 2013 U.S. Dist. LEXIS 187897, 2013 WL 8541675 (N.D. Ga. 2013).

24 F. Supp. 3d 1234 (Rindfleisch v. Gentiva Health Services, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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