Robinson v. Maricopa County Special Health Care District

District Court, D. Arizona·Decided September 30, 2023·No. 2:22-cv-00943·Unknown

Opinion

WO

Maria Robinson, No. CV-22-00943-PHX-DWL

Plaintiff, ORDER

v.

Maricopa County Special Health Care District, Defendant. Pending before the Court is Plaintiff’s motion for conditional certification of a collective action under the Fair Labor Standards Act (“FLSA”). (Doc. 33.) For the following reasons, the motion is granted. On June 1, 2022, Plaintiff initiated this action. (Doc. 1.) On February 21, 2023, after a series of amendments, Plaintiff filed her operative pleading, the third amended complaint (“TAC”). (Doc. 31.) The TAC alleges as follows. From October 2021 to February 2022, Plaintiff was employed by Defendant Maricopa County Special Health Care District d/b/a Valleywise Health. (Id. ¶ 16.) Defendant uses timekeeping software and hardware operated and maintained by a nonparty entity called Kronos. (Id. ¶ 35.) “On or about December 11, 2021, Kronos suffered a disruption in service due to a ransomware attack,” causing a “service outage” that affected Defendant and “many other organizations across the United States.” (Id. ¶¶ 1, 36.) “For at least a portion of time following the Kronos outage, [Defendant] failed to keep accurate track of the hours” worked by Plaintiff and other employees and instead “estimated the number of hours” worked, including by “duplicat[ing] paychecks from pay periods prior to the Kronos outage.” (Id. ¶¶ 38-40.) “As a result of [Defendant’s] failure to accurately track the actual hours worked each week, employees who were non-exempt,” including Plaintiff, “were in many cases paid less than the hours they worked in the workweek, resulting in a failure to pay minimum wages and/or overtime hours.” (Id. ¶¶ 41-44.) “Instead of paying [Plaintiff] for the hours she actually worked, including minimum wages, [Defendant] simply paid based on estimates of time or pay, or based upon arbitrary considerations other than [Plaintiff’s] actual hours worked and regular pay rates, in multiple workweeks.” (Id. ¶ 45, emphasis omitted.) Plaintiff alleges that “[i]t was feasible” for Defendant to “have its employees and managers report accurate hours so they could be timely paid the full and correct amounts of money they were owed,” but Defendant “chose not to do that.” (Id. ¶¶ 56-57.) On the same day she filed the TAC, Plaintiff filed the pending motion for conditional certification. (Doc. 33.) There, Plaintiff asserts that Defendant “claims it found out about the outage on December 12, 2021, and had its access to Kronos restored on January 19, 2022,” such that “the outage affected at least three pay periods”—the pay period beginning November 28, 2021 (PP #25), the pay period beginning December 12, 2021 (PP #26), and the pay period beginning December 26, 2021 (PP #1). (Id. at 2.) Plaintiff further asserts that Defendant “adopted uniform policies” as to how to handle paying its employees during the outage. (Id.) Specifically, Defendant “took the preceding pay period, PP #24, which began on November 14, 2021, and contained the Thanksgiving holiday, and duplicated it for at least each of pay periods numbered 25 and 26,” even though Defendant “knew and acknowledged that the amounts that workers were paid ‘may not be reflective of the actual work performed during [each] pay period.’” (Id. at 2-3.) Plaintiff further asserts that Defendant promised that once Kronos was able to provide data for hours worked during the service outage, Defendant would “pay what [they] have underpaid” by September 30, 2022—many months after the pay periods at issue. (Id. at 3.) On March 7, 2023, Defendant filed an answer to the TAC. (Doc. 38.) In its answer, Defendant states, inter alia, that it “used alternative methods other than Kronos-based systems to accurately determine the number of hours and wages for its employees during the Kronos outage including, but not limited to, using prior pay periods to estimate hours and wages” and adds that it “requir[ed] employees to manually track and submit any additional hours that the employees worked.” (Id. ¶ 40.) On March 14, 2023, Defendant filed a response opposing Plaintiff’s motion for conditional certification. (Doc. 39.) On March 28, 2023, Plaintiff filed a reply. (Doc. 45.) On August 9, 2023, Plaintiff submitted a notice of supplemental authority, attaching a decision from the Western District of Arkansas that was issued after the conditional certification motion became fully briefed. (Doc. 52.) On August 14, 2023, Defendant filed a response to the notice of supplemental authority. (Doc. 53.) On September 27, 2023, the Court issued a tentative decision. (Doc. 55.) On September 29, 2023, the Court heard oral argument. (Doc. 56.) I. Legal Standard The FLSA provides “similarly situated” employees with the “right” to bring a collective action against their employer:

An action . . . may be maintained against any employer . . . by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought. . . . The right . . . to bring an action by or on behalf of any employee, and the right of any employee to become a party plaintiff to any such action, shall terminate upon the filing of a complaint by the Secretary of Labor . . . . 29 U.S.C. § 216(b). The seminal Ninth Circuit case regarding FLSA collective actions is Campbell v. City of Los Angeles, 903 F.3d 1090 (9th Cir. 2018). In Campbell, the Ninth Circuit explained that, under § 216(b), “workers may litigate jointly if they (1) claim a violation of the FLSA, (2) are ‘similarly situated,’ and (3) affirmatively opt in to the joint litigation, in writing.” Id. at 1100. The court further explained that this right “has two permutations”: (1) “[t]he right . . . to bring an action by or on behalf of any employee”; and (2) “the right of any employee to become a party plaintiff to any such action”—“that is, the right to bring the collective litigation and the right to join it.” Id. Turning to the procedures and standards governing FLSA collective actions, the Campbell court noted that a judicially-crafted “two-step ‘certification’ process” had become “near-universal” and therefore chose to “adhere” to the terms “preliminary certification” and “decertification” in the FLSA context because they are “widespread,” with the caveat that adherence to this terminology does not “imply that there should be any particular procedural parallels between collective and class actions.” Id. at 1100-02. The court further clarified that, under the two-step certification process, “plaintiffs will, at some point around the pleading stage, move for ‘preliminary certification’ of the collective action, contending that they have at least facially satisfied the ‘similarly situated’ requirement,” and then “[l]ater, after the necessary discovery is complete, defendants will move for ‘decertification’ of the collective action on the theory that the plaintiffs’ status as ‘similarly situated’ was not borne out by the fully developed record.” Id. at 1100. Although the court acknowledged that both steps involve evaluating whether the plaintiffs are “similarly situated,” it emphasized that courts apply different standards at each step:

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Robinson v. Maricopa County Special Health Care District, (D. Ariz. 2023).

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