Rorie v. WSP2, LLC

District Court, W.D. Arkansas·Decided October 19, 2020·No. 5:20-cv-05106·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT WESTERN DISTRICT OF ARKANSAS > FAYETTEVILLE DIVISION SAMUEL RORIE and JUSTIN BAKER, Each Individually and on Behalf of All Others Similarly Situated PLAINTIFFS V. CASE NO. 5:20-CV-5106 WSP2, LLC and JOSEPH CLAYTON SUTTLE DEFENDANTS MEMORANDUM OPINION AND ORDER Before the Court are Plaintiffs’ Motion for Conditional Certification of Collective Action, for Approval and Distribution of Notice, and for Disclosure of Contact Information (Doc. 27) and Brief in Support (Doc. 28); Defendants’ Response in Opposition (Doc. 29); and Plaintiffs’ Reply (Doc. 32). For the reasons below, Plaintiffs’ Motion (Doc. 27) is GRANTED IN PART AND DENIED IN PART. . BACKGROUND Plaintiffs Samuel Rorie and Justin Baker, on behalf of themselves and others similarly situated, move the Court for conditional certification of a collective action pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b). The FLSA is a federal statute governing minimum wages, maximum hours worked, and overtime compensation. The statute allows an action to 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). This type of lawsuit requires that each potential plaintiff “opt in,” or “give his consent in writing to become such a party” to a collective claim for unpaid wages. /d. The Amended Complaint alleges that Mr. Rorie and Mr. Baker are former servers who were employed by Defendants WSP2, LLC, and Joseph Clayton Suttle at a

restaurant called Woodstone Pizza in Fayetteville, Arkansas, from approximately January 2018 to June 2020. WSP2, LLC operates one Woodstone Pizza location described by the parties as the “uptown” location. There is also a “downtown” location, but it is not owned by WSP2, LLC. The Amended Complaint does not contain any facts to indicate that separate Defendant Suttle is an employer (for FLSA purposes) at both the “uptown” and “downtown” locations of Woodstone Pizza. Instead, the Amended Complaint describes Mr. Suttle only in relation to his role “as an operating employer of WSP2’— which the parties agree owns only the “uptown” location. (Doc. 11, p. 3)." According to the affidavits submitted by Mr. Rorie and Mr. Baker in support of the Motion for Conditional Certification, Mr. Rorie worked at the “uptown” location, and Mr. Baker worked at both the “uptown” and “downtown” locations of Woodstone Pizza. See Docs. 27-7, p. 1; 27-8, p. 1. Both Plaintiffs contend that the Defendants violated the FLSA by failing to pay them and their fellow servers appropriate minimum wages. In particular, Plaintiffs claim the servers were not adequately paid for the time they spent performing non-tipped work. They also claim the Defendants improperly pooled and then withheld the servers’ tips. They ask the Court to conditionally certify an FLSA class of “[a]ll servers employed by WSP2, LLC and Joseph Clayton Suttle, d/b/a Woodstone Pizza, at any time since June 17, 2017.” (Doc. 27-1, Proposed Notice).

1 At the Case Management Hearing on August 18, 2020, the Court inquired of Defendants’ counsel whether WSP2, LLC was “just one restaurant,” and counsel responded, “Yes, Your Honor. It’s the restaurant on the north side of town’—in other words, the “uptown” location. Then, when the Court asked Plaintiffs’ counsel whether he believed discovery should be bifurcated in this case, he said, “No, Your Honor. And especially not where we will be moving for class [certification] at just this one location.”

Given that Plaintiffs’ counsel previously represented to the Court that he would only be seeking conditional certification of a class of current or former servers at the “uptown” location owned by WSP2, LLC, the Court was surprised to learn for the first time in the brief in support of conditional certification that Plaintiffs now claim they “represent a class of employees who worked as servers for Defendants at two restaurants during the relevant period.” (Doc. 28, p. 8) (emphasis added). The Amended Complaint did not give clear notice to the Defendants that collective claims were being asserted on behalf of servers at both the “uptown” location owned by WSP2, LLC, and the “downtown” location not owned by WSP2, LLC. Further, since Plaintiffs’ counsel confirmed during the Case Management Hearing that class certification would be sought as to “just . . . one location,” it seems likely that Defendants were lulled into believing that Plaintiffs’ motion for conditional certification would be limited to a class of servers working at the “uptown” location. Plaintiffs’ reply brief, however, argues that the “downtown” location’s servers should also be included in the class because Mr. Suttle “owns both the downtown and uptown locations,” (Doc. 32, p. 2)—a fact that was never alleged in the Amended Complaint. After considering the above facts and the parties’ arguments, the Court is not inclined to conditionally certify a collective action that includes servers from both Woodstone Pizza locations. The owner of the “downtown” location is not named in the lawsuit. Moreover, the Amended Complaint explains that Mr. Suttle is only liable as an employer due to his role as owner and operator of WSP2, LLC—and no other entity. See, e.g., Doc. 11, pp. 3-4 (describing Mr. Suttle’s “role as an operating employer of WSP2” and his position as “a principal, director, officer, and/or owner of WSP2” and claiming,

therefore, that he is “the employer of Plaintiffs and the collective”). Accordingly, the Court finds that any collective action that is conditionally certified will be limited to those servers who worked at the “uptown” location of Woodstone Pizza during the relevant time period. Defendants offer two substantive objections to Plaintiffs’ Motion for Conditional Certification. First, they argue that Plaintiffs have not sufficiently established that other individuals may be interested in joining the collective action. Second, they argue that one aspect of Plaintiffs’ claim for unpaid minimum wages is without legal basis. They encourage the Court to “take this opportunity” to not only review the conditional certification motion, but also “review the facts of the allegations related to tip pooling, and recognizing that the practices complained of are permitted by 29 U.S.C. § 203(m)(2), not permit any notice to any putative plaintiff to reference any allegation of unlawful tip pooling.” (Doc. 29, pp. 1-2). In addition, Defendants object to the proposed form of the notice and consent documents. Below, the Court will address the legal standard that applies when evaluating a motion for conditional certification and then consider Defendants’ objections to conditional certification and to the form of the notice and consent documents. ll. LEGAL STANDARD The Eighth Circuit has not yet announced standards that district courts must use in evaluating collective actions pursuant to the FLSA. Resendiz-Ramirez v. P&H Forestry, LLC, 515 F. Supp. 2d 937, 940 (W.D. Ark. 2007). In the absence of such guidance, numerous district courts in this Circuit, including this Court, have approved of the procedures announced in the Fifth Circuit case of Mooney v. Aramco Services Co., which establishes a two-step process for certifying a collective action. 4 F.3d 1207, 1212

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