Rosa Romero v. Razzle Dazzle Barbershop, Inc.

Court of Appeals for the Eleventh Circuit·Decided October 29, 2019·No. 18-12689·Unpublished

Opinion

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 18-12689

Non-Argument Calendar

D.C. Docket No. 1:16-cv-24873-AOR

ROSA ROMERO, and other similarly situated individuals, LUIS MATEO, and other similarly situated individuals,

Plaintiffs-Appellants,

versus

RAZZLE DAZZLE BARBERSHOP, INC., a Florida Profit Corporation, RAZZLEDAZZLE BARBERSHOP II, INC., a Florida Profit Corporation, RAZZLEDAZZLE BARBERSHOP MIDTOWN, LLC., a Florida Profit Corporation, RAZZLEDAZZLE BARBERSHOP SOBE, LLC., a Florida Profit Corporation, RAZZLEDAZZLE BARBERSHOP SOMI, LLC., a Florida Profit Corporation, ELENA LINARES,

Defendants-Appellees.

Appeal from the United States District Court for the Southern District of Florida

(October 29, 2019)

Before MARCUS, ROSENBAUM, and GRANT, Circuit Judges. PER CURIAM:

Rosa Romero and Luis Mateo sued their former employer for unpaid wages under the Fair Labor Standards Act (FLSA). Specifically, they alleged that they were misclassified as independent contractors and that overtime wages were unlawfully withheld. At trial, the jury found that they were independent contractors. In this appeal, the plaintiffs argue that the district court improperly denied their motions for judgment notwithstanding the verdict, for a new trial, and for a mistrial.1 We disagree, and affirm.

I.

Rosa Romero and Luis Mateo worked as barbers for the defendants—Elena Linares and several of her “Razzle Dazzle” barbershops (collectively “Razzle Dazzle”). The barbers allege that, over a period of employment, they worked in excess of forty hours per week and did not receive the additional overtime pay that they were entitled to under FLSA. In Razzle Dazzle’s view, however, the barbers

1 The appellees (defendants below) failed to submit a brief on appeal.

were not entitled to overtime pay because they were independent contractors and were therefore exempt from the overtime provisions of FLSA.

With the consent of both parties, the case was tried before a magistrate judge. Both parties presented evidence to the jury concerning employment status. The barbers introduced confidentiality and non-compete agreements describing them as “employees.” In Romero’s agreement, one clause explains that the barbershop invests approximately $600 to train new barbers, and that a pro-rated portion of the investment must be repaid if the new-hire leaves within six months. The barbers also introduced a “staff manual” detailing a dress code, attendance policy, and description of various job-related duties such as dusting. The staff manual contains a variety of workplace rules and states that there is “no need” for a barber to encourage customers to return “just for them.” Id. The barbers testified that they did not set their own schedule, were not allowed to choose what hair products to use, and were required to wear specific uniforms.

Elina Linares, the owner of Razzle Dazzle, provided conflicting testimony.

She testified that the barbers set their own schedules, wore what they wanted, and were free to choose the hair products they used on their clients. She also testified that the barbers could set their own price for services, and sometimes chose to give haircuts for free. She testified that the barbers were free to provide services to others as long as it was outside of the radius specified in the noncompete

agreement, and that at least one of her barbers built his own customer base at her shop and would not share his clients with other barbers. Finally, she also explained that the barbers provided their own clippers, blow dryers, combs, scissors, and other barbering equipment.

At one point during the trial, Linares testified that, in 2015, she learned about an investigation into her business by the State of Florida’s Division of Workers’ Compensation. Her testimony about this incident on direct examination was brief and her most relevant statement was that she never received anything in writing indicating that she violated the law or misclassified her employees. On cross-examination, the barbers’ counsel pointed out that nine months earlier, at her deposition, she testified that the investigation was conducted by the Department of Labor—not the State of Florida’s Division of Workers’ Compensation. Linares explained that she was mistaken about the name of the agency at the time of the deposition and only learned of the correct name when she found a business card shortly before trial. Counsel continued to inquire about this investigation and, in the course of the cross-examination, revealed details to the jury about the investigation and the agency’s ultimate finding in favor of Linares.

Following this cross-examination, the barbers moved for a mistrial. They argued that Razzle Dazzle’s counsel should have immediately divulged the correct name of the agency when he learned of it three days earlier and that it was

improper for the jury to hear about the investigation. The judge denied the motion and said that the investigation was “a totally collateral issue,” not a “major issue in the case.”

The case was submitted to the jury, and it returned a verdict in favor of Razzle Dazzle. On the verdict form, the jury found that Rosa Romero and Luis Mateo were not employees of Elena Linares or the Razzle Dazzle Barbershops. Although the barbers never moved for judgment as a matter of law before the verdict was returned, they moved for a judgment notwithstanding the verdict on the issue of employment status or, in the alternative, for a new trial. The district court denied these motions.

On appeal, the barbers challenge the district court’s denial of the motion for judgment notwithstanding the verdict and denial of the motion for a new trial.

II.

A motion for “judgment notwithstanding the verdict” is properly called a renewed motion for “judgment as a matter of law” under Fed. R. Civ. P. 50(b). See Amendments to the Federal Rules of Civil Procedure, 134 F.R.D. 525, 679–82 (1991). Generally, a district court may grant such a motion only on the grounds advanced in a motion for judgment as a matter of law under Rule 50(a)—made before the case was submitted to the jury. McGinnis v. Am. Home Mortg. Servicing, Inc., 817 F.3d 1241, 1260 (11th Cir. 2016). If a party fails to file a

motion under Rule 50(a) before the case is submitted to the jury, the “renewed” motion under Rule 50(b) can only be granted if plain error is shown. Id. at 1260 n.13. In such cases, on appeal “our inquiry is limited to whether there was any evidence to support the jury’s verdict, irrespective of its sufficiency, or whether plain error was noted which, if not noticed, would result in a manifest miscarriage of justice.” Sims’ Crane Serv., Inc. v. Ideal Steel Prod., Inc., 800 F.2d 1553, 1557 (11th Cir. 1986).

“Absent an abuse of discretion, the district court’s disposition of a motion for a new trial will not be disturbed on appeal, especially when that disposition was to deny the motion.” Ermini v. Scott, ___ F.3d ___, No. 18-11220, slip op. at 13 n.4 (11th Cir. Sept. 10, 2019). A district court’s decision not to grant a mistrial is also reviewed for abuse of discretion. Frederick v. Kirby Tankships, Inc., 205 F.3d 1277, 1285 (11th Cir. 2000).

III.

A.

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