Rose v. Consolidated Electrical Distributors, Inc.

816 F. Supp. 489, 1993 WL 92257
CourtDistrict Court, N.D. Illinois
DecidedMarch 24, 1993
DocketNo. 93 C 1386
StatusPublished

This text of 816 F. Supp. 489 (Rose v. Consolidated Electrical Distributors, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose v. Consolidated Electrical Distributors, Inc., 816 F. Supp. 489, 1993 WL 92257 (N.D. Ill. 1993).

Opinion

MEMORANDUM AND ORDER

LINDBERG, District Judge.

Plaintiff has filed a complaint alleging violations by defendant of the Fair Labor Standards Act (FLSA). 29 U.S.C. §§ 201, et seq. Before the court is plaintiffs motion for a preliminary injunction. Plaintiff:

[Rjequests this Court to:
A. Enter an immediate order restraining Defendant and/or the USDOL from distributing or soliciting any additional “Receipt for Payment of Back Wages” which contain release and waiver language as appears on Exhibit A;
B. Enter an additional and immediate order restraining Defendant and or the USDOL from accepting or processing any additional “Receipt” which is received from an other employee;
C. Declare any such “Receipt” already received and processed by Defendant and the USDOL as null and void with respect to the waiver and release language contained therein, or in the alternative, set an immediate briefing schedule on that issue; and
D. For such other relief as the Court deems appropriate under the circumstances.

Plaintiff states the facts that led to this motion for a preliminary injunction as follows:

4. The USDOL [United States Department of Labor] and CED [defendant] have apparently reached an agreement with respect to certain employees’ back wages. In fact, on or about March 17,1993, named Plaintiff herein received by certificate [sic] mail a “Receipt for Payment of Back Wages.”
[490]*4905. Also received by ROSE via the same certified mailing was a draft in the amount of $3,102.44, allegedly representing back wages due and owing ROSE. The Defendant employer’s branch manager, “Ray”, enclosed personal directions to ROSE to “sign and fill in where marked (x). and return to me.”-

6. The “Receipt” offered by the US-DOL and Defendant included, in classic “small print”, release language which purports to waive an employee’s remaining relief under the F.L.S.A. Specifically, said small print is as follows:

NOTICE TO EMPLOYEE — your acceptance of back wages due under the Fair Labor Standards Act means that you have given up any right you may have to bring suit for such back wages under that Section 16(b) of that Act. Section 16(b) provides that an employee may bring suit on his/her own behalf for unpaid minimum wages and or overtime compensation and an equal amount as liquidated damages plus attorney’s fees and court costs. Generally, a 2-year statute of limitations applies to the recovery of back wages. Do not sign this report unless you have actually received payment of the back wages due.

There are numerous difficulties with plaintiffs request for a preliminary injunction. Before stating these specifically, there are certain facts that must be noted.

These facts are that (1) at this time, the only party plaintiff is the individual Steven N. Rose; (2) at this time, the only party defendant is Consolidated Electrical Distributors, Inc.; and (3) the statute applicable to the claims made in this action contains a provision stating in part:

The Secretary [of Labor] is authorized to supervise the payment of the unpaid minimum wages or the unpaid overtime compensation owing to any employee or employees under section 206 or section 207 of this title, and the agreement of any employee to accept such payment shall upon payment in full constitute a waiver by such employee of any right he may have under subsection (b) of this section to such unpaid minimum wages or unpaid overtime compensation and an additional equal amount as liquidated damages.

29 U.S.C.A. § 216(c) (West 1992 Supp.); see also 29 U.S.C.A. § 203(q) (West 1978) (“ ‘Secretary’ means the Secretary of Labor.”). The difficulties with plaintiffs motion may now be stated.

First and foremost, plaintiff is asking this court to restrain precisely what the applicable statute says the Secretary is authorized to do, “supervise the payment of the unpaid minimum wages or the unpaid compensation owing to any employee or employees under section 206 or section 207,” because he does not like the statutory consequence that “the agreement of any employee to accept such payment shall upon payment in full constitute a waiver by such employee of any right he may have under subsection (b) ... to such unpaid minimum wages or unpaid overtime compensation and an additional equal amount as liquidated damages.” 29 U.S.C.A. § 216(c) (West 1992 Supp.). The statute provides an incentive for employers to pay what they owe their employees under the supervision of the Secretary, that incentive being avoidance of additional liability to which the employer would be subject if sued by the Secretary or individual employees. The statute also gives the employees a choice; they may take the money immediately and forego their rights to additional damages, or they may forego the immediate money and pursue their rights to additional damages. From the motion for preliminary injunction, it is apparent that the statute is being followed in this case and that this is precisely what plaintiff seeks to prevent. Second, what plaintiff is asking would require a preliminary injunction not directed at defendant and binding on the USDOL as a “person[ ] in active concert or participation with” defendant, but rather directly against a non-party, the Secretary. See FRCP 65(d). Third, plaintiff is seeking to enforce the rights of non-parties who are potential members of a class that is not yet in existence. His standing to do so is questionable; whether all, most, or even a handful would want him to do so is open to question since what he seeks would deny them the opportunity to choose an immediate payment rather than a later [491]*491payment and/or membership in a class which would be plaintiffs in this lawsuit. These basic difficulties also come into play when analyzing the factors considered with respect to the issuance of preliminary injunctions.

As the Seventh Circuit has stated:

The district court’s exercise of discretion in issuing a preliminary injunction is guided by four familiar factors:
(1) whether the plaintiff will have an adequate remedy at law or will be irreparably harmed if the injunction does not issue;
(2) whether the threatened injury to the plaintiff outweighs the threatened harm the injunction may inflict on the defendant;
(3) whether the plaintiff has at least a reasonable likelihood of success on the merits; and
(4) whether the granting of a preliminary injunction will disserve the public interest.

O’Connor v Board of Education of School District No. 23, 645 F.2d 578, 580 (7th Cir.1981).

As to the first factor, plaintiff will not be harmed at all if the injunction does not issue; indeed, he does not argue to the contrary.

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Related

Short title
29 U.S.C. § 201
Definitions
29 U.S.C. § 203(q)
Penalties
29 U.S.C. § 216(c)

Cite This Page — Counsel Stack

Bluebook (online)
816 F. Supp. 489, 1993 WL 92257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-v-consolidated-electrical-distributors-inc-ilnd-1993.