Schrof v. Clean Earth, Inc.

CourtDistrict Court, D. Maryland
DecidedJune 1, 2023
Docket1:22-cv-01533
StatusUnknown

This text of Schrof v. Clean Earth, Inc. (Schrof v. Clean Earth, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schrof v. Clean Earth, Inc., (D. Md. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND * JENNIFER SCHROF * Plaintiff * Civil No. BPG-22-1533 v. * CLEAN EARTH, INC. * Defendant * * * * * * * * * * * * MEMORANDUM OPINION Currently pending before the court is defendant’s Motion to Dismiss Plaintiff’s Amended Complaint (“defendant’s Motion”) (ECF No. 30), plaintiff’s Memorandum in Opposition to Defendant’s Motion to Dismiss Her Amended Complaint (“plaintiff’s Opposition”) (ECF No. 38), and defendant’s Reply in Support of Its Motion to Dismiss Plaintiff’s Amended Complaint (“defendant’s Reply”) (ECF No. 39). The issues are fully briefed, and no hearing is necessary. Loc. Rule. 105.6. For the reasons discussed herein, defendant’s Motion is granted in part and denied in part. I. BACKGROUND Jennifer Schrof (“plaintiff”) was employed by defendant Clean Earth, LLC (“defendant”) as an outside salesperson from October 2006 until she resigned in April 2021. (ECF No. 29 at ⁋⁋ 6, 60). Plaintiff alleges the following facts in her Amended Complaint. As an outside salesperson, plaintiff was tasked with (1) developing new business and accounts, (2) working on pricing and bidding projects, and (3) helping to collect payment. (Id. at ⁋ 7). Plaintiff was the sole female outside salesperson employed by defendant. (Id. at ⁋ 59). Plaintiff and the several male outside salespersons “had the same duties and responsibilities,” and “were all subject to the same commission plan.” (Id. at ⁋⁋ 8-9). In 2019, defendant was acquired by Harsco Corporation, which plaintiff alleges resulted in a change to plaintiff’s “entire sales chain of command and work environment.” (Id. at ⁋⁋ 14-15) In 2020, plaintiff’s revenue goal was twenty-four million dollars. (Id. at ⁋10). All other outside salespeople had goals of fourteen million dollars or less. (Id.) Plaintiff and one other

outside salesperson, Bob Simms, met their 2020 sales revenue goal. (Id. at ⁋⁋ 18-20). In June 2020, however, plaintiff realized that there were “significant and improper discrepancies in connection with her commission payments.” (Id. at ⁋ 16). Defendant’s commission plan provides that “the company would holdback 20% of the commissions and overages until an outside salesperson hit their sales revenue objective, [a]t which point the holdbacks would be paid to the salesperson.” (Id. at ⁋ 17). While Mr. Simms received all of the overages and holdbacks to which he was entitled, plaintiff alleges that defendant failed to pay plaintiff any commission holdbacks or overages. (Id. at ⁋⁋ 21, 22). On June 25, 2020, plaintiff emailed the Vice President of Sales, James Hull, regarding the

“discrepancies” in her commission, but Mr. Hull did not respond. (Id. at ⁋ 23). Plaintiff alleges that she communicated her concern regarding the discrepancies in her commission repeatedly throughout 2020. (Id. at ⁋⁋ 24, 38-40). That same year, and for the first time in her fifteen-year career at defendant company, plaintiff received an “average” rating on her performance evaluation. (Id. at ⁋ 25). In violation of company policy Mr. Hull failed to meet with plaintiff to discuss her evaluation. (Id.) Plaintiff maintains that she was the only outside salesperson who met her revenue quota and received an “average” rating, and further, that Mr. Simms received an “above-average” rating or better on his 2020 performance evaluation. (Id. at ⁋⁋ 26-27). On January 27, 2021, plaintiff was instructed to provide the Assistant Vice President of Sales, Richard Crawford, with a list of key accounts that she wanted to keep. (Id. at ⁋ 28). On February 26, 2021, plaintiff’s Sales Manager, Alan Hershkowitz, informed her that defendant had taken over several of her accounts, including the Munoz account—one of her biggest accounts— and made them “house accounts.” (Id. at ⁋⁋ 29-30, 33). The Munoz account alone generated an

annual income of approximately $100,000 for plaintiff. (Id. at ⁋ 32). Further, plaintiff learned that “leads generated by inside sales in her territory [and no other] were now deemed ‘house accounts’ which, in turn, deprived her of significant compensation and opportunities.” (Id. at ⁋⁋ 35-36). Plaintiff alleges that she made numerous attempts to address her concerns with various supervisors, including Mr. Hull and Mr. Hershkowitz. On February 29, 2021, plaintiff emailed Mr. Hershkowitz regarding her concerns, but received no response. (Id. at ⁋ 37). On February 15, 2021, Mr. Hull promised to address plaintiff’s concerns by February 19, 2021, but failed to do so. (Id. at ⁋ 41). On March 5, 2021 plaintiff again complained about the removal of her accounts to

Mr. Hull, but received no response. (Id. at ⁋ 38). Finally, on March 15, 2021, plaintiff had a phone call with Mr. Hull, who stated that he “still had not reviewed the commission issue and did not have an answer,” but denied plaintiff’s allegations that defendant was “trying to get rid of her.” (Id. at ⁋ 43-45). Around this time, Messrs. Hull and Hershkowitz informed plaintiff that they had received client complaints about her, but refused to provide client names or specific complaints. (Id. at ⁋⁋ 46-47). On April 14, 2021, plaintiff was informed that she would need to engage in daily sales calls with Messrs. Hull and Hershkowitz. (Id. at ⁋ 50). Plaintiff alleges that there were no performance issues which necessitated daily calls, that no other outside salesperson was subjected to daily calls, and that “[t]he daily sales calls made no sense because [plaintiff] had been a top sales performer year in and year out for [defendant].” (Id. at ⁋⁋ 51-53). Plaintiff suggests that the calls were actually intended to humiliate and demoralize her and encourage her to resign. (Id. at ⁋⁋ 54, 60). Plaintiff resigned from her employment with defendant sometime thereafter. (Id. at ⁋ 60).

On June 22, 2022, plaintiff filed a four-count Complaint in this court, alleging violations of both federal and state anti-discrimination law. (ECF No. 1). On September 1, 2022, defendant filed a Motion to Dismiss plaintiff’s Complaint.1 (ECF No. 24). In response, plaintiff filed an Amended Complaint, which alleges four Counts: (I) sex discrimination in violation of the Maryland Fair Employment Practice Act (“MFEPA”), Maryland Code, State Government Article, § 20-606, (II) wage discrimination in violation of the Maryland Equal Pay for Equal Work Act (“MEPA”), Maryland Code, Labor & Employment Article, § 3-301, et seq., (III) retaliation in violation of the MFEPA, and (IV) constructive discharge in violation of the MFEPA. (ECF No. 29). Defendant moves to dismiss all counts of plaintiff’s Amended Complaint. (ECF No. 30).

II. STANDARD OF REVIEW Defendant moves to dismiss all counts of plaintiff’s Complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). Under Rule 12(b)(6), a complaint may be dismissed for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). The purpose of a motion to dismiss for failure to state a claim under Rule 12(b)(6) is to test the legal sufficiency of a complaint. Edwards v. City of Goldsboro, 178 F.3d 231, 243 (4th Cir. 1999). When ruling on such a motion, the court must “accept[] all well-pleaded allegations in the

1 On October 17, 2022, the court issued an Order denying as moot defendant’s Motion to Dismiss the original complaint as a result of the filing of plaintiff’s Amended Complaint. (ECF No. 32). The filing of an amended complaint supersedes the original complaint and renders it of no effect. See Young v. City of Mt. Rainer, 238 F.3d 567, 573 (4th Cir. 2001).

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Schrof v. Clean Earth, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/schrof-v-clean-earth-inc-mdd-2023.