Snell-Jones v. The Hertz Corporation

CourtDistrict Court, N.D. Illinois
DecidedMarch 13, 2020
Docket1:19-cv-00120
StatusUnknown

This text of Snell-Jones v. The Hertz Corporation (Snell-Jones v. The Hertz Corporation) 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
Snell-Jones v. The Hertz Corporation, (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LA TACHE SNELL-JONES, individually ) and on behalf of all persons similarly situated, ) ) Plaintiff, ) ) No. 19-cv-00120 v. ) ) Judge Andrea R. Wood THE HERTZ CORPORATION, et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

Plaintiff La Tache Snell-Jones is a former branch manager for Defendant The Hertz Corporation (“Hertz”). Snell-Jones claims that despite routinely working over 40 hours in a workweek for Hertz, she never received overtime compensation. Instead, Hertz treated her as exempt from the overtime provisions in both the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the Illinois Minimum Wage Law (“IMWL”), 820 ILCS 105/1 et seq. Therefore, Snell-Jones has brought the present collective and class action lawsuit against both Hertz and Defendant Haley Hudson alleging violations of the FLSA, the IMWL, and the Illinois Wage Payment and Collection Act (“IWPCA”), 820 ILCS 115/1 et seq., along with claims for breach of contract and breach of the covenant of good faith and fair dealing. Hertz and Hudson have each filed motions to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). (Dkt. Nos. 20, 34.) For the reasons that follow, Hertz’s motion is granted in part and denied in part, and Hudson’s motion is denied. BACKGROUND

For the purposes of the motions to dismiss, the Court accepts all well-pleaded facts in the complaint as true and views those facts in the light most favorable to Snell-Jones as the non- moving party. Killingsworth v. HSBC Bank Nev., N.A., 507 F.3d 614, 618 (7th Cir. 2007). As alleged in her complaint, Snell-Jones worked at Hertz, a worldwide vehicle rental company, from October 2013 until her allegedly retaliatory termination in September 2017. (Compl. ¶¶ 1, 10, Dkt. No. 1.) She began as a manager trainee and shortly thereafter was promoted to manager associate. (Id. ¶ 17.) By October 2014, Snell-Jones had been promoted to a branch manager position, which she held until her termination. (Id.) Although Snell-Jones had a “managerial” title and some management responsibilities, in practice “she did not have any authority to hire or fire other employees, and her ability to make any suggestion or recommendation regarding hiring, firing, advancement, promotions or other change of status of other employees was used, if ever, infrequently, and not given any sufficient weight.” (Id.) Instead, those responsibilities were predominantly exercised by others higher in the

corporate hierarchy, including Hudson, Hertz’s Human Resources Business Partner for Illinois (as well as Wisconsin, Minnesota, and Indiana). (Id. ¶ 19.) By contrast, Snell-Jones largely worked “as a front-line employee, processing rentals and returns, handling customer complaints, moving and arranging fleet (vehicles), including picking up and dropping off customers, locating and transporting vehicles[,] processing body damage to vehicles, and taking vehicles for repairs.” (Id. ¶ 20.) Because of these responsibilities, Snell-Jones could devote only a minimal amount of time to actual management or executive tasks such as managing schedules, handling employee concerns, evaluating employees, or meeting with managers. (Id.) During her time at Hertz, Snell-Jones was a salaried employee. (Id. ¶ 18.) For that reason, Hertz treated her as exempt from the overtime provisions of the FLSA and the IMWL. (Id.) Indeed, Hertz had a policy that salaried managers were not entitled to overtime for any hours they worked in excess of 40 hours per week. (Id. ¶ 21.) Nonetheless, Hudson maintained a policy under which all branch managers were required to work from open to close. (Id. ¶¶ 6, 22.) For

Snell-Jones, that meant she worked from 7 a.m. to 6 p.m. for at least six days a week. (Id.) Thus, from October 2014 until her termination on August 14, 2017, Snell-Jones regularly worked in excess of 40 hours per week without ever receiving overtime. (Id. ¶ 24.) Moreover, in light of Hudson’s policy requiring all branch managers to work full 11-hour days, 6 days a week, Snell- Jones contends that there are at least 100 other current or former Hertz branch managers under Hudson’s supervision that have similarly been denied overtime. (Id. ¶¶ 22, 25, 29.) DISCUSSION

To survive a Rule 12(b)(6) motion, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). This pleading standard does not necessarily require a complaint to contain detailed factual allegations. Twombly, 550 U.S. at 555. Rather, “[a] claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Adams v. City of Indianapolis, 742 F.3d 720, 728 (7th Cir. 2014) (quoting Iqbal, 556 U.S. at 678). Snell-Jones has brought FLSA, IMWL, and IWCPA claims against both Defendants, whereas her contract claims are brought solely against Hertz. Together, Defendants seek to dismiss all claims. The Court will first address the statutory claims against both Defendants and then proceed to the contract claims directed at Hertz. I. FLSA and IMWL Claims A. Hertz’s Status as Employer Hertz argues that Snell-Jones’s allegation that Hertz was her employer is conclusory and

supported by no facts. It further contends that Snell-Jones’s claim is belied by a charge of discrimination she filed with the Equal Employment Opportunity Commission (“EEOC”), which lists a different entity known as Hertz Local Edition as her employer. Both the FLSA and the IMWL make an employer liable for its failure to pay overtime wages. See Villareal v. El Chile, Inc., 776 F. Supp. 2d 778, 784 (N.D. Ill. 2011). The FLSA defines an “employer” as including “any person acting directly or indirectly in the interest of an employer in relation to an employee.” 29 U.S.C. § 203(d); see also Natal v. Medistar, Inc., 221 F. Supp. 3d 999, 1003 (N.D. Ill. 2016) (“[C]ourts employ the same test under both [the FLSA and the IMWL] to determine a defendant’s status as an employer.”). The definition is “broad and

comprehensive in order to accomplish the remedial purposes of the Act.” Sec’y of Labor, U.S. Dep’t of Labor v. Lauritzen, 835 F.2d 1529, 1534 (7th Cir. 1987). According to Hertz, Snell-Jones’s bare allegation that Hertz was her employer is insufficient to survive dismissal. It faults her for failing to provide basic allegations concerning her employment with Hertz such as: “(1) who hired [her]; (2) who paid her; (3) who supervised her; and (4) where she worked.” (Def.’s Mem. in Supp. of Mot. to Dismiss at 6, Dkt. No.

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Snell-Jones v. The Hertz Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snell-jones-v-the-hertz-corporation-ilnd-2020.