Stephanie Hester, et al. v. Park Community Credit Union, Inc.

CourtDistrict Court, W.D. Kentucky
DecidedFebruary 5, 2026
Docket3:24-cv-00639
StatusUnknown

This text of Stephanie Hester, et al. v. Park Community Credit Union, Inc. (Stephanie Hester, et al. v. Park Community Credit Union, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephanie Hester, et al. v. Park Community Credit Union, Inc., (W.D. Ky. 2026).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION

STEPHANIE HESTER, et al. Plaintiffs

v. Case No. 3:24-cv-639-RGJ

PARK COMMUNITY CREDIT UNION, INC., Defendant * * * * * MEMORANDUM OPINION & ORDER Plaintiff Stephanie Hester (“Hester”), as well as opt-in Plaintiffs Leigh Ann Highbaugh (“Highbaugh”) and Brittany Richardson (“Richardson”) (collectively, “Plaintiffs”), move for an order allowing court authorized notice of this action to be sent to potential opt-in plaintiffs informing them of their right to opt in to this case under the Fair Labor Standards Act, 29 U.S.C. § 216(b) (“FLSA”). [DE 24]. Defendant Park Community Credit Union, Inc. (“PCCU”) responded [DE 31] and Plaintiffs replied [DE 32]. PCCU moves for leave to file a sur-reply. [DE 36]. Plaintiffs responded [DE 39] and PCCU replied [DE 40]. These matters are ripe for adjudication. For the reasons below, the Court GRANTS Plaintiffs’ Motion for Court-Authorized Notice Pursuant to 29 U.S.C. § 216(b) [DE 24] and DENIES PCCU’s Motion for Leave to File Sur-Reply [DE 36]. I. BACKGROUND PCCU operates a Community Development Financial Institution (“CDFI”) and offers a variety of loan products, including auto loans, personal loans, mortgages, and business loans. [DE 24 at 100]. PCCU employs mortgage loan originators (“MLOs”), commercial loan originators (“CLOs”), and consumer loan originators. [DE 24 at 100, n.3]. During the relevant period, PCCU classified MLOs and CLOs as FLSA-exempt on the basis that they are “Outside Sales” positions. [See, e.g., DE 26-2 at 344]. Plaintiffs, former MLOs employed by PCCU, brought this action alleging that they and similarly situated loan originators were misclassified as salaried exempt employees and, therefore, did not receive overtime pay for hours they worked over 40 in a workweek, in violation of FLSA, as well as the Kentucky Wages and Hours Act (“KWHA”), and the Indiana Minimum Wage Law (“IMWL”). [DE 1].1

Pursuant to Clark v. A&L Homecare & Training Ctr., LLC., 68 F.4th 1003 (6th Cir. 2023), the parties agreed to conduct limited discovery relevant to the issue of whether the putative collective are similarly situated under Clark. [DE 18 at 77; DE 20]. All of [PCCU’s] current and former loan originators who at any time after November 5, 2021: (1) were classified as exempt under the FLSA based on the Outside Sales exemption; and (2) were not paid one and one-half times their regular hourly rate for hours worked in excess of 40 hours per week.

[DE 24 at 92]. II. DISCUSSION A. PCCU’s Motion for Leave to File Sur-Reply The Court first addresses PCCU’s motion for sur-reply, as the arguments in it are relevant to Plaintiff’s motion. Whether to permit a party to file a sur-reply is a matter left to the trial court’s discretion. Key v. Shelby Cnty., 551 F. App’x 262, 264 (6th Cir. 2014) (citing Eng’g & Mfg. Servs., LLC v. Ashton, 387 F. App’x 575, 583 (6th Cir. 2010)); Tanielian v. DaimlerChrysler Corp., 108 F. App’x 386, 387 (6th Cir. 2004). “Although the Federal Rules of Civil Procedure do not expressly permit the filing of sur-replies, such filings may be allowed in the appropriate circumstances, especially ‘[w]hen new submissions and/or arguments are included in a reply brief, and a nonmovant’s ability to respond to the new evidence has been vitiated.’” Seay v. Tennessee Valley

1 Hester initiated this action on November 5, 2024. [DE 1]. Richardson and Highbaugh filed consents pursuant to 29 U.S.C. § 216(b) to join this action. [DE 9]. Auth., 339 F.3d 454, 481 (6th Cir. 2003). “As many courts have noted, ‘[s]ur-replies. . . are highly disfavored, as they usually are a strategic effort by the nonmoving party to have the last word on a matter.’” Liberty Legal Found. v. Nat’l Democratic Party of the USA, Inc., 875 F. Supp. 2d 791, 797 (W.D. Tenn. 2012) (quoting In re Enron Corp. Sec., 465 F. Supp. 2d 687, 691 n.4 (S.D. Tex. 2006)) (additional citation omitted). “The Sixth Circuit has held that a district court does not abuse

its discretion in denying leave to file a sur-reply where the opposing party’s reply did not raise any new legal arguments or introduce new evidence.” Id.; see, e.g., Key, 551 F. App’x at 265 (holding that district court’s denial of motion to file sur-reply was not abuse of discretion due to lack of new arguments raised in reply and six-month delay between filing of reply and motion for sur-reply). PCCU argues a Sur-Reply is necessary to address new evidence in Plaintiffs’ Reply in Support of her Motion for Court-Authorized Notice Pursuant to 29 U.S.C. § 216(b) [DE 32 (hereinafter, the “Reply”)]. [See DE 36 at 657–58]. Specifically, PCCU claims that a sur-reply is warranted because Plaintiffs introduced in their Reply, for the first time, two exhibits consisting of the following evidence: (1) Hester’s July 21, 2025 Declaration [DE 32-3 (“Exhibit 2”)]; and (2)

performance evaluations for MLOs [DE 32-1 (“Exhibit 1”)]. [See DE 36 at 658 (addressing the “Reply Exhibits”)]. Both Reply exhibits relate to whether MLOs and Commercial Loan Originators (“CLOs”) are “similarly situated” as required under Clark, 68 F.4th 1003. According to PCCU, Hester’s declaration constitutes “inadmissible hearsay” and is inconsistent with Hester’s deposition testimony. [DE 36 at 657–58]. Further, PCCU argues that the fact that MLO performance evaluations are similar to the CLO performance evaluations “does not demonstrate that CLOs and MLOs are ‘similarly situated.’” [Id. at 658]. Accordingly, because PCCU was not afforded an opportunity to make these arguments in its response brief [DE 31], PCCU “requests that the Court grant it leave to file a sur-reply . . . addressing Exhibits 1 & 2 . . . and any and all related arguments set forth in that Reply. [Id. at 659]. PCCU did not file a proposed sur-reply. Plaintiffs deny that any “new arguments” were raised in the Reply. [DE 39 at 671]. Apparently conceding that Reply Exhibits introduced “new evidence,” Plaintiffs request that the Court “exercise its discretion to consider [PCCU’s] already-made arguments about the weight to

be given the Reply Exhibits in its Motion for Leave,” but deny PCCU’s request to consider arguments PCCU could have raised unrelated to the Reply Exhibits and for leave to file a “further sur-reply.” [DE 39 at 670]. In reply, PCCU clarifies that the sur-reply would be limited to addressing issues related to the Reply Exhibits. Specifically, PCCU would argue that “the evaluations do not demonstrate that CLOs and MLOs were ‘similarly situated,’” and that Plaintiffs “fail[] to address (or explain) the inconsistency between [Hester’s] deposition testimony and her new declaration offered in support of her reply brief.” [DE 40 at 675]. PCCU has further offered to forgo filing a separate sur-reply if the Court finds the current briefing “sufficient to assess whether to consider” the Reply Exhibits.

[Id. at 676].

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Bluebook (online)
Stephanie Hester, et al. v. Park Community Credit Union, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephanie-hester-et-al-v-park-community-credit-union-inc-kywd-2026.