Sullivan v. Kelly Services., Inc.

268 F.R.D. 356, 2010 U.S. Dist. LEXIS 50623, 2010 WL 1729174
CourtDistrict Court, N.D. California
DecidedApril 27, 2010
DocketNo. C 08-3893 CW
StatusPublished
Cited by5 cases

This text of 268 F.R.D. 356 (Sullivan v. Kelly Services., Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sullivan v. Kelly Services., Inc., 268 F.R.D. 356, 2010 U.S. Dist. LEXIS 50623, 2010 WL 1729174 (N.D. Cal. 2010).

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

CLAUDIA WILKEN, District Judge.

This case concerns whether California law requires a temporary staffing agency to pay its employee for time and expenses relating to interviews with a staffing agency’s customer. On October 16, 2009, the Court decided the parties’ cross motions for summary judgment and concluded that Plaintiff Catherine Sullivan should be compensated for the time she spent in her interviews, but not for her time preparing for and traveling to the inter[359]*359views or her commuting expenses. Now before the Court is Plaintiffs motion for class certification. Defendant Kelly Services opposes the motion. Having considered all of the parties papers, the Court hereby grants Plaintiffs motion.1

BACKGROUND

Defendant is a temporary staffing agency. Stipulation of Facts (SOF)2 ¶ 1. Defendant employs individuals, and then assigns those individuals to work in various settings. Id. Last year, Defendant assigned more than 750,000 employees in thirty-six countries. Id. Between 2004 and the present, approximately 150,000 employees completed temporary assignments in California for Defendant. Id. Approximately fifty percent of Defendant’s customers require interviews prior to offering an assignment. Eric Grover Deel., Exh. B at 27-28; Exh. F. At 65.3

On February 28, 2006, Plaintiff applied for employment with Defendant. SOF ¶ 17.

Plaintiffs employment relationship with Defendant officially began on March 16, 2006, which was her first day of her first temporary assignment with Defendant’s customer, Managed Health Network. During her employment with Defendant, Plaintiff attended four interviews with three of Defendant’s customers: Wells Fargo, CMP Technologies,4 and Animation Mentor. Plaintiff was not paid for the time she spent preparing for, traveling to and from or attending the interviews. SOF ¶ 31. Plaintiff was also not reimbursed for travel and parking costs related to her attendance at the interviews. Grover Deel., Exh. X at 367, 369-370, 377-78; Exh. Y at 386-87. Defendant did not charge its customers for the time they spent interviewing Plaintiff. SOF ¶¶ 20, 23, 30.

Before sending an employee on an interview, Defendant usually provides a customer with a copy of the employee’s résumé. If an employee does not have a résumé, Defendant helps the employee construct one. Eric Grover Decl., Exh. F at 129, 145. Defendant edits every résumé that is sent to a customer by removing the employee’s personal contact information and sometimes adding Defendant’s logo and contact information. The employee is not permitted to submit the résumé directly to the customer. Defendant controls the process this way because, as one of Defendant’s staffing supervisors testified, Defendant “really doesn’t want the customer to contact the employee. We want the customer to come through us to talk to us about those employees, and we pretty much relay the information to the employee.” Grover Decl. Exh. T at 260.

Defendant also tightly oversees the interview process. Defendant prohibits employees from communicating directly with the customer outside of the actual interview. Defendant sets the date, time and place of the interview. If an employee is going to be late for an interview, the employee must call Defendant, not the customer. Defendant then calls the customer to notify it of the delay.

After an interview, Defendant obtains feedback on the interview from the customer and the employee. If an employee does not choose to participate in this feedback process, Defendant will likely attempt to place a different employee in the assignment. Grove Decl., Exh. F at 86. If Defendant receives negative feedback about the employee from a [360]*360customer after an interview, Defendant’s staffing supervisor counsels that employee. If both the customer and an employee agree to an assignment, Defendant may place the employee with the customer. SOF ¶¶ 15-16. When a customer offers an assignment to Defendant, Defendant, not the employee, negotiates the salary and assignment terms. Id. ¶ 7.

Defendant’s staffing employees’ performance is evaluated, in part, on their ability successfully to place employees with customers. Id., Exh. W at 335-37. The staffing employees have an incentive to ensure that Defendant’s employees prepare for and do well at interviews because they want to place them in assignments and generate revenue for Defendant. Id., Exh. F at 75, 98-103, 107-110. Every interview that an employee attends is an opportunity for Defendant to show off its “product” and make a good impression. Id. at 91-92, 98; Exh. T at 261-63; Exh. W at 361-62.

Prior to filing this action, on April 20, 2007, Plaintiff filed a class action complaint alleging Defendant violated California Labor Code §§ 201 and 202 by failing immediately to pay all wages due at the end of each temporary assignment. Sullivan v. Kelly Services, Inc., C 07-2874 CW (N.D.Cal.). Instead of paying Plaintiffs wages immediately after her temporary assignment ended, Defendant paid her wages in accord with its routine schedule. On November 12, 2008, the Court granted Defendant’s motion for summary judgment, concluding that Defendant did not “discharge” Plaintiff within the meaning of § 201 and, therefore, Plaintiff was not entitled to immediate payment of wages.5 The Court held that “after Plaintiffs last day of work with MHN, Plaintiff remained an active Kelly employee by going on multiple job interviews for other temporary assignments.” Order at 7. The Court based its holding, in part, on Defendant’s assertions that Plaintiff “understood that her employment relationship with Kelly remained ongoing through individual temporary employee assignments and persisted until she resigned or Kelly terminated the relationship.” Defendant’s Motion for Summary Judgment in C 07-2874 at 1-2. Defendant also claimed that “unless either Kelly or the employee affirmatively acts to terminate the employment relationship, an individual remains a Kelly employee even if they are not actively working at a customer location.” Id. at 3-4; see also Defendant’s Reply in Support of Its Motion for Summary Judgment in C 07-2874 at 2 (“Plaintiff remained employed following the end of her temporary assignment.”).

On August 14, 2008, Plaintiff filed this action against Defendant on behalf of herself and a proposed class of Defendant’s employees in California. Plaintiff alleges that Defendant (1) failed to pay her minimum wage for the time she spent attending, preparing for and traveling to and from interviews with Defendant’s customers in violation of California Labor Code §§ 1194 and 203, (2) failed to reimburse her for business expenses incurred in connection with these interviews in violation of Labor Code § 2802, (3) issued inaccurate wage statements in violation of Labor Code § 226 and (4) committed unfair and unlawful business practices under California Business & Professions Code §§ 1722 et seq.

On October 16, 2009, the Court granted Plaintiff’s summary judgment motion in this case on her claims under Labor Code § 1194 and Business and Professions Code §§ 17200 et seq. for the time she spent attending interviews with Kelly customers.

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Cite This Page — Counsel Stack

Bluebook (online)
268 F.R.D. 356, 2010 U.S. Dist. LEXIS 50623, 2010 WL 1729174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sullivan-v-kelly-services-inc-cand-2010.