Swigart v. Fifth Third Bank

288 F.R.D. 177, 20 Wage & Hour Cas.2d (BNA) 115, 84 Fed. R. Serv. 3d 664, 2012 WL 6720562, 2012 U.S. Dist. LEXIS 182602
District Court, S.D. Ohio·Decided December 28, 2012·No. No. 1:11-cv-88·Published·Cited by 31 cases

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR RULE 23 CLASS CERTIFICATION (Doc. 148)

TIMOTHY S. BLACK, District Judge.

Before the Court is Plaintiffs’ motion for class certification (Doc. 148) and the parties’ responsive memoranda (Docs. 151, 153, and 157). Upon careful review, the Court concludes that this case is entirely appropriate for certification as a class action, and, accordingly, Plaintiffs’ motion for class certification is GRANTED for the reasons stated below.

This civil ease involves a putative class of Mortgage Loan Officers (“MLOs”), who worked for Defendant Fifth Third Bank in Ohio between February 11, 2009 and January 3, 2011, and were allegedly misclassified as exempt from statutory overtime pay requirements. The putative class members were allegedly not afforded overtime pay during the relevant time period for all weeks in which they worked more than forty hours.

Plaintiffs move the Court to certify this ease as a class action on behalf of “[a]ll persons who worked for Fifth Third Bank as a mortgage loan officer (‘MLO’) in the state of Ohio at any time between February 11, 2009 and January 3,2011.” Defendant notes, however, that its “direct” MLOs have at all times been classified as non-exempt and are therefore not part of this action. (Doc. 151 at 28). The Court therefore deems the mo[181]*181tion to seek certification on behalf on the following class:

All persons who worked for Fifth Third Bank as mortgage loan officers (“MLOs”) in the state of Ohio and were classified as exempt from statutory overtime pay requirements at any time between February 11, 2009 and January 3,2011.

I. BACKGROUND FACTS1

Defendant is a financial services company headquartered in Cincinnati, Ohio that operates more than 1,300 banking locations in twelve states. Defendant is structured into “affiliates,” which are management structures existing in each of the major cities in which Defendant operates. In Ohio, Defendant has affiliates in Toledo, Cleveland, Columbus, Dayton, and Cincinnati. Each affiliate is operated by local management and has its own support structure.

Defendant employed approximately 350 MLOs in Ohio during the relevant time period. MLOs report to area sales managers and are Defendant’s “sales force.” MLOs are required to meet monthly sales goals and are ranked nationally and regionally based on their sales. Each MLO is provided with an “MLO Playbook” that details how to do the job successfully and contains “non-negotiable” policies that must be followed. MLOs work autonomously from various locations, and the management team for each affiliate makes decisions that impact the jobs of MLOs at that affiliate, including whether they “will work from home or in a branch location” and whether they “will be provided a laptop, blackberry, and/or personal computer.”

Until January 3, 2012, Defendant uniformly classified all its MLOs as exempt from statutory overtime pay requirements. In 2006, Defendant conducted an audit of the MLO position and in reliance on the Opinion Letter issued by the Department of Labor (“DOL”) Wage and Hour Administrator, con-eluded that its MLOs qualified as exempt from the overtime obligations of the Fair Labor Standards Act (“FLSA”) pursuant to the administrative exemption. In March 2010, the DOL issued Administrator’s Interpretation 2010-1, which concluded that MLOs did not qualify for the administrative exemption. On January 3, 2012, Defendant reclassified all its MLOs as non-exempt, and every MLO company-wide became eligible for overtime pay.

Named Plaintiffs Dustin Swigart and Sonia Schultz worked for Defendant as MLOs in Ohio during the proposed class period. On February 11, 2011, they filed this lawsuit on behalf of themselves, and purportedly all similarly situated MLOs, to recover overtime pay allegedly withheld from them by Defendant in violation of the FLSA and the Ohio Minimum Fair Wage Standards Act.

On August 31, 2011, the Court granted Plaintiffs’ motion for conditional certification as a collective action pursuant to the FLSA, and on September 19, 2011, FLSA opt-in notice was mailed and emailed to the potential class of current and former MLOs. The same notice was re-sent to the putative class before the expiration of the 90 days to return the consent to join form. By the end of the opt-in period, 361 MLOs had joined this lawsuit as members of the FLSA class, and approximately 25% of those individuals had worked for Defendant in Ohio.

Plaintiffs now move for class certification of their Ohio Minimum Fair Wage Standards Act claims pursuant to Rule 23 of the Federal Rules of Civil Procedure.

II. REQUIREMENTS FOR CLASS CERTIFICATION

As a threshold matter, there is no inherent incompatibility between an opt-in FLSA collective action and an opt-out Rule 23 class action.2 District courts in the Sixth [182]*182Circuit and the D.C., Second, Third, Seventh, and Ninth Circuit Courts have all held that the two claims can coexist. Lindsay v. Gov’t Employees Ins. Co., 448 F.3d 416 (D.C.Cir. 2006); Shahriar v. Smith & Wollensky Rest. Group, Inc., 659 F.3d 234, 247-49 (2d Cir. 2011); Knepper v. Rite Aid Corp., 675 F.3d 249, 258-62 (3d Cir.2012); Ervin v. OS Rest. Services, Inc., 632 F.3d 971 (7th Cir.2011); Wang v. Chinese Daily News, Inc., 623 F.3d 743, 761 (9th Cir.2010) overruled on other grounds, — U.S. -, 132 S.Ct. 74, 181 L.Ed.2d 1 (2011).

Here, although the Court recognizes the potential for confusion inherent in sending a notice requiring Plaintiffs to opt out of the state class after receiving two notices asking if they wished to opt into the FLSA class, this risk of confusion can be minimized, if not eliminated, with effective notice that clearly details the difference between the two claims and the opt-out procedure that must be followed with regard to a Rule 23 class action. Moreover, proceeding separately, with the FLSA claim in federal court, and the Ohio state law class action in state court, “would create more confusion and conflict among prospective class members.” Laichev, 269 F.R.D. at 636 (emphasis added).

A plaintiff has the burden of showing that the class should be certified and that the requirements of Rule 23 are met. Coleman v. Watt, 40 F.3d 255, 258 (8th Cir.1994). In considering the Rule 23 requirements, the Court acknowledges that “[w]hen there is a question as to whether certification is appropriate, the Court should give the benefit of the doubt to approving the class.” In re Workers’ Comp., 130 F.R.D. 99, 103 (D.Minn. 1990) (citations omitted).

Rule 23

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Swigart v. Fifth Third Bank, 288 F.R.D. 177, 20 Wage & Hour Cas.2d (BNA) 115, 84 Fed. R. Serv. 3d 664, 2012 WL 6720562, 2012 U.S. Dist. LEXIS 182602 (S.D. Ohio 2012).

288 F.R.D. 177 (Swigart v. Fifth Third Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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