Swinney v. AMcomm Telecommunications, Inc.

30 F. Supp. 3d 629, 2014 WL 2864805, 2014 U.S. Dist. LEXIS 85329
CourtDistrict Court, E.D. Michigan
DecidedJune 24, 2014
DocketCase No. 12-12925
StatusPublished
Cited by7 cases

This text of 30 F. Supp. 3d 629 (Swinney v. AMcomm Telecommunications, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swinney v. AMcomm Telecommunications, Inc., 30 F. Supp. 3d 629, 2014 WL 2864805, 2014 U.S. Dist. LEXIS 85329 (E.D. Mich. 2014).

Opinion

OPINION AND ORDER DENYING DEFENDANTS MOTION FOR SUMMARY JUDGMENT [99], HOLDING PLAINTIFF’S MOTION TO CERTIFY RULE 23 CLASS ACTION IN ABEYANCE [101], DENYING PLAINTIFFS’ MOTION FOR PROTECTIVE ORDER AND TO STAY DISCOVERY [112], AND SETTING DISCOVERY AND BENCH TRIAL DATES

NANCY G. EDMUNDS, District Judge:

Plaintiffs have filed a Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., claim against their employer Defendant AMcomm Telecommunications, Inc., alleging that Defendant misclassified them as “independent contractors,” when they were performing the same work as Defendant’s employees, and therefore entitled to overtime pay and other benefits.1 (Dkt. 1, Compl.) Plaintiffs also assert a claim for unjust enrichment against Defendant for the work they performed for Defendant for which they allege they were not properly compensated.

Two motions are before the Court.

Defendant has filed a motion for summary judgment on the employee/independent contractor issue. (Dkt. 99.) Defendant argues that no issue of material fact exists that Plaintiffs were independent contractors.

Because the Court finds, after analyzing this case’s facts under the economics realities test, that genuine issues of fact exist as to the employee-independent contractor issue, the Court denies Defendant’s motion for summary judgment and sets the issue for a bench trial.

Plaintiffs have filed a motion requesting that the Court certify a class action as to the second count in their complaint, a claim for unjust enrichment. (Dkt. 101.) Plaintiffs argue that they have unjustly enriched Defendant through its use of chargebacks on its cable technicians. As the Court stated at the hearing, it holds this motion in abeyance in the interests of justice. The Court will revisit the motion after the bench trial on the independent contractor/employee issue.

I. Facts

The Court and parties are familiar with the premises of the case. The Court will therefore only present the facts as required in the analysis section.

II. Summary Judgment Standard

It is well established that summary judgment under Federal Rule of Civil Procedure 56 is proper when the movant “shows that there is no genuine dispute as to any material fact, and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a); U.S. SEC v. Sierra Brokerage Services, Inc., 712 F.3d 321, 326-27 (6th Cir.2013) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)) (quotations omitted). When reviewing the record, “the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable in[632]*632ferences in its favor.” Id. Furthermore, the “substantive law will identify which facts are material,, and summary judgment will not lie if the dispute about a material fact is ‘genuine,’ that is, if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id.

When considering the material facts on the record, a court must bear in mind that “[t]he mere existence of a scintilla of evidence in support of the plaintiffs position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Anderson, 477 U.S. at 252, 106 S.Ct. 2505.

III. Analysis

A. Defendant’s motion for summary judgment

This Court must determine if a genuine issue of material fact exists on the question whether Plaintiffs were Defendant’s employees, as contemplated by the FLSA, as opposed to independent contractors, which would outside the FLSA’s scope and protections. Applying the relevant law and considering the evidence presented in the light most favorable to Plaintiffs, the Court finds that there are genuine issues of fact as to this issue. The Court therefore will conduct a bench trial to determine the issues and weigh the evidence.

It is well-established that “[t]he requirements of the FLSA apply only to employees,” and “courts must determine whether, as a matter of economic reality, an individual is an employee or an independent contractor in business for himself.” Freund v. Hi-Tech Satellite, Inc., 185 Fed.Appx. 782, 782-83 (11th Cir.2006) (citing Rutherford Food Corp. v. McComb, 331 U.S. 722, 728, 67 S.Ct. 1473, 91 L.Ed. 1772 (1947)). See also Bartels v. Birmingham, 332 U.S. 126, 130, 67 S.Ct. 1547, 91 L.Ed. 1947 (1947) (observing that “employees are those who as a matter of economic reality are dependent upon the business to which they render service”). And, as the Sixth Circuit has observed, “the determination of whether a particular factual setting gives rise to coverage under the FLSA is a matter of law.” Donovan v. Brandel, 736 F.2d 1114, 1116 (6th Cir.1984); accord Fegley v. Higgins, 19 F.3d 1126, 1132 (6th Cir.1994).

The Sixth Circuit, as well as every other federal court that has considered this issue under similar circumstances, examines six factors to determine the economic reality of the working relationship presented in the case before it. See, e.g., Donovan, 736 F.2d at 1117, 1117 n. 5; Freund, 185 Fed.Appx. at 783; Chao v. Mid-Atlantic Installation Servs., Inc., 16 Fed.Appx. 104, 105-06 (4th Cir.2001); Bennett v. Unitek Global Servs., LLC, No. 10 C 4968, 2013 WL 4804841, at *5 (N.D.Ill. Sept. 9, 2013) (observing that “the Seventh Circuit instructs courts to consider” these same six factors). Likewise, it is well-established that “none of the six factors is dispositive and instead the totality of the factors and circumstances control.” Bennett, 2013 WL 4804841 at *5 (citing Bartels v. Birmingham, 332 U.S. 126, 130, 67 S.Ct. 1547, 91 L.Ed. 1947 (1947)); Scruggs v. Skylink Ltd., No. 3:10-0789, 2011 WL 6026152, *2 n. 2 (S.D.W.Va. Dec. 2, 2011) (observing that these six factors “derive from the Supreme Court’s decision in United States v. Silk, 331 U.S. 704, 67 S.Ct. 1463, 91 L.Ed. 1757 (1947)”). See also Donovan, 736 F.2d at 1116 (observing that “[t]he issue of the employment relationship does not lend itself to a precise test, but is to be determined on a case-by-case basis upon the circumstances of the whole business activity.”). The six factors to be considered are: “1) the permanency of the relationship between the parties; 2) the degree of skill required for the render[633]

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Cite This Page — Counsel Stack

Bluebook (online)
30 F. Supp. 3d 629, 2014 WL 2864805, 2014 U.S. Dist. LEXIS 85329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swinney-v-amcomm-telecommunications-inc-mied-2014.