Tara Osborn v. JAB Management Services, Inc.

126 F.4th 1250
Court of Appeals for the Seventh Circuit·Decided January 22, 2025·No. 24-1573·Published·Cited by 9 cases

Opinion

In the

United States Court of Appeals For the Seventh Circuit

No. 24-1573 TARA OSBORN, Plaintiff-Appellant,

v.

JAB MANAGEMENT SERVICES, INC., doing business as ADVANCED CORRECTIONAL HEALTHCARE, INC., Defendant-Appellee.

Appeal from the United States District Court for the Central District of Illinois.

No. 1:22-cv-01049-MMM-JEH — Michael M. Mihm, Judge.

ARGUED OCTOBER 28, 2024 — DECIDED JANUARY 22, 2025

Before ROVNER, BRENNAN, and KOLAR, Circuit Judges. BRENNAN, Circuit Judge. JAB Management Services, Inc., an organization that hires employees to provide prison healthcare, terminated Tara Osborn, a technical support specialist and longtime employee. She then sued her former employer , asserting violations of state and federal employment law. Relevant to this appeal, Osborn alleged that JAB Management failed to compensate her for working overtime as 2 No. 24-1573

required by the Fair Labor Standards Act. The employer moved for summary judgment on Osborn’s claim, which the district court granted. We affirm.

I

A

Before turning to the facts of this case, we begin with a word on procedure. Osborn filed her claim in the Central District of Illinois. That court’s local rules include various requirements that govern how parties file and respond to motions for summary judgment. CDIL–L.R. 7.1(D). For example, a party opposing summary judgment must “list by number each fact from” the movant’s summary judgment motion that is undisputed and material, disputed and material, disputed and immaterial, and undisputed and immaterial. Id. at 7.1(D)(2)(b)(1)–(4). When the nonmovant disputes a fact, it must support its response with “evidentiary documentation.” Id. at 7.1(D)(2)(b)(2)–(3). These requirements coincide with Federal Rule of Civil Procedure 56(c), which, among other things, requires a party opposing summary judgment to address the moving party’s assertion of facts.

Rule 56 provides district courts with the authority to take appropriate measures when a party “fails to properly address another party’s assertion of fact,” including giving the noncompliant party another “opportunity to properly … address the fact” or “consider[ing] the fact undisputed for purposes of the motion.” FED. R. CIV. P. 56(e)(1)–(2). Consistent with the Federal Rules, in the Central District of Illinois, a nonmovant’s “failure to respond to any numbered fact” in the movant’s motion for summary judgment is “deemed an admission of the fact.” CDIL–L.R. 7.1(D)(2)(b)(6).

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JAB Management moved for summary judgment on Osborn ’s overtime pay claim. Osborn responded, but the district court determined that she failed to comply with the local rules as just described. In its discretion, the court permitted Osborn to amend her response to correct the deficiencies. Osborn filed an amended response. But she again failed to comply. More specifically, her amended response did not “list by number each fact from” JAB Management’s summary judgment motion . CDIL–L.R. 7.1(D)(2)(b). Instead, Osborn developed her own list of facts and responded to those. As a result, the district court could not determine to which of JAB Management’s facts Osborn’s individual responses corresponded.

The court struck Osborn’s amended response after her second failure to comply with the rules. See FED. R. CIV. P. 56(e)(4) (district courts may “issue any other appropriate order” when parties fail to comply with the summary judgment rules). As a result, Osborn was deemed not to have responded to JAB Management’s undisputed material facts. So, under the local rules, those facts were considered admitted. CDIL–L.R. 7.1(D)(2)(b)(6). But because courts view facts in the light most favorable to the nonmoving party at summary judgment, Walters v. Pro. Lab. Grp., LLC, 120 F.4th 546, 548 (7th Cir. 2024), the district court decided it would still consider the additional material facts Osborn offered in her response insofar as the evidentiary record supported them.

On appeal, Osborn concedes the district court did not abuse its discretion in enforcing the local rules. We therefore proceed on the same record. See Waldridge v. Am. Hoechst Corp., 24 F.3d 918, 922 (7th Cir. 1994) (explaining this court’s willingness to strictly enforce local rules).

4 No. 24-1573

B

Advanced Correctional Healthcare (ACH) contracts with localities to provide inmates with medical care. JAB Management is a wholly owned subsidiary of ACH responsible for hiring employees to work for some of ACH’s other subsidiaries , including Advanced Inmate Medical Management. Advanced Inmate Medical manages ACH’s electronic medical records system—a system that healthcare personnel rely on to track the provision of inmate care.

JAB Management hired Osborn as an administrative assistant in 2009. She was promoted several times, and, as a result, began to work more with Advanced Inmate Medical’s records system. Among her new responsibilities were troubleshooting software issues and overseeing a database that tracked the system’s quality. By 2016, Osborn was promoted to technical support specialist. In that role, she started providing on-call support to ACH customers, including on issues related to the records system.

JAB Management designated the technical support specialist position as salaried. As a result, Osborn says she could not enter time outside of 8:00 a.m. to 5:00 p.m. into her employer’s timekeeping system. The position was also designated as remote. According to one of her supervisors, although typical business hours were 8:00 a.m. to 5:00 p.m., Osborn’s remote position offered her the flexibility to design her own schedule. Osborn did not keep track of any time she worked over forty hours. But she claims she worked an average of ten hours per day and fifteen hours of overtime per week. Osborn says she regularly had to work outside of normal business hours to take support calls, respond to emails, drive to client sites, and “patch servers.” She also submits that

No. 24-1573 5

she worked Saturdays and Sundays, though the extent of that work depended on the weekend.

Toward the end of Osborn’s employment with JAB Management , her supervisors became increasingly dissatisfied with her ability to communicate and manage her workload. According to one supervisor, Osborn failed to explain what she was working on throughout the day, yet she complained about having too much to do. Some of Osborn’s tasks were reassigned to her coworkers. And she received coaching. Nonetheless, she continued to have trouble finishing her work. Osborn was terminated on August 2, 2021.

Following her termination, Osborn sued JAB Management . She alleged, among other things, that her employer failed to pay her overtime in violation of the FLSA. JAB Management moved for summary judgment on the claim. Although the company designated Osborn’s position as salaried , it agreed for purposes of its motion to treat her as a non- exempt employee eligible for overtime pay. JAB Management also did not dispute Osborn’s contention that, assuming it violated the FLSA, it did so willfully, and, as a result, a threeyear statute of limitations applied. 29 U.S.C. § 255.

Accordingly, the district court analyzed whether Osborn produced sufficient evidence to show JAB Management failed to pay her overtime at any point between February 23, 2019 (three years before she sued) and August 2, 2021 (the day she was terminated). The court invoked the standard of proof that applies to overtime pay cases in which an employer fails to maintain accurate time records. It held that Osborn failed to “prove by a just and reasonable inference the amount and extent of work she performed during the relevant time period.”

6 No. 24-1573

II

The FLSA guarantees non-exempt employees time-and-a-

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Tara Osborn v. JAB Management Services, Inc., 126 F.4th 1250 (7th Cir. 2025).

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