Tegtmeier v. PJ Iowa, L.C.

189 F. Supp. 3d 811, 2016 WL 3265711, 2016 U.S. Dist. LEXIS 81881
CourtDistrict Court, S.D. Iowa
DecidedMay 18, 2016
DocketNo. 3:15-cv-00110-JEG
StatusPublished
Cited by7 cases

This text of 189 F. Supp. 3d 811 (Tegtmeier v. PJ Iowa, L.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tegtmeier v. PJ Iowa, L.C., 189 F. Supp. 3d 811, 2016 WL 3265711, 2016 U.S. Dist. LEXIS 81881 (S.D. Iowa 2016).

Opinion

ORDER

JAMES E. GRITZNER, Senior Judge, United States District Court

This matter is before the Court on a Second Motion to Dismiss for Failure to State a Claim (Motion to Dismiss) pursuant to Federal Rule of Civil Procedure 12(b)(6), ECF No. 22, and a Motion for Order Allowing Defendant to Deposit Settlement Funds With Court (Rule 67 Motion) pursuant to Federal Rule of Civil Procedure 67, ECF No. 32, brought by Defendant PJ Iowa, L.C. (PJ Iowa). Plaintiff Brandon Tegtmeier (Tegtmeier), on behalf of himself, two putative collective actions pursuant to 29 U.S.C. § 216(b), and two putative class actions pursuant to Federal Rule of Civil Procedure 23, resists. [815]*815Neither party requested a hearing on the Motions, and the Court finds a hearing is unnecessary. The matter is fully submitted and ready for disposition.

I. BACKGROUND

PJ Iowa operates twenty-six Papa John’s franchise stores in Iowa, Illinois, and South Dakota. From January to October 2014, Tegtmeier was employed by PJ Iowa as a delivery driver in Davenport, Iowa. During Tegtmeier’s period of employment, PJ Iowa paid Tegtmeier a cash wage of $5.50 per hour and applied a tip credit for all of Tegtmeier’s work time. On October 15, 2015, Tegtmeier filed a five-count Complaint against PJ Iowa for violation of the federal Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq. and the Iowa Wage Payment Collection Law (IWPCL), Iowa Code § 91A. Tegtmeier filed a seven-count First Amended Complaint on December 3, 2015, adding two counts alleging violations of the Iowa Minimum Wage Law (IMWL), Iowa Code § 91D.1

Tegtmeier alleges that certain practices of PJ Iowa caused, his net wages to fall below the minimum wage set by federal and Iowa law. In particular, Tegtmeier alleges that PJ Iowa requires delivery drivers, who are paid as tipped employees, to spend over 20% of their work time performing non-tipped work such as answering telephones, preparing food orders, washing dishes, and cleaning. Tegtmeier argues that PJ Iowa’s tip credit was improperly applied to time spent performing non-tipped work and that he and other delivery drivers are entitled to the full minimum wage for that time. Tegtmeier also alleges that delivery drivers, who operate their own vehicles on the job and who are responsible for out-of-pocket expenses for maintenance and upkeep of those vehicles, are not reimbursed at a rate that reasonably approximates the delivery drivers’ costs of owning and operating their vehicles for PJ Iowa’s benefit. This failure to adequately reimburse, Te-gtmeier argues, constitutes a “kickback” to PJ Iowa and as a result, reduces his and other delivery drivers’ net wages below the minimum wage. Tegtmeier also alleges that delivery drivers must at their own expense procure their driving records for PJ Iowa, which also reduces their net wages below the minimum wage, Finally, Tegtmeier alleges that PJ Iowa requires delivery drivers and other non-supervisory employees to purchase uniform items, which similarly results in PJ Iowa’s non-supervisory employees receiving sub-minimum net wages.

Tegtmeier also alleges that his uniform purchases and those of other employees, made through payroll deductions, were made without proper written authorization as required under Iowa law. PJ Iowa counters this allegation by attaching to its Motion to Dismiss a document purporting to show Tegtmeier’s authorization to deduct the costs of one shirt from his paycheck. PJ Iowa also asserts in its Reply Brief supporting its Motion to Dismiss that it provides employees with one shirt and hat at no cost and argues that any additional uniform purchases are made by the employee for his or her convenience.

Tegtmeier alleges that he is entitled to relief as part of four related but distinct groups. Tegtmeier asserts claims under [816]*816the FLSA on behalf of two “opt-in” collective actions under 29 U.S.C. § 216(b): one collective action made up of all similarly situated delivery drivers and another made up of all similarly situated non-supervisory employees. On behalf of all similarly situated delivery drivers, Tegtmeier claims that PJ Iowa violated the FLSA by (1) paying delivery drivers as tipped employees but requiring them to spend 20% or more of their time on non-tipped work (Count I); and (2) failing to appropriately reimburse delivery drivers for vehicle expenses, including driving record costs (Count II). On behalf of all similarly situated non-supervisory employees, Tegtmeier claims that PJ violated the FLSA by . not reimbursing employees for uniform and driving record expenses (Count III).

Tegtmeier also asserts claims under Iowa law for an “opt-in” class action pursuant to Rule 23 of the Federal Rules of Civil Procedure made up of delivery drivers who were employed by PJ Iowa in Iowa (the Iowa Delivery Driver Class). On behalf of the Iowa Delivery Driver Class, Tegtmeier claims that PJ Iowa violated the IMWL by failing to appropriately reimburse delivery drivers, for vehicle expenses and driving record expenses, which resulted in net wages for delivery drivers that fell below the Iowa minimum wage (Count IV). Also on behalf of the Iowa Delivery Driver Class, Tegtmeier claims that PJ Iowa illegally withheld or diverted portions of delivery drivers’ wages under the IWPCL by inadequately reimbursing delivery drivers for their vehicle expenses and driving record expenses (Count VI).

Finally, Tegtmeier asserts claims under Iowa law for an “opt-in” Rule 23 class action made up of non-supervisory employees who were employed by PJ Iowa in Iowa (the Iowa Non-Supervisory Employee Class). On behalf of the Iowa Non-Supervisory Employee Class, Tegtmeier claims that PJ Iowa violated the IMWL by failing to appropriately reimburse employees for uniform expenses, which resulted in net wages for non-supervisory employees that fell below the Iowa minimum wage (Count V). Also on behalf of the Iowa Non-Supervisory Employee Class, Te-gtmeier claims that PJ Iowa illegally withheld or diverted portions of employees’ wages under the IWPCL by deducting uniform expenses without permission (Count VII).

In its Motion to Dismiss, PJ Iowa argues that Tegtmeier’s IMWL claims (Counts TV-V) are preempted by the FLSA. PJ Iowa argues that Tegtmeier’s FLSA and IMWL claims arise from the same, facts and allege that the same entitlement provided by federal and state law, yet would require the Court to supervise simultaneous collective action and class action procedures, involving different (but overlapping) sets of plaintiffs pursuing essentially the same claims..

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Cite This Page — Counsel Stack

Bluebook (online)
189 F. Supp. 3d 811, 2016 WL 3265711, 2016 U.S. Dist. LEXIS 81881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tegtmeier-v-pj-iowa-lc-iasd-2016.