Tyus v. Wendy's of Las Vegas, Inc.

District Court, D. Nevada·Decided May 27, 2021·No. 2:14-cv-00729·Unknown

Opinion

LATONYA TYUS, an individual; DAVID ) HUNSICKER, an individual; LINDA ) DAVIS, an individual; TERRON SHARP, ) Case No.: 2:14-cv-00729-GMN-VCF an individual; COLLINS KWAYISI, an ) individual; LEE JONES, an individual; ) ORDER RAISSA BURTON, an individual; ) JERMEY MCKINNEY, an individual; and ) FLORENCE EDJEOU, an individual, all on ) behalf of themselves and all similarly situated ) individuals, ) ) Plaintiffs, ) vs. ) ) WENDY’S OF LAS VEGAS, INC., an ) Ohio corporation; CEDAR ENTERPRISES, ) INC., an Ohio Corporation; and DOES 1 ) through 100, inclusive, ) ) Defendants. ) ) Pending before the Court is the Unopposed Motion for Preliminary Approval of Class Settlement, (ECF No. 136), filed by Plaintiffs Latonya Tyus, David Hunsicker, Collins Kwayisi, Lee Jones, Raissa Burton, Jeremy McKinney, and Florence Edjeou (collectively “Plaintiffs”) and Defendants Wendy’s of Las Vegas, Inc. and Cedar Enterprises, Inc. (collectively “Defendants”). For the reasons discussed herein, Plaintiffs’ Unopposed Motion for Preliminary Approval of Class Settlement is GRANTED. // // This case arises out of Defendants’ alleged failure to pay the proper minimum wage pursuant to Nevada’s Minimum Wage Amendment, Nev. Const. art. XV, § 16 (the “MWA”). During all relevant times, Defendants owned and operated approximately thirty (30) Wendy’s Restaurants (collectively “Restaurants”) in Nevada. (Am. Compl. ¶ 1, ECF No. 3). Plaintiffs allege that this action “is a result of [Defendants’] failure to pay Plaintiffs and other similarly- situated employees who are members of the Class the lawful minimum wage, [sic] because [Defendants] improperly claim, or have claimed, the right to compensate employees below the upper-tier hourly minimum wage level under [the MWA].” (Id. ¶ 2). For example, Kwayisi alleges that he worked at a Wendy’s restaurant owned and operated by Defendants and earned an hourly wage below the upper-tier hourly minimum wage under the MWA. (Id. ¶ 45). Moreover, Defendants offered Kwayisi a health insurance plan through Aetna Inc., but Kwayisi declined the insurance coverage. (Id. ¶ 46). As a result, Plaintiffs allege that Defendants “do not provide, offer,” or “maintain qualifying health insurance plan benefits for the benefit of Plaintiffs and members of the Class, and therefore Defendants are not, and have not been, eligible to pay Plaintiffs and members of the Class below the upper-tier hourly minimum wage level.” (Id. ¶ 11). On May 9, 2014, Plaintiffs filed a Class Action Complaint against Defendants. (See Compl., ECF No. 1). On August 8, 2014, Defendants filed a Motion to Dismiss, (Mot. to Dismiss, ECF No. 11), and the Court dismissed Plaintiffs’ second, third, and fourth claims for relief with prejudice, and denied Defendants’ motion as to Plaintiffs’ first claim for relief. (See Order, ECF No. 40). On August 21, 2015, the Court certified the following question to the Nevada Supreme Court: “whether an employee must actually enroll in health benefits offered by an employer before the employer may pay that employee at the lower-tier wage under the [MWA].” (Order Granting Defs.’ Mot. for Partial J. 11:3–5, ECF No. 71). In MDC Restaurants, LLC v. Eighth Judicial District Court, (“MDC I”), the Nevada Supreme Court answered that question, holding that “under the MWA, health benefits need only be offered or made available for the employer to pay the lower-tier wage.” 383 P.3d 262, 266 (Nev. 2016). On December 16, 2016, Defendants filed a Motion for Summary Judgment on Plaintiffs’ remaining first cause of action on the grounds that “Plaintiffs were offered qualifying health insurance and were paid at least $7.25 per hour.” (Mot. Summ. J. (“MSJ”) 2:18–19, ECF No. 77). On September 28, 2017, the Court granted Defendants’ Motion for Summary Judgment and denied Plaintiffs’ Motion to Certify Class as moot. (Order12:4–9. ECF No. 92). The Clerk of Court was instructed to enter judgment in favor of Defendants. (Clerk’s J., ECF No. 93). Plaintiffs appealed the Court’s decision, (ECF No. 94), and during the appeal’s pendency, the Nevada Supreme Court issued its decision in MDC Rests., LLC v. Eighth Jud. Dist. Court, 419 P.3d 148, 148 (Nev. 2018) (“MDC II”); (see Plaintiffs’ Mot. for Misc. Relief 4:16–19, ECF No. 105). In MDC II, the Nevada Supreme Court addressed “whether there is some minimum quality or substance of health insurance that an employer must provide for the employer to pay the lower-tier minimum wage under the MWA.” See MDC II, 419 P.3d at 154. Declining to stray from the “simple meaning found within the text and purpose of the MWA,” the Nevada Supreme Court held: [A]n employer is qualified to pay the lower-tier minimum wage to an employee if the employer offers a benefit to the employee in the form of health insurance of a value greater than or equal to the wage of an additional dollar per hour, and covers “the employee and the employee’s dependents at a total cost to the employee for premiums of not more than 10 percent of the employee’s gross taxable income from the employer.” Nev. Const. art. 15, § 16. An employer who pays the lower- tier minimum wage will have the burden of showing that it provided the employee with a benefit in the form of health insurance equal to a value of at least an additional dollar per hour in wages. If an employer cannot offer such insurance to an employee, the employer must pay the employee the upper-tier minimum wage. Id. at 155–56. In light of this holding, the Ninth Circuit remanded this case for consideration. (Order of USCA, ECF No. 102). On September 26, 2019, the Court granted Plaintiffs’ Motion for Class Certification, defining the class as “[a]ll current and former employees of Defendants at their Nevada locations who were paid less than $8.25 per hour but were not provided with qualifying health benefits pursuant to Nev. Const. art. XV, sec. 16., at any time since May 9, 2012.” (Mot. to Certify Class 4:13–17, ECF No. 108); (see Order 19:16–18, ECF No. 123). On May 4, 2020, Plaintiffs and Defendants reached a settlement agreement after arms-length negotiations and subsequently submitted the instant Joint Unopposed Motion for Preliminary Approval of Class Action Settlement. (See Unopposed Mot. Prelim. Approval, ECF No. 136). Under the Proposed Settlement, Defendants agree to pay the following: $858,600.00 (“Settlement Class Amount”) on behalf of the following Settlement Cass for, inter alia, a complete specific release of the claims of Named Plaintiffs and members of the Settlement Class who do not exclude themselves from the Settlement. (Id. 8:14–17). In exchange, Plaintiffs, on behalf of the Settlement Class, agree to dismiss the underlying case and release the Defendants from any and all claims arising from or relating to their employment, except for any “workers’ compensation claims or any claims that may not be released under applicable law.” (Id. 10:8–15). II. LEGAL STANDARD The Ninth Circuit has declared that a strong judicial policy favors settlement of class actions. Class Plaintiffs v. City of Seattle, 955 F.2d 1268, 1276 (9th Cir. 1992). However, a class action may not be settled without court approval. Fed. R. Civ. P. 23(e). When the parties to a putative class action reach a settlement agreement prior to class certification, “courts must peruse the proposed compromise to ratify both the propriety of the certification and the fairness of the settlement.” Staton v. Boeing Co., 327 F.3d 938, 952 (9th Cir. 2003). At the preliminary stage, the court must first assess whether a class exists. Id. (citing Amchem Prods. Inc. v. Windsor,

Tyus v. Wendy's of Las Vegas, Inc., (D. Nev. 2021).

Tyus v. Wendy's of Las Vegas, Inc. (Tyus v. Wendy's of Las Vegas, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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