Vaszlavik v. Storage Technology Corp.

175 F.R.D. 672, 21 Employee Benefits Cas. (BNA) 2398, 1997 U.S. Dist. LEXIS 19355, 75 Fair Empl. Prac. Cas. (BNA) 1189, 1997 WL 749519
CourtDistrict Court, D. Colorado
DecidedNovember 26, 1997
DocketNo. Civ.A. 95-B-2525
StatusPublished
Cited by88 cases

This text of 175 F.R.D. 672 (Vaszlavik v. Storage Technology Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Vaszlavik v. Storage Technology Corp., 175 F.R.D. 672, 21 Employee Benefits Cas. (BNA) 2398, 1997 U.S. Dist. LEXIS 19355, 75 Fair Empl. Prac. Cas. (BNA) 1189, 1997 WL 749519 (D. Colo. 1997).

Opinion

MEMORANDUM OPINION & ORDER

BABCOCK, District Judge.

Plaintiffs, who are all former employees of defendant, Storage Technology Corporation [677]*677(Storage Tek), assert claims for wrongful discharge and for violations of the Employee Retirement Income Security Act of 1974 (ERISA), the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. (ADEA), and the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq. (ADA). Plaintiffs move to certify an ADEA collective action under 29 U.S.C. § 216(b) and an ERISA class under Fed.R.Civ.P. 23. A hearing was held on the motions. For the following reasons, I will grant the motion to certify an ADEA collective action and deny the motion to certify an ERISA class action.

I.

Storage Tek, headquartered in Louisville, Colorado, produces high technology computer equipment. Plaintiffs allege in their Sixth Amended Complaint that layoffs of Colorado workers between 1989 and 1996 were based on age and Storage Tek’s perception of plaintiffs’ use or anticipated use of company benefits, such as the self-funded medical plan. At the hearing, plaintiffs limited the relevant period to between April 13,1993, and December 31,1996. Plaintiffs claim violations, inter alia, of the ADEA and ERISA. In addition, plaintiffs seek certification of a class of plaintiffs for each claim. Defendant opposes certification of either class.

II.

COLLECTIVE ACTION PURSUANT TO 29 U.S.C. § 216(b)

Plaintiffs move for an order permitting this ease to proceed as a collective action pursuant to 29 U.S.C. § 216(b) with respect to the Age Discrimination in Employment Act (ADEA) claim. Eleven of the twelve named plaintiffs request that they be designated as representative of the proposed ADEA class. Only plaintiff Pamela Wilson, who is under the age of 40, has not requested to represent the ADEA class.

The ADEA, 29 U.S.C. § 623(a) provides, in pertinent part:

It shall be unlawful for an employer—
(1) ... to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s age;
(2) to limit, segregate, or classify his employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual’s age.

Generally, plaintiffs allege the following. From April 13, 1993, through the present, Storage Tek engaged in corporate strategic planning that identified as a major corporate financial problem the high cost and perceived decreased productivity of older employees. Based upon these concerns, through its reductions-in-force, Storage Tek engaged in a pattern and practice of age discrimination that resulted in the unlawful termination of several hundred employees over the age of forty, including the representative plaintiffs. Throughout the reductions-in-force, defendant treated younger employees more favorably than older employees.

The ADEA class proposed by the plaintiff is defined as follows:

Ail non-bargaining unit employees age 40 and older and who were terminated as part of a company-wide reduction-in-force, which occurred between April 13,1993 and December 31,1996, pursuant to a series of Strategic Plans designed to decrease the average age of employees and their associated costs, as well as increase productivity, by targeting older workers for job elimination.

A. Legal Standards for § 216(b) Collective Action

The ADEA incorporates the Fair Labor Standards Act, 29 U.S.C. § 216(b), which provides that:

[a]n action [under the ADEA] ... may be maintained against any employer ... in any Federal or State court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such [678]*678consent is filed in the court in which such action is brought.

Therefore, 29 U.S.C. § 216(b) permits plaintiffs to proceed under the ADEA “for and in behalf of ... themselves and other employee similarly situated,” and I must determine whether plaintiffs and those they seek to represent are “similarly situated” for purposes of the ADEA claim. The statute does not define “similarly situated,” nor has the Tenth Circuit explained its meaning.

In Bayles v. American Medical Response of Colorado, Inc., 950 F.Supp. 1053, 1066-67 (D.Colo.1996), I adopted an ad hoc method of determining whether plaintiffs were similarly situated under § 216(b). In particular, I employ the two-step approach to § 216(b) certification adopted by several other courts. First, I must determine whether a collective action should be certified for notice purposes. Then, after discovery is completed and the case is ready for trial, I revisit the issue of certification.

At the notice stage, courts following the ad hoc method “require nothing more than substantial allegations that the putative class members were together the victims of a single decision, policy, or plan____” Id. at 1066 (citing Sperling v. Hoffman-La Roche, Inc., 118 F.R.D. 392, 407 (D.N.J.), judgment ajfd. in part, appeal dismissed in part, 862 F.2d 439 (3d Cir.1988), judgment ajfd. and remanded, 493 U.S. 165, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989)). The court then makes a second determination after discovery has been completed and the case is ready for trial. Bayles, 950 F.Supp. at 1066. At this second stage, although not specifically deemed, the “similarly situated” standard is higher. Id. In determining whether plaintiffs are similarly situated after discovery is completed, courts address several factors: (1) disparate factual and employment settings of the individual plaintiffs; (2) the various defenses available to defendant which appear to be individual to each plaintiff; (3) fairness and procedural considerations; and (4) whether plaintiffs made the filings required by the ADEA before instituting suit. Bayles at 1066 (citing See Lusardi v. Xerox Corp., 118 F.R.D. 351 (D.N.J.1987), vacated in part on other grounds, 122 F.R.D. 463 (D.N.J.1988)).

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175 F.R.D. 672, 21 Employee Benefits Cas. (BNA) 2398, 1997 U.S. Dist. LEXIS 19355, 75 Fair Empl. Prac. Cas. (BNA) 1189, 1997 WL 749519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaszlavik-v-storage-technology-corp-cod-1997.