Vecchio v. Quest Diagnostics Inc.

CourtDistrict Court, S.D. New York
DecidedApril 7, 2023
Docket1:16-cv-05165
StatusUnknown

This text of Vecchio v. Quest Diagnostics Inc. (Vecchio v. Quest Diagnostics Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vecchio v. Quest Diagnostics Inc., (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

MARIA VECCHIO, individually, and on behalf of all others similarly situated, OPINION AND ORDER

Plaintiffs,

– against – 16 Civ. 5165 (ER)

QUEST DIAGNOSTICS, INC., EXAMONE WORLD WIDE, INC., and EXAMONE LLC,

Defendants.

MARIA VECCHIO, individually, and on behalf of all others similarly situated,

– against – 19 Civ. 5194 (ER)

QUEST DIAGNOSTICS, INC., EXAMONE WORLD WIDE, INC., and EXAMONE LLC,

RAMOS, D.J.: Maria Vecchio brought this action on June 29, 2016, alleging that defendants, her former employers, had failed to pay her, and those similarly situated, minimum and overtime wages in violation of the Fair Labor Standards Act (the “FLSA”) and the New York Labor Law (the “NYLL”). Before the Court is Vecchio’s unopposed motion for conditional certification of a class, under Federal Rule of Civil Procedure 23, and collective, under Section 16(b) of the FLSA, for settlement purposes only. Vecchio further seeks preliminary approval of a class and collective action settlement. For the reasons set forth below, the motion is GRANTED in part and DENIED in part. I. Background & Procedural History The Court assumes familiarity with the facts and procedural posture of this action, as previously set forth in its September 18, 2020 opinion and order, Doc. 3195 (16-cv-5165).

Accordingly, the Court will summarize only the facts necessary to resolve this motion. ExamOne LLC—a wholly owned subsidiary of ExamOne World Wide, Inc., which, in turn, is a wholly owned subsidiary of Quest Diagnostics, Inc—provides medical examinations to individuals applying for life insurance policies. Id. at 2. ExamOne employs mobile medical examiners to perform these exams, including some as independent contractors. Id. Medical examiners employed as independent contractors are either paid a fixed fee per examination, or a percentage of the revenue earned by ExamOne. Id. Maria Vecchio, a medical examiner, began working for ExamOne in November 2013, as an independent contractor. Id. at 8. During this time, she earned 38 percent of the amount

ExamOne billed for each examination. Id. In June 2014, ExamOne hired Vecchio as a part-time employee; she then earned a set fee per examination performed, as well as an overtime rate of $26.54 per hour. Id. Vecchio filed complaint 16-cv-5165 on June 29, 2016, alleging, inter alia, that ExameOne failed to pay her minimum wage or overtime in violation of provisions of the FLSA and the NYLL. Doc. 1 (16-cv-5165). After approximately one year of discovery, the parties stipulated to the dismissal without prejudice of the NYLL claims on October 10, 2017. Doc. 477 (16-cv-5165). Six months after the dismissal of the state law claims, on April 30, 2018, the Court issued an opinion and order conditionally certifying an FLSA collective, i.e., all persons employed by defendants as mobile examiners, whether designated as independent contractors or employees, at any time in the three years prior to the filing of the complaint on June 29, 2016. Doc. 644 (16-cv-5165). The Court further authorized the issuance of a nationwide notice to the collective. Id. By the end of the 90-day notice period notice period, approximately 2,700 plaintiffs had opted in to the collective.

The following year, on April 9, 2019, Vecchio filed the previously dismissed NYLL claims against defendants in a separate action before the Supreme Court of New York, County of New York, Index No. 652069/2019. See Doc. 1-1 (19-cv-5194). Defendants subsequently removed the action to this District on June 3, 2019. Doc. 1 (19-cv-5194). The following week, on June 11, 2019, the case was assigned to this Court as related to 16-cv-5165. On February 21, 2020, defendants filed motions for decertification and partial summary judgment. Docs. 3174; 3179 (16-cv-5165). An opinion and order issued on September 18, 2020 granted the motions. Doc. 3195 (16-cv-5165). Specifically, the Court decertified the class because Vecchio failed to show that the opt-in plaintiffs were similarly situated to her in any

material respect; dismissed with prejudice Vecchio’s minimum wage claims, along with the overtime wage claims of 32 specific opt-in plaintiffs; and dismissed without prejudice the claims of all remaining opt-in plaintiffs. Id. at 26. On June 25, 2020, the parties mediated before Carol Wittenberg, which was unsuccessful. See Declaration of Salvatore C. Badala in Support of Amended Motion for Conditional Certification of the Class and Collective, and for Preliminary Approval of the Class and Collective Action Settlement (“Badala Decl.”), Docs. 3230 (16-cv-5165) ¶ 21; 57 (19-cv-5194) ¶ 21. Five months later, on November 9, 2020, the parties filed a joint letter, requesting that the Court hold all of the proceedings in connection with the two related cases in abeyance, pending the outcome of mediation. Docs. 3202 (16-cv-5165); 16 (19-cv-5194). The following day, the Court issued an order staying the cases, in accordance with the parties’ request. Docs. 3204 (16- cv-5165); 18 (19-cv-5194). The following month, on December 17, 2020, the parties

participated in a second mediation before Marc Isserles, at which they reached a preliminary settlement agreement. Badala Decl. ¶ 22. Over the ensuing nine months, the parties worked to finalize the terms of the settlement agreement, id. ¶ 24, and on September 17, 2021, they advised the Court via letter that they had a reached a written settlement, resolving both the cases. Docs. 3209 (16-cv-5165); 22 (19-cv- 5194). This letter further provided that Vecchio would file an amended complaint—which would serve as the operative complaint in both actions and which would include both state law and FLSA claims—in accordance with the terms of the settlement agreement. Id.; see also Doc. 3216 (16-cv-5165); 29 (19-cv-5194). It also asked the Court to lift the stay on the cases. Id.

The Court did so that same day. Docs. 3210 (16-cv-5165); 23 (19-cv-5194). Two weeks later, on October 1, 2021, Vecchio filed an amended complaint. Doc. 3216 (16-cv-5165); 29 (19-cv- 5194). Vecchio filed a joint stipulation of settlement and release, the “Original Settlement Agreement,” Docs. 3219 (16-cv-5165); 32 (19-cv-5194), on November 22, 2021. Attached to the Original Settlement Agreement was a proposed notice, the “Original Proposed Notice,” Docs. 3219-1 (16-cv-5165); 32-1 (19-cv-5194); proposed order granting preliminary approval, the “Original Proposed Order,” Docs. 3219-2 (16-cv-5165); 32-2 (19-cv-5194); and proposed allocation formula, the “Original Proposed Formula,” Docs. 3219-3 (16-cv-5165); 32-3 (19-cv- 5194). The following month, on December 10, 2021, Vecchio filed an unopposed motion for conditional certification of the class and collective and for preliminary approval of the class and collective action settlement. The “Original Motion,” Docs. 3228 (16-cv-5165); 40 (19-cv-5194). The Court held a conference (the “Conference”) to discuss the Original Motion on August 25, 2022. During the Conference, the Court denied it without prejudice for a number of

reasons, as explained below. See generally Conference Transcript (“Conf. Tr.”), Doc. 3239 (16- cv-5165). First, the Original Settlement Agreement did not require opt-in plaintiffs to file a written consent with the Court to join the collective, as required by the FLSA. See 29 U.S.C. § 216(b) (“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 consent is filed in the court in which such action is action.”).

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