Ward v. United Airlines, Inc.

CourtDistrict Court, N.D. California
DecidedFebruary 12, 2021
Docket3:19-cv-03423
StatusUnknown

This text of Ward v. United Airlines, Inc. (Ward v. United Airlines, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. United Airlines, Inc., (N.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 San Francisco Division 11 CHARLES E. WARD, et al., Case No. 19-cv-03423-LB

12 Plaintiffs, ORDER GRANTING MOTION FOR 13 v. CLASS CERTIFICATION

14 UNITED AIRLINES, INC., Re: ECF No. 42 15 Defendant. 16 17 INTRODUCTION 18 The plaintiffs are a retired pilot and two flight attendants who — on behalf of themselves and 19 putative classes — sued their employer United Airlines, claiming that United violates California 20 law by how it pays flight crew on “reserve” status. Reserve status means that the pilots and flight 21 attendants are on call for flight assignments (in contrast to other flight crew who bid for and fly on 22 assigned schedules). 23 Employment and payment for all pilots and flight attendants are governed by negotiated 24 provisions in collective bargaining agreements (CBAs). The CBAs compensate flight crew on 25 reserve status based on the higher of (1) the time spent on flight-related activity or (2) a minimum 26 guarantee. The plaintiffs contend that this is illegal borrowing from flight time to compensate for 27 on-call reserve time, in violation of the “no-borrowing” rule in Oman v. Delta Air Lines, Inc. 9 1 unjust enrichment (on a theory of quantum meruit/quasi-contract) for uncompensated hours 2 (calculated by multiplying the hourly rate by the unpaid hours on on-call reserve status) (claim 3 one), (2) unpaid minimum wages (for all hours on reserve status) under the California Labor Code 4 (claim two), (3) unpaid contractual wages under the Labor Code (claim three), and (4) restitution 5 of unpaid wages for unfair business practices (predicated on the Labor Code violations) under 6 California’s Unfair Competition Law (claim five). The complaint has a derivative claim for 7 waiting-time penalties under the Labor Code (claim four) and claims for penalties under 8 California’s Private Attorneys General Act (PAGA) predicated on the minimum-wage, unpaid- 9 contractual-wage, and waiting-time claims (claims six, seven, and eight).1 10 The plaintiffs moved to certify, and the court certifies, two classes: California-based pilots and 11 California-based flight attendants.2 12 STATEMENT 13 The parties agree on the facts about United’s payroll policy for flight crew on reserve status, 14 meaning, on-call crew (as opposed to those with a known schedule). The payroll policy (set forth 15 in negotiated CBAs) provides that for any “bid period” (meaning, the monthly pay period), the pay 16 is the higher of the (1) the time spent on flight-related activity or (2) a minimum-pay guarantee.3 17 A reserve pilot’s pay illustrates how this works. Generally, reserve pilots work up to 18 18 reserve days during any bid period, with no more than six days in a row and at least two 19 consecutive days off between blocks of reserve time.4 There are different types of reserve status: 20 (1) long-call status (13-hour advance notice of flights); (2) short-call status (different advance 21 notice); and (3) field-standby status (requiring the pilot to be at the airport).5 Different rules apply 22 23 1 Second Am. Compl. (SAC) – ECF No. 35 at 6–7 (¶¶ 13–15), 10–17 (¶¶ 24–48); Carlson Dep., Ex. A 24 to KohSweeney Decl. – ECF No. 45-1 at 11–12 (pp. 49:3–50:5); Krabbe Dep., Ex. B to id. – ECF No. 45-1 at 45-1 at 56–57 (pp. 71:17–72:4). Citations refer to material in the Electronic Case File (ECF); 25 pinpoint citations are to the ECF-generated page numbers at the top of documents. 26 2 Mot. – ECF No. 42. 3 Opp’n – ECF No. 45 at 5–6; Reply – ECF No. 47 at 2. 27 4 Carlson Dep., Ex. 1 to Hanson Decl. – ECF No. 42-3 at 19–21 (pp. 49:3–51:22). 1 — such as conversion between long-call and short-call status, the time to report for duty (to allow 2 preflight tasks), and the release time after flights (to allow post-flight tasks) — but reserve pilots 3 in the end are paid the same way: at the end of the bid period, United pays the pilots the greater of 4 (1) the line-pay value or (2) a minimum-pay guarantee. The line-pay value is based on the pilot’s 5 trips and activities during the bid period and is based on factors such as minutes away from the 6 pilot’s base airport, minutes on duty, calendar days away from the base airport, and the greater of 7 actual or scheduled flight time paid at the pilot’s hourly rate. It also includes pay factors such as 8 size and type of aircraft and the pilot’s position on the flight (captain or first officer). The 9 minimum-pay guarantee is a simple calculation: United pays a pilot for four hours, three minutes, 10 and 20 seconds for each day the pilot is on reserve status (whether long-call, short-call or field- 11 standby status) paid at the pilot’s hourly rate.6 12 Pay records for named plaintiff Charles Ward for the April 2015 bid period — when he was on 13 reserve status — show this scheme.7 His pay statement (called a “pay register”) shows his reserve 14 status with the letter “R” under the subheading “RSV.”8 His line-pay value was $19,262,43 (for 92 15 hours and 34 minutes of flight trips or other allowed time), and his minimum-pay guarantee was 16 $15,188.38 (for 73 hours on reserve). United thus paid him the higher line-pay value.9 According 17 to the plaintiffs, this meant that United either did not pay him for his reserve time or borrowed 18 time from his line-value pay to cover reserve time.10 19 20 21 22 6 Carlson Dep., Ex. 1 to Hanson Decl. – ECF No. 42-3 at 27–28 (pp. 58:8–59:10), 42–47 (pp. 132:13– 23 14118); Ward Decl. – ECF No. 42-1 at 7 (¶ 12); Carlson Dep., Ex. A to KohSweeney Decl. – ECF No. 45-1 at 26 (pp. 80:2–17); United Pilot Agreement, Ex. 2 to Hanson Decl. – ECF No. 42-3 at 68–69. The 24 plaintiffs originally contended that United also made a third pay calculation called protected-time credit but then conceded that the calculation does not apply to reserve pilots. Mot. – ECF No. 42 at 15; Reply 25 – ECF No. 47 at 3. 26 7 Ward Decl. – ECF No. 42-1 at 2 (¶ 2). 8 Ward April Pay Register, Ex. 1 to Ward Decl. – ECF No. 42-1 at 13. 27 9 Id.; Ward Decl. – ECF No. 42-1 at 7–8 (¶ 13). 1 By contrast, for the August 2015 bid period, Mr. Ward’s line-pay value was $12,245 (for 58 2 hours and 39 minutes of trips and allowed time) and a minimum guarantee of $15,188.38 (for 73 3 hours on reserve). United thus paid him the higher minimum-guarantee value for his reserve time.11 4 Reserve flight attendants have a different bid process, but United pays them similarly: the 5 greater of (1) the line-pay value or (2) a minimum-pay guarantee (based on 78 hours per bid 6 period). During each bid period, United sends reserve attendants a schedule with days of availability 7 and days off. On days of availability, flight attendants can be assigned a trip and convey their 8 preference to work certain trips that are available. United then assigns the trips —based on seniority 9 and preference — the day before (either assigning a trip, releasing the attendant, or requiring the 10 attendant to be on call or on standby).12 Like the rules for pilots, different rules apply for assigned 11 trips — such as the time to report based on the type of craft to allow preflight tasks — but reserve 12 attendants in the end are paid the same way as reserve pilots: at the end of the bid period, United 13 pays the greater of the minimum-pay guarantee or the line-pay value.13 14 Pay records for named plaintiff Felicia Vidrio for the November 2019 bid period — when she 15 was on reserve status — show this scheme.

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Ward v. United Airlines, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-united-airlines-inc-cand-2021.