Ward v. United Airlines, Inc.

District Court, N.D. California·Decided February 12, 2021·No. 3:19-cv-03423·Unknown

Opinion

San Francisco Division CHARLES E. WARD, et al., Case No. 19-cv-03423-LB

Plaintiffs, ORDER GRANTING MOTION FOR v. CLASS CERTIFICATION

UNITED AIRLINES, INC., Re: ECF No. 42 Defendant. The plaintiffs are a retired pilot and two flight attendants who — on behalf of themselves and putative classes — sued their employer United Airlines, claiming that United violates California law by how it pays flight crew on “reserve” status. Reserve status means that the pilots and flight attendants are on call for flight assignments (in contrast to other flight crew who bid for and fly on assigned schedules). Employment and payment for all pilots and flight attendants are governed by negotiated provisions in collective bargaining agreements (CBAs). The CBAs compensate flight crew on reserve status based on the higher of (1) the time spent on flight-related activity or (2) a minimum guarantee. The plaintiffs contend that this is illegal borrowing from flight time to compensate for on-call reserve time, in violation of the “no-borrowing” rule in Oman v. Delta Air Lines, Inc. 9 unjust enrichment (on a theory of quantum meruit/quasi-contract) for uncompensated hours (calculated by multiplying the hourly rate by the unpaid hours on on-call reserve status) (claim one), (2) unpaid minimum wages (for all hours on reserve status) under the California Labor Code (claim two), (3) unpaid contractual wages under the Labor Code (claim three), and (4) restitution of unpaid wages for unfair business practices (predicated on the Labor Code violations) under California’s Unfair Competition Law (claim five). The complaint has a derivative claim for waiting-time penalties under the Labor Code (claim four) and claims for penalties under California’s Private Attorneys General Act (PAGA) predicated on the minimum-wage, unpaid- contractual-wage, and waiting-time claims (claims six, seven, and eight).1 The plaintiffs moved to certify, and the court certifies, two classes: California-based pilots and California-based flight attendants.2 The parties agree on the facts about United’s payroll policy for flight crew on reserve status, meaning, on-call crew (as opposed to those with a known schedule). The payroll policy (set forth in negotiated CBAs) provides that for any “bid period” (meaning, the monthly pay period), the pay is the higher of the (1) the time spent on flight-related activity or (2) a minimum-pay guarantee.3 A reserve pilot’s pay illustrates how this works. Generally, reserve pilots work up to 18 reserve days during any bid period, with no more than six days in a row and at least two consecutive days off between blocks of reserve time.4 There are different types of reserve status: (1) long-call status (13-hour advance notice of flights); (2) short-call status (different advance notice); and (3) field-standby status (requiring the pilot to be at the airport).5 Different rules apply 1 Second Am. Compl. (SAC) – ECF No. 35 at 6–7 (¶¶ 13–15), 10–17 (¶¶ 24–48); Carlson Dep., Ex. A 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); pinpoint citations are to the ECF-generated page numbers at the top of documents. 2 Mot. – ECF No. 42. 3 Opp’n – ECF No. 45 at 5–6; Reply – ECF No. 47 at 2. 4 Carlson Dep., Ex. 1 to Hanson Decl. – ECF No. 42-3 at 19–21 (pp. 49:3–51:22). — such as conversion between long-call and short-call status, the time to report for duty (to allow preflight tasks), and the release time after flights (to allow post-flight tasks) — but reserve pilots in the end are paid the same way: at the end of the bid period, United pays the pilots the greater of (1) the line-pay value or (2) a minimum-pay guarantee. The line-pay value is based on the pilot’s trips and activities during the bid period and is based on factors such as minutes away from the pilot’s base airport, minutes on duty, calendar days away from the base airport, and the greater of actual or scheduled flight time paid at the pilot’s hourly rate. It also includes pay factors such as size and type of aircraft and the pilot’s position on the flight (captain or first officer). The minimum-pay guarantee is a simple calculation: United pays a pilot for four hours, three minutes, and 20 seconds for each day the pilot is on reserve status (whether long-call, short-call or field- standby status) paid at the pilot’s hourly rate.6 Pay records for named plaintiff Charles Ward for the April 2015 bid period — when he was on reserve status — show this scheme.7 His pay statement (called a “pay register”) shows his reserve status with the letter “R” under the subheading “RSV.”8 His line-pay value was $19,262,43 (for 92 hours and 34 minutes of flight trips or other allowed time), and his minimum-pay guarantee was $15,188.38 (for 73 hours on reserve). United thus paid him the higher line-pay value.9 According to the plaintiffs, this meant that United either did not pay him for his reserve time or borrowed time from his line-value pay to cover reserve time.10 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– 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 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 – ECF No. 47 at 3. 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. 9 Id.; Ward Decl. – ECF No. 42-1 at 7–8 (¶ 13). By contrast, for the August 2015 bid period, Mr. Ward’s line-pay value was $12,245 (for 58 hours and 39 minutes of trips and allowed time) and a minimum guarantee of $15,188.38 (for 73 hours on reserve). United thus paid him the higher minimum-guarantee value for his reserve time.11 Reserve flight attendants have a different bid process, but United pays them similarly: the greater of (1) the line-pay value or (2) a minimum-pay guarantee (based on 78 hours per bid period). During each bid period, United sends reserve attendants a schedule with days of availability and days off. On days of availability, flight attendants can be assigned a trip and convey their preference to work certain trips that are available. United then assigns the trips —based on seniority and preference — the day before (either assigning a trip, releasing the attendant, or requiring the attendant to be on call or on standby).12 Like the rules for pilots, different rules apply for assigned trips — such as the time to report based on the type of craft to allow preflight tasks — but reserve attendants in the end are paid the same way as reserve pilots: at the end of the bid period, United pays the greater of the minimum-pay guarantee or the line-pay value.13 Pay records for named plaintiff Felicia Vidrio for the November 2019 bid period — when she was on reserve status — show this scheme. United paid her line-pay value of $4,311.44 (for 65 hours and 32 minutes of flight time) because it was higher than her minimum-pay guarantee.14 According to the plaintiffs, this meant that United either did not pay her for her reserve time or borrowed time from her line-value pay to cover reserve time.15 Based on this alleged failure to pay wages, the plaintiffs moved to certify two classes under Federal Rule of Civil Procedure 23(b)(2) and (b)(3) for California-based pilots and California- based flight attendants: Pilot Class: All pilots employed by United Airlines, Inc. at any time between April 2015 and the final judgment in this action (the “Covered Time”), who, at any time during the

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