Weninger v. Gen. Mills Operations LLC

344 F. Supp. 3d 1005
CourtDistrict Court, E.D. Wisconsin
DecidedSeptember 25, 2018
DocketCase No. 18-CV-321-JPS
StatusPublished
Cited by8 cases

This text of 344 F. Supp. 3d 1005 (Weninger v. Gen. Mills Operations LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weninger v. Gen. Mills Operations LLC, 344 F. Supp. 3d 1005 (E.D. Wis. 2018).

Opinion

J.P. Stadtmueller, U.S. District Judge

Plaintiff John Weninger ("Weninger") filed this action on March 2, 2018, alleging violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq. , and the Family Medical Leave Act ("FMLA"), 29 U.S.C. § 2601 et seq. , against his former employer, Defendant General Mills Operations LLC ("General Mills"). (Docket # 1). Weninger seeks to bring his FLSA claim on a class basis, which in the parlance of the FLSA is called a collective action. See 29 U.S.C. § 216(b). On June 22, 2018, he filed a motion for conditional certification of his FLSA claim as a collective action. (Docket # 16). General Mills opposes the motion and filed its own motion for summary judgment as to the FLSA claim. (Docket # 21). Both motions are fully briefed and, for the reasons stated below, General Mills' motion will be denied without prejudice and the proposed collective action will be conditionally certified.

1. BACKGROUND

The basic facts are undisputed. General Mills manufactures consumer food products. It operates nearly thirty production facilities across the country, including one in Milwaukee, Wisconsin, where Weninger worked. He was employed as a Training Coordinator, which is a non-exempt, hourly position for FLSA purposes.

In addition to their regular, hourly rates of pay, General Mills employees like Weninger received lump sum payments referred to as "Wage Incentive Bonuses." The bonus was determined annually and *1008paid out in two separate payments, one in December and one in July. The Wage Incentive Bonus is calculated according to a formula established by General Mills and known to its non-exempt employees, including Weninger, in order to encourage or reward their rapid, safe, consistent, and efficient work performance. If a General Mills employee is an active, full-time employee at the time the Wage Incentive Bonus is made, he or she is entitled to receive it. The formula takes into account the employee's work performance, the production facility's performance, the safety and reliability of the facility, and other performance metrics.

The result of the Wage Incentive Bonus formula is a percentage. That percentage is multiplied by the employee's "eligible earnings" (a term used by General Mills, not the FLSA), including regular (or "straight") pay, overtime pay, and holiday pay combined. The product of that calculation is the total Wage Incentive Bonus for the year, which, as noted above, is paid in two installments. The Wage Incentive Bonus was not included in Weninger's or other employees' regular rates of pay when determining overtime compensation, for reasons that will be explored below.

Many General Mills employees enjoy another bonus, called the "Lump Sum Merit Bonus." According to General Mills, the bonus has no relation to employee productivity and is only used to adjust employee compensation based on prevailing market rates for similar work. (Docket # 32 at 8). Like the Wage Incentive Bonus, the Lump Sum Merit Bonus is calculated by applying a fixed percentage to the employee's eligible earnings-his straight time, overtime, and holiday pay combined. For instance, in 2016 eligible employees received a Lump Sum Merit Bonus of 1% of their eligible earnings. (Docket # 24 ¶¶ 3-4).

2. ANALYSIS

2.1 General Mills' Compensation Structure

Conditional certification of a collective action is distinct from the procedure normally applied to class litigation under Federal Rule of Civil Procedure 23. Woods v. N.Y. Life Ins. Co. , 686 F.2d 578, 579-80 (7th Cir. 1982). It allows a court to conditionally certify a collective action under the FLSA so that notification to putative class members may be made, those putative class members may affirmatively opt in to the collective action, and class discovery may be taken. 29 U.S.C. § 216(b) ; Woods , 686 F.2d at 579-80. Once this is done, the plaintiff can move for final, full certification of the collective action. Jirak v. Abbott Labs., Inc. , 566 F.Supp.2d 845, 848 (N.D. Ill. 2008). For the initial step of conditional certification, the plaintiff must only make "a minimal showing that others in the potential class are similarly situated," Mielke v. Laidlaw Transit, Inc. , 313 F.Supp.2d 759, 762 (N.D. Ill. 2004), which requires no more than "substantial allegations that the putative class members were together the victims of a single decision, policy, or plan," Thiessen v. Gen. Elec. Capital Corp. , 267 F.3d 1095, 1102 (10th Cir. 2001).

On the face of the complaint, Weninger appears to satisfy this lenient standard. He alleges that he and other hourly, non-exempt employees at General Mills' production facilities were subject to its unlawful practice of failing to include the Wage Incentive Bonus, a non-discretionary form of remuneration, in their regular rates of pay for purposes of determining overtime compensation. See (Docket # 1 ¶ 46).1 General Mills essentially concedes *1009that the Wage Incentive Bonus should be considered part of its employees' regular rate. (Docket # 22 at 8-11). But it nevertheless asserts that it should be granted summary judgment on the FLSA claim because its Wage Incentive Bonus is a permissible percentage bonus. Id.

Non-discretionary bonuses must normally be recomputed into an employee's regular rate before calculating his overtime compensation. 29 U.S.C. § 207

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
344 F. Supp. 3d 1005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weninger-v-gen-mills-operations-llc-wied-2018.