Yair Granados v. Hinojosa

219 F. Supp. 3d 582, 2016 WL 7011480, 2016 U.S. Dist. LEXIS 166861
CourtDistrict Court, W.D. Texas
DecidedNovember 28, 2016
DocketCAUSE NO. A-15-CV-787-LY
StatusPublished
Cited by2 cases

This text of 219 F. Supp. 3d 582 (Yair Granados v. Hinojosa) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yair Granados v. Hinojosa, 219 F. Supp. 3d 582, 2016 WL 7011480, 2016 U.S. Dist. LEXIS 166861 (W.D. Tex. 2016).

Opinion

ORDER ON PLAINTIFFS’ AMENDED MOTION FOR CONDITIONAL CERTIFICATION OF COLLECTIVE ACTION AND NOTICE TO CLASS

LEE YEAKEL, UNITED STATES DISTRICT JUDGE

Before the court are Plaintiffs’ Amended Motion for Conditional Certification of Collective Action and Notice to Class filed September 12, 2016 (Doc. #57); Defendants’ Response to Plaintiffs’ Amended Motion for Conditional Certification of Collective Action and Notice to Class and Request for Evidentiary Hearing filed September 19, 2016 (Doc. # 60); and Plaintiffs’ Reply in Support of their Amended Motion for Conditional Certification of Collective Action and Notice to Class filed September 26, 2016 (Doc. # 66).

[584]*584Also before the court are Defendants’ Motion to Compel Depositions of Plaintiffs, or in the Alternative, Motion to Alter Phase 1 Scheduling Order filed October 7, 2016 (Doc. # 72); Plaintiffs’ Response to Defendants’ Motion to Compel Depositions of Plaintiffs, or in the Alternative, Motion to Alter Phase 1 Scheduling Order filed October 14, 2016 (Doc. # 73); and Defendants’ Reply to Plaintiffs’ Response to Defendants’ Motion to Compel Depositions of Plaintiffs, or in the Alternative, Motion to Alter Phase 1 Scheduling Order filed October 20, 2016 (Doc. # 77).

By his motion, Plaintiffs move for conditional certification of themselves and other similarly-situated individuals who were employed by Defendants as bartenders or barbacks at The Coliseum of Austin, aka El Coliseo, Austin, Texas, during any period from July 23, 2012 to the present. Plaintiffs allege that Defendants violated the Fair Labor Standards Act by paying them and other bartenders and barbacks hourly wages less than the federal minimum of $7.25 per hour in violation of federal minimum-wage requirements, failing to pay Plaintiffs and other bartenders and barbacks for all the hours they worked, failing to follow the requirements necessary to authorize a “tip credit” to reduce minimum wage obligations, and requiring bartenders to share tips with barbacks who do not customarily and regularly receive tips. Having reviewed the motion, response, and reply, the case file, and governing law, the court concludes that Plaintiffs’ amended motion for conditional certification should be granted.

The Fair Labor Standards Act (“FLSA”) permits employees to bring an action against their employers for violation of its wage and hour provisions. See 29 U.S.C. § 216. Section 216(b) also permits an employee to bring an action against his employer on “behalf of himself ,.. and other employees similarly situated.” The requirement that Plaintiffs be “similarly situated” for collective treatment “does not necessarily mean identically situated.” England v. New Century Fin. Corp., 370 F.Supp.2d 504, 507 (M.D. La. 2005); see also Grayson v. K Mart Corp., 79 F.3d 1086, 1096 (11th Cir. 1996). Plaintiffs bear the burden of demonstrating that they are similarly situated. See Tice v. AOC Senior Home Health Corp., 826 F.Supp.2d 990, 995 (E.D. Tex. 2011). Determining whether collective treatment is appropriate is within the court’s discretion. See Mooney v. Aramco Servs. Co., 54 F.3d 1207, 1213 (5th Cir. 1995), overruled on other grounds by Desert Palace, Inc. v. Costa, 539 U.S. 90, 90-91, 123 S.Ct. 2148, 156 L.Ed.2d 84 (2003).

Although the FLSA provides little procedural guidance for representative actions, the United States Supreme Court has held that district courts have discretionary authority to implement the representative-action process by facilitating notice to potential plaintiffs, ie., to persons alleged to be “similarly situated” to the named plaintiffs. Hoffman-La Roche, Inc. v. Sperling, 493 U.S. 165, 169, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989). Determining whether a claim should go forward as a representative action under Section 216(b) requires the court to determine that the plaintiffs are “similarly situated,” generally using one of two analyses: (1) a two-step analysis described in Lusardi v. Xerox Corp., 118 F.R.D. 351, 359 (D. N.J. 1987), or (2) a “spurious class action” analysis described in Shushan v. University of Colorado, 132 F.R.D. 263 (D. Colo. 1990). See Mooney, 54 F.3d at 1216 (expressly declining to decide which of the two analyses is appropriate upon concluding that plaintiff had failed to satisfy standards of either analysis). Since Mooney district courts in the Fifth Circuit have uniformly used the [585]*585Lusardi approach to determine whether a collective should be certified under the FLSA. See Tolentino v. C & J Spec-Rent Servs., Inc., 716 F.Supp.2d 642, 646 (S.D. Tex. 2010) (collecting cases). This court fmds the Lusardi approach persuasive.

Under Lusardi, a court will first make a determination of whether the plaintiffs are similarly situated at the “notice stage” in order to give notice of the action to potential class members. Mooney, 54 F.3d at 1213-14. This conditional class certification is largely based on the allegations set forth in the pleadings and. affidavits and, for this reason, is governed by a lenient standard requiring “nothing more than substantial allegations that the putative class members were together the victims of a single decision, policy, or plan.” Thiessen v. General Electric Capital Corp., 267 F.3d 1095, 1102 (10th Cir. 2001). At this stage, courts generally refuse to consider a defendant’s arguments on the merits. See Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 178, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974); Morales v. Thang Hung Corp., No. 4:08-2795, 2009 WL 2524601, at *3 (S.D. Tex. Aug. 14, 2009). If the district court conditionally certifies the collective action, putative plaintiffs are given notice and the opportunity to “opt-in.” The action proceeds as a representative action throughout discovery. See Badgett v. Texas Taco Cabana, L.P., No. Civ. A. H 05 3624, 2006 WL 367872, at *2 (S.D. Tex. Feb. 14, 2006). .

After the opt-in period ends, the second step of the Lusardi approach usually occurs. In most cases, the second-step determination is precipitated by a motion for decertification by the defendant, usually filed after discovery is largely complete and the matter is ready for trial. Id. At this stage, the court has much more information on which to base its decision, and may make a factual determination on the similarly-situated question. Id.

Plaintiffs contend that the lenient initial requirements for conditional certification and notice are met, as Plaintiffs have made substantial allegations that they and other members of the proposed class never received the minimum wage for their work, were not paid for all the hours they worked, were never advised that Defendants intended to utilize a tip credit to offset wage obligations, and were required to participate in improper tip pooling.

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219 F. Supp. 3d 582, 2016 WL 7011480, 2016 U.S. Dist. LEXIS 166861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yair-granados-v-hinojosa-txwd-2016.