Troester v. Starbucks Corp.
Troester v. Starbucks Corp.
Opinion of the Court
I. INTRODUCTION
Plaintiff Douglas Troester brings this putative wage-and-hour class action against Defendant Starbucks Corporation ("Starbucks"), alleging claims for (1) failure to pay minimum and overtime wages, (2) failure to provide accurate written wage statements, (3) failure to timely pay all final wages, and (4) unfair competition. (Dkt. 1-1 [Complaint, hereinafter "Compl."].) Troester alleges that Starbucks required its employees to perform certain tasks after clocking out and that Starbucks did not compensate its employees for these tasks. (Id. ¶ 10.)
On March 7, 2014, Judge Gary Feess granted Starbucks summary judgment on all claims, holding the time Troester spent in and around the store after clocking out was not recoverable because it was "de minimis." (Dkt. 37.) Troester appealed, and *1022the Ninth Circuit certified a question to the California Supreme Court, asking whether the federal Fair Labor Standards Act's de minimis doctrine applied to claims for unpaid wages under California Labor Code sections 510, 1194, and 1197. Troester v. Starbucks Corp. ,
In light of the California Supreme Court's answer to the certified question, the Ninth Circuit reversed and remanded the case to this Court for further proceedings. Before the Court is Starbucks's motion for summary judgment. (Dkt. 59 [hereinafter "Mot."].) For the following reasons, the motion is GRANTED IN PART and DENIED IN PART .
II. BACKGROUND
In February 2008, Starbucks hired Troester to work as a barista in one of its coffee shops. (Dkt. 64-4 [Defendant's Reply Separate Statement of Undisputed Facts, hereinafter "DUF"] 1-2.) Starbucks promoted Troester to shift supervisor in June 2008. (DUF 2.) During his employment, Troester worked at multiple Starbucks locations, including stores at Hollywood Way, Enterprise Landing, and Lankershim and Magnolia. (Dkt. 64-4 [Defendant's Reply to Plaintiff's Additional Separate Statement of Undisputed Facts, hereinafter "PUF"] 2.) In January 2011, Troester stopped working for Starbucks. (DUF 1.)
While employed by Starbucks, Troester recorded his work time and clocked in and out using Starbucks's point-of-sale ("POS") system. (DUF 5.) Troester admits Starbucks always paid him for all the time he recorded in the POS system. (DUF 6.) Troester also recorded time in the punch communication log. Troester used the punch communication log to capture time spent on tasks such as running errands for the store before clocking in, assisting a customer in the store lobby while not clocked in, and talking to the store manager about "official business" while not clocked in. (DUF 8.) Troester used the punch communication log multiple times to record time spent on tasks performed after clocking out, such as picking up product for the store. (DUF 40.) Troester also used the punch communication log multiple times to correct wrong time punches. (DUF 41.) Troester admits that Starbucks always paid him for the time he recorded in the punch communication log. (DUF 9.)
At issue in this case is the time that Troester allegedly worked off the clock on certain closing shifts while he was a shift supervisor. Troester claims that he performed unpaid work during shifts at the end of the business day. (DUF 11.) Troester asserts that Starbucks trained its employees to clock out before performing certain closing tasks. (PUF 19.) Based on the *1023software used by Starbucks, Troester had to clock out before using the store computer to transmit sales data to Starbucks headquarters. (DUF 13.) To send data to Starbucks headquarters, Troester selected "close computer" with the computer's mouse or keyboard, entered a password, and pressed the "Y" key. (DUF 14.) Troester then set the store alarm by typing a numeric code on the alarm panel located near the computer. (DUF 15.) The store's alarm system required employees leave the store within sixty seconds of setting the alarm. (DUF 22.) After activating the alarm, Troester exited and locked the front door. (DUF 23.) He then walked coworkers to their vehicles. (DUF 26.)
In total, Troester contends he spent about four to ten minutes performing these tasks. Troester claims that it took him approximately "one minute to two minutes" to send the sales data and activate the alarm after clocking out. (DUF 17.) A comparison of the store's alarm records to Troester's time records indicates that Troester activated the alarm, on average, within one minute of clocking out. (DUF 19.) The comparison also indicates that Troester activated the alarm within two minutes of clocking out on more than 90 percent of his shifts. (DUF 20.) In total, Troester estimates that, from December 2008 to October 2010, he was not paid wages for the approximately 12 hours and 50 minutes of time spent between clocking out and activating the alarm. (PUF 34.) Troester also estimates that it took thirty seconds to walk out of the store after activating the alarm and that it took around fifteen seconds to lock the door. (DUF 24-25.) Troester estimates walking his coworkers to their cars took thirty-five to forty-five seconds. (DUF 27.) Troester contends he should be paid for the time he spent sending sales data to headquarters, setting the alarm, walking out of the store, locking the door, and walking coworkers to their cars.
Troester also claims that he performed certain tasks off the clock on a less frequent basis. Troester contends that every "couple of months," after clocking out and exiting the store, he brought the store's patio furniture inside the store after he and the other employees forgot to bring the patio furniture in while still on the clock. (DUF 29.) He also asserts that two or three times a month, after clocking out and exiting the store, he stayed outside the store with a coworker who was waiting for a ride. (DUF 31.)
III. LEGAL STANDARD
The Court may grant summary judgment on "each claim or defense-or the part of each claim or defense-on which summary judgment is sought." Fed. R. Civ. P. 56(a). Summary judgment is proper where the pleadings, the discovery and disclosure materials on file, and any affidavits show that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law."
*1024Where the movant will bear the burden of proof on an issue at trial, the movant "must affirmatively demonstrate that no reasonable trier of fact could find other than for the moving party." Soremekun v. Thrifty Payless, Inc. ,
In considering a motion for summary judgment, the court must examine all the evidence in the light most favorable to the nonmoving party, and draw all justifiable inferences in its favor.
IV. DISCUSSION
Starbucks moves for summary judgment on all of Troester's claims. Starbucks first argues that the Court cannot apply the California Supreme Court's holding "retroactively" because it would violate due process. Starbucks also argues that Troester cannot recover for any tasks that occurred after he exited the store because these tasks were irregular or brief and not compensable. Finally, Starbucks argues that even if Troester's wage claims survive, his other claims fail for a variety of reasons. The Court addresses each argument in turn.
A. Due Process
Starbucks asserts that the Court cannot hold Starbucks liable for Troester's unpaid wage claim without violating *1025Starbucks's federal due process rights. "The due process clause of the Fourteenth Amendment guarantees individuals the right to fair notice of whether their conduct is prohibited by law." Forbes v. Napolitano ,
In responding to the Ninth Circuit's certified question, the California Supreme Court considered whether the Fair Labor Standards Act's de minimis doctrine, as stated in Anderson v. Mt. Clemens Pottery Co. ,
Nor did the California Supreme Court find any support for applying the de minimis rule, as a principle of California law in other contexts, to the wage and hour claims asserted here, where Starbucks required Troester to work off the clock several minutes per closing shift. Id. at 835,
Starbucks's characterizes the California Supreme Court's decision as a "new standard" that "upended decades of authority." (Mot. at 6, 12.) This is inaccurate. Prior to the decision in this case, there was no controlling precedent. See California Rules of Court 8.548(a) (permitting Ninth Circuit to certify question only where "[t]here is no controlling precedent"). Starbucks cites a number of federal district court decisions for the proposition that "dozens" of courts have "uniformly recognized Lindow as applicable to California Labor Code claims." (Mot. at 9.) Many of these decisions, however, engaged in no analysis about whether the federal de minimis doctrine should apply to California law or indicate uncertainty regarding the applicability of the de minimis doctrine to state law claims. See, e.g. , Aldapa v. Fowler Packing Co. ,
Starbucks also claims it did not have fair notice due to opinion letters published by the Division of Labor Standards Enforcement ("DLSE") in 1988 and 1994, in which DLSE advised that it had adopted the Lindow test and federal de minimis rule for purposes of compensation. (Mot. at 8.) Although DLSE advisory opinions may be a source of informed judgment for courts and litigants, they are not binding. Troester ,
Contrary to Starbucks's assertion, this is not a situation where an agency changed its own interpretation of a regulation or where a statute was unconstitutionally vague. Cf. AMC ,
In sum, the Court concludes that Starbucks had fair notice of its obligation to pay its employees for all hours worked, including minutes of off-the-clock work performed by employees on a regular basis or as a regular feature of the job. The California Supreme Court's decision did not "upend[ ] a rich body of precedent." (See Mot. at 11.) Courts had long recognized that there was no binding authority on the issue and that California labor law is more protective of employees than federal law. Nor did the California Supreme Court's decision create a "new standard." Rather, it interpreted the relevant statutes and wage orders according to the text, history, and general principles of California law.
B. Other Tasks Underlying Troester's Unpaid Wages Claim
In the alternative, Starbucks seeks partial summary judgment on Troester's unpaid wages claim to the extent Troester seeks recovery for time spent (1) waiting for coworkers' rides to arrive, (2) bringing in patio furniture, and (3) walking coworkers to their cars.
1. Waiting for Coworkers' Rides
As part of his unpaid wages claim, Troester seeks to recover for the time he spent waiting for coworkers' rides. Troester contends that about two or three times a month, Troester stayed outside the store with a coworker who was waiting for a ride. (DUF 31.) Troester, however, does not recall any Starbucks manager ever instructing or asking him to do so. (DUF 33.) Troester's managers also testified that they never asked Troester or anyone else to wait with coworkers for their rides. (DUF 34.)
Starbucks contends Troester cannot recover wages for the time spent waiting for coworkers' rides to arrive because this is not compensable work. Wage Order 5 requires employers to pay employees a minimum wage for "all hours worked in the payroll period." Subdivision 2(K) of Wage Order 5 defines "hours worked" as "the time during which an employer is subject to the control of an employer, and includes all the time the employee is suffered or permitted to work, whether or not required to do so." The California Supreme Court has held that the two phrases-"subject to the control of an employer" and "time the employee is suffered or permitted to work"-are "independent factors, each of which defines whether certain time spent is compensable as 'hours worked.' " Morillion v. Royal Packing Co. ,
*1028Alonzo v. Maximus, Inc. ,
When Troester waited for his coworkers' rides to arrive, he was neither subject to Starbucks's control nor carrying out his job duties. While waiting for coworkers' rides, Troester was outside the store and had completed all his closing tasks. Troester admits that managers never instructed or told him to wait with his coworkers after their shifts, and Troester does not point to any Starbucks policy that required him to do so. He also presents no evidence that Starbucks knew or should have known that he was working off the clock by waiting with other employees for their rides. Troester therefore presents no evidence to create a genuine dispute of material fact that the time he spent waiting for coworkers' rides is compensable as "hours worked." Starbucks is entitled to partial summary judgment on this ground. Troester cannot recover for the time he spent waiting for coworkers' rides after his shifts.
2. Bringing in Patio Furniture
Troester also seeks to recover for the time he spent bringing in patio furniture. According to Troester, every "couple of months," after clocking out and exiting the store, Troester brought the store's patio furniture inside the store after he and the other employees forgot to do so while they were still on the clock. (DUF 29.) Troester never used the punch communication log to document the off-the-clock time he spent bringing in patio furniture. (DUF 39.) He also never raised any concerns with the store manager, the district manager, or the human resources department. (DUF 42.)
Starbucks argues that Troester cannot recover for the time spent bringing in patio furniture because there is no evidence that Starbucks knew or should have known of this work. Troster only brought in the patio furniture off the clock if he or his coworkers forgot to do so while they were clocked in. (DUF 29.) Although Troester was no longer under Starbucks's control, Troester contends that he was "suffered or permitted to work." To prove that he was "suffered or permitted to work," however, Troester must prove that Starbucks had actual or constructive knowledge of his alleged off-the-clock work. Morillion ,
3. Walking Coworkers to Cars
Troester also seeks to recover for the time he spent walking his coworkers to their cars. Troester asserts that it was Starbucks's policy for shift supervisors to *1029walk coworkers to their vehicles at the end of a closing shift. A training document for shift supervisors states:
Your job as a shift supervisor is to ensure that all of the closing tasks are completed, and not to complete all the closing tasks yourself.... [T]here are a few safety and security tasks that only the shift supervisor can handle ....
(Dkt. 62-23 Ex. T.) The document then lists a number of shift supervisor-specific closing tasks, including "[e]nsure all pars/prep is made for the next day," "[c]heck voicemail," "[c]hange out all tills," "[a]rm the alarm system," and, lastly, "[w]alk partners to their vehicles." (Id. ) Starbucks contends walking coworkers to their cars was not a job requirement, but a common courtesy. (PUF 28.) Troester claims that it took thirty-five to forty-five seconds to walk his coworkers to their cars. (DUF 27.)
Starbucks argues that Troester cannot recover for the time he spent walking coworkers to their cars because Troester cannot prove that the time was "hours worked." The training document, however, explicitly states that a shift supervisor must complete all closing tasks, including walking employees to their vehicles. Starbucks also evaluated shift supervisors based on their ability to perform closing duties and follow operational procedures to ensure the safety and security of their coworkers. (PUF 26.) Based on the training document, it is reasonable to infer that walking coworkers to their vehicles was one of a shift supervisor's responsibilities. A factfinder also might reasonably infer that Starbucks had at least constructive knowledge that their shift supervisors worked off the clock, since employees would walk out only after they had all clocked out and Starbucks requires at least two employees to be in the store at all times. (See PUF 9.) There is a genuine dispute of material fact regarding whether Troester can recover for the time spent walking coworkers to their vehicles as "hours worked."
Starbucks also argues that it is entitled to summary judgment because this task was irregular or brief and therefore falls under the California Supreme Court's narrower version of the de minimis rule. In holding that the de minimis rule did not apply to unpaid wages claims for regularly occurring activity, the California Supreme Court "decline[d] to decide whether a de minimis principle may ever apply to wage and hour claims." Troester ,
Starbucks has failed to establish that the de minimis doctrine should apply to the *1030time Troester spent walking his coworkers to their cars. Starbucks included walking coworkers to their vehicles as part of a list of closing tasks in its training materials for shift supervisors, suggesting that this was a regularly reoccurring activity, not just an "irregular" or "rarely occurring" occasion.
C. Other Claims
Starbucks also argues that it is entitled to summary judgment on Troester's final pay claim because Troester cannot prove the requisite intent. To prevail on the final pay claim, Troester must prove that Starbucks "willfully" failed to pay final wages.
Starbucks is entitled to summary judgment on Troester's final pay claim because there was a good faith dispute that wages were due. Until the California Supreme Court's decision in this case, it was reasonable for Starbucks to assert that it did not owe any wages under the de minimis doctrine. The DLSE Enforcement Manual suggested courts may apply the federal de minimis doctrine to state law claims, and a number of courts had in fact applied this doctrine to claims under California labor law. Although Starbucks's defense was ultimately unsuccessful, it was reasonable for Starbucks to assert this defense.
Starbucks also moves for summary judgment on Troester's wage statement claim. To prevail on his wage statement claim, Troester must prove that Starbucks committed a "knowing and intentional" violation.
Starbucks also argues that is entitled to summary judgment on Troester's claim for injunctive relief because he lacks standing. A plaintiff must have standing with respect to each remedy he seeks, and a named plaintiff must have standing in his own right, even if he seeks to represent a class of individuals who do have standing. Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC), Inc. ,
V. CONCLUSION
For the foregoing reasons, Starbucks's motion for summary judgment is GRANTED IN PART and DENIED IN PART . Starbucks is not entitled to summary judgment on Troester's unpaid wage claim to the extent Troester seeks to recover for time spent sending sales data, activating the alarm, walking to the door, locking the store, and walking coworkers to their cars. Starbucks is entitled to partial summary judgment on Troester's unpaid wage claim to the extent he seeks to recover for off-the-clock time spent waiting for coworkers' rides and occasionally taking in patio furniture if he or other employees forgot to do so while clocked in. Starbucks is also entitled to summary judgment on Troester's final pay claim and claim for injunctive relief. Starbucks is not entitled to summary judgment on Troester's wage statement claim.
Having read and considered the papers presented by the parties, the Court finds this matter appropriate for disposition without a hearing. See Fed. R. Civ. P. 78 ; Local Rule 7-15. Accordingly, the hearing set for April 22, 2019 at 1:30 p.m. is hereby vacated and off calendar.
In his opposition, Troester clarified he is not seeking to recover for time spent occasionally reopening the store so that a coworker could retrieve a coat that he or she had forgotten. (Dkt. 62 [Opposition] at 13 n.1.)
Reference
- Full Case Name
- Douglas TROESTER, on behalf of himself, and all others similarly situated v. STARBUCKS CORPORATION
- Cited By
- 1 case
- Status
- Published