Slaughter v. Caidan Mgmt. Co.
Slaughter v. Caidan Mgmt. Co.
Opinion of the Court
Plaintiff Kimberly Slaughter ("Plaintiff"), on behalf of herself and others similarly situated, has moved for conditional certification of a collective action in this case brought under the Fair Labor Standards Act,
BACKGROUND
Defendant provides staffing and other administrative services to healthcare companies, including Meridian Health Plan of Michigan, Inc. ("MHPMI") and Meridian Health Plan of Illinois, Inc. ("MHPIL"). Defendant's Response, [ECF No. 48], at 2. MHPMI and MHPIL offer products to Medicaid, Medicare, and Healthcare Exchange members in Michigan and Illinois, respectively.
Plaintiff and eighteen other opt-in plaintiffs or potential opt-in plaintiffs
Plaintiff and the other declarants state they regularly worked more than 40 hours per week and that they were paid a salary, but not any overtime compensation.
Defendant disputes that all CMEs perform the same common, core job duties and argues that Plaintiffs have failed to identify a common policy or plan to which all potential plaintiffs fell "victim." Further, Defendant contends that Plaintiffs have included positions in their putative collective that are not even categorized as exempt, or that were in fact paid overtime.
LEGAL STANDARD
"Under Section 216(b) of the FLSA, employees may bring a collective action on behalf of themselves and other 'similarly situated' employees against employers who violate the Act's minimum wage or overtime provisions."
*988Smallwood v. Illinois Bell Tel. Co. ,
The Court's "determination [as to whether a collective action may be appropriate] at this initial phase of inquiry does not involve adjudication of the merits of the claims." Brabazon v. Aurora Health Care, Inc. ,
DISCUSSION
This matter is now before the Court on Plaintiffs' Motion for Step-One Notice Pursuant to the FLSA [ECF No. 39]-essentially a motion for certification of a conditional class in a section 216(b) collective action. Plaintiffs seek conditional certification solely for the purpose of sending notice to potential class members. Therefore, at this time, the Court is only concerned with whether Plaintiff and the proposed class are similarly situated with respect to a common policy or plan established by Defendant that allegedly violates the law. See Betancourt v. Maxim Healthcare Servs., Inc. ,
A. Conditional Certification
Plaintiffs claim Defendant violated the FLSA's overtime provisions by improperly classifying salaried CMEs as exempt, requiring them to work over 40 hours per week, and failing to pay them an overtime premium for this work. The Court must first determine whether an adequate showing has been made at this first step so that the Court may conditionally certify a class and authorize notice to potential class members. Plaintiffs move for conditional certification of the following group of employees:
Defendant's current and former nonsupervisory employees who worked more than 40 hours in at least one workweek over the past three years, who were paid a salary, and whose job duties included (1) asking members standardized questions to collect data for care assessments, (2) inputting answers to those questions into Defendant's computer systems, (3) coordinating care by performing such ministerial tasks as arranging appointments, referrals, and obtaining necessary authorizations from members, and (4) supplying members with additional information and resources to educate members concerning their health plan needs, or other similar work.
*989Plaintiff's Reply in Support of Their Motion for Notice to Potential Plaintiffs and Conditional Certification ("Plaintiffs' Reply"), [ECF No. 55], at 2-3; First Amended Complaint, [ECF No. 18], ¶ 27. According to Plaintiffs, this definition specifically includes all salaried, nonsupervisory CMEs that worked in Defendant's Care Coordination Department that Defendant reclassified as non-exempt in December of 2017:
[Behavioral Health] Clinical Care Coordinator, Care Coordination Auditor, Care Coordination Clinical Auditor, Care Coordinator Support Specialist, Care Coordinator, Complex Case Manager, Community Care Coordinator, Community Health Outreach Worker, Eligibility Specialist, and Nurse Clinical Specialist.
Plaintiff's Reply, [ECF No. 55], at 3. Plaintiffs also move for notice to salaried "Inpatient Review Nurses," "Utilization Management Care Coordinators," and "Medicare/Medicaid Benefit Care Coordinators."
As an initial matter, the Court will not at this time authorize notice to Behavioral Health Clinical Care Coordinators, Care Coordination Auditors, Care Coordination Clinical Auditors, Complex Case Managers, Eligibility Specialists, or Nurse Clinical Specialists. There are no declarations from current or former employees with these job titles. The only evidence Plaintiffs have submitted in support of their contention that these positions should be included in the class definition is a slide from a PowerPoint presentation, which shows only that these positions are part of the "Care Coordination Department," and were reclassified from salaried employees to hourly employees as of December 25, 2017. [ECF No. 40-1]. This is not enough, even under the lenient standard applied at this stage. See Betancourt ,
However, the Court concludes that Plaintiffs have satisfied their burden of a "modest factual showing" with respect to the remaining job titles: Care Coordinator, Community Care Coordinator, Community Health Outreach Worker, Utilization Care Coordinator, Care Coordinator Support Specialist, Medicare/Medicaid Benefit Care Coordinator, and Inpatient Review Nurse. Sworn declarations submitted in support of Plaintiffs' Motion indicate that the primary duties of current and former CMEs with these job titles consisted of data collection, data entry, care utilization, plan education, and care coordination. Plaintiffs' Brief, [ECF No. 40], Exs. B-T, each at ¶ 1. According to these declarants, these job duties did not involve the exercise of independent clinical judgment, providing traditional nursing care in a clinical setting, or providing direct medical care to members. Id. at ¶ 2. These declarants say they performed their work in accordance with Defendant's policies, procedures, guidelines, and guidance embedded in Defendant's *990computer software. Id. at ¶ 3. Defendant provided training on how to use these decision-making tools to perform the work in a consistent manner, and the employees were not permitted to significantly deviate from Defendant's guidelines in performing their work. Id.
Defendant does not dispute that Care Coordinators were classified as exempt employees and were not paid overtime. Rather, it contends that these employees have different job functions and the state and federal contracts that these employees work under are significantly different. Defendant's Response, [ECF No. 48], at 8. But "plaintiffs can be similarly situated for purposes of the FLSA" even when "there are distinctions in their job titles, functions, or pay." Jirak v. Abbott Labs., Inc. ,
Defendant also asserts that the position of Medicare/Medicare Member Benefit Coordinator has always been paid on a non-exempt, hourly basis, and that UM Care Coordinators and UM Inpatient Review Nurses work under a fluctuating workweek schedule and are paid for all overtime work performed. Muzingo Affidavit, [ECF No. 48-1], ¶¶ 7, 8; Rossi Affidavit, [ECF No. 48-2], ¶¶ 14, 15. Plaintiffs, however, have submitted sworn declarations from former employees who held these positions which state that Defendant paid these individuals a salary and failed to pay them any overtime pay for their regular overtime work. Gordon Dec., [ECF No. 40-20], ¶ 4; Morin Dec., [ECF No. 40-2], ¶ 4; Pearl Dec., [ECF No. 40-3], ¶ 4; Cadeau Dec., [ECF No. 40-13], ¶ 4. The information furnished by Defendant therefore does not conclusively establish that Plaintiffs are not similarly situated or that other current or former employees were not subject to the policy alleged to exist regarding overtime. "Nor is it proper at this stage for [the Court] to make such a merits determination, judging the credibility of each parties' [sic] declarants." Anyere v. Wells Fargo, Co., Inc. ,
Furthermore, "the applicability of FLSA exemptions typically is not addressed during step one of the certification analysis." Ivery v. RMH Franchise Corp. ,
*991Finally, although Defendant characterizes it as a "legitimate business decision," the December 2017 reclassification of several positions within the Care Coordination Department to non-exempt status does provide some evidence of a common policy affecting plaintiffs and putative notice recipients. Petersen v. March USA, Inc. ,
Again, at this stage the Court is tasked only with determining whether it can "envision a scenario" where Plaintiffs and potential collective action members are similarly situated. Brandt v. Comcast Corp. ,
If, as Defendant claims, the differences between the different CMEs' positions prove so significant that their claims cannot be decided as a class, Defendant may ask the Court to decertify the class or the class may be divided into subclasses. Betancourt ,
B. Notice Issues
The Court next addresses whether Plaintiffs' proposed form of notice is adequate and appropriate. The effectiveness of a collective action depends on putative class members "receiving accurate and timely notice concerning the pendency of the collective action, so that they can make informed decisions about whether to participate." Hoffmann-La Roche, Inc. v. Sperling ,
Plaintiffs make a number of specific requests related to notice. Defendant responds with a number of objections to Plaintiffs' proposed notice. The Court will address each of these issues in turn.
1. Class Definition
Defendant first argues that the class Plaintiffs seek to notify is too broad, and proposes limiting the notice to Care Coordinators, Community Care Coordinators, and Utilization Management Care *992Coordinators who work in Illinois. Defendant's Response, [ECF No. 48], at 20-21. The Court disagrees.
As discussed above, the Court concludes that Plaintiffs have satisfied their burden with respect to seven specific job titles. Further, the Court sees no reason to limit the collective to Illinois employees only. The declarations submitted by Plaintiffs in support of their Motion include employees from both Illinois and Michigan, and Defendant has not offered any substantive argument as to why the collective should be limited to employees who worked only in Illinois. Notice is authorized to those who are encompassed by the collective action that the Court has conditionally certified as set forth above.
2. Opt-In Period
Plaintiffs request that putative members of the collective action be given sixty (60) days to opt-in to this lawsuit. Plaintiffs' Brief, [ECF No. 40], at 11. Defendant does not address this issue. Therefore, the Court will permit a 60-day notice and opt-in period.
3. Reminder Notice
Plaintiffs also request that the Court authorize the issuance of reminder notice to all collective members. Plaintiffs' Motion, [ECF No. 39], at 1. Defendant does not address this issue. However, because the Court is permitting Plaintiffs to issue notice in multiple forms, including those discussed below, the Court concludes that a reminder is not necessary in this case. If Plaintiffs' counsel learns of evidence that the authorized methods of issuing notice are ineffective and has reason to believe that sending a reminder will address that deficiency, counsel should so inform the Court and this issue can be revisited. See Hudgins ,
4. Notice and Consent Forms
Plaintiffs request that notice be issued by sending the two forms attached to their Motion. [ECF Nos. 40-21, 40-22]. Defendant does not address whether it has problems with the consent forms, but raises several objections to the content of the proposed notice.
a. The Right to Retain Other Counsel/Defense Counsel's Contact Information
Defendant first objects that the proposed notice fails to inform potential opt-ins of their right to retain their own counsel, and that "equity mandates" that the notice also provide Defendant Caidan's contact information for additional information. Defendant's Response, [ECF No. 48], at 22. First, "a notice does not need to include defense counsel's contact information as 'there is no basis in law or logic for this request.' " Curless v. Great Am. Real Food Fast, Inc. ,
Additionally, the notice does not need to inform potential plaintiffs that they may choose to opt into the lawsuit and retain their own counsel. See Kelly v. Bluegreen Corp. ,
b. Potential Discovery Obligations or Costs
As to Defendant's next concern, while some courts have held that potential plaintiffs in an FLSA collective action "should be advised of the possibility that opt-in plaintiffs may be required to provide information, appear for a deposition, and/or testify in court, Salomon v. Adderley Indust., Inc. ,
Plaintiffs also take issue with Defendant's suggestion that the notice should include language about Defendant's potential ability to assert that Plaintiffs should pay Defendant's attorneys' fees, arguing that such language "is solely intended to discourage potential opt-ins from asserting their rights." Plaintiffs' Reply, [ECF No. 55], at 12-13. Courts in the Seventh Circuit are not in agreement regarding whether opt-in notices should affirmatively warn about potential exposure to a defendant's fees and costs. Compare Fosbinder-Bittorf v. SSM Health Care of Wisconsin, Inc. ,
5. Notice via U.S. Mail, Email and Text Message
Plaintiffs request that notice be issued by regular U.S. mail, email, and text message. Plaintiffs' Motion, [ECF No. 39], at 1. Defendant objects to the use of email and text message, citing privacy concerns. Defendant's Response, [ECF No. 48], at 22-23. Specifically, Defendant argues that providing the email addresses for potential collective members "is intrusive and an invasion of privacy especially where these individuals entrusted this personal information in Caidan in order to secure employment, not as a matter of free choice." Defendant's Response, [ECF No. 48], at 23.
Although there is a split among district courts as to "whether e-mail notice is appropriate in the FLSA collective action context," this Court joins those that have found it to be appropriate because "of the prevalence of e-mail as a form of communication." See Hudgins ,
The Court will not at this time authorize notice via text message. Absent some showing that U.S. mail and email notice will not reach prospective class members, the Court finds that this additional form of notice is unnecessary and overly intrusive. See Hudgins ,
6. Contact Information of Potential Plaintiffs
Plaintiffs request that Defendant produce the following information: the names, job title, start and end dates of employment, last known addresses, e-mail addresses, and telephone numbers of potential plaintiffs. Plaintiffs' Memo, [ECF No. 40], at 11.
The Court, however, denies Plaintiffs' request for discovery of proposed *995members' social security numbers at this time. Social security numbers are sensitive personal data that should not be released unless necessary. See Blakes v. Ill. Bell Tel. Co. , No. 11 CV 336,
Plaintiffs have requested that Defendant be ordered to produce this contact information (in useable electronic form) within three days of the date of this Memorandum Opinion and Order. Defendant does not object to this time frame, however, given that there may be "several hundred" potential opt-in plaintiffs, the Court finds that production of the requested information within seven days of the date of this Order is a more appropriate and realistic time frame.
CONCLUSION
For the reasons discussed above, Plaintiffs' Motion for Step One Notice Pursuant to
It is so ordered.
It is unclear whether Plaintiff continues to be employed by Defendant and what her specific job title is or was. In her First Amended Complaint [ECF No. 18], Plaintiff alleged she worked as a Care Coordinator from approximately August 2014 to January 2016. First Amended Complaint, [ECF No. 18], at ¶ 17. However, her declaration, executed in February 2018, indicates she continues to be employed by Defendant as a Community Care Coordinator. Slaughter Declaration, [ECF No. 40-11], at ¶ 1.
As of the date of this Memorandum Opinion and Order, Declarants Ciara Smith and Angela Harris [ECF Nos. 40-4 and 40-10] have not opted into this lawsuit.
Rossi states that Care Coordination Auditors and Clinical Care Coordination Auditors do not perform "Care Coordination" or "Utilization Management" duties. Rossi Affidavit, [ECF No. 48-2], ¶ 11. Plaintiffs say, if this is true, they are willing to withdraw their request for Step One Notice for these two auditor positions. Plaintiffs' Reply, [ECF No. 55], at 3-4. On this record, there is no reason for the Court not to take Rossi's statement as true.
Defendant's argument proves too much. Plaintiffs presumably also gave Defendant their home or other mailing addresses for the purpose of securing employment, and courts routinely approve mailed notice.
Plaintiffs' Motion, worded differently than the Memorandum in Support, seeks "a computer-readable data file containing the names, last known mailing addresses, last known personal and work email addresses, mobile telephone numbers, social security numbers (for those notices returned undeliverable), and work locations for all collective members." Plaintiffs' Motion, [ECF No. 39], at 1.
Reference
- Full Case Name
- Kimberly SLAUGHTER, individually and on behalf of others similarly situated v. CAIDAN MANAGEMENT COMPANY, LLC
- Cited By
- 22 cases
- Status
- Published