Alfaro-Huitron v. WKI Outsourcing Solutions, LLC
Opinion of the Court
This matter is before the Court on Defendants Cervantes Agribusiness' and Cervantes Enterprises, Inc.'s ("Cervantes Defendants") joint Motion for Summary Judgment [ECF No. 233]. Plaintiffs
Based on the theory that the Cervantes Defendants and WKI "jointly employed" Plaintiffs, they sued the Cervantes Defendants under the Migrant and Seasonal Agricultural Worker Protection Act,
I. FACTUAL BACKGROUND
Most of the facts necessary to resolve the pending motion for summary judgment are set forth in the Court's Memorandum Opinion and Order previously granting summary judgment to the Cervantes Defendants, which are either undisputed or construed in the light most favorable to Plaintiffs as the non-movants. See Mem. Op. and Order 1-11, ECF No. 232 ("Order"). The Court need not repeat those facts herein but adopts them by reference for the purposes of resolving the motion for summary judgment and presents the following additional material facts.
A. The H-2A Program
Under the H-2A program, WKI had to give hiring priority to domestic, or "U.S. workers" like Plaintiffs before petitioning for foreign workers. An employer like WKI could hire foreign guest laborers under the H-2A visa program only if it could certify that "there are not sufficient workers who are able, willing, and qualified" to perform the work and employing foreign workers "will not adversely affect the wages and working conditions of workers in the United States similarly employed" 8 U.S.C § 1188(a)(1). An agricultural employer or its agent works with the State Workforce Agency to recruit U.S. workers on an intrastate and interstate basis. See
"Under the program, employers must submit to the Department of Labor an application commonly referred to as a 'clearance order' detailing the terms and conditions of their prospective workers' employment." Garcia-Celestino v. Ruiz Harvesting, Inc. ,
In this case, WKI used its clearance order to recruit and hire Plaintiffs, and because no separate contract was drawn up, the clearance order served as the work contract between WKI and Plaintiffs.
In this lawsuit, Plaintiffs' basic contention is that Campos and the Defendants, including the Cervantes Defendants, always intended to exploit the H-2A program to access guest laborers from Mexico because they believed they would work harder for less money. When it became apparent that Campos would not be able to provide Mexican workers, he cancelled Plaintiffs' work contracts under the pretense of a drought.
II. PROCEDURAL HISTORY
In addition to the Cervantes Defendants, WKI and Campos entered into farm labor contracts under the H-2A program with five other farms based in southern New Mexico - Defendants RJF Farms, Inc. and its owner Ronnie J. Franzoy, Tierra de Dios Farms, LLC, Lack Farms, Inc., Rio Valley Chili, Inc., and Skyline Produce, LLC. Plaintiffs voluntarily dismissed claims against RJF Farms, Inc., Ronnie J. Franzoy, Rio Valley Chili, Inc., Lack Farms, Inc., and Skyline Produce, LLC. See ECF. Nos. 71, 146, 158.
As for the Cervantes Defendants, Plaintiffs alleged four causes of action against them for various statutory violation of the AWPA, fraud, breach of contract, and civil conspiracy. See Pls.' First Am. Comp., ECF. No. 103. In May and July 2016, the Cervantes Defendants moved for, and the Court granted, summary judgment to the Cervantes Defendants, concluding that no reasonable jury could find them liable to Plaintiffs on those theories of liability.
As for Defendants WKI and Tierra, they never obtained legal counsel as required for entity parties. See D.N.M.LR-Civ. 83.7. WKI attempted to answer pro se in conjunction with Defendant Jaime Campos, WKI's owner. See ECF. No. 55. The Court interpreted that answer as that of Campos', not WKI's. See ECF No. 69. On September 3, 2015 the Honorable William P. Lynch, United States Magistrate Judge, entered a Notice of Proposed Entry of Default Judgment, warning Tierra and WKI that unless they "retain counsel and submit answers filed by an attorney by September 25, 2015, [he would] recommend to the District Judge that default *643judgment be entered against them and in favor of the Plaintiffs." ECF No. 128. Tierra and WKI never heeded that warning, so on October 7, 2015 the Clerk of Court filed the Clerk's Entry of Default Judgment against Tierra and WKI for having failed to plead or otherwise defend. See ECF Nos. 135, 136. Plaintiffs never moved for a damages hearing, and no subsequent litigation concerning the Clerk's Entry of Default has occurred since that October 7, 2015 entry. To date, WKI and Tierra have not obtained legal counsel.
Defendant Jaime Campos, pro se , also appears to have stopped participating in the litigation. His last docket filing was on October 10, 2015. See ECF No. 137. He failed to appear at a status conference before Judge Lynch on March 2, 2016, although he did participate in a mid-March 2016 deposition. See ECF Nos. 161, 168.
III. STANDARD OF REVIEW
Summary judgment is warranted "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a) ; see also Anderson v. Liberty Lobby, Inc. ,
IV. DISCUSSION
The Court next analyzes whether the Cervantes Defendants and WKI jointly employed Plaintiffs such they are equally liable for WKI's cancellation of their work contracts.
A. The AWPA and Joint Employment Principles
In Paragraph 142(b) of Plaintiffs' First Amended Complaint, Plaintiffs sue the Cervantes Defendants under
The Cervantes Defendants are liable only if they jointly employed Plaintiffs with WKI. In order "to assure necessary protections for migrant and seasonal agricultural workers,"
For purposes of the AWPA, the term "employ" has the same definition as that used in the Fair Labor Standards Act.
Relevant regulations define "joint employment" as "a condition in which a single individual stands in the relation of an employee to two or more persons at the same time."
"Whether an entity qualifies as a joint employer is a question of law" for the court to decide. Garcia-Celestino I , 843 F.3d at n.12 & 1293. "[T]he ultimate question to be determined" by the court "is the economic reality - whether the worker is so economically dependent upon the agricultural employer/association as to be considered its employee."
(A) Whether the agricultural employer/association has the power, either alone or through control of the farm labor contractor to direct, control, or supervise the worker(s) or the work performed (such control may be either direct or indirect, taking into account the nature of the work performed and a reasonable degree of contract performance oversight and coordination with third parties);
(B) Whether the agricultural employer/association has the power, either alone or in addition to another employer, directly or indirectly, to hire or fire, modify the employment conditions, or determine the pay rates or the methods of wage payment for the worker(s);
(C) The degree of permanency and duration of the relationship of the parties, in the context of the agricultural activity at issue;
(D) The extent to which the services rendered by the worker(s) are repetitive, rote tasks requiring skills which are acquired with relatively little training;
(E) Whether the activities performed by the worker(s) are an integral part of the overall business operation of the agricultural employer/association;
(F) Whether the work is performed on the agricultural employer/association's premises, rather than on premises owned or controlled by another business entity; and
(G) Whether the agricultural employer/association undertakes responsibilities in relation to the worker(s) which are commonly performed by employers, such as preparing and/or making payroll records, preparing and/or issuing pay checks, paying FICA taxes, providing workers' compensation insurance, providing field sanitation facilities, housing or transportation, or providing tools and equipment or materials required for the job (taking into account the amount of the investment).
B. Analysis of Factors
The Court next applies the seven regulatory factors above to determine whether the Cervantes Defendants and Campos jointly employed Plaintiffs.
i. Power to Direct, Control, or Supervise, Both Directly and Indirectly
This factor focuses on whether the putative employer takes an "overly active role" in overseeing the work performed by the workers. Martinez-Mendoza,
In this case, Plaintiffs never actually worked on the Cervantes Defendants' lands. They therefore rely heavily on the Cervantes Defendants' past employment of a different farm labor contractor, Jesus Maldonado, as a proxy, contending that the Cervantes Defendants exercised substantial control of Maldonado and his work crew, and perforce would have done the same to Campos and Plaintiffs. For instance, Plaintiffs note how Dino Cervantes would instruct Maldonado to provide a specific number of workers to harvest a specific crop at a specific time. See Pls.' Resp. 11-12, ECF No. 234. The Cervantes Defendants deducted FICA taxes for Maldonado's laborers, could alter Maldonado's compensation, and Dino Cervantes monitored Maldonado's laborers' wages.
This evidence concerning Maldonado would powerfully suggest that the Cervantes Defendants exercise control and supervision of farm labor contractors and their crews. But is the Cervantes Defendants' relationship with Maldonado, a non-party to this case, relevant evidence of the relationship between the Cervantes Defendants and WKI? Plaintiffs say so, relying on a single district court opinion, Rodriguez et al. v. SGLC, Inc. ,
As between WKI and the Cervantes Defendants, the record construed in Plaintiffs' favor does show the following indicia of control and supervision that the Cervantes Defendants would have exercised: 1) they would have trained Plaintiffs on how to harvest crops; 2) they hired a specific number of laborers to harvest specific fields for a specific duration; and 3) they could have asked WKI to "replace" a laborer. See e.g. Charles ,
The main problem, though, is that Plaintiffs never actually worked on the Cervantes Defendants' lands. The Court therefore cannot meaningfully evaluate the degree of supervision and control they would have exercised over Plaintiffs. This is important because whereas an overly active putative employer tilts towards a finding of joint employment, "de minimis supervision," does not. See Antenor ,
That aside, the next problem Plaintiffs have is that the indicia of control and supervision Plaintiffs cited could well be "agricultural decisions" - that is, "necessary parts of agricultural administration such as choosing which fields to pick on which days or dictating what planting specifications should be used." Garcia-Celestino II ,
Plaintiffs argue that the Cervantes Defendants exercised supervision and control over them because Campos testified that he would "have to replace" a worker that the agricultural employer did not want. Dep. of Jaime Campos 71:19, ECF No. 234-2. But Campos' testimony tells a different story. A few lines later he stated that "if someone is not behaving or doing the right job or something, it was for [WKI] first to try to encourage the person to - to comply, to do it,"
ii. Direct or Indirect Power to Hire or Fire, Modify Employment Conditions, or Determine Rates or Methods of Pay
In analyzing this factor, courts look at whether the putative employer can make business decisions that impact the worker's conditions of employment, such as determining hiring or firing decisions, the number of hours to be worked each day, and whether the putative employer dictates pay rates and methods. See Layton v. DHL Exp. (USA), Inc. ,
The Cervantes Defendants and WKI signed an "Agreement of Outsourcing Support" governing the number of workers and services that the Plaintiffs were to provide to the Cervantes Defendants. See Agreement of Outsourcing, ECF No. 234-2, 123 ("AOS"). However, WKI, not the Cervantes Defendants, was responsible for presenting to the Plaintiffs the fully prepared work contract, with job descriptions, pay rates, and methods of payment already specified. Plaintiffs contend that the Cervantes Defendants effectively dictated Plaintiffs' wages by deciding to pay them on an hourly, rather than *648piece rate, basis. However, as Plaintiffs repeatedly acknowledge, the H-2A regulations require the employing entity to pay workers an hourly wage of either the AEWR or the federal minimum hourly wage. And besides, Plaintiffs presented no evidence that the Cervantes Defendants were the ones who chose between a piece-rate or an hourly method of payment. It appears WKI made that decision. So this argument is unavailing.
Plaintiffs also argue that the Cervantes Defendants were able to impact the workers' conditions of employment as evidenced by Dino Cervantes' statement that "if somebody didn't harvest chile to quality standards, I'll tell the contractor that he didn't do a good job." Pls.' Resp. at 13. Plaintiffs argue this meant that the Cervantes Defendants could "vet the quality of work performed."
iii. Permanency and Duration
Plaintiffs argue that they were hired for a fixed period, November 2011 to March 2012, and that their work relationship would have been permanent to the extent that their work is inherently seasonal. Indeed, "[h]arvesting of crops is a seasonal industry ... [h]owever temporary the relationship may be ... the relationship is permanent ... [if] the migrants work only for [the] defendants during that season." Charles ,
iv. Whether the services rendered were repetitive and rote
"The lower the worker's skill level, the lower the value and marketability of his services, and the greater the likelihood of his economic dependence on the person utilizing those services." Martinez-Mendoza ,
v. Integral part of the overall business operation
"This factor is probative of joint employment because a worker who performs a routine task that is a normal and integral phase of the grower's production *649is likely to be dependent on the grower's overall production process." Charles ,
The Cervantes Defendants challenge Plaintiffs' assertion that harvesting chile is an integral part of their operations, saying that chile is one of numerous crops they produce. Cervantes Enterprises also contends that it is not involved in chile harvesting at all. But reading the record in Plaintiffs' favor, as the Court must, the evidence shows that harvesting chile is an integral part of the Cervantes Defendants' operations. Dino Cervantes, Cervantes Agribusiness' general manager, explained that he is "involved in the chile industry," that his various family members "are involved at different capacities and different aspects of the chile industry," that agriculture is a family vocation "and chile is part of that." Dep. of Dino Cervantes, cited by Plaintiffs as "SJR 27:13-23", ECF No. 234-2 at 27.
This evidence suggests that Cervantes Enterprises is in the "chile industry" even if it not the entity overseeing harvesting operations. Cervantes Agribusiness appears to have played that role. Testimony from Dino Cervantes and his farm labor contractor Jesus Maldonado suggests that Cervantes Agribusiness relied greatly on the work of manual field laborers. See
The Cervantes Defendants also dispute that Plaintiffs would have worked for them specifically as opposed to other farmers. True, the contract between WKI and the Cervantes Defendants called for a generic "15 farm workers." See AOS. It did not specifically identify Plaintiffs. But the fact remains that those 15 workers would have harvested crops on the Cervantes Defendants' premises, and that the performance of this task would have been integral to the Cervantes Defendants' overall operations. So this factor weighs in Plaintiffs' favor.
vi. Work performed on the agricultural employer's premises
The Cervantes Defendants concede that Plaintiffs would have worked on their lands. However, when the court in analyzed this factor in Martinez-Mendoza it suggested that workers who are unaware of the putative employer's identity are not jointly employed by that employer.
vii. Responsibilities ordinary performed by employers
"The final factor examines whether [the putative employer] undertook responsibilities for workers often undertaken by employers, such as (1) preparing and/or making payroll records, (2) preparing and/or issuing pay checks, (3) paying FICA taxes, (4) providing workers' compensation insurance, (5) providing field sanitation facilities, housing or transportation, or (6) providing tools and equipment or materials required for the job." Martinez-Mendoza ,
Plaintiffs submitted no evidence that the Cervantes Defendants undertook responsibilities commonly performed by employers. There is no evidence that the Cervantes Defendants would have managed Plaintiffs' payroll, provide workers' compensation insurance, provide field sanitation facilities, or provide house or transportation. The clearance order identified WKI alone as the employer. According to the clearance order, WKI was to provide workers three meals a day at specified cost, housing, transportation, and minimum work hours. WKI was responsible for deducting FICA and state taxes. The clearance order offered unemployment insurance, workers' compensation insurance, and tools at no charge. There is simply no indication in the record that the Cervantes Defendants were responsible for any of these services. This factor does not weigh in Plaintiffs' favor.
C. Weighing of Factors
Of the seven regulatory factors, only three weigh in Plaintiffs' favor (and one of them only slightly.) Again, in analyzing whether the Cervantes Defendants jointly employed Plaintiffs, "the ultimate question to be determined is the economic reality - whether the worker is so economically dependent upon the agricultural employer/association as to be considered its employee."
IT IS THEREFORE ORDERED that Cervantes Agribusiness' and Cervantes Enterprises Inc.'s Joint Motion for Summary Judgment [ECF No. 233] is *651GRANTED . Those parties are hereby DISMISSED .
IT IS SO ORDERED .
Only nine Plaintiffs are involved in the instant matter: Esteban Alfaro-Huitron, Eleazar Garcia-Mata, Jose Antonio Garcia-Mata, Juan Guzman, Enrique Rojas-Torres, Lazaro Rojas-Torres, Raul Jasso-Cerda, Trinidad Santoyo-Garcia, and Pedro Tamez.
The Cervantes Defendants contend that the record evidence shows that the clearance order was given only to four of the nine Plaintiffs. See Defs.' Mot. for Summ. J. ¶ K at 5, ECF No. 240. However, they fail to identify which Plaintiffs allegedly did not receive the clearance order, and also fail to cite the record. In any case, as explained below, because the Cervantes Defendants did not jointly employ Plaintiffs they are not liable for breaching the terms of the clearance order.
At that time the Court did not grant the Cervantes Defendants summary judgment on the instant matter because the Cervantes Defendants did not clearly identify that claim as one for which they sought summary judgment. They broadly moved for summary judgment "as to all claims." But they did not cite § 1822 or advance any legal arguments against that provision. The Court, sua sponte , granted the Cervantes Defendants leave to file a motion for summary judgment, which they did two weeks later.
The Court explained in its previous Order that both of the Cervantes Defendants qualify as agricultural employers under the AWPA. See Mem. Op. and Order at n.3 & 23.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.