Armani v. Maxim Healthcare Services, Inc.

• Decision Date: 30 June 1999
• Docket Number: No. Civ.A. 98-B-480.,Civ.A. 98-B-480.
• Citation: 53 F.Supp.2d 1120
• Parties: Gianni F. ARMANI, Plaintiff, v. MAXIM HEALTHCARE SERVICES, INC., a Maryland corporation, Defendant.
• Court: U.S. District Court — District of Colorado

Page 1120

53 F.Supp.2d 1120

Gianni F. ARMANI, Plaintiff, v. MAXIM HEALTHCARE SERVICES, INC., a Maryland corporation, Defendant.

No. Civ.A. 98-B-480.

United States District Court, D. Colorado.

June 30, 1999.

COPYRIGHT MATERIAL OMITTED

Donald A. Degnan, Jude A. Biggs, Holland & Hart LLP, Boulder, CO, for defendant.

MEMORANDUM OPINION AND ORDER

BABCOCK, District Judge.

Defendant, Maxim Healthcare Services, Inc. ("Maxim"), moves for summary judgment pursuant to Rule 56. Plaintiff, Gianni F. Armani, opposes the motion. The motion is adequately briefed and oral argument would not materially aid its resolution. For the reasons set forth below, I grant summary judgment on Mr. Armani's claims for overtime compensation under the Fair Labor Standards Act, 29 U.S.C. § 203 ("FLSA"), promissory estoppel, failure to pay unpaid wages under Colorado's Wage Claim Act, C.R.S. § 8-4-104, and constructive discharge/wrongful discharge. I deny summary judgment on Mr. Armani's claim of fraud.

Jurisdiction is proper in this court pursuant to 28 U.S.C. § 1331, original federal question jurisdiction, over Plaintiff's claims under the FLSA. Supplemental jurisdiction exists over Mr. Armani's remaining state law claims pursuant to 28 U.S.C. § 1367(a). Jurisdiction is also proper under 28 U.S.C. § 1332(a), diversity jurisdiction, as Plaintiff is a citizen of Colorado and Defendant is incorporated in Maryland and has its principal place of business in Maryland. The matter in controversy exceeds the sum of $75,000.

I.

The following undisputed facts are relevant to my determination of Maxim's motion for summary judgment. Since 1989, Mr. Armani has been a certified nursing assistant ("CNA"), licensed by the State of Colorado. Before his employment with Maxim, Mr. Armani was employed by Craig Rehabilitation Hospital where he worked with quadriplegic patients.

Maxim provides nursing care and related health services to injured, disabled, and other persons in need of such care. Maxim employs registered nurses ("RNs"), licensed practical nurses ("LPNs"), CNAs, personal care providers ("PCPs"), and homemakers. These individuals work in private or public institutions, or in private homes.

Mr. Armani was a full-time Maxim employee from October, 1991, to November, 1997. During his employment, Mr. Armani was primarily assigned to provide in-home CNA services to a quadriplegic patient. Mr. Armani provided the patient with many services including catheter maintenance, bowel programs, giving of medication, exercising, bathing, grooming, feeding, dressing, running errands, and transportation.

When Mr. Armani first began working for Maxim he was paid $12 per hour. This amount was above the standard $9 hourly rate for CNAs employed by Maxim. Mr. Armani estimates that he was working between 50 and 60 hours per week caring for the patient. Maxim does not dispute that Mr. Armani worked in excess of 40 hours per week. Towards the end of his employment with Maxim, Mr. Armani was earning $14 per hour. In October, 1997, Maxim informed Mr. Armani that his pay rate would be reduced from $14 to $9 per hour. Mr. Armani then submitted a letter of resignation.

Mr. Armani was not paid overtime compensation of one and one-half times his regular hourly wage for hours worked in excess of forty hours per week. He alleges that under the FLSA he was entitled to this overtime compensation. He also alleges that upon his complaints, Maxim made numerous promises to him regarding its intent to pay overtime compensation. On October 15, 1997, Mr. Armani's attorney mailed a demand letter to Maxim demanding payment of past earned and unpaid overtime hours. Ten days later Mr. Armani's pay was reduced. Upon notice of the reduction, he resigned from his employment with Maxim.

After Mr. Armani filed suit in Colorado State District Court, Maxim removed this action to this court. Mr. Armani brings the following claims for relief against Maxim:

(1) failure to pay overtime under the Fair Labor Standards Act;

(2) promissory estoppel (3) failure to pay unpaid wages under Colorado's Wage Claim Act;

(4) fraud; and

(5) constructive discharge/wrongful discharge.

II.

The purpose of a summary judgment motion is to assess whether trial is necessary. See White v. York Int'l Corp., 45 F.3d 357, 360 (10th Cir.1995). Rule 56(c) provides that summary judgment shall be granted if the pleadings, depositions, answers to interrogatories, admissions, or affidavits show that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. The non-moving party has the burden of showing that issues of undetermined material fact exist. See Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A party seeking summary judgment bears the initial responsibility of informing the court of the basis for its motion and identifying those portions of the pleadings, depositions, interrogatories, and admissions on file together with affidavits, if any, that it believes demonstrate the absence of genuine issues for trial. See Celotex, 477 U.S. at 323, 106 S.Ct. 2548; Mares v. ConAgra Poultry Co., Inc., 971 F.2d 492, 494 (10th Cir.1992). Once a properly supported summary judgment motion is made, the opposing party may not rest on the allegations contained in the complaint, but must respond with specific facts showing the existence of a genuine factual issue to be tried. Rule 56(e); see also Otteson v. United States, 622 F.2d 516, 519 (10th Cir.1980). These facts may be shown "by any of the kinds of evidentiary materials listed in Rule 56(c), except the mere pleadings themselves." Celotex, 477 U.S. at 324, 106 S.Ct. 2548.

Summary judgment is also appropriate when the court concludes that no reasonable juror could find for the non-moving party based on the evidence presented in the motion and response. See Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The operative inquiry is whether, based on all documents submitted, reasonable jurors could find by a preponderance of the evidence that the plaintiff is entitled to a verdict. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Summary judgment should not enter if, viewing the evidence in a light most favorable to the non-moving party and drawing all reasonable inferences in that party's favor, a reasonable jury could return a verdict for that party. See Anderson, 477 U.S. at 252, 106 S.Ct. 2505; Mares, 971 F.2d at 494. Unsupported allegations without "any significant probative evidence tending to support the complaint" are insufficient, see White at 360 (internal quote and citation omitted), as are conclusory assertions that factual disputes exist. See Anderson, 477 U.S. at 247-248, 106 S.Ct. 2505.

III.

Mr. Armani's first claim for relief is for unpaid overtime compensation under the FLSA. Maxim moves for summary judgment on this claim arguing that Mr. Armani, as a CNA, falls within the "companionship services exemption" to overtime requirements. 29 U.S.C. § 213(a)(15). Mr. Armani argues that he fits the "trained personnel" exception to the cited exemption. Maxim does not dispute that Mr. Armani worked more than forty hours per week and did not receive overtime compensation. Rather, Maxim's sole contention is that Mr. Armani's services are exempt from FLSA coverage.

The purpose of the FLSA is to ensure minimum wages and working conditions to workers in industries throughout the states. See Bayles v. American Medical Response of Colorado, Inc., 937 F.Supp. 1477, 1482 (D.Colo.1996). Generally, the FLSA requires that an employee be compensated at a rate of one and one-half times his regular pay for hours in excess of forty in a single work week. 29 U.S.C. § 207(a)(1). Section 213 of the FLSA exempts certain jobs from this overtime pay requirement.

Maxim argues that Mr. Armani fits into the "companionship services exemption" of § 213(a)(15) and is not entitled to overtime pay. The FLSA expressly excludes from coverage,

any employee employed on a casual basis in domestic service employment to provide babysitting services or any employee employed in domestic service employment to provide companionship services for individuals who (because of age or infirmity) are unable to care for themselves (as such terms are defined and delimited by regulations of the Secretary).

29 U.S.C. § 213(a)(15). The regulations further define "companionship services" as:

[T]hose services which provide fellowship, care, and protection for a person who, because of advanced age or physical or mental infirmity, cannot care for his or her own needs. Such services may include household work related to the care of the aged or infirm person such as meal preparation, bed making, washing of clothes, and other similar services. They may also include the performance of general household work: Provided, however, That such work is incidental, i.e., does not exceed 20 percent of the total weekly hours worked. The term "companionship services" does not include services relating to the care and protection of the aged or infirm which require and are performed by trained personnel, such as a registered or practical nurse....

29 C.F.R. § 552.6 (1998).

The employer bears the burden of establishing an exemption under the FLSA. See Corning Glass Works v. Brennan, 417 U.S. 188, 197, 94 S.Ct. 2223, 41 L.Ed.2d 1 (1974). "These exemptions are to be narrowly construed against the employers seeking to assert them and their application is limited to those establishments plainly and unmistakenly within their terms and spirit." Arnold v. Ben Kanowsky, Inc., 361 U.S. 388, 392, 80 S.Ct. 453, 4 L.Ed.2d 393 (1960). In the absence of disputed material facts the question is one of law. See, e.g., Bayles, 937 F.Supp. at 1482.

As a CNA at Maxim, Mr. Armani was able to dispense medications, change and clean catheters, perform range of...