Parrish v. Premier Directional Drilling, L.P.
| Decision Date | 27 November 2017 |
| Docket Number | No. 5:16–CV–417–DAE,5:16–CV–417–DAE |
| Citation | 280 F.Supp.3d 954 |
| Parties | William PARRISH, on behalf of himself and all others similarly situated, Plaintiff, v. PREMIER DIRECTIONAL DRILLING, L.P., Defendant. |
| Court | U.S. District Court — Western District of Texas |
Andrew W. Dunlap, Jessica Marie Bresler, Lindsay R. Itkin, Michael A. Josephson, Josephson Dunlap Law Firm, Matthew Scott Parmet, Richard J. Burch, Bruckner Burch PLLC, Houston, TX, for Plaintiff.
Annette Idalski, Peter N. Hall, Chamberlain Hrdlicka White Williams & Aughtry, Atlanta, GA, Steven J. Knight, Houston, TX, for Defendant.
Before the Court are various motions filed by the parties: (1) Defendant Premier Directional Drilling, L.P.'s ("Premier") Motion for Summary Judgment as to all Plaintiffs (Dkt. # 163); (2) Plaintiffs William Parrish ("Plaintiffs" or "Parrish"), on behalf of himself and all others similarly situated,1 Motion for Summary Judgment as to Employee Status, Liability/Backwages, and Premier's Good Faith Defense (Dkt. # 150); (3) Parrish's Objections to, and Motion to Strike, Premier's Improper Affidavit Testimony (Dkt. # 170); (4) Parrish's Objections to, and Motion to Strike, Premier's Statement of Undisputed Facts (Dkt. # 172); and (5) Premier's Motion to Strike Plaintiff's New Evidence on Reply (Dkt. # 187). Pursuant to Rule CV–7(h) the Court finds this matter suitable for disposition without a hearing.
After careful consideration of the memoranda in support of and in opposition to the motions, the Court, for the reasons that follow, DENIES Premier's motion for summary judgment (Dkt. # 163), GRANTS Plaintiffs' motion for summary judgment (Dkt. # 150), OVERRULES IN PART, DENIES IN PART, AND DENIES AS MOOT IN PART Plaintiffs' Objections and Motions to Strike (Dkts. ## 170, 172), and DENIES AS MOOT Premier's motion to strike (Dkt. # 187).
Premier is a drilling company with oil and gas operations throughout several locations in the United States, including the Eagle Ford Shale in Texas. (Dkt. # 1 at 3.) Premier is based out of Houston, Texas, and employs individuals as Directional Drillers Consultants ("DDs") and Measurement While Drilling Consultants ("MWDs"). (Id. ) According to Plaintiffs, Premier employs DDs and MWDs as both W–2 employees and independent contractors, but there are no appreciable differences between the two classifications. (Id. ) Plaintiffs assert that Premier did not adequately compensate DDs and MWDs, labeled as independent contractors, who worked in excess of forty hours. (Id. ) On May 5, 2016, Plaintiffs filed a collective-action suit against Premier, alleging claims for violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. §§ 206, 207, and 215(a)(2). (Id. at 5.)
On July 21, 2017, the parties filed the pending motions for summary judgment. (Dkts. ## 150, 163.) Each party filed their respective responses to the motions for summary judgment on August 18, 2017 (Dkts. ## 174, 175); the parties filed replies on August 25, 2017 (Dkts. ## 179, 180). On August 18, 2017, Parrish filed two motions to strike Premier's evidence in support of summary judgment. (Dkts. ## 170, 172.) Premier filed responses in opposition on August 25, 2017 (Dkts. ## 181, 182); Parrish filed replies to its motions on September 11, 2017 (Dkts. ## 189, 190). On August 30, 2017, Premier filed a motion to strike Parrish's New Evidence on Reply (Dkt. # 187); Parrish filed a response in opposition on September 6, 2017 (Dkt. # 188); Premier filed a reply on September 13, 2017 (Dkt. # 191). These motions are addressed below.
Premier has filed a motion for summary judgment on all of Plaintiffs' claims. (Dkt. # 163.) Premier contends that summary judgment is appropriate because the plaintiffs are all independent contractors for whom the FLSA does not apply. (Id. at 10.)
A movant is entitled to summary judgment upon showing 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 Meadaa v. K.A.P. Enters., L.L.C., 756 F.3d 875, 880 (5th Cir. 2014). A dispute is only genuine "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).
The moving party bears the initial burden of demonstrating the absence of any genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the moving party meets this burden, the nonmoving party must come forward with specific facts that establish the existence of a genuine issue for trial. Distribuidora Mari Jose, S.A. de C.V. v. Transmaritime, Inc., 738 F.3d 703, 706 (5th Cir. 2013) (quoting Allen v. Rapides Parish Sch. Bd., 204 F.3d 619, 621 (5th Cir. 2000) ). "Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no ‘genuine issue for trial.’ " Hillman v. Loga, 697 F.3d 299, 302 (5th Cir. 2012) (quoting Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) ).
In deciding whether a fact issue has been created, the court must draw all reasonable inferences in favor of the nonmoving party, and it "may not make credibility determinations or weigh the evidence." Tiblier v. Dlabal, 743 F.3d 1004, 1007 (5th Cir. 2014) (quoting Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000) ). At the summary judgment stage, evidence need not be authenticated or otherwise presented in an admissible form. See Fed. R. Civ. P. 56(c) ; Lee v. Offshore Logistical & Transp., LLC, 859 F.3d 353, 355 (5th Cir. 2017). However, "[u]nsubstantiated assertions, improbable inferences, and unsupported speculation are not sufficient to defeat a motion for summary judgment." United States v. Renda Marine, Inc., 667 F.3d 651, 655 (5th Cir. 2012) (quoting Brown v. City of Hous., 337 F.3d 539, 541 (5th Cir. 2003) ).
The Fair Labor Standards Act, 29 U.S.C. § 201, et seq. ("FLSA"), mandates that "no employer may employ any non-exempt employee ‘for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.’ "
Garcia v. U Pull It Auto & Truck Salvage, Inc., 657 Fed.Appx. 293, 296 (5th Cir. 2016) (quoting 29 U.S.C. § 207(a)(1) ). In other words, the FLSA "requires employers to provide overtime pay to any employee who works more than forty hours per week unless an exemption from this protection applies." Halle v. Galliano Marine Serv., L.L.C., 855 F.3d 290, 293 (5th Cir. 2017) (citing 29 U.S.C. §§ 207, 213 ).
An employee who brings a FLSA action for unpaid overtime compensation must demonstrate, by a preponderance of the evidence: "(1) that there existed an employer-employee relationship during the unpaid overtime periods claimed; (2) that the employee engaged in activities within the coverage of the FLSA; (3) that the employer violated the FLSA's overtime wage requirements; and (4) the amount of overtime compensation due." Johnson v. Heckmann Water Resources (CVR), Inc., 758 F.3d 627, 630 (5th Cir. 2014).
Once the employee establishes his prima facie case, the burden shifts to the employer to either (1) show evidence of the precise amount of work performed or (2) negate the reasonableness of the inference to be made from the employee's evidence. Harvill v. Westward Commc'ns, L.L.C., 433 F.3d 428, 441 (5th Cir. 2005) (quoting Anderson v. Mount Clemens Pottery Co., 328 U.S. 680, 687–88, 66 S.Ct. 1187, 90 L.Ed. 1515 (1946) ) (internal quotations omitted).
The issue the Court must decide in regard to Premier's motion for summary judgment is whether Plaintiffs are employees of Premier within the meaning of the FLSA, or independent contractors and thus not subject to the FLSA's compensation requirements.
The determination of whether Plaintiffs are employees under the FLSA is a legal, not a factual, finding. See Lindsley v. BellSouth Telecomms. Inc., 401 Fed.Appx. 944, 945 (5th Cir. 2010) ). The Court determines whether a worker qualifies as an employee under the FLSA by focusing on "whether, as a matter of economic reality, the worker is economically dependent upon the alleged employer or is instead in business for himself." Hopkins v. Cornerstone Am., 545 F.3d 338, 343 (5th Cir. 2008). "The determination of whether an individual is an employee or independent contractor is highly dependent on the particular situation presented." Thibault v. Bellsouth Telecomms., Inc., 612 F.3d 843, 848 (5th Cir. 2010). No single factor will be determinative of the Court's inquiry. Hopkins, 545 F.3d at 343.
The five non-exhaustive factors most often considered by the courts are: "(1) the degree of control exercised by the alleged employer; (2) the extent of the relative investments of the worker and the alleged employer; (3) the degree to which the worker's opportunity for profit or loss is determined by the alleged employer; (4) the skill and initiative required in performing the job; and (5) the permanency of the relationship." Hopkins, 545 F.3d at 343. The Court will consider each factor below.
Degree of control refers to whether the plaintiffs possess "real independence" in the economic relationship. Hopkins, 545 F.3d at 343. The Fifth Circuit has recognized that "[c]ontrol is...
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