Roberts v. TJX Cos.
| Decision Date | 31 March 2017 |
| Docket Number | Civil Action No. 13-cv-13142-ADB |
| Parties | CELINA ROBERTS, ANTHONY SCIOTTO, ERIC BURNS, KERI DICKEY, ANGELA RAMIREZ, DIANA SANTILLAN, CAMILLE GHANEM, ARNOLD WILLIAMS, OLUWATOSIN BABALOLA, TOMMY ZAHTILA, TODD JUSTICE, GIANFRANCO PIROLO, MICHAEL O'GRADY, AND JASON FOSTER, individually, and on behalf of other persons similarly situated, Plaintiffs, v. THE TJX COMPANIES, INC., a Delaware Corporation; MARSHALLS OF MA, INC., a Massachusetts Corporation; MARMAXX OPERATING CORP., a Delaware Corporation, d/b/a MARSHALLS HOMEGOODS, d/b/a MARSHALLS, d/b/a T.J. MAXX HOMEGOODS; HOMEGOODS, INC., a Delaware Corporation; Defendants. |
| Court | U.S. District Court — District of Massachusetts |
BURROUGHS, D.J.
In this putative class and collective action, the named plaintiffs allege that their employers, The TJX Companies, Inc.; Marshalls of MA, Inc.; Marmaxx Operating Corp.; and HomeGoods, Inc. (together, the "Defendants") misclassified them as exempt from the overtime requirements of the federal Fair Labor Standards Act ("FLSA") and the New York Labor Law ("NYLL"), and failed to pay them overtime as required by the FLSA and the NYLL.
The named plaintiffs, who worked as Assistant Store Managers ("ASMs") at Marshalls, HomeGoods, and T.J. Maxx stores in various states (excluding California), allege that the Defendants misclassified them as exempt from the overtime requirements of the FLSA and the NYLL both (1) during the period when Plaintiffs participated in a formal "ASM Training Program" sponsored by their employer (the "ASM Training Claims"); and (2) during their subsequent employment as ASMs (the "ASM Misclassification Claims"). The parties settled the ASM Training Claims, and the Court approved the settlement. [ECF No. 171]. The ASM Misclassification Claims have not been settled.
Presently before the Court is Defendants' Motion for Summary Judgment as to the claims of Tommy Zahtila and Anthony Sciotto, two of the named plaintiffs ("Zahtila" and "Sciotto"). [ECF No. 122].1 The Defendants argue that the record undisputedly shows that Zahtila and Sciotto were properly classified as executives and therefore exempt from FLSA's and NYLL's overtime compensation requirements. Accordingly, the Defendants ask the Court to enter a judgment as a matter of law in favor of the Defendants. Id. For the reasons set for below, the Defendants' Motion is DENIED.
This case stems from three separate putative class and collective actions filed between December 2013 and May 2014: Roberts v. TJX Companies, Inc., 1:13-cv-13142; Burns v. TJXCompanies, Inc., 1:14-cv-10306; and Ghanem v. TJX Companies, Inc., 1:14-cv-12104. In each case, the named plaintiffs alleged that Defendants misclassified ASMs as exempt from the overtime requirements of the FLSA and NYLL at Marshalls, HomeGoods, and/or T.J. Maxx stores nationwide (excluding California), and failed to pay ASMs overtime in accordance with the FLSA and NYLL.
The three cases were consolidated on August 8, 2014, when Plaintiffs filed their Second Amended Complaint in the above-captioned action. [ECF No. 60]. After several months of negotiations, the ASM Training Plaintiffs and the Defendants reached a settlement on the ASM Training Claims, although the settlement discussions did not address the ASM Misclassification Claims. [ECF No. 82 (the "Settlement Agreement")]. On March 25, 2015, the plaintiffs filed a Third Amended Complaint that reflected the Settlement Agreement. [ECF No. 89]. On May 6, 2015, this Court issued an order preliminarily approving the Settlement Agreement with revisions to the Settlement Notice and Proposed Order. [ECF Nos. 111, 112]. On September 30, 2016, the Court entered a final approval order on the Settlement. [ECF No. 171].
On July 23, 2015, Defendants filed this motion for summary judgment. [ECF Nos. 122, 129 (hereinafter, "D.Brief")]. Plaintiffs filed an opposition on September 18, 2015. [ECF No. 144 (hereinafter, "P.Brief")]. Both parties have filed statements of undisputed material facts under Local Rule 56.1 [ECF Nos. 127, 146]. The Defendants have also filed a reply [ECF No. 154 (hereinafter, "D.Reply")], and the Plaintiffs have filed Notice of Supplemental Authorities [ECF No. 158]. Finally, the Defendants filed another statement under Local Rule 56.1 that combined each of the parties' initial statements and responded to Plaintiffs counterstatements. [ECF No. 155].
The following facts are undisputed, unless otherwise noted. Pursuant to Local Rule 56.1 material facts contained within the Local Rule 56.1 statement filed by the moving party are deemed admitted for purposes of this summary judgment motion unless controverted by the opposing party's statement. Additional relevant facts will be discussed as needed in this Memorandum and are presented in the light most favorable to the plaintiffs, the nonmoving party.2
"Through its operating subsidiaries, TJX is the leading off-price retailer of apparel and home fashions in the United States." [D.Facts ¶ 1]. The Marmaxx Group, which includes T.J. Maxx and Marshalls retail operations, and HomeGoods are divisions of TJX. Id. At a Marshalls store location, the Store Manager ("SM") is the most senior employee and the ASMs report to him or her. [D.Facts ¶ 2; P.Facts ¶ 2]. The SM reports to a District Manager ("DM"). Id. There were two types of ASMs at Marshalls: Operations and Merchandise ASMs. The hourly associates generally report to their respective coordinators (department managers) who report to their respective ASMs. During the relevant time period, the sales associates started at an hourly rate of $7.25 per hour. [D.Facts ¶ 81; P.Facts ¶ 81]. At issue here is the proper classification of Zahtila and Sciotto under FLSA and NYLL, both of whom were Operations ASMs.
The company job description of the Operations ASM position indicates, among other things, that the Operations ASMs "manage in-store operations," including "customer service, recruiting, interviewing, hiring, training, and associate development," and that they "[o]versee[] the efficient operation of key areas such as cash office, maintenance, and back room functions."[D.Facts ¶ 3]; see also Justin R. Marino Declaration ("Marino Decl.") [ECF No. 123], Ex. 5. There are four major areas of responsibility listed: (1) developing an effective operational team; (2) managing store operations, human resources functions and the daily activities of the cash office; (3) managing the Door to Floor process and other backroom activities; and (4) overseeing and managing the maintenance of the store. Marino Decl., Ex. 5. Each of these areas is accompanied by a long list of more specific duties, including participating in the recruiting and hiring process, upholding company values and the code of conduct, disciplining associates, preparing evaluations for reporting associates and coordinators, developing work schedules, exercising discretion regarding customer service policies in order to satisfy customers, and providing coaching, training, and development to specific associates and coordinators. See id. The job description does not explicitly mention that the ASM is expected to engage in associate-level, non-managerial work based on the store's need. See id. Plaintiffs dispute the accuracy of the job description. [P.Brief at 9-11].
Zahtila and Sciotto were both reviewed by their SM in their Operations ASM roles. See Marino Decl., Exs. 12-15, 21-23. The performance evaluations contain a self-review by the ASM and reviews by the SM. Id. Defendants have emphasized that the performance reviews reveal the significance of Zahtila's and Sciotto's managerial responsibilities. See [D.Brief at 10]. Plaintiffs vigorously dispute this. [P.Brief at 10-11].
Tommy Zahtila worked as an Operations ASM at a Marshalls location in Freeport, New York (the "Freeport Store") from April 2010 until he was terminated in May 2012. [D.Facts ¶¶ 4, 5; P.Facts ¶¶ 4, 5]. At the Freeport Store during Zahtila's tenure, there were a total of 55 associates and six coordinators. [D.Facts ¶ 6; P.Facts ¶ 6]. On any typical day, roughly six to 12associates and six coordinators worked in the store. Id. Zahtila received an annual salary of $56,000. [D.Facts ¶ 52; P.Facts ¶ 52]. The Store Manager and the ASMs, including Zahtila, were eligible for annual bonuses based on the store's sales performance. [D.Facts ¶ 53].3 In his final year as an Operations ASM, Zahtila received a $4,767.23 bonus. Id. According to Zahtila, he typically worked 50 to 60 hours per week and 60 to 70 hours per week during the Christmas season, which began roughly the week of Black Friday and ran through Christmas week. Deposition of Tommy Zahtila ("Zahtila Depo.") 46:12-17; 47:13-20. During the interview process, Zahtila claims that he was told that he could expect a 40 to 45 hour workweek and he understood that he was going to be paid an annual salary. See id. 86:5-9.
Before beginning as an Operations ASM in Freeport, Zahtila attended a five-week training program at the Marshalls in Elmont, New York [D.Facts ¶ 4; P.Facts ¶ 4]. At the training, Zahtila was provided with "basic knowledge" about managing and supervising the store, which he described as knowledge necessary to open and close the store based on company policies and procedures. Zahtila Depo. 42:14. Zahtila recalls receiving training on store structure, store culture, and shrinkage. [P.Facts ¶ 4]. While Zahtila did not receive hands-on training on interviewing and disciplining associates during the training program, he had basic knowledge on this topic from his review of interview questionnaires and his past experience. Zahtila Depo. 43:10-19.
The parties dispute how accurately the company job description of the Operations ASM position and Zahtila's performance evaluations reflect his actual duties. See, e.g., [P.Facts ¶ 3].Despite the impression these...
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