Smith v. Autozone, Inc.
| Decision Date | 13 May 2016 |
| Docket Number | Case No. 7:15-CV-00183 |
| Court | U.S. District Court — Western District of Virginia |
| Parties | ANTHONY DEWEY SMITH Plaintiff, v. AUTOZONE, INC. Defendant. |
MEMORANDUM OPINION
This case is an overtime payment dispute under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. ("FLSA"). Plaintiff Anthony Smith ("Smith") worked as a store manager for defendant AutoZone, Inc. ("Autozone") from 2005 to 2015. During that time, Smith frequently worked more than forty hours a week without receiving overtime. Smith now seeks overtime pay on the grounds that he was misclassified as an exempt employee under the FLSA.
Before the court are cross-motions for summary judgment. Smith argues he lacked authority to perform many of the management duties typically associated with store managers, and spent the majority of his time performing tasks identical to those performed by non-exempt employees. As such, he claims there can be no genuine dispute that he was misclassified as exempt from the FLSA's overtime requirements. Conversely, AutoZone claims it is entitled to summary judgment because the undisputed facts show that Smith was the most senior employee stationed in his store, exercised significant discretion to direct his staff, and was ultimately responsible for his store's sales performance. AutoZone believes these facts establish, as a matter of law, that Smith was properly classified as exempt employee under either the executive or administrative exemption to the FLSA. AutoZone also faults Smith for attempting to change his deposition testimony through use of a declaration attached to his motion for summary judgment.
The court held a hearing on April 12, 2016. For the reasons set forth below, the court concludes that AutoZone has demonstrated as a matter of law that Smith qualifies as an exempt executive under the FLSA. Accordingly, Smith's motion for summary judgment, ECF No. 19, is DENIED, and AutoZone's motion for summary judgment, ECF No. 21, is GRANTED.
AutoZone operates approximately 5,500 retail automotive parts and accessories stores across the United States. Declaration of William Odom, ECF No. 23-1, ¶ 3 [hereinafter "Odom Declar."]. AutoZone organizes its retail operations into six divisions, which are further sub-divided into regions and districts. Id. Regions are headed by a regional manager, and districts are headed by a district manager. Id. at ¶¶ 3-4. Each district contains approximately seven to fifteen stores, which, in turn, employ a store manager and various other employees. Id. at ¶ 3. Store managers are the only exempt, salaried employees physically stationed in a store on a day-to-day basis. Id. at ¶ 5.
AutoZone hired Smith in 2001, and promoted him to store manager in 2005. Deposition of Anthony Smith, ECF No. 23-2, 18:11-13; 20:20-23 [hereinafter "Smith Depo."]. Smith worked at eight AutoZone stores, including five as store manager, before resigning in February 2015. Declaration of Anthony Smith, ECF No. 20-1, ¶¶ 1-2 [hereinafter "Smith Declar."]. All five stores Smith managed—which included stores in Madison Heights, Lynchburg, Roanoke, Martinsville, and Rocky Mount—were located in AutoZone's Richmond, Virginia region. Smith Depo. 21:2-23:9.1 The number of employees at each store varied, ranging from six employees at the Madison Heights store to twelve employees at the Lynchburg store. Id. at 55:19-61:14. These employees included sales associates—sometimes called "red shirts"—drivers, parts sales managers, and commercial sales managers. Id. Over the course of his employment, Smith claims he "frequently worked 50 hoursper week, consistently worked more than 55 hours per week, and worked at times, for period of more than 70 hours per week." Smith Declar. ¶ 3. Smith received no overtime pay.
However, Smith's salary increased over the course of his employment with AutoZone. In 2005, he earned an annual salary of $40,000, which translated to approximately $769 in weekly salary. Smith Depo. 23:23-24:4. By 2015, Smith was earning $45,000 a year. Id. at 24:5-10. As store manager, Smith was the highest paid employee in his store. Id. at 28:3-5. He was also eligible for an incentive bonus based on the store's sales performance. Id. at 26:16-27:18. The store manager was the only employee eligible for this bonus. Id. at 27:24-28:2.
The record has conflicting evidence about what training, if any, Smith received before becoming store manager. On the one hand, Smith claims he became management certified sometime between 2001 and 2005 as part of an earlier promotion to parts sales manager, and received no additional management training when he became store manager. Id. at 28:6-29:20. On the other hand, Smith later concedes that he completed a teaming course entitled "A Week in the Life a Store Manager" and received a commercial certification through AutoZone. Id. at 28:16-29:9; 31:3-41:20. He also became certified as a "hiring manager." Id. at 83:20-84:6; 89:5-90:8.
The responsibilities of an AutoZone store manager are varied but extensive. Duties include:
Ex. 14, ECF No. 23-3, at 34.2 Store managers also perform basic tasks like mopping floors, checking out customers, and addressing other retail-related issues. Smith Declar. ¶ 6; Smith Depo. 35:8-15. Smith represents that he spent only 15% of his time performing personnel management, and spent the "majority" of his time doing "retail-related" duties. Smith Declar. ¶ 6, ¶ 9. Further, Jeffrey Powers, Smith's former district manager, avers that store managers like Smith spent no more than sixty to ninety minutes per day scheduling workers, visiting with customers, or otherwise directly managing their stores. Declaration of Jeffrey Powers, ECF No. 20-2, ¶ 5 [hereinafter Powers Declar.]. Nevertheless, Smith was still responsible for managing the store even when he was performing non-exempt duties. Smith Depo. 125:1-6. William Odom, Smith's former regional manager, confirms that Smith helped hourly employees perform non-exempt tasks—including manning the cash register, interacting with customers, stocking shelves, and unloading inventory—but notes that Smith remained responsible for his store "at all times." Odom Declar. ¶ 16.
To be sure, Smith was subject to significant oversight from his district manager. Smith had at least four district managers and two regional mangers during his time at AutoZone. Smith Depo. 117:4-122:22. District managers made on-site visits to stores under their supervision, but were not physically stationed in any specific store. Some district managers visited Smith's store four to five days out of a five-day week, while others were present only two days out of a five-day week. Id. In addition, Smith had brief phone conversations with his district manager, sometimes as frequently as multiple times a day, and other times as infrequently as a few times per week. Id.; Smith Declar. ¶ 35. The frequency of Smith's contact with his district manager depended on that district manager's management style and whether Smith's store was meeting corporate sales goals. Smith Depo. 118:12-120:20. Regional managers would visit approximately once a month. Id. at 120:9-19;122:6-22. Each Monday, Smith also participated in a "Management Action Plan" conference call with his district manager and other store managers in his district. Id. at 35:22-36:12. During this call, Smith discussed sales results, identified upcoming store activities, and shared his next-steps to improve store performance. Id. at 36:9-37:10.
Smith acknowledges that his job was to manage his store, that he had discretion to delegate tasks to other employees, and that he was ultimately responsible for his store's performance. Id. at 35:16-18; 61:20-22; 91:1-3. Smith was also evaluated on his store's sales numbers, his ability to manage personnel, and his staff's compliance with AutoZone's corporate policies. Id. at 90:6-101:23. In fact, at least one of Smith's former employees—who was later promoted to store manager—agreed that Smith was a "leader in [his] store." Deposition of Lawrence Harris, ECF No. 23-6, at 29:15-22 [hereinafter Harris Depo.].
However, AutoZone vested considerable authority in its district managers, and many decisions were divided between store managers and their district managers. For example, Smith had authority to identify outside contractors to handle basic maintenance—including snow removal or lawn care—but had to seek approval from his district manager before entering any service agreement. Smith Depo. 70:8-71:13. Similarly, Smith was trained to select and interview new hires, sought out candidates for his store, and conducted initial interviews after reviewing applications on AutoZone's online "E-hire" system. Id. at 83:3-85:24. Yet, he could not hire or promote store employees without approval from his district manager. Id. Further, Smith ensured new hires completed required training on AutoZone's corporate policies, monitored their compliance with those policies, oversaw employees' interactions with customers, resolved customer complaints whenever possible, and filled out performance evaluations on employees he supervised. Id. at 71:15-72:15; 78:22-79:1; 102:21-105:22. Once again, however, the district manager had...
To continue reading
Request your trial