Smith v. Schwan's Home Serv., Inc.
| Decision Date | 25 November 2014 |
| Docket Number | 2:13-cv-00231-JAW |
| Parties | MICHAEL SMITH, Plaintiff, v. SCHWAN'S HOME SERVICE, INC., Defendant. |
| Court | U.S. District Court — District of Maine |
In this wage and hour action, Michael Smith claims that his former employer, Schwan's Home Service, Inc. (Schwan's), violated federal and state law by failing to pay him overtime. In view of the vigorously disputed record, the Court concludes that under Federal Rule of Civil Procedure 56, there are genuine disputes of material fact that require jury resolution, and denies Schwan's motion for summary judgment.
On June 19, 2013, Michael Smith filed a complaint against Schwan's, alleging that Schwan's violated the Maine overtime statute, 26 M.R.S. § 664, and the federal Fair Labor Standards Act, 29 U.S.C. § 207, and that Schwan's has been unjustly enriched. Compl. (ECF No. 1). On October 30, 2013, Schwan's answered the Complaint, denying its essential allegations and asserting several affirmative defenses. Def.'s Answer to Pl's Compl. (ECF No. 7). On January 9, 2014, Schwan's filed an amended answer. Def.'s First Am. Answer to Pl.'s Compl. (ECF No. 19).
On May 29, 2014, Schwan's filed a motion for summary judgment with a supporting statement of material facts. Def.'s Mot. for Summ. J. (ECF No. 25) (Def.'s Mot.); Separate Statement of Uncontroverted Facts (ECF No. 26) (DSMF). Mr. Smith responded to Schwan's motion and its statement of material facts, and filed a statement of additional material facts on June 19, 2014. Pl. Michael Smith's Resp. to Def.'s Mot. for Summ. J. (ECF No. 31) (Pl's Opp'n); Pl's Opp'n to Def.'s Statement of Material Facts (ECF No. 32) (PRDSMF); Pl's Statement of Additional Material Facts (ECF No. 32) (PSAMF). On July 3, 2014, Schwan's filed a reply to Mr. Smith's response and to his statement of additional material facts. Schwan's Home Serv., Inc.'s Reply Mem. of Points and Authority in Further Support of its Mot. for Summ. J. (ECF No. 34) (Def.'s Reply); Schwan's Home Serv., Inc.'s Reply Statement of Uncontroverted Facts in Further Support of its Mot. for Summ. J. (ECF No. 35); Def.'s Resps. to Pl.'s Statement of Additional Material Facts (ECF No. 35) (DRPSAMF).1
Schwan's Shared Services, LLC (Shared Services) assists in maintaining a "Driver Qualification File" on employees working in positions subject to the United States Department of Transportation (DOT) regulations. DSMF ¶ 27; PRDSMF ¶ 27. The "Facility Supervisor" position for Schwan's is subject to DOT regulations. Id.
Shared Services continuously monitors driving information, hours of service records, Medical Examination Card renewals, as well as reviews and audits "Driver Qualification Files" of drivers, manages DOT-required drug and alcohol testing, andassists in the investigation of non-compliance with DOT regulations and the imposition of discipline for any violations. Id.3
Since at least 1990, Schwan's food products have been manufactured in at least seven states, and it owns each of the manufacturing facilities in these states. DSMF ¶ 28; PRDSMF ¶ 28. Schwan's generally obtains immediate title to all food products manufactured by it, whereas it obtains title to all food products manufactured by co-packers when it takes delivery at the manufacturing site or at one of its distribution centers. DSMF ¶ 29; PRDSMF ¶ 29. After obtaining title, Schwan's retains title until the product is delivered to its customer. Id.
The food products are shipped in "caselots"—large shipping containers of numerous individual sales units—to its distribution centers in various locations, and then to hundreds of depots across the continental United States via "long-haul, over-the-road trucks." DSMF ¶ 30; PRDSMF ¶ 30. Upon arrival at a depot, these caselots are broken down and loaded onto smaller delivery trucks. DSMF ¶ 31; PRDSMF ¶ 31. This process of loading and unloading is performed by a Material Handler underthe supervision of a Facility Supervisor. Id.4 These products are then stored at the depot until delivered to customers. DSMF ¶¶ 32-33; PRDSMF ¶¶ 32-33.
When Schwan's products travel in interstate commerce to reach customers, Schwan's does not use long-haul, over-the-road trucks to deliver the products from the distribution centers directly to individual consumers due to safety and efficiency concerns. DSMF ¶¶ 34-35; PRDSMF ¶¶ 34-35. The delivery trucks have a gross vehicle weight rating (GVWR) in excess of 10,001 pounds, meaning that the vehicles are subject to the requirements of the DOT's Federal Motor Carrier Safety Regulations (FMCSR). DSMF ¶ 36; PRDSMF ¶ 36.
Because Facility Supervisors at Schwan's must operate commercial motor vehicles, they must follow the requirements set forth under the FMCSR. DSMF ¶ 37;PRDSMF ¶ 37. These requirements include: (1) an annual "Certification of Compliance"; (2) a DOT medical examination occurring every two years or at the interval established by the medical examiner, which may be less than every two years based on a medical condition; (3) passing a DOT road test; and (4) performing daily post and pre-trip-required vehicle inspections. Id.5
During the course of operating DOT-regulated commercial motor vehicles, Facility Supervisors must travel to and from the fleet maintenance provider, shuttling product as well as the vehicles themselves among depots and/or to the "Route Sales Representatives" in the field. DSMF ¶ 38; PRDSMF ¶ 38.
The following documents were found in Mr. Smith's personnel file, evidencing the DOT's regulation of him: (1) Request and Consent for Information on Alcohol Testing, Drug Testing and Vehicle Accident History from Schwan's Application for Employment; (2) January 2007 Certificate of Violations; (3) December 2007 Certificate of Violations; (4) December 2008 Certificate of Violations; (5) December2009 Certificate of Violations; (6) December 2010 Certification of Violations; (7) 2007 Mechccal Examiner's Certificate sign-off for DOT positions; (8) 2009 Medical Examiner's Certificate sign-off for DOT positions; (9) 2007 Fleet Safety Policies and Procedures Acknowledgment Sign-Off; (10) 2007 Certificate of Road Test; and (11) Substance Abuse Awareness Training for DOT Compliance. DSMF ¶ 47; PRDSMF ¶ 47.
Schwan's has complied with DOT regulations concerning qualifications and hours of service for its Facility Supervisors, as well as safety for its vehicles, since its creation over 60 years ago. DSMF ¶ 39; PRDSMF ¶ 39. In addition, the DOT issued Schwan's an operating certificate with a motor carrier fleet number. DSMF ¶ 40; PRDSMF ¶ 40. If Schwan's did not comply with DOT regulations, the DOT would have the power to withdraw Schwan's fleet number and shut down the company's interstate operations if it believed the company was non-compliant. DSMF ¶ 41; PRDSMF ¶ 41.
In 1994, Schwan's requested an opinion from the DOT as to whether Schwan's operations are governed by the FMCSR. DSMF ¶ 42; PRDSMF ¶ 42. The facts set forth in Schwan's letter to the DOT have not materially changed since it was written. DSMF ¶ 43; PRDSMF ¶ 43. In June 1994, the DOT responded with its opinion, expressly notifying Schwan's that it was subject to DOT and Federal Highway Administration jurisdiction. DSMF ¶ 44; PRDSMF ¶ 44.6 Schwan's has been subjectto various audits and reviews to ensure regulatory compliance, including on-site reviews, depot audits, and ongoing road side inspections. DSMF ¶ 48; PRDSMF ¶ 48.
According to the "Position Description," Facility Supervisors are supposed to execute the "company's Good Warehouse Practices (GWP) and follow[] any government regulations concerning EPA, OSHA, all food safety regulations, and other safety-related regulations, as specified in the company's manual." PSAMF ¶ 20; DRPSAMF ¶ 20; DSMF ¶ 3; PRDSMF ¶ 3.7 Facility Supervisors are also responsible for "proper product handling (depot sales under $3,000,000 annually) and safety, warehouse maintenance and employee safety," which falls under the umbrellaof "daily management and operation of the warehouse facility within Schwan's GWP Guidelines." PSAMF ¶ 20; DRPSAMF ¶ 20; DSMF ¶ 4; PRDSMF ¶ 4.8
Additional duties of a Facility Supervisor include hiring, training, supervising, and managing the performance of the Material Handlers who carry out warehouse operation duties, as well as scheduling Material Handlers' hours. DSMF ¶ 5; PRDSMF ¶ 5. The Position Description also includes the duty to "manage designated fleet management responsibilities which includes maintaining DOT compliance files, communicating with truck maintenance provider, vehicle registration and license, and periodic fleet safety inspections." PSAMF ¶ 30; DRPSAMF ¶ 30; DSMF ¶ 6; PRDSMF ¶ 6.9 The Position Description also specifically states that a Facility Supervisor "[m]ust meet the Federal [DOT] eligibility requirements, including appropriate driver's license and corresponding medical certification as a condition ofemployment for the position." DSMF ¶ 7; PRDSMF ¶ 7. Schwan's requires both its Facility Supervisors and its Material Handler IIIs to be DOT-certified. PSAMF ¶ 29 DRPSAMF ¶ 29.
The responsibilities of a Facility Supervisor, as stated in the Position Description, were in effect during Mr. Smith's employment in that position. DSMF ¶ 7; PRDSMF ¶ 7. Mr. Smith acknowledged that the Position Description was "fairly accurate" as to the job duties that he performed in that role. DSMF ¶ 8; PRDSMF ¶ 8. During his deposition,...
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