Viciedo v. New Horizons Computer Learning Center
| Decision Date | 26 February 2003 |
| Docket Number | No. 01-CV-280.,01-CV-280. |
| Citation | 246 F.Supp.2d 886 |
| Parties | Louis A. VICIEDO, et al., Plaintiffs, v. NEW HORIZONS COMPUTER LEARNING CENTER OF CLUMBUS, LTD., Defendant. |
| Court | U.S. District Court — Southern District of Ohio |
John William Ferron, Rebekah Stasha Sinnott, Ferron & Associates, Columbus, OH, for Plaintiffs.
Steven Walter Tigges, Bradley Thomas Ferrell, Zeiger & Carpenter, Columbus, OH, Louis P. Britt, III, David P. Knox, Ford & Harrison, Memphis, TN, for Defendant.
This matter is before the Court on the Defendant's Motion for Summary Judgment, filed on June 24, 2002. In its Motion, the Defendant seeks summary judgment on all of the Plaintiffs' claims. Jurisdiction is proper under 28 U.S.C. § 1331.
For the following reasons, the Court GRANTS the Defendant's Motion for Summary Judgment in part and DENIES the Defendant's Motion in part.
The Defendant, New Horizons Computer Learning Center of Columbus, Ltd. ("NHC"), is a franchise of New Horizons Computer Learning Centers, Inc. ("New Horizons Worldwide" or "New Horizons"). NHC provides computer training for various computer software programs and systems, including Microsoft, Novell, and Cisco. The company offers classroom training at its offices in Dublin, Ohio, as well as "e-learning," which allows customers to complete online courses. Additionally, on occasion, NHC provides training at the customer's business site. Through these classes, NHC provides training on a range of computer programs, from basic programs such as Windows and Microsoft Office to extremely complex network systems used by information technology ("IT") professionals.
Each of the fifteen Plaintiffs in this matter was employed by NHC as an "account executive" at NHC's Dublin, Ohio location between 1998 and 2001. As account executives, the Plaintiffs were responsible for contacting customers and potential customers to sell NHC's computer software training courses. The Plaintiffs primarily sold computer training courses to other businesses, although they also sold some classes to members of the general public.
As part of their daily routine, the Plaintiffs were required to report for work between 7:30 a.m. and 7:45 a.m. every morning. By 8:00 a.m. they were required to be making calls to potential customers. They were required to be on the phone every day from 8:00 a.m. until 12:00 p.m., and then from 1:00 p.m. until 5:00 p.m. They were prohibited from doing any paperwork, preparing prospect lists, or completing any other work activity during their telephone calling hours. Thus, beginning at 5:00 p.m. each day, the Plaintiffs were required to remain at work while they completed paperwork for the day, prepared for the next day of calls, and reviewed their daily sales. Often, the Plaintiffs did not leave work until 6:00 or 6:30 p.m.
In addition to the foregoing regular work hours, the Plaintiffs were required by NHC to attend working lunch training sessions twice per month. They were also required to attend "Career Nights" and "Tech Nights" twice per month.
The Plaintiffs allege that their work schedule often required them to work more than forty hours per week. The Defendant, however, never paid them overtime compensation. The Plaintiffs assert that they were entitled to such overtime compensation under the Fair Labor Standards Act of 1938, 29 U.S.C. § 201 et seq. ("FLSA").
New Horizons Worldwide has franchises and corporate owned stores throughout the United States, including Santa Ana, California and Chicago, Illinois. In 1995 and 1996, the United States Department of Labor ("DOL"), Wage and Hour Division, conducted an investigation of New Horizons Worldwide's Santa Ana business to determine whether account executives were required to be paid overtime wages under the FLSA, or whether they were exempt from the statute's requirements. A Mr. Leung headed the investigation for the DOL, and Bruce May, who claims to have been intimately involved in the investigation, served as counsel for New Horizons Worldwide.
According to an affidavit filed by Mr. May, after a thorough investigation, the DOL determined that New Horizons' account executives were exempt from the FLSA. Specifically, Mr. May states that the Department found that the account executives fell within the exemption under 29 U.S.C. § 207(i), which exempts an "employee of a retail or service establishment" if certain requirements are met. Mr. Leung reported his conclusion regarding the account executives to Mr. May.
News of the DOL's findings was disseminated to the various New Horizons franchises, including NHC, which had recently opened for business. Based on its belief that the account executive positions at NHC and the Santa Ana office are virtually identical, NHC states that it relied on the DOL's findings as a basis for not paying overtime wages to its account executives.
After the Santa Ana investigation, the DOL initiated an investigation of New Horizons Worldwide's Chicago office. The Defendant claims that the investigator in charge in Chicago, Annette Prindle, deferred to the findings from Santa Ana, and concluded the Chicago investigation without making any new findings.
On March 28, 2001, Plaintiff Louis Viciedo filed a Complaint against the Defendant seeking redress for Defendant's alleged failure to pay overtime wages due to Mr. Viciedo. Then, on May 23, 2001, Mr. Viciedo filed a First Amended Complaint Asserting Class Action Claims Pursuant to 29 U.S.C. § 216(B) on behalf of himself and "[a]ll persons who were employed as account executives with Defendant in its Ohio offices at any time after March 28, 1998." In his First Amended Complaint, the Plaintiff asserts the following claims against the Defendant: (1) Violation of Federal Minimum Wage and Overtime Pay Laws, 29 U.S.C. § 201 et seq.; and (2) Violation of Ohio Minimum Wage and Overtime Pay Laws, Ohio Rev.Code section 4111 et seq.
On July 27, 2001, Plaintiff James Harness filed his Consent to Opt In to the Class Action. On July 30, 2001, Mr. Viciedo filed a Motion for Authority to Notify Putative Class Members. On December 3, 2001, this Court issued an Opinion and Order granting Plaintiffs Viciedo and Harness authority to notify the putative class members of the pending action. On February 1, 2002, the Plaintiffs filed a Notice of Filing of Consent Forms of New Parties Plaintiff, naming thirteen new Parties Plaintiff.1 This matter is now before the Court on the Defendant's Motion for Summary Judgment.
Summary judgment is appropriate "[i]f the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law." FED. R.Civ.P. 56(c). The movant has the burden of establishing that there are no genuine issues of material fact, which may be accomplished by demonstrating that the non-moving party lacks evidence to support an essential element of its case. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Barnhart v. Pickrel, Schaeffer & Ebeling Co., 12 F.3d 1382, 1388-89 (6th Cir.1993). In response, the non-moving party must present "significant probative evidence" to show that "there is [more than] some metaphysical doubt as to the material facts." Moore v. Philip Morris Cos., 8 F.3d 335, 339-40 (6th Cir.1993). "[S]ummary judgment will not lie if the dispute is about a material fact that is `genuine,' that is, if the evidence is such that a reasonable jury could return a verdict for the non-moving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); see also Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) ().
In evaluating a motion for summary judgment, the evidence must be viewed in the light most favorable to the non-moving party. Adickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970). The non-moving party, however, "may not rest upon its mere allegations ... but ... must set forth specific facts showing that there is a genuine issue for trial." FED.R.CIV.P. 56(e); see Celotex, 477 U.S. at 324, 106 S.Ct. 2548; Searcy v. City of Dayton, 38 F.3d 282, 286 (6th Cir.1994). Furthermore, the mere existence of a scintilla of evidence in support of the nonmoving party's position will not be sufficient; there must be evidence on which the jury could reasonably find for the nonmoving party. Anderson, 477 U.S. at 251, 106 S.Ct. 2505; Copeland v. Machulis, 57 F.3d 476, 479 (6th Cir.1995).
The Plaintiffs claim that the Defendant violated the FLSA by failing to pay them overtime wages. The FLSA prohibits employers from employing any worker for a workweek longer than forty hours unless the employee receives compensation at a rate of one and one-half times his regular rate of pay for each hour worked in excess of forty hours. See 29 U.S.C. § 207(a)(1). Certain employees, however, are exempt from this overtime wage requirement. In particular, the FLSA provides, in pertinent part:
No employer shall be deemed to have violated subsection (a) of this section by employing any employee of a retail or service establishment for a workweek in excess of the applicable workweek specified therein, if (1) the regular rate of pay of such employee is in excess of one and one-half times the minimum hourly rate applicable to him under section 206 of this title, and (2) more than half his...
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