Petition for Writ of Certiorari — SkyWest, Inc., et al., Petitioners v. Andrea Hirst, et al.
Supreme Court briefFeb 15, 2019
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APPENDIX
1a
APPENDIX A
IN THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT
_____________________
Nos. 17-3643 & 17-3660
ANDREA HIRST, et al.,
Plaintiffs-Appellants,
v.
SKYWEST, INC., et al.,
Defendants-Appellees.
_____________________
Appeals from the United States District Court for the
Northern District of Illinois, Eastern Division.
Nos. 1:15-cv-02036 & 1:15-cv-11117 —
John J. Tharp, Jr., Judge.
_____________________
ARGUED SEPTEMBER 7, 2018 —
DECIDED DECEMBER 12, 2018
_____________________
Before WOOD, Chief Judge,
BRENNAN, Circuit Judges.
ROVNER,
and
BRENNAN, Circuit Judge. In this case, a number
of current and former flight attendants challenge an
airline’s compensation policy of paying for their work
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in the air but not on the ground. Plaintiffs-appellants
(“the Flight Attendants”) all work or worked for
defendant-appellee SkyWest Airlines, Inc., an airline
owned by co-defendant-appellee SkyWest, Inc.
(collectively “SkyWest”). The Flight Attendants filed
suit alleging violations of the Fair Labor Standards
Act, 29 U.S.C. § 201 et seq. (“FLSA”), and various state
and local wage laws, seeking to certify a class of
similarly situated SkyWest employees. The district
court dismissed the complaint in its entirety, finding
that the Flight Attendants had failed to allege a FLSA
violation, and that the dormant Commerce Clause
barred the state and local claims.
The Flight Attendants plausibly allege they were
not paid for certain hours of work. We agree with
other federal circuits, however, that under the FLSA
the relevant unit for determining a pay violation is not
wages per hour, but the average hourly wage across a
workweek. Because the Flight Attendants failed to
allege even a single workweek in which one of them
received less than the federal minimum wage of $7.25
per hour, we affirm the dismissal of those claims.
We do not agree, though, with the application of the
dormant Commerce Clause in this case. States
possess authority to regulate the labor of their own
citizens and companies, so we apply that doctrine
sparingly to wage regulations.
The dormant
Commerce Clause does not preclude state regulation
of flight attendant wages in this case, particularly
when the FLSA itself reserves that authority to states
and localities. Accordingly, we reverse the dismissal
of the state and local wage claims and remand for
further proceedings.
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I. Background
This appeal is from a dismissal on the pleadings, so
we recount the facts as alleged in the complaint,
resolving all reasonable inferences in favor of the
Flight Attendants. Sloan v. Am. Brain Tumor Ass’n,
901 F.3d 891, 893 (7th Cir. 2018).
SkyWest, an airline headquartered in St. George,
Utah, charters planes for other airlines. SkyWest
employs over 2,600 people as cabin crew, and either
currently employs or formerly employed the eight
plaintiffs-appellants in this case.1 SkyWest flight
attendants are based out of airports in ten different
states, including these Flight Attendants’ home states
of Arizona, California, Illinois, and Washington. A
new flight attendant at SkyWest earns $17.50 per
hour, and wages increase with experience.
A flight attendant’s typical workday is long and
varied, including time onboard the aircraft as well as
in airports before, between, and after flights.
SkyWest Flight attendants are paid only for their time
in the air, known in the industry as “block time.”2 The
amount of block time worked in a given day is much
1 This consolidated suit was brought by plaintiffs-appellants
Andrea Hirst, Molly Stover, Emily Stroble Sze, Cheryl Tapp,
Renee Sitavich, Sarah Hudson, Brandon Colson, and Bruno
Lozano.
2 As defined by the Flight Attendants, “block time” is the time
between “block out” (when a flight attendant closes the main
cabin door for the aircraft to leave the gate) and “block in” (when
an aircraft arrives at the destination jet bridge and a flight
attendant opens the main cabin door).
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shorter than the “duty day.”3 The eight Flight
Attendants each pleaded, with varying specificity,
times during which they were not paid for portions of
their duty days. For example, plaintiff-appellant
Stover alleged a two-week period in October 2012
during which she was paid $656.25 for 86.07 hours of
duty time, resulting in an average hourly wage of
$7.62 per hour. In contrast, plaintiff-appellant Lozano
alleged only that he worked many hours of duty time
and included no wage-specific information.
The
common thread underlying the various Flight
Attendants’ allegations, though, is that none of them
alleged a single workweek in which they were paid, on
average, less than $7.25 per hour, the federal
minimum wage under FLSA, 29 U.S.C. § 206(a)(1)(C).
Plaintiffs-appellants Hirst, Stover, and Stroble Sze
sued in March 2015 in the Northern District of Illinois
alleging that SkyWest violated the FLSA and the
Illinois Minimum Wage Law by failing to pay
minimum wage. Several months later, plaintiffsappellants Tapp, Sitavich, Hudson, Colson, and
Lozano filed a similar action in the Northern District
of California under the FLSA and state and local
minimum wage laws and ordinances in California,
Arizona, and Washington. Both complaints sought
class certification of nationwide, state, and local
classes. The two cases were consolidated in the
Northern District of Illinois.
3 As defined by the Flight Attendants, the “duty day” is the
difference between report time (the time at which a flight
attendant must have cleared security at the airport) and release
time (fifteen minutes after the cabin door opens at the day’s final
destination).
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After allowing multiple amended complaints and
limited discovery, the district court dismissed all of the
Flight Attendants’ claims with prejudice. The court
determined that, in assessing violations of the federal
minimum wage, an employee’s wage is calculated as
the average hourly wage across the workweek.
Because none of the Flight Attendants pleaded a
single workweek in which they were paid an average
wage of less than $7.25 per hour, the court concluded
they had not properly pleaded a FLSA violation. The
district court also held that their state and local wage
claims were preempted by the dormant Commerce
Clause. Applying the approach the Supreme Court
delineated in Pike v. Bruce Church, Inc., 397 U.S. 137
(1970), the district court ruled that requiring SkyWest
to comply with state and local wage laws would impose
too great of an administrative burden. The court
reasoned that, with flight attendants flying to and
from different states and cities all day, as well as
flying over many more, the burden on SkyWest would
be “clearly excessive in relation to the putative local
benefits.” Pike, 397 U.S. at 142; Nat’l Solid Wastes
Mgmt. Ass’n v. Meyer, 63 F.3d 652, 657 (7th Cir. 1995)
(same). The Flight Attendants timely appealed.
II. FLSA Claims
First, the Flight Attendants challenge the dismissal
of their FLSA claims. We review an appeal from a
motion to dismiss de novo. Adams v. City of
Indianapolis, 742 F.3d 720, 727 (7th Cir. 2014).
FLSA 29 U.S.C. § 206 reads: “Every employer shall
pay to each of his employees who in any workweek is
engaged in commerce ... not less than—$7.25 an hour.”
The Flight Attendants argue compliance with this
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provision should be measured differently depending
on the wage practices of a given industry. They
contend compliance for flight attendants should be
measured by “pairing,” or work trip out and back from
their base airport, instead of by workweek. SkyWest
points out that every other federal circuit to reach this
issue has applied the workweek measure to all
industries, and FLSA compliance should therefore be
determined from the average hourly pay over a given
workweek.
The text of 29 U.S.C. § 206 does not state what
measure should be used to determine compliance with
the minimum wage, nor do any of the surrounding
provisions provide guidance. In light of this, we turn
to the interpretation of the Department of Labor, the
administrative agency charged with overseeing the
FLSA. “When Congress leaves an administrative
agency with discretion to resolve a statutory
ambiguity, judicial review is deferential.” Ali v.
Mukasey, 521 F.3d 737, 739 (7th Cir. 2008) (citing
Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc, 467
U.S. 837 (1984)). In 1940, less than two years after the
FLSA was enacted, the Department of Labor issued a
policy statement adopting the workweek as “the
standard period of time over which wages may be
averaged to determine whether the employer has paid
[the minimum wage].” Wage & Hour Release No. R609 (Feb. 5, 1940), reprinted in 1942 WAGE AND HOUR
MANUAL (BNA) 185. While this policy statement has
never been codified into an official regulation, to our
knowledge and per the parties’ arguments, neither has
the Department of Labor ever deviated from this
understanding. Further, in the eighty years since the
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FLSA was passed, Congress has never seen fit to
amend the law to change this understanding.
Other circuits have uniformly adopted the
Department’s per-workweek measure. See, e.g.,
Douglas v. Xerox Business Services, LLC, 875 F.3d
884, 887–88 (9th Cir. 2017); Hall v. DIRECTV, LLC,
846 F.3d 757, 777 (4th Cir. 2017); U.S. Dep’t of Labor
v. Cole Enterprises, Inc., 62 F.3d 775, 780 (6th Cir.
1995); Hensley v. MacMillan Bloedel Containers, Inc.,
786 F.2d 353, 357 (8th Cir. 1986); Olson v. Superior
Pontiac-GMC, Inc., 765 F.2d 1570, 1576 (11th Cir.
1985), modified on other grounds, 776 F.2d 265 (11th
Cir. 1985); Dove v. Coupe, 759 F.2d 167, 171–72 (D.C.
Cir. 1985); Blankenship v. Thurston Motor Lines, 415
F.2d 1193, 1198 (4th Cir. 1969); United States v.
Klinghoffer Bros. Realty Corp., 285 F.2d 487, 490 (2d
Cir. 1960). We see no reason to deviate from the
Department’s interpretation or the consensus of other
federal appellate courts. Therefore, we adopt the perworkweek measure for determining compliance with
29 U.S.C. § 206, without industry-specific carveouts.
We now apply the per-workweek measure to the
pleadings before us. To survive a motion to dismiss for
failure to state a claim, the Flight Attendants needed
to allege sufficient facts to plead a claim for relief that
is plausible on its face. Ashcroft v. Iqbal, 556 U.S. 662,
678 (2009) (citing Bell Atlantic Corp. v. Twombly, 550
U.S. 544, 570 (2007)). Several federal circuits have
analyzed the minimum pleading requirements tor
FLSA claims under a similarly constructed provision
governing overtime pay, 29 U.S.C. § 207(a)(1). For
example, the Second and Ninth Circuits have held
that for overtime claims, plaintiffs must “allege facts
demonstrating there was at least one workweek in
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which they worked in excess of forty hours and were
not paid overtime wages.” Landers v. Quality Comm.,
Inc., 771 F.3d 638, 646 (9th Cir. 2014) (emphasis
added) (citing Dejesus v. HF Mgmt. Servs., LLC, 726
F.3d 85, 90 (2nd Cir. 2013)). Though plaintiffs need
not necessarily plead specific dates and times that
they worked undercompensated hours, they must
“provide some factual context that will nudge their
claim from conceivable to plausible.” Hall, 846 F.3d at
777 (emphasis in original) (quoting Dejesus, 726 F.3d
at 90).
The same principles for pleading overtime pay
violations apply to minimum wage violations. In order
to comply with the requirements of Twombly, Iqbal,
and FED. R. CIV. P. 8(a)(2), a plaintiff alleging a
federal minimum wage violation must provide
sufficient factual context to raise a plausible inference
there was at least one workweek in which he or she
was underpaid. Here, as demonstrated by the district
court’s thorough and detailed analysis, see Hirst v.
SkyWest, Inc., 283 F. Supp. 3d 684, 688–89 (N.D. Ill.
2017), no plaintiff did so, even after the district court
permitted the Flight Attendants to conduct limited
discovery. Claiming they worked many hours and
citing several weeks in which they were paid the
minimum wage is not enough to render their claims
plausible. We affirm the dismissal of the Flight
Attendants’ FLSA claims.
III. State and Local Claims
The Flight Attendants next argue their state and
local wage claims should be reinstated. They contend
the dormant Commerce Clause does not apply to this
case. Even if it does apply, the Flight Attendants aver
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the district court did not properly analyze the benefits
to state and local governments, and that the FLSA
expressly permits the application of state and local
wage laws to employers. SkyWest responds that under
Pike the dormant Commerce Clause does apply to this
case, and that the district court accurately assessed
the burdens on SkyWest to comply with state and local
wage laws.
The Commerce Clause grants Congress the
authority “[t]o regulate Commerce ... among the
several States.” U.S. CONST. art. I, § 8, cl. 3. The
Supreme Court has inferred a “dormant” aspect of the
Commerce Clause “that limits states’ abilities to
restrict interstate commerce.” Minerva Dairy, Inc. v.
Harsdorf, 905 F.3d 1047, 1058 (7th Cir. 2018) (citing
New Energy Co. of Ind. v. Limbach, 486 U.S. 269, 273
(1988)).4 Under the dormant Commerce Clause, we
invalidate a state law only where there is a clear
showing of discrimination against interstate
commerce, “either expressly or in practical effect.”
Park Pet Shop, Inc. v. City of Chicago, 872 F.3d 495,
501 (7th Cir. 2017).
The dormant Commerce Clause serves as a bulwark
against local protectionism. As such, “if the state law
affects commerce without any reallocation among
jurisdictions and does not give local firms any
competitive advantage over those located elsewhere,
4 Given its lack of a textual anchor, the continued validity of
the dormant Commerce Clause has been questioned, see, e.g.,
South Dakota v. Wayfair, 138 S. Ct. 2080, 2100 (2018) (Thomas,
J., concurring), id. at 2100 (Gorsuch, J., concurring), but it
remains valid law absent a Supreme Court directive to the
contrary.
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we apply the normal rational basis standard.” Minerva
Dairy, Inc., 905 F.3d at 1053 (internal quotation
marks and citations omitted); see also id. at 1058–59.
Sky- West is subject to many minimum wage laws that
impose serious compliance costs. But the existence of
a great regulatory burden on an employer does not
necessarily mean minimum wage laws have a
discriminatory effect on interstate commerce. State
and local wage laws can burden companies within
their own localities just as much, if not more, than outof-state ones. All airlines—indeed all employers—are
subject to these laws, regardless of state citizenship.
“Pike balancing is triggered only when the challenged
law discriminates against interstate commerce in
practical application.” Park Pet Shop, 872 F.3d at 502
(emphases in original). SkyWest has failed to allege
any discrimination against interstate commerce. This
failing precludes the application of the dormant
Commerce Clause to the Flight Attendants’ state and
local claims.
Even if minimum wage laws did discriminate
against interstate commerce, the dormant Commerce
Clause does not apply to state and local laws expressly
authorized by Congress. See, e.g., Northeast Bancorp,
Inc. v. Bd. of Gov’rs of Fed. Res. Sys., 472 U.S. 159, 174
(1985) (“When Congress so chooses, state actions
which it plainly authorizes are invulnerable to
constitutional attack under the Commerce Clause.”);
Milwaukee Cty. Pavers Ass’n v. Fiedler, 922 F.2d 419,
424 (7th Cir. 1991) (“If Congress wants, it can
authorize states to engage in activities that but for the
authorization would violate the dormant commerce
clause.”).
The FLSA contains such an express
authorization. Section 218(a) of the FLSA reads: “No
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provision of this chapter or of any order thereunder
shall excuse noncompliance with any Federal or State
law or municipal ordinance establishing a minimum
wage higher than the minimum wage established
under this chapter ... .” Because Congress expressly
authorized states and localities to legislate in this
realm, the application of multiple minimum wage laws
to an employer cannot violate the dormant Commerce
Clause.
For the foregoing reasons, we AFFIRM the
dismissal of the FLSA claims, and REVERSE and
REMAND for further proceedings on the state and
local claims.
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APPENDIX B
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
ANDREA HIRST, et al.,
Plaintiffs,
v.
SKYWEST, INC., et al.
Defendants.
CHERYL TAPP, et al.,
Plaintiffs,
v.
SKYWEST, INC., et al.
Defendants.
)
)
)
) No. 15-CV-02036
)
) Judge John J.
) Tharp, Jr.
)
)
)
)
) No. 15-CV-11117
)
) Judge John J.
) Tharp, Jr.
)
MEMORANDUM OPINION AND ORDER
Surely, you might think, flight attendants—who
hold coveted positions that require substantial
training in a variety of subjects and are entrusted with
helping to ensure the safety of the flying public—earn
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substantially more than the federal minimum wage of
$7.25 per hour. But do they? The plaintiffs in these
two cases say no. They are current and former flight
attendants (“FAs”) for SkyWest Airlines who bring
this action on behalf of themselves and all others
similarly situated, alleging that SkyWest paid them
less than teenagers make flipping burgers at a fastfood joint. The plaintiffs maintain that SkyWest
violated a patchwork of federal, state, and local wage
and wage statement laws by failing to compensate
them for much of the work they perform and for
providing them with inadequate information about
their pay. The complaints allege that SkyWest’s
compensation scheme—under which the plaintiffs
were paid not based on total hours worked, but only
for the amount of “block time” they worked (basically,
the time spent in the airplane with the cabin door
closed)—violates the federal minimum wage law1 and
a host of other state and local laws regulating
employee compensation.2 The court dismissed an
earlier iteration of this complaint because the
plaintiffs could not “provide[] a single instance where
1 Part of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §
206.
2 Specifically: California Wage Order No. 9, California Labor
Code §§ 201, 202, 203, 204, 226, 1182.12, 1194, and 1194.2, the
California Unfair Competition Law, Cal. Bus. & Prof. Code §§
17200 et seq., the San Francisco Minimum Wage Ordinance, San
Francisco Admin. Code § 12R, Los Angeles’ Living Wage
Ordinance, Los Angeles Admin. Code § 10.37 et seq., the Arizona
Wage Act, A.R.S. § 23-350, et seq., the Arizona Minimum Wage
Act, A.R.S. § 23363, et seq., the Washington Minimum Wage Act,
R.C.W. §§ 49.46.020, 49.46.130, and the Illinois Minimum Wage
Law (“IMWL”), § 820 ILCS 105/1 et seq.
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SkyWest failed to pay an FA the minimum wage as
mandated under federal law over the course of a
workweek.” Hirst v. SkyWest, Inc., No. 15 C 02036,
2016 WL 2986978, at *5 (N.D. Ill. May 24, 2016)
(“Hirst I”). SkyWest now moves to dismiss the
plaintiffs’ amended complaints, which, they maintain,
again fail to state a claim for relief. Because not one
of the plaintiffs has alleged facts that plausibly show
that she or he was ever paid less than the federal
minimum wage over the course of a work week—and,
indeed, the plaintiffs concede their inability to do so—
their minimum wage claims cannot get off the ground.
And because the state and local laws on which they
rely would pose a substantial (impossible, really)
compliance burden on SkyWest, they unduly interfere
with Congress’s regulation of interstate commerce and
therefore violate the Dormant Commerce Clause.
Accordingly, SkyWest’s motion to dismiss the
plaintiffs’ complaints is granted and these cases are
dismissed with prejudice.
I. Background3
The two complaints in this case are substantially
the same, save the specific allegations pertaining to
the individual plaintiffs. To simplify, this opinion will
not distinguish between the two, and will cite only to
the Hirst’s second amended complaint (ECF No. 85 in
15 CV 2036; “Hirst Compl.”) unless citing to an
allegation or statement that is unique to the Tapp
3 As this is a motion to dismiss, the Court accepts all well-
pleaded facts as true and construes all inferences in favor of the
plaintiff. Zemeckis v. Global Credit & Collection Corp., 679 F.3d
632, 634 (7th Cir. 2012).
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amended complaint (ECF No. 73 in 15 CV 11117;
“Tapp Compl.”).
A. Flight Attendant Duties, Schedules, and
Compensation
The complaints allege that SkyWest uses a
computerized scheduling and pay record system called
SkedPlus+, which informs FAs of their schedules for
the upcoming month just before the month begins.
Each monthly schedule includes multiple “pairings,”
or a one-to-four day series of flights that an FA is
assigned to work. FAs are only eligible for time-anda-half overtime pay if they are “junior manned,” which
occurs when an FA voluntarily agrees to work an
additional pairing that is not on her monthly schedule.
Each FA is based at a particular airport, where their
pairings begin and end. SkyWest compensates its FAs
using an hourly rate that varies based on the FA’s
experience. The schedules of SkyWest FAs are
recorded down to the minute in the SkedPlus+ system
in each shift’s “pairing details.” Hirst Compl. 30 Fig. 1.
The pairing details identify the FA by her employee
number and name, and list her base airport, level of
training, and position. The details list the FA’s “report
time”—the time at which she must have arrived at the
airport in uniform with all of her mandatory items for
duty, cleared security, and checked in electronically on
SkyWest’s computer system. Hirst Compl. 34. If an
FA reports earlier than the start time listed on the
pairing details, the required time rather than the
actual report time is recorded. Once an FA checks in
with SkyWest, she can be rerouted so the airline can
avoid delays.
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FAs are not paid their hourly rate for each hour
worked between their initial arrival at their base
airport and their departure at the end of a pairing.
Instead, SkyWest pays FAs their hourly rate only for
the greater of “block time”—that is, the actual time
between when each flight in a pairing leaves a gate
and when the main cabin door opens at its destination
gate—or “credit time,” the amount of time SkyWest
estimates it will take to go from gate-to-gate.4 Hirst
Compl. 40–41. SkyWest nonetheless tracks—and
SkedPlus+ records show—each FA’s “duty day,” or the
period each day between the time an FA is required to
be present at an airport in the morning and fifteen
minutes after the main cabin door opens on her final
flight of the day. Hirst Compl. 40–41. Portions of an
FA’s duty day—such as layover time—are, therefore,
not included in an FA’s compensated block time.
An FA’s duties also include a number of tasks that
are not included in the duty day, including reviewing
training materials, deplaning passengers over fifteen
minutes after the final flight of the day has arrived at
the gate, waiting during delays related to gatechecked
baggage,
international
customs
requirements, and mechanical issues after the final
flight of the day, writing reports concerning irregular
operations, and complying with mandatory drug
screenings. Moreover, FAs must clear airport security
4 SkyWest also pays FAs a small, untaxed hourly per diem of
$1.80 for their “Time Away from Base,” which includes all time
that an FA is working or on layover. Hirst Compl. 65. The
plaintiffs insist that this payment should not be included in the
calculation of their wages and SkyWest does not contend
otherwise, so the per diem payments do not factor into the court’s
analysis.
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each morning prior to the beginning of their shift.
Since January 2014, FAs have also been required to
check in with gate agents prior to their scheduled
departure,
which
may
require
additional
uncompensated time, based on the size and
configuration of the airport. The amount of time spent
on these activities ranges from minutes to hours per
day. SkyWest has no system in place to ensure that
the wages it pays comply with federal, state, and local
minimum wage laws.
SkyWest compensates FAs for certain training
activities at half of an FA’s typical hourly rate. FAs
are not compensated, however, for the actual amount
of time that it takes them to complete the training;
instead, they are paid half-wages for an amount of
time that SkyWest preordains for each training
session. For example, if SkyWest sets a particular
training session at eight hours, but an FA takes ten
hours to complete the training, the FA is still only
compensated for eight hours. Moreover, instead of
indicating that FAs are paid half-wages for time spent
training, the wage statements SkyWest provides to
FAs indicate that FAs trained for half the time allotted
by SkyWest. For example, if an FA with a wage rate
of $20 per hour completes an eight hour training
session, her pay statement indicates that she trained
for four hours at a rate of $20 per hour; in reality, the
FA trained for eight hours at a rate of $10 per hour.
SkyWest employees have access to their SkedPlus+
records, which detail the total amount of duty time as
well as the total time for which they are paid their
hourly wage for each day of a shift. The SkedPlus+
records do not total the amount of duty time an FA
worked during a pairing, so to deduce her total duty
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time, an FA must add the duty time listed for each day
of the pairing as well as any hours she worked outside
of her duty time. The SkedPlus+ records do note the
total “Time Away From Base” for a pairing, that is, the
total amount of time working or on layover during a
multi-day shift. Hirst Compl. 30 Fig. 1. When an
employee leaves SkyWest, she loses access to her
SkedPlus+ records, and as a matter of course,
SkyWest declines to provide SkedPlus+ records to
former employees who request them. In contrast to
SkedPlus+ records, the wage statements provided to
SkyWest FAs list only block hours—the time for which
an FA is paid their hourly wage. The wage statements
do not include the total duty time an FA has worked
during a pay period, nor do they include an accounting
of the time an FA has worked outside her block duty
hours.
B. Plaintiff Specific Facts
The complaints set forth specific facts as to each
plaintiff’s experience with SkyWest, presumably
intended to demonstrate that there were periods when
each of them was not compensated at or above the
federal minimum wage.
1.
Andrea Hirst
Andrea Hirst worked as an FA for SkyWest for over
five years (though she does not tell us over what
specific period, an omission that obscures her blocktime wage rate for some portions of her employment).
For almost all of that time, she was based at Chicago
O’Hare International Airport. During a pairing in
December 2014, due to an incoming aircraft arrival
delay, Hirst’s block time did not begin until
approximately 6.5 hours after her report time. On
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that day, she received her hourly block-time wage (at
that time, $22.49) for only 7 hours and 48 minutes,
although her duty day was 14 hours and 49 minutes.
Aside from holiday pay, Hirst only received time-anda-half wages once, when she was “junior manned.”
Hirst regularly worked hours that were not part of her
duty day preparing irregular operations reports,
reading training materials, and arriving early at the
airport due to the unpredictability of security at
O’Hare. Hirst also regularly took more than the
allotted time to complete compensated online training
sessions, but was only compensated for the time
allotted by SkyWest.
2. Molly Stover
Molly Stover worked as an FA for SkyWest for over
two years and was exclusively based out of O’Hare. On
multiple pairings, Stover’s flights were delayed and
she was not compensated (aside from the small per
diem) for the extra time she spent working as a result.
Stover never received time-and-a-half pay. Stover
regularly worked hours that were not part of her duty
day preparing irregular operations reports, reading
training materials, and arriving early at the airport
due to the unpredictability of security at O’Hare. For
the pay period lasting from October 1 to October 15,
2012, Stover was paid $656.25 for 86.07 hours of duty
time. Her actual hourly rate of pay for this period was
$7.62 per hour. At least once, Stover took more than
the allotted time to complete compensated online
training sessions, but was only compensated for the
time allotted by SkyWest.
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3. Emily Stroble Sze
Emily Stroble Sze worked as an FA for SkyWest for
over two years and was based out of O’Hare for all but
three months of her tenure. Sze regularly worked
hours that were not part of her duty day preparing
irregular operations reports, reading training
materials, and arriving early at the airport due to the
unpredictability of security at O’Hare.
4. Cheryl Tapp
Cheryl Tapp is the only plaintiff who continues to be
employed by SkyWest. Tapp has been an FA for
SkyWest for more than five years and has been based
in San Francisco and Los Angeles in that time. Tapp
received time-and-a-half pay 11 times, when she was
junior manned. During the week of January 7–13,
2013, Tapp worked 62.65 duty hours and was paid at
an effective rate of $15.47 per hour, not factoring in
any hours she may have worked outside her duty days.
During the week of April 9–14, 2013, Tapp worked
51.13 hours at an effective rate of $13.49 per hour,
again not factoring in hours worked outside duty days.
5. Renee Sitavich
Renee Sitavich worked as an FA for SkyWest for
over eight years, initially based at O’Hare before she
transferred to San Francisco. On September 9, 2013,
Sitavich had a duty day of 11 hours and 1 minute but
was paid for only seven block hours. On September
10, 2013, her duty day was 2 hours and 32 minutes,
but she was paid for only 1 hour and 5 minutes.
Sitavich received junior man pay once. For the week
of April 8–14, 2013, Sitavich was paid an effective rate
of $20.45 per hour based on her duty time, not
including any work performed outside of her duty
21a
days. Sitavich regularly worked hours that were not
part of her duty day preparing irregular operations
reports, reading training materials, and arriving early
at the airport due to the unpredictability of security at
O’Hare.
6. Sarah Hudson
Sarah Hudson worked as an FA for SkyWest for just
under two years, based at Fresno Yosemite
International Airport. On October 4, 2013, Hudson
received only two hours of block pay for a duty day of
4 hours and 37 minutes. On October 5, 2013, she was
paid for 3 hours and 34 minutes of block time for a duty
day of 8 hours and 31 minutes. During the 15 day
period between January 31 and February 15, 2014,
Hudson was paid $514.89 for a total of 65.73 duty
hours, averaging to $7.83 per hour, not accounting for
work outside of her duty days.
7. Brandon Colson
Brandon Colson worked as an FA for SkyWest for
two years, exclusively based at Phoenix Sky Harbor
International Airport. Flights in and out of Phoenix
were regularly delayed due to high temperatures. One
flight Colson was working was diverted to Tucson,
where the plane pulled up to a jet bridge and the main
cabin door was opened, ending Colson’s “block time.”
Colson was nonetheless required to continue working,
addressing passenger needs for two hours until they
were able to resume their flight. Colson received
junior man pay during only once. Every week or every
other week, Colson had to spend time outside of his
duty day preparing irregular operations reports, and
he regularly had to work for more than fifteen minutes
22a
after the main cabin door opened on the final flight of
a day.
8. Brüno Lozano
Brüno Lozano worked as a SkyWest FA for over two
years, during which he was based in Los Angeles, San
Francisco, and Seattle. Lozano never received timeand-a-half pay. Lozano worked extremely long duty
days, and worked additional hours outside of his duty
days.
C. Procedural History
The Hirst suit (plaintiffs Hirst, Stover, and Sze) was
filed in March 2015, while the Tapp suit (plaintiffs
Tapp, Sitavich, Hudson, Colson, and Lozano) was filed
in November 2015. The first amended complaint in
Hirst alleged that SkyWest violated the Fair Labor
Standards Act and the Illinois Minimum Wage Law
(“IMWL”) by failing to pay the plaintiffs the minimum
wage for their compensable hours. The complaint
indicated that the suit was brought as a collective
action under the FLSA, 29 U.S.C. § 216(b),5 and the
plaintiffs also sought to represent a class of Illinoisbased FAs under Federal Rule of Civil Procedure 23 as
to the IMWL claim. On SkyWest’s motion, the court
initially dismissed the Hirst plaintiffs’ FLSA claims
5 The viability of FLSA claims asserted on behalf of other
SkyWest FA’s appears questionable at this juncture, in light of
the fact that “the claims of potential members of an FLSA
collective action are not tolled until they file opt-in notices.”
Hollins v. Regency Corp., 867 F.3d 830, 834 (7th Cir. 2017). See
also Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66, 75 (2013)
(other similarly situated employees “become parties to a
collective action only by filing written consent with the court”).
No opt-in notices have been filed in either case.
23a
without prejudice and dismissed their IMWL claims
with prejudice. On the plaintiffs’ motion to reconsider,
the court converted its dismissal with prejudice of the
plaintiffs’ IMWA claims to a dismissal without
prejudice.
The Hirst plaintiffs subsequently filed a second
amended complaint and the Tapp plaintiffs filed a first
amended complaint; those complaints are the subject
of the instant motions to dismiss. The Hirst second
amended complaint again alleges, based on the
foregoing facts, that SkyWest violated the Fair Labor
Standards Act and the Illinois Minimum Wage Law.
The Tapp amended complaint alleges violations of
FLSA, California Wage Order 9-2001, California
Labor Code Sections 201, 202, 203, 204, 226, 1182.12,
1194, and 1194.2, California Business and
Professional Code Section 17200, San Francisco
Administrative Code Section 12R, the Los Angeles
Living Wage Ordinance, the Arizona Wage Act, the
Arizona Minimum Wage Act, and the Washington
Minimum Wage Act.
II. DISCUSSION
The motion to dismiss presents two principal issues:
Have the plaintiffs plausibly alleged that they were
ever paid less than the federal minimum wage? And is
SkyWest required to comply with state and local wage
laws concerning the compensation paid to its FAs?
A. FLSA Claims
The FLSA requires that “[e]very employer shall pay
to each of his employees who in any workweek is
engaged in commerce...not less than—$7.25 an hour.”
24a
29 U.S.C. § 206(a)(1)(C).6 In its previous opinion, the
court grappled with the appropriate way to determine
whether an employer met this obligation. Over what
period of time must an employee’s wages be measured
under the FLSA? Must an employee’s rate of pay equal
or exceed the minimum wage over the course of each
hour the employee works? Or can an employee’s hourly
rate dip below the minimum wage for some limited
periods so long as the employee’s wage exceeds $7.25
per hour over the course of a day, or a week, or a
month?
The court determined that “courts uniformly
calculate the hourly wage over the course of a
workweek—i.e., dividing the total compensation an
employee received in a workweek by the compensable
hours worked.” Hirst v. SkyWest, Inc., No. 15 C 02036,
2016 WL 2986978, at *5 (N.D. Ill. May 24, 2016)
(“Hirst I”).7 Consistent with this requirement,
6 The federal minimum wage of $7.25 per hour went into effect
on July 24, 2009 and has not been increased since. Accordingly,
it was the relevant wage rate for the entire period of the plaintiffs’
claims, which extend back three years at most from the filing of
the complaints in 2015.
7 As noted, although the Seventh Circuit has never addressed
this question, every Circuit Court of Appeals that has done so has
concluded that the workweek is the appropriate unit of measure
to apply to FLSA minimum wage claims. See Douglas v. Xerox
Business Services, LLC, --- F.3d ---, 2017 WL 5474213, *5 (9th Cir.
Nov. 15, 2017) (affirming dismissal of claims where plaintiffs
could not establish that non-compensated time reduced their
effective wage rate below the federal minimum over the course of
any workweek); U.S. Dep’t of Labor v. Cole Enterprises, Inc., 62
F.3d 775, 780 (6th Cir. 1995) (“[A]n employer meets the minimum
wage requirements if the total weekly wage paid is equal to or
greater than the number of hours worked in the week multiplied
25a
numerous courts have held that under the workweek
averaging standard, “the plaintiffs must plausibly
allege at least one workweek for which the
compensation they received, divided by their total
compensable time, failed to meet the FLSA minimum
wage of $7.25 per hour.” Hirst I, 2016 WL 2986978, at
*6. See, e.g., Hughes v. Scarlett’s G.P., Inc., 2016 WL
4179153, *2 (N.D. Ill. Aug. 8, 2016) (following Hirst I);
Pruell v. Caritas Christi, 678 F.3d 10, 13–15 (1st Cir.
2012); Lundy v. Catholic Health Sys. of Long Island
Inc., 711 F.3d 106, 114 (2d Cir. 2013) (“we find no
plausible claim that FLSA was violated, because
Plaintiffs have not alleged a single workweek in which
they worked at least 40 hours and also worked
uncompensated time in excess of 40 hours”); Davis v.
Abington Mem. Hosp., 765 F.3d 236, 241–42 (3d Cir.
2014) (agreeing with Second Circuit’s analysis in
Lundy); Landers v. Quality Communications, Inc., 771
by the statutory minimum hourly rate.”); Hensley v. MacMillan
Bloedel Containers, Inc., 786 F.2d 353, 357 (8th Cir. 1986) (“no
[FLSA] violation occurs ‘so long as the total weekly wage paid by
an employer meets the minimum weekly requirements of the
statute, such minimum weekly requirement being equal to the
number of hours actually worked that week multiplied by the
minimum hourly statutory requirement.’” (quoting United States
v. Klinghoffer Bros. Realty Corp., 285 F.2d 487, 490 (2d Cir.
1960)); Dove v. Coupe, 759 F.2d 167, 171–72 (D.C. Cir. 1985)
(“While the minimum wage laws logically could be construed as
requiring hour-by-hour compliance, [ ] both administrative and
judicial decisions established the workweek as the measuring rod
for compliance”); Olson v. Superior Pontiac-GMC, Inc., 765 F.2d
1570, 1576–77 (11th Cir.), modified on other grounds, 776 F.2d
265 (11th Cir. 1985) (applying weekly averaging approach to
example compensation scheme); Blankenship v. Thurston Motor
Lines, 415 F.2d 1193, 1197–98 (4th Cir. 1969) (applying the
weekly averaging approach).
26a
F.3d 638, 644–45 (9th Cir. 2014) (expressly adopting
rationale of Pruell, Lundy, and Davis); Hall v.
DirectTV LLC, 846 F.3d 757 (4th Cir. 2017) (following
Lundy, Davis, and Landers). Because the plaintiffs
failed to allege facts that would satisfy this pleading
standard by plausibly suggesting that their
compensation dipped below the federal minimum
wage even once over the course of a workweek, the
court dismissed the prior iteration of the plaintiffs’
FLSA claim. Hirst I, 2016 WL 2986978 at *7. The
prior complaint failed to allege the plaintiffs’ hourly
wages, the total compensation they received for any
workweek, and for two of the three plaintiffs, the total
number of hours worked in any given week. Although
the complaint contained some pairing information for
plaintiff Hirst, a calculation based on that information
revealed that Hirst was paid well over minimum wage
over the course of the example pairings. Id.
Notwithstanding this precedent and the court’s
dismissal of the prior complaint, the plaintiffs’ current
complaints have not remedied the fatal defect: they
still fail to allege that there was even one workweek in
which any of the plaintiffs did not receive at least the
federal minimum wage for compensable work
performed over the course of a workweek. To be sure,
this time around the plaintiffs provide more detail, but
the deficiency remains. For virtually all of the
plaintiffs, the complaints contain the total number of
“duty” hours the plaintiff worked during certain
specific flight pairings. And some plaintiffs have pled
their rate of pay at certain points in time. But no
plaintiff has pled information sufficient to infer that
they were paid below $7.25 per hour over the course of
a given work week. Simple arithmetic tells us that an
27a
FA’s average hourly wage over the course of a
workweek may be ascertained by dividing the total
amount the FA was paid that week by the number of
compensable hours the FA worked over the same
period. Not one plaintiff, however, has provided that
information for even a single workweek. Nor has any
plaintiff alleged even in more general terms that she
or he was paid less than $7.25 per hour over the course
of any workweek.
And indeed, the plaintiffs concede that they cannot
do so. In their complaints, they acknowledge that
“flight attendants cannot reasonably calculate their
actual hourly rate of pay for any given workweek.”
Hirst Compl. 73; Tapp Compl. 77; see also, e.g., Tapp
Compl. 98 (“Ms. Hudson’s hourly rate of pay for a given
workweek cannot be accurately determined, nor are
the records necessary to determine this information
accessible from any source.”). A plaintiff’s concession
that she cannot determine her hourly wage over the
course of any workweek is a concession that she cannot
state a FLSA minimum wage claim. “To survive a
motion to dismiss, a complaint must contain sufficient
factual matter, accepted as true, to state a claim to
relief that is plausible on its face. A claim has facial
plausibility when the plaintiff pleads factual content
that allows the court to draw the reasonable inference
that the defendant is liable for the misconduct
alleged.” Iqbal, 556 U.S. at 678 (quoting Bell Atlantic
Corp. v. Twombly, 550 U.S. 544, 556 (2007); quotation
marks and citation omitted). Failing to allege facts
that plausibly support an inference that the average
weekly wage paid by SkyWest to the plaintiffs fell
below the federal minimum wage, the amended
28a
complaints
violation.8
do
not
sufficiently
allege
a
FLSA
Given the plaintiffs’ conceded inability to determine
their hourly wages, it is no surprise to see that the
amended complaints do not actually plead that any of
the plaintiffs were not paid the minimum wage over
the course of even one week. Despite the plaintiffs’
seeming acknowledgment that the workweek
standard is the appropriate unit of measure for a
FLSA claim—see Hirst Compl. 121—what the
amended complaints continue to allege, instead, is
that “on certain workdays,” Hirst Compl. 125, the
“block time” wages they received did not meet the
minimum wage over the course of that day. But that,
again, is the wrong measure. Hirst I, 2016 WL
2986978, at *5. By clinging to that erroneous workday
standard the plaintiffs only further confirm that they
don’t have the goods to allege plausible FLSA
violations based on the appropriate standard, namely
the workweek.9
8
Although the complaints make sparse references to
SkyWest’s alleged violations of an FLSA record-keeping
provision, 29 U.S.C. § 211(c), plaintiffs do not appear to pursue
independent claims based on those alleged violations, and do not
mention § 211(c) in their briefs. Rather, plaintiffs attempt to use
SkyWest’s purported record-keeping violations to bolster their
claim that SkyWest paid them below the federal minimum wage.
9 The plaintiffs do allege that during particular weeks they
worked in excess of 40 hours without receiving time-and-a-half
compensation, but that fact has no relevance in the context of a
FLSA claim because the FLSA exempts airlines from paying
overtime wages. See 29 U.S.C. 213(b)(3).
The plaintiffs,
acknowledging this, do not assert a claim based on non-payment
of overtime compensation. And to the extent that the complaints
acknowledge that notwithstanding this overtime exemption,
29a
Far from increasing the plausibility of the plaintiffs’
claims, the new data set forth in the amended
complaints confirm what the plaintiffs’ have now
expressly acknowledged. Where the plaintiffs have
pled both their total pay (or information sufficient to
establish their total pay) and their total number of
duty hours over a given multi-day period (other than
a workweek, which, again, no one has pled), the data
reveal that the plaintiffs were paid in excess of the
federal minimum wage. Plaintiff Hirst again uses her
December 21–24, 2014 pairing as an example, but, as
the court previously concluded, her average hourly pay
during that pairing was $14.82, more than double the
$7.25 minimum wage. Hirst I, 2016 WL 2986978, at
*6. Plaintiffs Stover and Hudson allege that there
were single bi-monthly periods—periods of slightly
over two weeks— where their total wages divided by
their number of duty hours were $7.62 and $7.83,
respectively. These totals, of course, exceed the
federal minimum wage. None of the pairing data
provided in the amended complaints shows any multiday period, much less a week, during which a plaintiff
received less than minimum wage.
The plaintiffs attempt to make up the deficit of
uncompensated duty day hours by pointing to “off-theclock” work they performed before reporting in for
their duty day and after their release.
This
“preliminary and postliminary” uncompensated work,
SkyWest paid time-and-a-half in certain circumstances, it further
undermines the minimum wage claim because in paying-timeand-a-half, the company increased, rather than decreased, the
effective wage rate, making it less plausible, not more, that the
FAs received less than the minimum wage over the course of a
workweek.
30a
they allege, includes time spent at the airport clearing
security, reading communications from SkyWest
(“Know Before You Go” emails), debarking passengers
for more than 15 minutes after the last flight of a
pairing, writing “irregular operations reports” as
needed, and complying with mandatory drug
screening before or after flights. See Hirst Compl. 61.
Even
assuming
that
these
activities
are
10
compensable, the allegations offered fall short of
plausibly establishing that the performance of these
duties has ever caused any of the plaintiffs to work so
many hours that their average hourly rate for the
week dipped below the federal minimum wage. They
allege only that the amount of time spent on such
tasks “ranges from minutes per working day up to
several hours per working day,” Hirst Compl. 62, and
that uncompensated time not included in the duty day
“often include[s] several hours of unpaid time per
workweek.” Hirst Compl. 122. Apart from the fact that
the plaintiff’s candid assessment of the time required
by these tasks is relatively modest,11 the plaintiffs do
10 The defendants do not argue that these tasks should not be
treated as compensable work, so for purposes of this motion the
court assumes, without deciding, that they are.
11 The amended complaints provide little basis to infer that
these extra-duty hour tasks required a great deal of time. The
complaints make much ado, for example, about “irregular
operations reports,” but according to Plaintiff Colson, such
reports were needed only once every 1–2 weeks (Tapp 108) and
the complaints provide no estimate of how long it typically takes
to prepare such report. So too with “Know Before You Go”
communications. And over the course of a multi-day pairing, even
an FA based at O’Hare might only have to clear security at
O’Hare once, so there seems little reason to infer that the need to
arrive early at O’Hare would requires significant off-the-clock
31a
not identify any particular week or weeks when such
tasks, added to their duty day hours, reduced their
effective wage rate to below $7.25 per hour. As noted
above, the complaints stop short of alleging that there
was ever an occasion when such tasks combined with
duty hours to drive their wage rates below minimum
wage.
The sheer possibility that FAs worked a few
minutes, or even several hours, of “off-the- clock” work
that were not counted as part of their duty days is
insufficient to give rise to a plausible claim for relief.
Adding “several” hours (we’ll assume that means
about three hours, as common parlance would suggest)
of weekly non-compensated off-the-clock time, as
alleged by the complaints, to Hirst’s December 21–24,
2014 pairing, for example, would reduce her effective
rate of pay over that period from $13.12 to $12.27, still
far above the minimum wage rate; over the course of
that pairing, Hirst would have had to work some 35
additional noncompensated hours beyond her duty
hours to drive her wage rate below minimum wage—
that is, five hours a day. Nothing in the complaints
suggests that pre- and post-duty hour work required
anywhere near that amount of time. Plainly, these
facts do nothing to make Hirst’s claim more
plausible.12
time. Nor do the complaints include any allegations about how
often it took more than 15 minutes to debark passengers or by
how much that benchmark was typically exceeded.
12 Based on the data set forth in the amended complaints,
effective wage rates for Tapp and Sitavich may also be calculated,
and those rates (for Tapp, $15.47 and $13.49 for two different
pairings, and for Sitavich $20.45) are even higher than Hirst’s.
No data sufficient to make an effective wage calculation for
32a
Let’s consider, though, the claims of plaintiffs
Stover and Hudson. As noted above, the amended
complaints include data for each of these plaintiffs;
calculating their average wage rate over a 15-day
period based on their duty hours shows that their
wage rates for those periods were $7.62 and $7.83,
respectively—above the minimum wage, but not by a
lot. Even so, for those rates to be reduced to $7.25 per
hour, Stover and Hudson would have to have worked
an additional 4.48 and 5.29 hours of “off-the-clock”
time, respectively, over that 15-day period, an amount
of time that is consistent with the allegation that FAs
often preformed several hours of uncompensated time
beyond their duty hours over the course of a
workweek. The problem for these plaintiffs, though, is
that even if it is plausible to infer that, in some weeks,
Stover and Hudson worked this much off-the-clock
time, whether they worked that many uncompensated
hours during these particular periods is anybody’s
guess; the complaint contains no allegations
whatsoever about the number of off-duty hours
plaintiffs Stover and Hudson worked during the
identified 15-day periods. Instead, they posit that it is
possible that they did so. And so it is, but as Twombly
and Iqbal make plain, federal pleading requires the
assertion of facts sufficient to distinguish the plausible
from the merely possible. “Where a complaint pleads
facts that are merely consistent with a defendant’s
liability, it stops short of the line between possibility
and plausibility of entitlement to relief.” Ashcroft v.
Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550
plaintiffs Sze, Colson, or Luzano is provided. The calculations as
to plaintiffs Stover and Hudson are discussed below.
33a
U.S. at 557; quotation marks and citations omitted).
See also, e.g., Camasta v. Jos. A. Bank Clothiers, Inc.,
761 F.3d 732, 736 (7th Cir. 2014) (“To survive a motion
to dismiss under Rule 12(b)(6), the complaint must
provide enough factual information to . . . raise a right
to relief above the speculative level.” (internal
quotation marks omitted).
In lieu of affirmative allegations that their hourly
rates ever dipped below the federal minimum wage,
the plaintiffs essentially contend that, given the
variability of off-the-clock hours work and
uncompensated duty hours work, there must have
been some coincidental occasions when the number of
those hours combined to reduce their average hourly
rate over that week below the minimum wage. But
that is utter speculation, not plausible allegation, and
the former does not suffice to state a claim. That is
why courts of appeal that have addressed the pleading
requirements for FLSA claims have consistently held
that allegations to the effect that employees frequently
or typically performed uncompensated work do not
suffice to allege a plausible FLSA claim. See, e.g.,
Lundy, 711 F.3d at 114–15 (rejecting allegations that
plaintiffs “occasionally,” or “typically,” or “often”
worked additional or longer shifts or performed other
uncompensated work as insufficient to plausibly
allege that there was ever a week in which plaintiffs
worked uncompensated overtime hours); Nakahata v.
New York-Presbyterian Healthcare Sys., Inc., 723 F.3d
192, 201 (2d Cir. 2013) (“allegations . . . that Plaintiffs
were not compensated for work performed during meal
breaks, before and after shifts, or during required
trainings—raise the possibility that Plaintiffs were
undercompensated in violation of the FLSA [but] . . .
34a
do not state a plausible claim for such relief. To plead
a plausible FLSA overtime claim, Plaintiffs must
provide sufficient detail about the length and
frequency of their unpaid work to support a reasonable
inference that they worked more than forty hours in a
given week.”); Davis, 765 F.3d at 242 (rejecting as
implausible allegations that plaintiffs “typically
worked full time, or very close to it” and “also worked
several hours of unpaid work each week” because the
combination of those allegations fell short of alleging
that any of the four plaintiffs had ever actually
performed more than forty hours of compensable work
in a week).
As these cases illustrate, it is one thing to allege
affirmatively that plaintiffs regularly worked X
number of hours a week and received less than $7.25X
in compensation during one or more of those weeks; it
is another thing to allege, as the plaintiffs do here,
that they sometimes worked “several” uncompensated
off-the-clock hours in a week and that they may have
done so in a week in which they worked so many
uncompensated duty hours that they averaged less
than $7.25 for the week. Twombly and Iqbal do not
require mathematical precision, but they do require
courts to distinguish between allegations that a
defendant might be liable and allegations that support
a reasonable inference that a defendant is liable.
Iqbal, 556 U.S. at 678. None of this is to say that it is
not possible that one or more of the plaintiffs ever
worked for less than minimum wage over the course of
a week. But here the facts do not permit a plausible
inference, as distinguished from a guess, that any of
these plaintiffs ever did so. At best, the plaintiffs
allege nothing more than the possibility that, during
35a
some unknown week or weeks, they worked enough
off-duty hours to drive their effective wages below
$7.25 hour.
Where the plaintiffs themselves
acknowledge that they cannot identify even a single
instance when this occurred, however, there simply is
not an adequate basis to infer that the “possible” ever
actually occurred. “Where the well-pleaded facts do
not permit the court to infer more than the mere
possibility of misconduct, the complaint has alleged—
but it has not ‘shown’—‘that the pleader is entitled to
relief.’” Iqbal, 556 U.S. at 679 (quoting Fed. R. Civ. P.
8(a)(2)).
In their response brief, the plaintiffs devote only two
pages to defending the sufficiency of their pleadings
with respect to their FLSA claims, making two
arguments. First, they argue that it is impossible for
them to allege that their average wages over the
course of a workweek were below minimum wage
because SkyWest controls—and will not provide to
them—the documents necessary to conduct a weekly
calculation. This argument is unavailing for several
reasons. First, as a general matter, a plausible claim
must precede, not follow, discovery. A plaintiff “armed
with nothing more than conclusions” does not “unlock
the doors of discovery.” Iqbal, 556 U.S. at 678–79. It is
no answer to say that discovery might provide factual
support for conclusory allegations that the plaintiffs
were paid under minimum wage over the course a
workweek; the factual allegations must be sufficient
“to raise a reasonable expectation that discovery will
reveal evidence” of the claimed misconduct. Twombly,
550 U.S. at 556 (emphasis added). Second, although
“plaintiffs’ pleading burden should be commensurate
with the amount of information available to them,”
36a
Olson v. Champaign County, Ill., 784 F.3d 1093, 1100
(7th Cir. 2015), it bears noting here that SkyWest
produced some, if not all, of their Sked+ and payroll
records to the plaintiffs and that these records were
available to the plaintiffs in drafting their amended
complaints. SkyWest Hirst Br. at 6 n.4, ECF No. 95.
Third, the court granted the plaintiffs limited pretrial
discovery, see Hirst ECF Nos. 96 and 101; that
followed filing of the amended complaints and briefs
on the motion to dismiss, but the plaintiffs have not
sought further leave to amend their briefs or to
supplement their pleadings based on any new
information they obtained from SkyWest.
And finally on this point, the plaintiff’s premise that
they cannot calculate their average hourly rate over
the course of a workweek because “all” of the necessary
records “are in the possession and control of SkyWest”
is simply not accurate. For starters, some of the
information about “off-the-clock” work that the
plaintiffs say should be included in the calculation
would seemingly be within the possession of the
plaintiffs, not SkyWest. A number of the plaintiffs
allege, for example, that they regularly arrived early
at O’Hare to avoid the unpredictability of security
lines, but the plaintiffs do not explain why SkyWest
would have records reflecting how early individual
FAs opted to show up at the airport. Similarly, it is
not at all clear how SkyWest, rather than the FAs,
would have information about how much time, if any,
they spent reviewing “Know Before You Go”
information each day before reporting for duty or
preparing “irregular operations” reports after duty.
Moreover, much of the information plaintiffs claim
they do not have could easily have been ascertained
37a
with due diligence. The plaintiffs could have kept
track of the amount of time, or consulted records that
would have provided more data on which to base their
allegations. The amount that the plaintiffs were paid
in each period, for example, should be readily available
to them via their wage statements and bank account
records.
Records
of
contemporaneous
communications, both as to their substance and as
evidence of when the plaintiffs were working and
when they were not, could have been consulted. So too
things like calendars, credit card receipts, cell phone
bills, and tax records. Doubtless some records within
the plaintiffs’ control disappeared over the years, but
the poverty of information these plaintiffs claim is
nearly absolute. Hirst, for example, claims not even to
know when she moved from Minneapolis-St. Paul to
Chicago, a fact that surely could be reconstructed from
information in her possession. The claim that not one
of these plaintiffs could access enough information to
come up with a reasonable estimate of their hourly
rates were for even a single workweek is not at all
persuasive and is indicative of either a lack of
diligence or a lack of helpful data.
It bears noting as well that although FLSA
plaintiffs are not required to establish their wage rates
with mathematical precision, courts “have recognized
that it is employees’ memory and experience that lead
them to claim in federal court that they have been
[compensated] in violation of the FLSA in the first
place,” and they must “draw on those resources in
providing complaints with sufficiently developed
factual allegations.” Dejesus v. HF Management
Services, LLC, 726 F.3d 85, 90 (2d Cir. 2013); Hughes
v. Scarlett’s G.P., Inc., No. 15-cv-5546, 2016 WL
38a
4179153, at *4 (N.D. Ill. Aug. 8, 2016) (“[T]he law
requires FLSA plaintiffs to draw upon memory and
experience in providing complaints with sufficiently
developed factual allegations.” (alteration omitted)).
Nevertheless, none of the plaintiffs has been willing to
make even an estimate about the average amount of
off-the-clock time they spent during any particular
week. Rather, they have only been willing to plead
that in some weeks, the aggregate off-the- clock time
totaled “several hours.” That allegation, even
accepting it as true for purposes of this motion, does
nothing to allege the effect of those hours on the
average hourly wage over the course of any given
workweek. The plaintiffs still fail to plead a single
week, or even a single pay period, in which they were
paid below $7.25 per hour.
The plaintiffs’ second argument to excuse their
pleading deficiency confuses evidentiary burdens and
pleading burdens.
Citing Tyson Foods, Inc. v.
Bouaphakeo, 136 S. Ct. 1036, 1047 (2016), the
plaintiffs argue that they have no burden to plead that
their workweek wages were below $7.25 as long as
they plead that they performed some uncompensated
work. In Tyson Foods, the Supreme Court established
a burden shifting framework in FLSA cases, noting
that an employee carries his initial evidentiary burden
“if he proves that he has in fact performed work for
which he was improperly compensated and if he
produces sufficient evidence to show the amount and
extent of that work as a matter of just and reasonable
inference.” 136 S. Ct. at 1047. “The burden then shifts
to the employer to come forward with evidence of the
precise amount of work performed or with evidence to
negate the reasonableness of the inference to be drawn
39a
from the employee’s evidence.” Id. According to the
plaintiffs, Tyson Foods permits them to survive a
motion to dismiss by pleading that that they engaged
in uncompensated work.
But the Tyson Foods
framework is an evidentiary standard, and “does not
address pleading standards.” Hughes, 2016 WL
4179153, at *4. “[I]ts language regarding ‘evidentiary
gaps’ and ‘burden-shifting’ does not apply to the
present motions.” Id. Moreover, even if the Tyson
Foods framework were applicable at the pleadings
stage, it requires plaintiffs to “show the amount and
extent” of their uncompensated work—which, as the
court previously noted, plaintiffs have failed to do.
The bottom line with respect to the plaintiffs’ FLSA
claims is this: in these complaints, we encounter eight
plaintiffs who, at the time the amended complaints
were filed, had worked an aggregate of some 1500
weeks (more than 28 years) for SkyWest,13 yet could
not allege that in even one of those weeks one of them
had not been paid at least the federal minimum wage.
Failing to clear that very low bar, the FLSA claims
they assert fail and, because the plaintiffs have had
the opportunity to replead in an effort to cure this
deficiency, the FLSA claims are dismissed with
prejudice.
II. State Law Claims
In its previous opinion, the court dismissed the
Hirst plaintiffs’ Illinois Minimum Wage Law claims
with prejudice, concluding that the IMWL was
13 Hirst (>260 weeks) + Stover (>104 weeks) + Sze (>104
weeks) + Tapp (>260 weeks) +Sitavich (>416 weeks) + Hudson
(<104 weeks) + Colson (104 weeks) + Luzano (>104 weeks) = 1500
weeks.
40a
preempted by the Dormant Commerce Clause. On the
plaintiffs’ motion for reconsideration, the court
converted the dismissal to be without prejudice, giving
the plaintiffs an opportunity to plead facts indicating
that SkyWest’s burden of compliance with state and
local wage laws would be insubstantial. Under the
Dormant Commerce Clause, a regulation that is
neutral on its face or only has indirect effects on
interstate commerce “will be upheld ‘unless the
burden imposed on such commerce is clearly excessive
in relation to the putative local benefits.’” Nat’l Solid
Wastes Mgmt. Ass’n v. Meyer, 63 F.3d 652, 657 (7th
Cir. 1995) (quoting Pike v. Bruce Church, Inc., 397
U.S. 137, 142 (1970)). Previously, the court explained:
[T]he IMWL provisions would only apply to FAs
based in Illinois and only to the hours they
worked in Illinois. To calculate the time plaintiffs
worked to which the IMWL would apply,
SkyWest would have to track each minute pre- or
post-flight in Illinois and the amount of turn time
between flights that FAs spent in Illinois.
Moreover, if the IMWL were applicable to
SkyWest FAs, then every state’s comparable laws
would also apply, subjecting SkyWest to 50 or
more regulations depending on where each FA
was physically located at a particular moment in
time. Requiring compliance with the IMWL
would not be a simple matter of setting an FA’s
minimum wage at the statutory amount in the
state in which she is based; it would impose a
labyrinth of potentially conflicting wage laws
upon FAs based out of different states and cities,
working on the same flights, literally moving
through interstate commerce on a daily basis.
41a
This is precisely the type of burden on interstate
commerce that the Commerce Clause prohibits.
Hirst I, 2016 WL 2986978, at *10 (citations and
footnotes omitted).
In their amended complaints and their briefs, the
plaintiffs say little about the burdens SkyWest would
face if forced to comply with each state and local wage
law. Instead, the plaintiffs argue that compliance
would not be cumbersome because only the wage laws
of the state and locality where an FA is based would
apply to her. Would that it were so simple. Neither
the plaintiffs nor SkyWest can determine by fiat when
and where state laws apply. Some wage ordinances,
for example, may apply to all hours worked by an
employee who is employed within a state, even if some
hours are worked out of state; others apply only to
employees who work predominantly in one state for
hours they work in that state, while still others apply
to all hours worked by an employee in a state, even if
the employee predominantly works or is employed
elsewhere. Compare Miller v. Farmer Bros. Co., 150
P.3d 598, 606 (Wash. Ct. App. 2007) (noting that
Washington’s overtime law “does not make any
exception for overtime hours worked outside
Washington State” if the employee engaged in
“employment within the state of Washington”), with
Wooley v. Bridgeview Bank Mortgage Co., LLC, No. 14
C 5757, 2015 WL 327357, at *2–3 (N.D. Ill. Jan 23,
2015) (holding that the Illinois Minimum Wage Law
applies only to Illinois employees for conduct occurring
in Illinois), and Sullivan v. Oracle Corp., 254 P.3d 237,
242–44 (Cal. 2011) (holding that California’s overtime
laws apply to certain work performed in California by
out of state employees). Further complicating matters
42a
is the fact that different states use different measures
for calculating minimum wage; while some, like
Illinois, follow the federal model of averaging hourly
rates over a workweek, others, like California, require
that at least minimum wage be paid for every hour
work, even if some hours are compensated at a rate
higher than minimum wage.
The burdens that would be imposed on airlines were
they required to comply with state and local wage laws
concerning flight attendants,14 then, is more
substantial than merely complying with the wage laws
of the state where each FA is based.15 Instead,
SkyWest would be forced to contend with the wage
14 This opinion is based on facts alleged with respect to flight
attendants only; no suggestion that the Dormant Commerce
Clause exempts other airline employees from state and local wage
regulation is intended.
15 Even that burden could be substantial.
As SkyWest notes,
bases change frequently. Further, as the plethora of statutes on
which plaintiffs rely for their non-FLSA claims confirm, it will
often be the case that more than one jurisdiction can lay claim to
being the location where an FA is “based.” The California “based”
plaintiffs, for example (plaintiffs Tapp, Sitavich, and Lozano),
assert claims based not only on California law, but also on
ordinances enacted by Los Angeles and San Francisco. And
although the plaintiffs do not invoke it because it was enacted
after the period of their claims, the City of Chicago, where
plaintiffs Hirst, Stover, and Sze were “based,” has also adopted
its own minimum wage law. As of November 15, 2017, some 39
cities and counties have adopted their own minimum wage laws;
SkyWest flies to many of them. See Inventory of Local Minimum
Wage Ordinances (Cities and Counties), U.C. Berkeley Center for
Labor
Research
and
Education,
available
at
http://laborcenter.berkeley.edu/minimum-wageliving-wageresources/inventory-of-us-city-and-county-minimum-wageordinances/ (last visited Nov. 29, 2017).
43a
laws of each state in which an FA works. And because
FAs routinely work in multiple states (and cities) on
any given day, and in different combinations of states
and cities for any given route assignment, the
compliance burdens that would be imposed on
SkyWest to pay its FAs in accordance with the
applicable laws of all of the states and cities in which
they performed work would be monumental. In order
to do so, SkyWest would have to (1) measure each
increment that each FA spends on the ground in each
of the 43 states in which it operates, (2) determine the
precise extent to which each wage law in the states
and localities in which it operates applies and/or
applies extraterritorially, and then (3) ensure
compliance with a different set of wage laws and
ordinances for each FA based on the amount of time
they spent in each state and locality. Because an FA’s
pairings often shift from week to week, and involve
multiple jurisdictions each day, SkyWest would have
to comply with a different patchwork of wage laws for
the same employee virtually every day. And even if it
could do so, SkyWest would still be forced to contend
with the result of applying this patchwork of local
wage and hour laws—namely, that FAs doing
precisely the same work, on the same routes, would be
subject to different wage requirements based on where
they were domiciled, or based, or worked the most. As
the court noted in its earlier opinion, this is precisely
the kind of onerous burden on interstate commerce
that the Commerce Clause prohibits, even in the face
of weighty state interests in protecting workers and
providing a living wage. See Bibb v. Navajo Freight
Lines, Inc., 359 U.S. 520, 527 (1959) (stressing “the
44a
need for national uniformity in the regulations for
interstate travel”).
Although the plaintiffs principally engage with
Dormant Commerce Clause theories not at issue
here,16 they rely heavily on Bernstein v. Virgin
America, Inc., 227 F. Supp. 3d 1049 (N.D. Cal. 2017)
in which a district court rejected an airline’s Dormant
Commerce Clause challenge to California wage laws.
In Bernstein, the court first determined that California
uses a multi-factor test to determine when its wage
laws apply to work conducted elsewhere, considering
the employee’s residency, where the employee received
her pay, the employee’s principal job situs, the
employer’s residency, and the extent to which the
employee worked outside the state. Id. at 1060. Based
on this premise, the court ruled that because both the
airline and the plaintiff employees had deep ties to
California, California’s labor laws would apply to the
plaintiffs wherever they might work, inside the state
or outside. The court rejected the airline’s premise
that if it was forced to comply with California labor
law, “it [would] necessarily have to comply with other
states’ wage and hour laws, too.” Id. at 1065. The court
reasoned that in the absence of evidence that other
states had equally deep ties to the airline and its flight
attendants, there was no basis to conclude that other
states would require the airline to abide by their wage
and hour laws. Id. at 1066. And because only
16
For example, plaintiffs extensively discuss a Dormant
Commerce theory concerning the extraterritorial effect of state
statutes, as opposed to the operative issue here, which is the
Dormant Commerce clause’s prohibition on statutes that
excessively burden interstate commerce.
45a
California law would apply, in the Bernstein court’s
view, there was only a minimal administrative burden
on the defendant, who only had to comply with
California law.
Respectfully, this court does not find Bernstein’s
analysis persuasive and the case is distinguishable in
any event. The problem with Bernstein is that the
court assumed that only California law would apply to
flight attendants who are based in California, when in
reality, each state and locality defines the parameters
of its own wage laws. That California asserts, for
whatever reason, that its labor law applies to an FA
does not, of course, preclude another state from
similarly claiming that its labor laws apply to that FA.
Nor does it explain why any state would not, at a
minimum, take the position that its labor laws apply
to its residents performing work within its borders.
SkyWest cannot assume that the wage laws of 42 other
states do not apply merely because it complies with the
laws of the state in which its FAs are based. For
example, as the Bernstein court acknowledges with no
sense of irony, “‘California applies its Labor Code
equally to work performed in California, whether that
work is performed by California residents or by out-ofstate residents.’” Id. at 1067 (quoting Sullivan v.
Oracle Corp., 662 F.3d 1265, 1271 (9th Cir. 2007)). So
do many other states. Why, then, if FAs are subject to
state and local wage and hour laws, is it unreasonable
to posit that those states and cities, too, would seek to
enforce their laws on California-based FAs working
within their borders? It isn’t. Indeed, it can be
assumed that if California, or any other state, were
permitted to enforce its labor laws against interstate
airlines, every other state would also be permitted to
46a
enforce their labor laws to the extent applicable. See
Legato Vapors, LLC v. Cook, 847 F.3d 825, 834 (7th
Cir. 2017) (holding that “the threat of inconsistent
regulation, not inconsistent regulation in fact, is
enough” to implicate the Dormant Commerce Clause).
In assuming that only California law would apply to
the plaintiffs, then, the Bernstein court substantially
underestimated the extent of the administrative
burden it imposed on the defendant in requiring it to
comply with state and local wage laws.
Bernstein is in any event distinguishable; there
Virgin Atlantic was based in California, formulated its
wage policies in California, operated primarily in
California, and the employees at issue were all
California residents. Bernstein, 227 F. Supp. 3d at
1066. Here, SkyWest is not based in any of plaintiff’s
states and plaintiffs’ premise is not that the law of any
one of their states applies to all of them. Bernstein’s
understanding that only California law would apply to
the FAs in question is decidedly not the premise of the
plaintiffs here. Rather, the plaintiffs assert that
multiple state (and local) laws apply to FAs, depending
solely on where they are based. But if Bernstein
stands for anything, it is that application of state wage
law may turn on more than the single factor of where
someone is based. Bernstein really proves SkyWest’s
point: many states (or plaintiffs seeking the benefit of
a state’s wage laws) may take very aggressive
positions about application of their laws to FAs who
live, or are based, or work temporarily within, their
borders, creating a massive compliance burden.
Indeed, if state and local wage laws could apply to
SkyWest FAs, SkyWest would be forced to determine
which state and local wage laws apply based on the
47a
precise amount of time each FA spends in each locale,
and then comply with a different set of wage laws on a
weekly, daily, or even hourly basis. This isn’t a
logistical conundrum; it’s a logistical nightmare.
In short, the plaintiffs have done nothing to
persuade the court to change its earlier ruling with
regard to the Dormant Commerce Clause. Application
of state wage and wage statement laws to SkyWest’s
FAs would impose a substantial burden on SkyWest
that the Commerce Clause does not abide. See, e.g.,
Ward v. United Airlines, Inc., No. C 15-02309, 2016
WL 3906077, at *5 (N.D. Cal. July 19, 2016) (holding
that the local benefits of California’s wage statement
laws were “outweighed and even undermined by the
burden that would result from application of [the law]
and comparable laws in other states to this class of
pilots”);17 FitzGerald v. Skywest Airlines, Inc., No.
01129514, 2005 WL 3118764, at *1–2 (Cal. Sup. Ct.
Oct. 13, 2005), aff’d, 65 Cal. Rptr. 3d 913 (Ct. App.
17
The Bernstein court criticized Ward’s conclusions with
regard to the Dormant Commerce Clause as “entirely dependent
on its erroneous conclusion that California law only applies to
individuals who work principally or exclusively in California.”
Bernstein, 227 F. Supp. 3d at 1066. In the Bernstein court’s view,
airlines would not have to “monitor the pilot’s precise hours spent
working in each state and determine which state’s laws applied”
because “principal job situs is not dispositive of whether
California law applies to the Plaintiffs.” But this criticism is
again based on the faulty assumption that California law is the
only applicable law. Moreover, Bernstein’s assertion that airlines
would not have to keep track of the times a pilot or flight
attendant worked in each state is questionable given that it cites
job situs as a factor—albeit non-dispositive—in determining
whether California law applies. See id. at 1060.
48a
2007). The court therefore dismisses plaintiffs’ state
law claims with prejudice.18
***
For a second time, the plaintiffs have failed to
adequately plead that they were ever paid under the
federal minimum wage over the course of a workweek,
foreclosing their Fair Labor Standards Act claims.
Their remaining claims rely on various state and local
wage laws, but the application of these laws is
foreclosed by the Dormant Commerce Clause. The
plaintiffs’ complaints are therefore dismissed with
prejudice.
Dated:
November 30, 2017
18
John J. Tharp, Jr.
United States District Judge
In view of this ruling, it is not necessary to consider
SkyWest’s arguments against the applicability of each of the
state and local wage laws on which various plaintiffs have
asserted claims.
49a
APPENDIX C
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
ANDREA HIRST, MOLLY
STOVER, and EMILY
STROBLE SZE,
on behalf of themselves
individually and all others
similarly situated,
Plaintiffs,
v.
SKYWEST, INC. and
SKYWEST AIRLINES, INC.,
Defendants.
)
)
)
)
)
) No. 15 C 02036
) Judge John J.
) Tharp, Jr.
)
)
)
)
)
MEMORANDUM OPINION AND ORDER
The plaintiffs, Andrea Hirst, Molly Stover, and
Emily Stroble Sze, are former flight attendants
(“FAs”) with SkyWest Airlines, Inc. They bring this
action on behalf of themselves and all other similarly
situated FAs who were paid hourly wages by SkyWest,
Inc. and SkyWest Airlines, Inc. (collectively,
“SkyWest”) within the three years prior to the filing of
this suit.
The plaintiffs allege that SkyWest’s
compensation scheme—under which they were not
50a
paid based upon the total hours they worked in a given
duty day but only for the number of block time hours
they worked when the aircraft’s main cabin door was
closed—violates the Fair Labor Standards Act
(“FLSA”), 29 U.S.C. §§ 206, 216(b), and the Illinois
Minimum Wage Law (“IMWL”), 820 Ill. Comp. Stat.
105/1–15.
The defendants move to dismiss the
Amended Complaint under Rule 12(b)(6) for failure to
state a claim and move to dismiss the IMWL claim
under Rule 12(b)(1) for lack of subject matter
jurisdiction. Mt. Dismiss, ECF No. 35. As will be
explained, the characterization of some of SkyWest’s
arguments as jurisdictional is mistaken, but the error
is of no consequence. For the following reasons, the
motion to dismiss is granted.
BACKGROUND1
I.
Flight Attendant Duties, Schedules, and
Compensation
Defendant SkyWest, Inc. is the parent company of
defendant SkyWest Airlines, Inc. and another airline
(ExpressJet Airlines, Inc.) that is not involved in this
litigation. Am. Compl. ¶ 42, ECF No. 22. The
plaintiffs state, “upon information and belief,” that
SkyWest currently employs approximately 2,663 FAs,
with 389 based out of Chicago O’Hare International
Airport. Am. Compl. ¶ 44.
The plaintiffs are former FAs with SkyWest: Andrea
Hirst was employed from April 20, 2010 until May 10,
1 As this is a motion to dismiss, the Court accepts all well-
pleaded facts as true and construes all inferences in favor of the
plaintiff. Zemeckis v. Global Credit & Collection Corp., 679 F.3d
632, 634 (7th Cir. 2012).
51a
2015 and was based out of O’Hare Airport for the
majority of her tenure with SkyWest (the Amended
Complaint does not indicate where else Hirst was
based or for what period of time). Am. Compl. ¶ 35.
Molly Stover was employed from August 9, 2012 until
November 2014 and was based out of O’Hare the
entirety of her tenure with SkyWest. Am. Compl. ¶
36. Emily Stroble Sze was employed from June 2010
until September 2012 and was based out of O’Hare the
majority of her tenure with SkyWest (again, the
Amended Complaint does not indicate where else Sze
was based or for what period of time). Am. Compl. ¶
37.2
The schedules of SkyWest FAs are recorded down to
the minute in the SkedPlus+ system. Am. Compl. ¶ 9.
The minute-by-minute schedule for an FA’s series of
work trips (a “pairing”) is recorded in the “paring
details.” Am. Compl. ¶ 11, Fig. 1. The pairing details
reflect the actual circumstances of the pairing as flown
and are available for each employee for the past
several years on the SkedPlus+ system. Am. Compl. ¶
12. The pairing details identify the FA by her
employee number and name, list her domicile, level of
training, and position. Am. Compl. ¶ 13. The details
list the FA’s “report time”—the time at which she must
have arrived at the airport in uniform with all of her
mandatory items for duty, cleared security, and
checked in electronically on SkyWest’s computer
system. Am. Compl. ¶¶ 14, 54–60. If an FA reports
earlier than is listed on the pairing details, the
2 Because all of the named plaintiffs are women, this opinion
uses female pronouns.
52a
required time rather than the actual report time is
recorded. Id.
Each flight has a “block time,” which is the actual
length of time that it took to fly between the two
destinations on the specific day; block time begins with
“block out,” when the main cabin door is closed and the
aircraft moves away from the jet bridge, and ends with
“block in,” when the aircraft arrives at the destination
jet bridge and the main cabin door is opened. Am.
Compl. ¶ 18. Block time is closely related to “credit
time,” which is the time a flight (called a “leg”) is
estimated to take. Am. Compl. ¶¶ 22, 25. FAs are
entitled to hourly compensation based on the greater
of the two time periods: When block time is less than
credit time (i.e., the flight landed early), FAs are
compensated based on the estimated credit time. Am.
Compl. ¶ 25. When block time exceeds credit time,
FAs are entitled to additional compensation based on
the block time and must submit a payroll correction
form to receive the increased compensation. Am.
Compl. ¶¶ 26, 80.
Some of the duties of a SkyWest FA are: “to ensure
the safety of the passengers through required
inspections of the aircraft prior to and after each flight,
to assist passengers while the passengers are boarding
or are onboard the aircraft, to provide customer service
such as serving meals and drinks, and to assist
passengers and the flight crew until all passengers
have departed from the aircraft.” Am. Compl. ¶ 50.
Once on board but prior to closing the cabin door, FAs
must perform a number of duties mandated by the
Federal Aviation Administration (“FAA”), including
but not limited to: conducting a preflight and preboarding safety check, participating in a pre-flight
53a
briefing with other crew members, and verifying that
the commissary supply is sufficient. See Am. Compl.
¶ 61. After the aircraft blocks in and all passengers
have deplaned, FAs must perform additional duties
required by the FAA: they must, for example, check all
emergency and safety equipment to verify that
nothing has been tampered with during the flight,
remove all trash, straighten and cross seatbelts, fold
blankets, and clean the cabin (except on the final flight
of the day), and verify that the aircraft is stocked and
ready for subsequent flights, among other things. Am.
Compl. ¶ 68.
The time between scheduled legs on a duty day is
recorded as “turn time”: if turn time is fewer than 45
minutes, FAs are generally not permitted leave the
airplane (and are strictly prohibited from leaving the
aircraft while any passenger remains on board). Am.
Compl. ¶¶ 19, 67. If the turn time lasts more than an
hour, FAs may leave the plane but are required to
remain in the airport and in full uniform. Am. Compl.
¶ 20. Any unanticipated delays (e.g., mechanical
problems or weather delays) are recorded as turn
times; FAs are not compensated during either
scheduled or unanticipated turn times. Am. Compl.
¶¶ 21, 64. Nor do SkyWest FAs receive any “holding
pay” for circumstances where passengers are onboard
but the plane is held at the gate. Am. Compl. ¶ 64.
The “release time,” marking the end of an FA’s daily
shift, is automatically set at 15 minutes after the cabin
door is opened on the last flight of the day. Am. Compl.
¶ 15. The time between an FA’s report time and
release time is her “duty day,” during which time FAs
are required to be in uniform and are under SkyWest’s
direction. Am. Compl. ¶ 16. The maximum length of
54a
an FA’s duty day is regulated by the FAA. Am. Compl.
¶ 17; see 14 CFR 121.467(b) (setting an FA’s maximum
duty day at 14 hours, with limited exceptions). FAs
work between one and seven or more legs in any given
duty day and are guaranteed a minimum of four hours
of block time for every duty day. Am. Compl. ¶¶ 53,
74.
The pairing details include a “trip summary,” which
lists the first report time and the last release time of
the entire pairing, the total length of the pairing (“time
away from base”), and the cumulative block time and
credit time for the entire pairing. Am. Compl. ¶ 27. In
addition to the hourly compensation based on the
credit and block time, FAs receive a non-taxable per
diem of $1.80 per hour for every hour of time away
from base. Am Compl. ¶ 28. If an FA volunteers to be
“junior manned” (i.e., work overtime), she is paid at
one and one half times her regular hourly rate. Am.
Compl. ¶ 80(C) and n.6.
II.
The Plaintiffs’ Experiences as SkyWest
FAs
The Amended Complaint describes two of Andrea
Hirst’s SkedPlus+ pairings: in the first, a four-day trip
from October 30, 2012 through November 2, 2012,
Hirst was compensated for a total of 19 hours and 10
minutes (her credit time, which exceeded her block
time of 18 hours and 19 minutes). Am. Compl. ¶ 29.
The Amended Complaint alleges that Hirst should
have been compensated for all of her duty time in those
four days, a total of 33 hours and 44 minutes. Am.
Compl. ¶ 29. In the second example, the Amended
Complaint focuses on a single day, December 22, 2014,
during which Hirst’s first leg was delayed by
55a
approximately six hours (which, as it was not block
time, was uncompensated) due to late arrival of the
aircraft: on that day, Hirst’s duty day totaled 14 hours
and 49 minutes, but she was compensated for a total
of 7 hours and 48 minutes. Am. Compl. ¶¶ 99–101. In
total during the four-day pairing from December 21,
2014 through December 24, 2014 (including December
22), Hirst’s duty time totaled 37 hours and 48 minutes
and credit time (because credit time again exceeded
block time) totaled 24 hours and 55 minutes. See Am.
Compl. Fig. 3. The Amended Complaint does not
include Hirst’s hourly rate for either of these examples
or the amount she received as compensation for either
pairing. The Policy Manual, however, includes a chart
of FAs’ hourly rates (to which the plaintiffs refer, see
Am. Compl. ¶ 80(A) and n.5) based on an FA’s years of
service with SkyWest. See Am. Compl. Ex. 2 § 2327.
Hirst began work as an FA with SkyWest in 2010 and
had served two years at the time of the first example
pairing in late 2012, so it appears that her hourly rate
would have been $22.49. Id. There is no information
as to Hirst’s hourly rate in 2014 (the chart only
extends through 2012), which likely increased due to
her additional experience. (The hourly rate in 2012 for
an FA with four years of experience was $24.73.) Id.
As to Molly Stover, the Amended Complaint does
not include any pairing details or any specific
examples of the hours she worked or the compensation
she received.
Rather, the Amended Complaint
generally describes two experiences in which Stover
experienced flight delays, once in February or March
of 2014, where she had an unscheduled stay overnight
and returned to her base in Chicago the following day,
and once in the summer of 2014, when she was delayed
56a
for five hours. Am. Compl. ¶¶ 102–104. In both
instances, Stover did not receive “additional wage
compensation” for her extended duty day. Id.
The factual allegations with respect to Sze are even
more limited: Sze asserts that she was not informed
that her block pay would be averaged across her
workday but, instead, was told that the per diem
reimbursement was how she would be compensated
for all other hours. Am. Compl. ¶ 108. She received
one and one half times her regular rate only when she
was “junior manned” (i.e., voluntarily accepted an
overtime pairing, see Am. Compl. ¶ 80(C) n.6) and
worked on a scheduled day-off. Am. Compl. ¶ 109. As
with Stover, there are no allegations regarding the
hours Sze worked, her hourly wage, or the amount of
compensation she received.
Generally, the Amended Complaint asserts that
because SkyWest’s compensation scheme does not
adjust to unexpected delays and longer than scheduled
duty days, “the FAs are at risk of and do actually
receive less than the Federal minimum wage [and the
Illinois minimum wage] on certain workdays, even if
this Court were to adopt a weekly averaging of wage
compensation.”
Am. Compl. ¶¶ 133, 146.
Additionally, the plaintiffs assert that “SkyWest FAs
are not paid at a higher rate of pay for hours worked
over 40 per week. At most, flight attendants receive a
$3.00 per hour increase for working over 87 ‘block
hours’ in a month.” Am. Compl. ¶ 148. The plaintiffs
allege that SkyWest does not verify compliance with
minimum wage laws “for every FA for every week” and
that due to the “unnecessary complexity of SkyWest’s
pay stubs. . . FAs are unlikely to be able to accurately
determine their true hourly compensation if and when
57a
they have reason to believe they are being under
compensated.” Am. Compl. ¶ 92.
III.
Flight Attendant Representation
SkyWest FAs are not represented by a union, but
SkyWest InFlight Association (“SIA”), an organization
of FAs, negotiates FAs’ work responsibilities and
benefits with SkyWest management on behalf of all
FAs. Am. Compl. ¶¶ 3–4; Ex. 2 § 2303 (letter of
agreement between SkyWest and SIA). The policies
and benefits negotiated between SIA and SkyWest are
memorialized in the Flight Attendant Policy Manual.
Am. Compl. ¶ 4 and Ex. 2.
The plaintiffs allege “upon information and belief”
that SkyWest refers to the Policy Manual as a
collective bargaining agreement (“CBA”), although the
Policy Manual does not include “any compulsory
mediation requirements, an arbitration clause,
discussion of any ‘cooling off period’ or ‘self-help’
provisions or restrictions.” Am. Compl. ¶¶ 5–6, 82–83.
They also assert that SkyWest’s employment policy
(Am. Compl. Ex. 6) does not refer to its negotiations
with SIA or the Policy Manual as a collective
bargaining agreement and merely describes SIA’s
“input” in management decisions. Am. Compl. ¶ 82.
The plaintiffs allege that SIA and the comparable
pilots’ association have no bargaining power with
respect to uncompensated work hours because
SkyWest management “is and has been completely
unwilling to discuss or listen to employee input . . .
about paying hourly compensation for any time other
than block time.” Am. Compl. ¶ 85.
The Amended Complaint asserts that employee
grievances are unilaterally decided by SkyWest
58a
management, rather than through a mutually chosen
arbitrator or mediator. See Am. Compl. ¶ 83. The
Policy Manual includes a procedure for FAs to file
formal grievances when they have a disagreement
“concerning the interpretation of any terms” in the
Policy Manual: the FA submits the grievance to SIA;
if SIA determines the grievance is justified, it meets
with the “appropriate Company personnel for
corrective action or a satisfactory resolution.” Am.
Compl. Ex. 2 § 2325.3. It appears FAs can appeal the
decision on their grievance, although the Manual is
not clear to whom they appeal or how the appeal is
decided. See id. § 2325.4(C)–(D) (“Whenever two or
more employees have a common or similar complaint,
the flight attendant selects one or more of them to
represent the group. The final decision on the appeal
is binding on all members of the group.”).
Two of the plaintiffs, Hirst and Stover, filed a
Complaint on behalf of themselves and all other
similarly situated FAs against the defendants,
alleging that the failure to compensate FAs for every
hour they worked violates the FLSA and the IMWL
and that failure to compensate FAs at a higher rate for
hours worked in excess of 40 hours per week violates
the IMWL. See Compl., ECF No. 1. Shortly thereafter,
the plaintiffs filed the Amended Complaint, adding
Sze as an additional plaintiff. See Am. Compl. ¶¶ 37,
107–110. In addition to monetary damages for unpaid
wages, the Amended Complaint seeks a declaration
requiring that SkyWest explain various aspects of its
compensation scheme to current and former FAs and
an injunction barring SkyWest from referring to the
per diem payment as “per diem pay” or “per diem
wages.” Am. Compl. ¶¶ 157–63. The plaintiffs filed a
59a
“placeholder” motion for class certification, see ECF
No. 23, which this Court denied after the Supreme
Court issued its opinion in Campbell-Ewald Co. v.
Gomez, 136 S. Ct. 663 (2016). See Min. Orders, ECF
Nos. 60–61. The plaintiffs also filed a motion to
proceed as a collective action, for tolling of the statute
of limitations, for court- authorized notice, and for
disclosure of the contact information of the potential
opt-in plaintiffs. See Pl. Misc. Mt., ECF No. 24. The
defendants have moved to dismiss the Amended
Complaint for failure to state a claim and for lack of
subject matter jurisdiction. Because the jurisdictional
challenge pertains only to a subset of the plaintiffs’
claims (the state law IMWL claims), and is not
actually a challenge to this Court’s jurisdiction, and
because the discussion of the plaintiffs’ FLSA claims
will inform discussion of the state law claims that are
the subject of that aspect of the defendants’ motion,
the FLSA claims will be addressed first.
DISCUSSION
“To survive a motion to dismiss under Rule 12(b)(6),
a complaint must ‘state a claim to relief that is
plausible on its face.’” Adams v. City of Indianapolis,
742 F.3d 720, 728 (7th Cir. 2014) (quoting Bell Atl.
Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “‘A claim
has facial plausibility when the plaintiff pleads factual
content that allows the court to draw the reasonable
inference that the defendant is liable for the
misconduct alleged.’” Adams, 742 F.3d at 728 (quoting
Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). Although
notice pleading under Rule 8 is a more lenient
standard than the code pleading that preceded it, “it
does not unlock the doors of discovery for a plaintiff
armed with nothing more than conclusions.” Iqbal,
60a
556 U.S. at 678–79. A court must accept all of the
plaintiff’s factual allegations as true when reviewing
the complaint, but conclusory allegations merely
restating the elements of a cause of action do not
receive this presumption: “a court considering a
motion to dismiss can choose to begin by identifying
pleadings that, because they are no more than
conclusions, are not entitled to the assumption of
truth.
While legal conclusions can provide the
framework of a complaint, they must be supported by
factual allegations.” Id. at 679; see also Twombly, 550
U.S. at 555 (“a plaintiff’s obligation to provide the
‘grounds’ of his ‘entitle[ment] to relief’ requires more
than labels and conclusions”).
I.
FLSA Claim
The FLSA requires that “[e]very employer shall pay
to each of his employees who in any workweek is
engaged in commerce. . . not less than—$7.25 an
hour.” 29 U.S.C. § 206(a)(1)(C). But how is it
determined whether an employee has received that
hourly rate? The rate may vary depending on the
methodology used.
Consider, for example, an
employee (we’ll call him Joe) who is paid a flat rate of
$60 per work day and works no more than 40 hours a
week but on a varied schedule, some days working up
to 12 hours per day and others working as few as 4
hours. If Joe’s hourly rate is computed on a daily
basis, on a 12-hour day his rate of pay would be $5 per
hour ($60/12 hours), below the required minimum
wage. But if his schedule is computed on a weekly
basis, and he works 40 hours during the week, Joe’s
hourly rate of pay would be $7.50 ($300/40 hours), 25
cents per hour above the required minimum wage.
61a
A consistent methodology for determining the wage
paid is therefore required. In determining whether an
employer has violated the minimum wage provision of
the FLSA, courts uniformly calculate the hourly wage
over the course of a workweek—i.e., dividing the total
compensation an employee received in a workweek by
the compensable hours worked. Although the Seventh
Circuit has not expressly addressed this issue, every
circuit court that has considered the issue has utilized
the workweek averaging approach to determine
whether a FLSA violation occurred. See, e.g., Adair v.
City of Kirkland, 185 F.3d 1055, 1063 (9th Cir. 1999)
(“The district court properly rejected any minimum
wage claim the officers might have brought by finding
their salary, when averaged across their total time
worked, still paid them above the minimum wage.”);
U.S. Dep’t of Labor v. Cole Enterprises, Inc., 62 F.3d
775, 780 (6th Cir. 1995) (“[A]n employer meets the
minimum wage requirements if the total weekly wage
paid is equal to or greater than the number of hours
worked in the week multiplied by the statutory
minimum hourly rate.”); Hensley v. MacMillan Bloedel
Containers, Inc., 786 F.2d 353, 357 (8th Cir. 1986) (“no
[FLSA] violation occurs ‘so long as the total weekly
wage paid by an employer meets the minimum weekly
requirements of the statute, such minimum weekly
requirement being equal to the number of hours
actually worked that week multiplied by the minimum
hourly statutory requirement.’”
(quoting United
States v. Klinghoffer Bros. Realty Corp., 285 F.2d 487,
490 (2d Cir. 1960)); Dove v. Coupe, 759 F.2d 167, 17172 (D.C. Cir. 1985) (“While the minimum wage laws
logically could be construed as requiring hour-by-hour
compliance, [ ] both administrative and judicial
62a
decisions established the workweek as the measuring
rod for compliance. . . .”); Olson v. Superior PontiacGMC, Inc., 765 F.2d 1570, 1576–77 (11th Cir.),
modified on other grounds, 776 F.2d 265 (11th Cir.
1985) (applying weekly averaging approach to
example compensation scheme); Blankenship v.
Thurston Motor Lines, 415 F.2d 1193, 1197–98 (4th
Cir. 1969) (applying the weekly averaging approach).
The U.S. Department of Labor endorses the weekly
averaging approach as well. See, e.g., 29 C.F.R.
§§ 776.4 (“The workweek is to be taken as the
standard in determining the applicability of the
[FLSA].”); 776.5 (requirement that minimum wages
shall be paid “at a rate not less than a specified rate
‘an hour’ . . . means that whatever the basis on which
the workers are paid, whether it be monthly, weekly,
or on a piecework basis, they must receive at least the
equivalent of the minimum hourly rate”); 778.105
(“For purposes of computing pay due under the Fair
Labor Standards Act, a single workweek may be
established . . . .”).
The plaintiffs nevertheless argue for the adoption of
a daily minimum wage determination. They assert
that “SkyWest’s wage compensation plan does not
sufficiently adapt . . . such that every hour of every FAs’
workday is compensated at no less than the applicable
minimum wage. Therefore, upon information and
belief, the FAs are at risk of and do actually receive
less than the Federal [and Illinois] minimum wage on
certain workdays.” and Am. Compl. ¶¶ 133, 146
(emphasis added). They don’t offer any legal authority
for this novel daily compliance determination,
asserting only that “the possibility [of such an
approach] has not been precluded in the district courts
63a
[in the Seventh Circuit].” Resp. 11, ECF No. 51 (citing
Dominguez v. Quigley’s Ir. Pub, Inc., 790 F. Supp. 2d
803, 816 (N.D. Ill. 2011); Solis v. Saraphino’s, Inc., No.
09-CV-954, 2011 WL 1532543, at *4 (E.D. Wis. Apr.
22, 2011)).
The Court is persuaded by the
overwhelming authority applying the workweek
averaging approach, and the lack of authority
endorsing the daily compliance approach, that the
workweek averaging approach is the appropriate
method for determining a FLSA violation.
The plaintiffs repeatedly assert that SkyWest
violated the FLSA by failing to compensate them for
every hour they worked in the performance of “integral
and indispensable activities.” See, e.g., Am. Compl. ¶¶
53, 68, 78, 86, 128, 131–32, 145; Resp. 14–15. Any
activity that is integral and indispensable to an
employee’s principle activity—i.e., “it is an intrinsic
element of those activities and one with which the
employee cannot dispense if he is to perform his
principal activities”—is compensable under the FLSA.
Integrity Staffing Sols., Inc. v. Busk, 135 S. Ct. 513,
517 (2014). The plaintiffs, however, misunderstand
the term “compensable” as used in reference to the
FLSA. Even assuming that every hour of an FA’s duty
day is spent performing “integral and indispensable
activities,” and thus, is compensable, that does not
mean the plaintiffs must be paid an hourly wage for
that specific hour; it means that such an hour must be
included in the calculation of the total hours worked
in that workweek for minimum wage and overtime
determinations. Cf. Sandifer v. U.S. Steel Corp., 678
F.3d 590, 592 (7th Cir. 2012), aff’d, 134 S. Ct. 870
(2014) (noting that hours worked under FLSA—i.e.,
compensable time—is “the time during which an
64a
employee is entitled to be compensated at the
minimum hourly wage”).3
To state a FLSA claim under the workweek
averaging approach, then, the plaintiffs must
plausibly allege at least one workweek for which the
compensation they received, divided by their total
compensable time, failed to meet the FLSA minimum
wage of $7.25 per hour. They have not done so. As an
initial matter, the Amended Complaint does not even
include any of the named plaintiffs’ hourly wages or
any examples of the total compensation they received
for any workweek. As to Stover and Sze, the Amended
Complaint also lacks any allegations concerning the
number of hours worked in any given week. Without
such information, it is impossible to determine
whether their compensation violated the minimum
wage provision of the FLSA. Although the Amended
Complaint asserts that Stover and Sze did not receive
compensation for all the hours they work, as already
explained, that is insufficient to state a FLSA
violation. Stover and Sze have, thus, failed to plead
facts showing that SkyWest failed to compensate them
in accordance with the FLSA minimum wage
provisions; the motion to dismiss is granted without
prejudice as to these claims.
With respect to Hirst, based on the hourly wage
chart in the Policy Manual attached to the Amended
Complaint and the two examples of pairing details, the
3 SkyWest is not, as the plaintiffs argue, making a de minimus
argument regarding all time FAs work other than block time. See
Resp. 13–14. SkyWest includes every hour of Hirst’s example
duty days as compensable time in their calculations of her
average weekly wage. See Mem. in Supp. 7 and n.3.
65a
defendants piece together Hirst’s likely compensation
for the two example pairings (assuming, as the
plaintiffs assert, that each hour of the duty day was
“compensable”):
Example 1: October 30, 2012 – November 2, 2012:
Credit Time:4
x Hourly Rate:
Total Compensation:
÷ Total Duty Time:5
Hourly
Compensation:
19 hours, 10 minutes
$22.49
$431.06
33 hours, 44 minutes
$12.78
Example 2: December 21, 2014 –
December 24, 2014:6
4 In both examples, Hirst would have been paid for credit time
rather than block time (assuming she submitted the payroll
correction forms), as it was the longer of the two periods. See Am.
Compl. ¶¶ 25–26; Figs. 1, 3.
5 The four duty days in this pairing lasted: (1) 6 hours and 24
minutes; (2) 8 hours and 34 minutes; (3) 11 hours and 57 minutes;
and (4) 6 hours and 49 minutes, for a total of 33 hours and 44
minutes. See Am. Compl. Fig. 1.
6 The Court’s calculations differ from the defendants’ in the
second example. The Court used credit time, which exceeded
block time, to calculate Hirst’s total compensation. Additionally,
the Court’s calculation of Hirst’s total duty time is 37.8 hours
(duty day totals: (1) 9 hours and 23 minutes; (2) 14 hours and 49
minutes, (3) 5 hours and 1 minute; and (4) 8 hours and 35
minutes, for a total of 37 hours and 48 minutes), rather than
37.865 hours. See Mem. in Supp. 7 n.3; Am. Compl. Fig. 3. The
defendants’ calculations result in an average weekly wage of
$13.74 per hour, still far above the federal minimum wage of
$7.25. See Mem. in Supp. 7 n.3.
66a
Credit Time:
x Hourly Rate:7
Total Compensation:
÷ Total Duty Time:
Hourly
Compensation:
24 hours, 55 minutes
$22.49
$560.38
37 hours, 48 minutes
$14.82
See Am. Compl. Figs. 1, 3.8
Applying the workweek averaging approach to each
example pairing, Hirst received average hourly wages
of $12.78 and $14.82, respectively, well over the
federal minimum wage of $7.25 per hour. While it is
possible that over the course of their tenure with
SkyWest the plaintiffs worked one or more series of
lengthy duty days due, not to long flights (for which
time they would have been compensated) but to delay
and or/mechanical issues (for which time they would
not have been compensated) and, as a result, received
only the minimum guaranteed four hours of block time
pay each day—resulting in a workweek average below
the federal minimum wage. That such a scenario
could possibly occur under SkyWest’s compensation
scheme, however, is insufficient to state a plausible
claim; the plaintiffs have not provided a single
instance where SkyWest failed to pay an FA the
7 SkyWest applied Hirst’s hourly rate as of 2012, which likely
would have increased by 2014 as she had an additional two years
of experience and as the hourly wage chart in the Policy Manual
included a 1% increase in rate per year for 2010–2012. See Mem.
in Supp. 7 n.3; Ex. 2 2327.
8 The defendants note that they did not include the $1.80
hourly per diem in their calculation of Hirst’s compensation. See
Mem. in Supp. 7 n.2.
67a
minimum wage as mandated under federal law over
the course of a workweek. As such, Hirst’s FLSA
claim, like those of Stover and Sze, is dismissed
without prejudice.9
II.
IMWL Claims
The plaintiffs also assert wage and overtime pay
claims under the IMWL. These claims suffer from the
same failure to plead inadequate compensation over
the course of a workweek. Beyond that shortcoming,
which in theory can be corrected, the plaintiffs’ IMWL
claims suffer from several other defects that cannot be
remedied.
A. Pleading Deficiencies
The IMWL promises Illinois workers a higher
minimum wage than does federal law. The IMWL
requires that “every employer shall pay to each of his
or her employees who is 18 years of age or older in
every occupation wages of not less than $8.25 per
hour.” 820 Ill. Comp. Stat. 105/4(a)(1). When
interpreting the IMWL, courts look to the FLSA for
guidance. See Mitchell v. JCG Indus., Inc., 745 F.3d
837, 846 (7th Cir. 2014) (citing Lewis v. Giordano’s
Enterprises, Inc., 921 N.E.2d 740, 745–46 (Ill. App. Ct.
2009); Bernardi v. Village of North Pekin, 482 N.E.2d
101, 102 (Ill. App. Ct. 1985)); see also 56 Ill. Admin.
Code § 210.120 (referring to the FLSA for guidance
interpreting the IMWL). For the same reasons their
9
The plaintiffs do not dispute the hourly wage SkyWest
attributed to Hirst or the calculated total compensation for the
example workweeks based on that hourly wage; in fact, the
plaintiffs do not respond at all to the specific mathematical
calculations of Hirst’s average hourly wage or SkyWest’s
arguments for dismissal based thereon.
68a
FLSA minimum wage claims are dismissed—failure to
plead any facts indicating they received less than
minimum wage in any given workweek—Stover and
Sze’s IMWL minimum wage claims must be dismissed.
Applying the workweek averaging approach to Hirst,
her average hourly wages of $12.78 and $14.82 exceed
the Illinois minimum wage of $8.25; accordingly, her
IMWL minimum wage claim fails. See Gatto v.
Mortgage Specialists of Illinois, Inc., 442 F. Supp. 2d
529, 537 n.5 (N.D. Ill. 2006) (applying workweek
averaging approach to determine compliance with the
FLSA and the IMWL); Ladegaard v. Hard Rock
Concrete Cutters, Inc., No. 00 C 5755, 2004 WL
1882449, at *5 (N.D. Ill. Aug. 18, 2004) (same).
The IMWL overtime claims fail for the same
reason:10 the plaintiffs have failed to plead any facts
showing that they worked over 40 hours in one week
and were not compensated at one and one half times
their hourly rate for the additional hours. See 820 Ill.
Comp. Stat. 105/4a(1). There are no allegations that
Stover worked overtime. See Am. Compl. ¶¶ 102–106.
Although
the
Amended
Complaint
includes
allegations that Sze worked overtime, it also states
that she was paid “one and one-half times her regular
pay” for that overtime work. Am Compl. ¶ 109. The
general allegation regarding overtime— “SkyWest
FAs are not paid a higher rate of pay for hours worked
over 40 hours per week,” Am. Compl. ¶ 148—is
inconsistent with the statement that FAs are paid
time and a half whenever they are junior manned,
10
The plaintiffs only bring an overtime claim under the
IMWL, as FAs are exempt from the overtime provision of the
FLSA. See 29 USC § 213(b)(3).
69a
which the Amended Complaint defines as having
voluntarily accepted an overtime shift. See Am.
Compl. ¶ 80(C) and n.6. The Policy Manual further
explains that when SkyWest assigns an FA a pairing
on a scheduled day off or requires that an FA is junior
manned, she is compensated at time and a half. See
Am. Compl. Ex. 2 §§ 2305, 2308.20. That Sze only
received one and one-half times her regular pay when
she was junior manned—i.e., worked overtime—does
not state a violation of the IMWL overtime provision;
rather, it acknowledges that she was paid time and a
half when she worked overtime.
With respect to Hirst, and extrapolating from the
pairing details she provides, the plaintiffs argue,
“Depending on the start and finish day of the
workweek, [Hirst] is likely to have . . . exceeded the 40
hours required under the IMWL.” Resp. 17 n.15. That
there is a possibility that Hirst had a workweek
exceeding 40 hours (and that she was not paid time
and a half for the additional hours) is insufficient to
satisfy Rule 8 and the plausibility standard of
Twombly and Iqbal. See Iqbal, 556 U.S. at 678 (“The
plausibility standard is not akin to a ‘probability
requirement,’ but it asks for more than a sheer
possibility that a defendant has acted unlawfully.”
(emphasis added)). Hirst has access to at least some
of her pairing details;11 if there is a workweek in which
11
The Amended Complaint notes that, although pairing
details are available for at least five years on the SkedPlus+
system, the information is only accessible to employees of the
airline. Am. Compl. ¶ 12. Nonetheless, the plaintiffs have at
least two of Hirst’s pairing details, which they include in the
Amended Complaint. There is no explanation of how they were
70a
she worked over 40 hours and was not compensated
accordingly, she is able to identify those facts. See
Runnion ex rel. Runnion v. Girl Scouts of Greater
Chicago & Nw. Indiana, 786 F.3d 510, 528 (7th Cir.
2015) (“[P]laintiffs’ ‘pleading burden should be
commensurate with the amount of information
available to them.’”). Because none of the plaintiffs
has alleged a single workweek in which she worked
any overtime hours that were not compensated at a
time-and-a-half rate, they have failed to state a
plausible IMWL overtime claim.
The plaintiffs’ attempt to invoke the IMWL,
moreover, cannot be cured simply by pleading that the
plaintiffs worked so much that they were paid less
than minimum wage or qualified for overtime. A claim
based on the IMWL must be based on work performed
in Illinois. “Because the IMWL is designed to protect
employees within the State of Illinois only, it does not
apply extraterritorially,” meaning it only protects
employees located within Illinois and only applies to
conduct occurring in Illinois. Wooley v. Bridgeview
Bank Mortgage Co., LLC, No. 14 C 5757, 2015 WL
327357, at *2, *3 (N.D. Ill. Jan. 23, 2015). State laws—
federal laws, too, for that matter—presumptively lack
extraterritorial reach. “When a statute gives no clear
indication of an extraterritorial application, it has
none.” Morrison v. Nat’l Australia Bank Ltd., 561 U.S.
247, 255 (2010); Avery v. State Farm Mut. Auto. Ins.
Co., 835 N.E.2d 801, 852 (Ill. 2005) (“the long-standing
rule of construction in Illinois” is “that a statute is
without extraterritorial effect unless a clear intent in
able to access these two pairing details and whether they have
access to additional examples.
71a
this respect appears from the express provisions of the
statute”) (internal quotation omitted). Thus, to state
a claim under the IMWL, the plaintiffs must not only
allege that they were not adequately compensated for
hours worked in a given workweek but also must
allege that the plaintiffs worked those hours in
Illinois. Cf. Glass v. Kemper Corp., 133 F.3d 999, 1000
(7th Cir. 1998) (holding that Illinois Wage Payment
and Collection Act did not apply where the plaintiff’s
work was outside the state).12 The plaintiffs’ Amended
Complaint fails to do so, and likely cannot because
there is no identified basis by which the work of FAs
performed within the territorial jurisdiction of the
state of Illinois (or any other state) was measured.13
B. SkyWest’s “Jurisdictional” Arguments
In addition to its arguments based on the plaintiffs’
failure to allege facts sufficient to plausibly establish
violations of the IMWL, SkyWest also asserts that the
12 The Illinois Department of Labor has similarly construed
the IWPC to apply only to work performed within Illinois. See
https://www.illinois.gov/idol/FAQs/Pages/wage-paymentfaq.aspx (“The work has to be performed in Illinois for an
employee to make a claim under the Act. For example, a truck
driver that lives in Illinois but travels throughout the United
States to perform their work is likely not covered by the Act.”)
(last visited May 23, 2016).
13 To track hours worked within a particular state, moreover,
another problem would have to be addressed. On what basis
would work at 35,000 feet constitute work within the state of
Illinois? The state has no sovereignty over the skies above it.
There is no “State of Illinois” airspace, only national airspace. See
49 U.S.C. § 40103(a) (“The United States Government has
exclusive sovereignty of airspace of the United States.”).
Arguably, then, virtually none of the flight time worked by the
plaintiffs can be said to have occurred within Illinois.
72a
IMWL claims must be dismissed pursuant to Rule
12(b)(1) because the Court lacks jurisdiction over
those claims. SkyWest maintains that the IMWL
claims are barred by the dormant Commerce Clause
and are preempted by Congress’s occupation of the
field of regulation relating to air travel, by its
enactment of the Aviation Deregulation Act (“ADA”),
and by the Railway Labor Act (“RLA”). Whatever the
substantive merit of these arguments (considered
below), neither the Commerce Clause nor any of the
preemptive acts asserted by SkyWest deprive the
court of jurisdiction to adjudicate the plaintiffs’ state
law claims.
As used in Rule 12(b)(1), “jurisdiction” refers to a
court’s authority to adjudicate a claim. Here, SkyWest
is not really arguing that the Court cannot adjudicate
the IMWL claim. Its argument is that the claim must
fail in this or any other court based on the substantive
content and effect of federal law (specifically, the
Commerce Clause, the Federal Aviation Act, the ADA,
and the RLA). To do what SkyWest urges here—to
apply federal law, whether constitutional or statutory,
to defeat a state law claim—is to exercise, not
abdicate, judicial authority. A party’s assertion of the
dormant Commerce Clause does not deprive the court
of jurisdiction; it asks the court to apply federal law to
defeat the claim that the party is liable under state
law. The long line of cases in which the Supreme
Court has held the dormant Commerce Clause to
invalidate applications of state law would not exist if
federal courts had no “jurisdiction” over cases in which
defendants invoke that constitutional provision. See,
e.g., Comptroller of Treasury of Maryland v. Wynne,
135 S. Ct. 1787, 1799 (2015) (“Legion are the cases in
73a
which we have considered and even upheld dormant
Commerce Clause challenges brought by residents to
taxes that the State had the jurisdictional power to
impose.”); Camps Newfound/Owatonna, Inc. v. Town
of Harrison, Maine, 520 U.S. 564, 575–76 (1997)
(invalidating higher state tax on charities conducted
principally for the benefit of non-residents as a
violation of the Commerce Clause). So, too, with
preemption doctrine; the assertion that federal law
preempts state law does not mean that the court has
no jurisdiction over the state law claim; it means that
the state law claim must fail on the merits. See, e.g.,
Healy v. Metro. Pier & Exposition Auth., 804 F.3d 836,
840–41 (7th Cir. 2015) (“we deem a dismissal of
preempted state law claims a 12(b)(6) dismissal for
failure to state a claim, a dismissal on the merits”);
Turek v. Gen’l Mills, Inc., 662 F.3d 423, 425 (7th Cir.
2011) (“the fact that a defendant has a good
[preemption] defense to a state law claim does not
mean that the complaint does not invoke federal
jurisdiction”).
It would be ironic, indeed, if the assertion of a
constitutional or statutory provision, or an argument
that an act of Congress has preemptive effect—both
essentially assertions of the Supremacy Clause of the
Federal Constitution—divested federal courts of
subject matter jurisdiction over state law claims that
were otherwise properly before the court. This Court
has supplemental jurisdiction—the authority to
adjudicate—over the plaintiffs’ IMWL claims
pursuant to 28 U.S.C. § 1367 because they are joined
with the plaintiffs’ federal FLSA claim. SkyWest’s
assertion of defenses founded on federal law,
constitutional and statutory, are properly before the
74a
Court. For the reasons already noted, and those that
follow, those state law claims must be dismissed, but
not because this Court lacks jurisdiction to adjudicate
them.
C. Commerce Clause
SkyWest argues that requiring a national airline to
comply with the IMWL is a substantial burden that
violates its right to engage in interstate commerce.
The Commerce Clause both affirmatively grants
power to Congress to regulate interstate commerce but
also implies a negative converse— “a substantive
‘restriction on permissible state regulation’ of
interstate commerce.” Dennis v. Higgins, 498 U.S.
439, 447 (1991) (quoting Hughes v. Oklahoma, 441
U.S. 322, 326 (1979)); see also S.-Cent. Timber Dev.,
Inc. v. Wunnicke, 467 U.S. 82, 87 (1984) (“[T]he Clause
has long been recognized as a self-executing limitation
on the power of the States to enact laws imposing
substantial burdens on such commerce.”).
This
negative implication—that states may not take
actions that unduly interfere with the affirmative
power of the federal government to regulate interstate
commerce—is generally known as the “dormant
Commerce Clause.” See, e.g., CTS Corp. v. Dynamics
Corp. of America, 481 U.S. 69, 87 (1987) (“The
principal objects of dormant Commerce Clause
scrutiny are statues that discriminate against
interstate commerce.”).
In considering whether a state regulation violates
the Commerce Clause, a court first determines if the
regulation directly discriminates against interstate
commerce or has the effect of favoring in-state
economic interests; if so, the state regulation is
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generally struck down. See Brown-Forman Distillers
Corp. v. New York State Liquor Auth., 476 U.S. 573,
578–79 (1986); see also Nat’l Solid Wastes Mgmt. Ass’n
v. Meyer, 63 F.3d 652, 657 (7th Cir. 1995). If the state
regulation is neutral on its face or only has indirect
effects on interstate commerce, the regulation “will be
upheld ‘unless the burden imposed on such commerce
is clearly excessive in relation to the putative local
benefits.’” Nat’l Solid Wastes, 63 F.3d at 657 (quoting
Pike v. Bruce Church, Inc., 397 U.S. 137, 142 (1970)).
For example, in Bibb v. Navajo Freight Lines, 359
U.S. 520 (1959), an Illinois statute required truckers
to use a specific mudguard while operating on Illinois
highways—a mudguard not in common use and that,
if used on other states’ highways, would violate their
mudguard statutes. Id. at 522–23. Although Illinois
had a significant interest in regulating safety on its
highways, the Supreme Court held that the Illinois
statute placed an undue burden on interstate
commerce. Id. at 529. The Court expressed the
importance of national uniformity in certain
fields—”this regulation of mudguards is not one of
those matters ‘admitting of diversity of treatment,
according to the special requirements of local
conditions’ . . . .” Id. (quoting Sproles v. Binford, 286
U.S. 374, 390 (1932)).
The same principle of national uniformity is
applicable to the airline industry. See United Air
Lines, Inc. v. Indus. Welfare Comm’n, 28 Cal. Rptr.
238, 248 (Dist. Ct. App. 1963) disapproved of on other
grounds by Indus. Welfare Com. v. Superior Court, 613
P.2d 579 (Cal. 1980); see also Sompo Japan Ins., Inc.
v. Nippon Cargo Airlines Co., 522 F.3d 776, 779 (7th
Cir. 2008) (a goal of the Warsaw Convention was to
76a
create “uniformity in the aviation industry”); Am.
Airlines, Inc. v. Wolens, 513 U.S. 219, 232–33 (1995)
(noting the Airline Deregulation Act preemption
provision promotes national uniformity); Schultz v.
United Airlines, Inc., 797 F. Supp. 2d 1103, 1106 (W.D.
Wash. 2011) (same); Howell v. Alaska Airlines, Inc.,
994 P.2d 901, 904 (Wash. Ct. App. 2000) (same).
Here, the IMWL provisions would only apply to FAs
based in Illinois and only to the hours they worked in
Illinois. See Wooley, 2015 WL 327357, at *2, *3. To
calculate the time the plaintiffs worked to which the
IMWL would apply, SkyWest would have to track each
minute pre- or post-flight in Illinois and the amount of
turn time between flights that FAs spent in Illinois.14
Moreover, if the IMWL were applicable to SkyWest
FAs, then every state’s comparable laws would also
apply, subjecting SkyWest to 50 or more regulations
depending where each FA was physically located at a
particular moment in time.15 Requiring compliance
14 As noted infra, it might be argued that the IMWL does not
apply to any portion of the time FAs spend in flight over the state
of Illinois because that airspace is not within the state’s
sovereignty. But if it does, the complexity and burdens that
would attend its application to FAs would only strengthen the
argument for applying the Commerce Clause to bar its
application. To include flight time over the state, SkyWest would
be required to determine the precise minute each flight crossed
into and out of Illinois airspace and whether any FA on that
particular flight was based in Illinois. If changing a mudguard
at the state line is a substantial burden on interstate commerce,
then so, too, is tracking the minute-by-minute location of each FA
on each operating SkyWest flight to determine the precise
moment she enters and exits Illinois airspace.
15
SkyWest highlights the plaintiffs’ reference to pending
minimum wage legislation in the City of Chicago, alluding to the
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with the IMWL would not be a simple matter of setting
an FA’s minimum wage at the statutory amount in the
state in which she is based; it would impose a
labyrinth of potentially conflicting wage laws upon
FAs based out of different states and cities, working
on the same flights, literally moving through
interstate commerce on a daily basis. This is precisely
the type of burden on interstate commerce that the
Commerce Clause prohibits.
See Fitz-Gerald v.
Skywest Airlines, Inc., No. 01129514, 2005 WL
3118764, at *1–2 (Cal. Sup. Ct. Oct. 13, 2005), aff’d, 65
Cal. Rptr. 3d 913 (Ct. App. 2007);16 cf. Mitchell v.
Abercrombie & Fitch, No. C2-04-306, 2005 WL
1159412, at *4 (S.D. Ohio May 17, 2005) (Commerce
Clause prevented application of Ohio minimum wage
law to Ohio-based employer for all employees
throughout the country).
The plaintiffs’ only response to the Commerce
Clause argument (relegated to a footnote in their
response) notes that wage regulation is a “historic
police power[ ] of the States,” not the federal
government. Resp. 19 n.16. SkyWest’s invocation of
the Commerce Clause, however, is not in the context
of whether an action is a permissible federal
regulation but rather references the Clause’s “implicit
potential for SkyWest to be subject to the minimum wage laws of
every city through which SkyWest flies. Mem. in Supp. 15 n.8;
see also Am. Compl. ¶ 147.
16 The plaintiffs object to SkyWest’s reliance on Fitzgerald,
which the California Supreme Court disapproved of in certain
respects in People ex rel. Harris v. Pac Anchor Transp., Inc., 329
P.3d 180, 187–89 (Cal. 2014). The portion of the opinion
addressing the Commerce Clause arguments, however, remains
good law.
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restraint on state authority.” United Haulers Ass’n,
Inc. v. Oneida-Herkimer Solid Waste Mgmt. Auth.,
550 U.S. 330, 338 (2007).
Moreover, the state
mudguard regulation in Bibb was also passed under
Illinois’s police power; nonetheless, the Supreme
Court held it an undue burden on interstate
commerce. See id. 359 U.S. at 529–30. The same is
true here.
Imposing the IMWL on SkyWest would be an undue
burden on interstate commerce and would upend the
uniform treatment of FAs across states (and across the
airline industry). Repleading, moreover, will not
change this fact. Accordingly, the plaintiffs’ IMWL
claims are dismissed with prejudice.
B. Preemption Arguments
SkyWest makes three additional arguments,
asserting that a myriad of federal laws preempt the
application of the IMWL to the airline industry. None
of these arguments—field preemption, enactment of
the ADA or the RLA—preempt the application of the
IMWL, a generally applicable state law governing the
conditions of the workplace, to SkyWest.
1. Field Preemption
SkyWest asserts that because Congress has so
heavily regulated the airline industry, federal law
preempts the entire field of aviation, preventing states
from supplementing with their own wage regulations.
“Issues of express or field preemption are generally
purely legal questions, where the matter can be
resolved solely on the basis of the state and federal
statutes at issue.” Wisconsin Cent., Ltd. v. Shannon,
539 F.3d 751, 759 (7th Cir. 2008). There is a
presumption against preemption in areas of law
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traditionally occupied by the states—such as wage
regulation—unless federal preemption was “the clear
and manifest purpose” of Congress. Wyeth v. Levine,
555 U.S. 555, 565 (2009); see also California Div. of
Labor Standards Enf’t v. Dillingham Const., N.A.,
Inc., 519 U.S. 316, 330 (1997) (wage regulation a field
traditionally occupied by the states). The defendants
focus on Wisconsin Central, Ltd. v. Shannon, in which
the Seventh Circuit held overtime claims under the
IMWL preempted due to comprehensive federal
legislation over the railway industry. 539 F.3d at 765.
SkyWest asks this Court to extend the holding of
Wisconsin Central to the airline industry.
To reach its conclusion that federal law preempted
the IMWL overtime provision for railroad employees,
the Seventh Circuit reviewed the breadth of federal
regulation over railways, noting that it has “touched
on nearly every aspect of the railway industry,
including property rights, shipping, labor relations,
hours of work, safety, security, retirement,
unemployment, and preserving the railroads during
financial difficulties.” Id. at 762. With respect to wage
laws, however, the court observed the lack of
comparable federal regulation but noted, “‘[w]here a
comprehensive federal scheme intentionally leaves a
portion of the regulated field without controls, then
the pre-emptive inference can be drawn—not from
federal inaction alone, but from inaction joined with
action.’” Id. at 764 (quoting Puerto Rico Dep’t of
Consumer Affairs v. Isla Petroleum Corp., 485 U.S.
495, 503 (1988)). The action predating congressional
inaction in the railway industry was the Adamson Act,
which, to head off an impending national strike,
permanently established an eight-hour workday for
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determining the compensation of railroad employees
and temporarily froze wages. Wisconsin Central, 539
F.3d at 764 (citing the Adamson Act of 1916, 39 Stat.
721 (codified as amended at 49 U.S.C. § 28301)). The
Seventh Circuit concluded that the congressional
intent to keep railroad wage negotiations free from
regulations preempted state attempts to impose such
wage regulations. Wisconsin Central, 539 F.3d at 765.
Here, too, Congress has enacted regulations
touching on numerous aspects of the airline industry,
including labor relations (45 U.S.C. §§ 181–188),
maximum work hours and employee rest
requirements (14 CFR Parts 1–199), safety and
security (49 U.S.C. §§ 44101, et seq.; 49 C.F.R. Parts
1500–1699), design standards (49 U.S.C. § 44701),
marketing and pricing (49 U.S.C. § 41701, et seq.),
among many others. See Reply 10 n.6. Where the
comparison between the railway and airline industries
diverges, however, is the congressional expression of
clear and manifest intent to preempt state wage
regulations. Unlike Wisconsin Central, where the
court identified congressional intent to foster wage
negotiations free from regulation, with respect to the
airline industry, there is simply a lack of federal
regulation: “the mere absence of federal legislation
with respect to [minimum and] overtime wages is not
enough to find a congressional intent to preempt this
field, since ‘[t]here is no federal pre-emption in vacuo,
without a constitutional text or a federal statute to
assert it.’” 539 U.S. at 764 (quoting Isla Petroleum
Corp., 485 U.S. at 503). Without congressional intent
to preempt state wage laws—a regulatory area
traditionally occupied by the states—either through
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action or inaction,
preemption applies.
the
presumption
against
2. Airline Deregulation Act
In 1978, Congress, “determining that ‘maximum
reliance on competitive market forces’ would best
further ‘efficiency, innovation, and low prices’ as well
as ‘variety [and] quality. . . of air transportation
services,’ enacted the Airline Deregulation Act.”
Morales v. Trans World Airlines, Inc., 504 U.S. 374,
378 (1992) (quoting 49 U.S.C. §§ 1302(a)(4),
1302(a)(9)) (brackets and ellipses in original). To
ensure that states did not attempt to regulate the
airline industry, undoing the effects of the ADA, the
Act includes a preemption provision “prohibiting the
States from enforcing any law ‘relating to rates,
routes, or services’ of any air carrier.” Morales, 504
U.S. at 378–79 (quoting § 1305(a)(1)).17 The Supreme
Court broadly interprets this preemption provision,
but has noted that “‘[s]ome state actions may affect
[airline fares] in too tenuous, remote, or peripheral a
manner’ to have pre-emptive effect.” Morales, 504
F.3d at 390.
The Seventh Circuit has articulated two
requirements for a state law to be expressly preempted
by the ADA: “(1) A state must ‘enact or enforce’ a law
that (2) ‘relates to’ airline rates, routes, or services,
either by expressly referring to them or by having a
significant economic effect upon them.” Travel All
Over the World, Inc. v. Kingdom of Saudi Arabia, 73
F.3d 1423, 1432 (7th Cir. 1996) (ADA preempted
17 The ADA was revised in 1994 and renumbered in the United
States Code: the preemption provision is now 49 U.S.C. § 41713.
See Act of July 5, 1994, Pub. L. No. 103–272, 108 Stat 745.
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intentional tort claims stemming from a method of
ticketing but not breach of contract, slander, or
defamation claims).
To make the preemption
determination, the court must consider the particular
facts of the case and determine whether the claims
“relate to” airline rates, routes, or services. Id. at
1433.
Here, the IMWL claims are for violations of the
Illinois minimum wage and overtime provisions.
SkyWest asserts that the ADA preempts these claims
because, “[t]o comply, SkyWest would have to redesign
the crew compliments, routes and stage lengths
(impacting routes and services), which impermissibly
impacts the rates charged to the public.” Mem. in
Supp. 15. The plaintiffs argue that if the ADA
preempts Illinois wage laws “‘because they might
indirectly impact [the Defendants’] prices and rates
[that] is tantamount to arguing immunity from all
state economic regulation.’” Resp. 19 (quoting Costello
v. BeavEx Inc., 303 F.R.D. 295, 303 (N.D. Ill. 2014),
partially aff’d, vacated and remanded on other
grounds, 810 F.3d 1045 (7th Cir. 2016)).
Like the bribery and racketeering claims at issue in
S.C. Johnson & Son, Inc. v. Transport Corp. of
America, 697 F.3d 544 (7th Cir. 2012), however,
Illinois’s wage laws are “state laws of general
application that provide the backdrop for private
ordering.” Id. at 558. These laws have incidental
effect on “transportation companies (whether air or
surface carriers) only in their capacity as members of
the public.” Id. (citing Rowe, 552 U.S. at 375). The
Seventh Circuit noted that “no one thinks that the
ADA or the FAAAA preempts these and the many
comparable state laws, [such as minimum wage laws],
83a
because their effect on price is too ‘remote.’” S.C.
Johnson, 697 F.3d at 558 (citing Californians For Safe
& Competitive Dump Truck Transp. v. Mendonca, 152
F.3d 1184, 1189 (9th Cir. 1998) (FAAAA does not
preempt minimum wage laws)).
The IMWL is not “related to” airline rates, routes,
or services; any effect on SkyWest is incidental and no
different than on any other employer. See Costello,
810 F.3d at 1055–56 (FAAAA did not preempt Illinois
wage deduction law); Valencia v. SCIS Air Sec. Corp.,
193 Cal. Rptr. 3d 775, 779–82 (Ct. App. 2015) (ADA
did not preempt state labor laws on meals, rest breaks,
and wages); see also DiFiore v. Am. Airlines, Inc., 646
F.3d 81, 89 (1st Cir. 2011) (“We do not endorse
American’s view that state regulation is preempted
wherever it imposes costs on airlines and therefore
affects fares . . . This would effectively exempt airlines
from state taxes, state lawsuits of many kinds, and
perhaps most other state regulation. . . .”). Thus, the
ADA does not preempt the plaintiffs’ IMWL claims.
3. Railway Labor Act
SkyWest also contends that the RLA preempts both
the FLSA and IMWL claims. Congress passed the
Railway Labor Act, which it extended to cover the
airline industry in 1936, see Act of Apr. 10, 1936, ch.
166, 49 Stat. 1189; 45 U.S.C. §§ 181–188, to “promote
stability in labor-management relations by providing
a comprehensive framework for resolving labor
disputes.” Hawaiian Airlines, Inc. v. Norris, 512 U.S.
246, 252 (1994); see also 45 U.S.C. § 151a. The RLA
includes a mandatory dispute resolution mechanism
for two types of disputes: (1) “major” disputes
concerning “rates of pay, rules, or working conditions,”
84a
45 U.S.C. § 151a, which relate to “‘the formation of
collective [bargaining] agreements or efforts to secure
them,’” Hawaiian Airlines, 512 U.S. at 252 (quoting
Consolidated Rail Corporation (Conrail), v. Railway
Labor Executives’ Assn., 491 U.S. 299, 302 (1989))
(brackets in original); and (2) “minor” disputes that
“gro[w] out of grievances or out of the interpretation or
application of agreements covering rates of pay, rules,
or working conditions,” 45 U.S.C. § 151a, which
involve “controversies over the meaning of an existing
collective bargaining agreement in a particular fact
situation.”
Hawaiian Airlines, 512 U.S. at 253
(quoting Trainmen v. Chicago R. & I.R. Co., 353 U.S.
30, 33 (1957)). The Supreme Court has described the
difference between the two: “‘major disputes seek to
create contractual rights, minor disputes to enforce
them.’” Hawaiian Airlines, 512 U.S. at 253 (quoting
Conrail, 491 U.S. 302).
The RLA preempts a state claim or precludes a
federal claim when ““the success of the claim is
dependent upon an interpretation of the collective
bargaining agreement’s terms.” Wisconsin Central,
539 F.3d at 757 (quoting Miller v. Am. Airlines, Inc.,
525 F.3d 520, 524 (7th Cir. 2008)); see also In re Bentz
Metal Prods. Co., 253 F.3d 283, 285 (7th Cir. 2001)
(holding, with respect to the parallel preemption
provision in § 301 of the Labor Management Relations
Act, “that a state law claim is not preempted if it does
not require interpretation of the CBA even if it may
require reference to the CBA”). Accordingly, there are
a number of situations that may involve a CBA that do
not result in preemption/preclusion, such as where the
interpretation of the contractual provision at issue is
not disputed or where reference to the CBA is only
85a
necessary to compute damages.
See Wisconsin
Central, 539 F.3d at 758 (collecting cases).
The parties spend a great deal of time debating
whether SIA “represents” the FAs, whether the Policy
Manual qualifies as a CBA, and, if so, whether any
interpretation is necessary to resolve the plaintiffs’
claims. See Mem. in Supp. 15–18; Resp. 22–23; Reply
13–15. The Supreme Court, however, has held that
“substantive protections provided by state law,
independent of whatever labor agreement might
govern, are not pre-empted under the RLA.”
Hawaiian Airlines, 512 U.S. at 257; see also Terminal
R. Ass’n of St. Louis v. Bhd. of R.R. Trainmen, 318 U.S.
1, 7 (1943) (“We hold that the enactment by Congress
of the Railway Labor Act was not a pre-emption of the
field of regulating working conditions themselves.”).
The claims based on compliance with the FLSA and
the IMWL are not disputes seeking to create a
contractual right or disputes to enforce a contractual
right.
Minimum wage and overtime laws are
substantive protections the plaintiffs are entitled to,
completely independent of a CBA. See Hawaiian
Airlines, 512 U.S. at (state wrongful discharge law an
obligation “[w]holly apart from any provision of the
CBA” and not preempted); Terminal R. Ass’n, 318 U.S.
at 3–4, 6–7 (state law requiring cabooses on all trains
for switchman safety not preempted).
Moreover, even assuming the Policy Manual
qualifies as a CBA (which the plaintiffs dispute), the
defendants have not established that any
interpretation would be necessary to resolve the
minimum wage and overtime claims. Resolving the
FLSA and IMWL claims would “require only the
purely factual inquiry into” the hours the plaintiffs
86a
worked and the amount they were compensated.
Hawaiian Airlines, 512 U.S. at 266; see also In re
Bentz, 253 F.3d 283, 289 (“[T]he overriding principle is
that for preemption to apply, interpretation of the CBA
and not simply a reference to it is required.”
(emphasis in original)).
Because the plaintiffs’ rights under the FLSA and
the IMWL are completely independent of the Policy
Manual, and the defendants have not established that
any interpretation of the Policy Manual is required to
resolve the claims, the RLA does not preempt the
plaintiffs’ claims.
III.
Declaratory and Injunctive Relief
The plaintiffs seek declaratory and injunctive relief
on behalf of all similarly situated current and former
SkyWest FAs. Since all of the plaintiffs’ claims are
being dismissed, however, the request for such relief is
moot. Because the plaintiffs may replead their FLSA
claims, however, the court will address the availability
of injunctive relief. It is clear that, as former
employees, the plaintiffs lack standing to pursue
equitable relief.
When “seeking injunctive and
declaratory relief, a plaintiff must establish that he is
in immediate danger of sustaining some direct injury.”
Feit v. Ward, 886 F.2d 848, 857 (7th Cir. 1989). “Past
exposure to illegal conduct does not in itself show a
present case or controversy regarding injunctive
relief . . . if unaccompanied by any continuing, present
adverse effects.” O’Shea v. Littleton, 414 U.S. 488,
495–96 (1974); see also Robinson v. City of Chicago,
868 F.2d 959, 966 n.5 (7th Cir. 1989) (same standard
applies to injunctive and declaratory relief).
87a
The plaintiffs argue that, in an employment context,
it is “well established” that former employees have
standing to represent a class of both former and
current employees seeking injunctive and declaratory
relief. Resp. 23–24 (citing Wetzel v. Liberty Mutual
Ins. Co., 508 F.2d 239, 247 (3rd Cir. 1975); In re FedEx
Ground Package Sys., Empl. Practices Litig., 273
F.R.D. 424, 438 (N.D. Ind. 2008); Walker v. Bankers
Life & Cas. Co., No.: 06 C 6906, 2007 WL 2903180, at
*7 (N.D. Ill. Oct. 1, 2007); Resnick v. American Dental
Ass’n, 90 F.R.D. 530, 540 (N.D. Ill. 1981); Maddock v.
KB Homes, Inc., 248 F.R.D. 229, 238 (C.D. Cal 2007)).
The cases the plaintiffs cite, however, all address the
issue on a class certification motion, not on a motion
to dismiss. As no class has been certified, at this point
the plaintiffs are arguing their individual claims on
the motion to dismiss, not the claims of the proposed
class members. For that reason, the Seventh Circuit’s
holding in Feit is controlling.
Even if it were not, notwithstanding that some
courts have held to the contrary, the Court is not
persuaded that the plaintiffs have standing to seek
equitable relief even where there is a putative class
that includes current employees. As the Supreme
Court has instructed, “[t]hat a suit may be a class
action . . . adds nothing to the question of
standing . . . .” Lewis v. Casey, 518 U.S. 343, 357 (1996)
(quoting Simon v. Eastern Ky. Welfare Rights
Organization, 426 U.S. 26, 40 n.20 (1976)). Thus—and
contrary to the plaintiffs’ contention—courts in this
district regularly dismiss putative class actions on
standing grounds where the named plaintiffs were
former employees seeking to obtain injunctive and
equitable relief on behalf of current employees. See
88a
e.g., Sawyer v. Vivint, Inc., 2015 WL 3420615, at *3
(N.D. Ill. May 28, 2015) (former service technician
lacked standing to pursue injunctive relief on behalf of
himself and putative class of current and former
employees); Ruffin v. Exel Direct, Inc., No. 09 C 1735,
2009 WL 3147589, at *3 (N.D. Ill. Sept. 29, 2009)
(former contractors, suing on behalf of current and
former contractors, did not have standing to seek the
declaratory and injunctive relief); Brown v. Cty. of
Cook, 549 F. Supp. 2d 1026, 1031 (N.D. Ill. 2008)
(same); Hawkins v. Groot Indus., Inc., No. 01 C 1731,
2003 WL 22057238, at *2 (N.D. Ill. Sept. 2, 2003) (the
“fundamental reason” why court could not certify a
Rule 23(b)(2) [injunctive] class of present and former
black employees was that neither of the named
African-American plaintiffs was a current employee).
In this Court’s view, even if Feit does not dictate the
answer, the better view is that an individual named
plaintiff who is not a current employee has no standing
to assert claims for prospective injunctive and
equitable relief on behalf of current employees.
*
*
*
The motion to dismiss is granted with prejudice as
to the IMWL claims and the claims for injunctive and
declaratory relief; the motion is granted without
prejudice as to the FLSA claims. The plaintiffs’ motion
to proceed as a collective action, for tolling of the
statute of limitations, for court-authorized notice, and
for disclosure of the contact information of the
potential opt-in plaintiffs is denied as moot. To the
extent that the plaintiffs can attempt, in good faith, to
cure the deficiencies in their FLSA claims, they may
file a Second Amended Complaint within 21 days of
this order. In the absence of a timely filed Second
89a
Amended Complaint, the FLSA claims, and the case,
will be dismissed with prejudice.
Dated: May 24, 2016
John J. Tharp, Jr.
United States District Judge
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APPENDIX D
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT
Chicago, Illinois 60604
January 11, 2019
Before
DIANE P. WOOD, Chief Judge
ILANA DIAMOND ROVNER, Circuit Judge
MICHAEL B. BRENNAN, Circuit Judge
Nos. 17‐3643 & 17‐3660
ANDREA HIRST, et al.,
Plaintiffs‐Appellants
Appeals from the United
States District Court for
the Northern District of
Illinois, Eastern Division.
v.
SKYWEST, INC., et al.,
Defendants‐Appellees.
Nos. 1:15‐cv‐02036 &
1:15‐cv‐11117
John J. Tharp, Jr.,
Judge.
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ORDER
On consideration of the petition for rehearing and
for rehearing en banc* filed by appellees on December
26, 2018, no judge in active service has requested a
vote on the petition for rehearing en banc, and all of
the judges on the original panel have voted to deny
rehearing.
Accordingly, the petition for rehearing and for
rehearing en banc is DENIED.
* Judge Flaum did not participate in the consideration of this
petition.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.