Petition for Writ of Certiorari — Andrea Hirst, et al., Petitioners v. SkyWest, Inc., et al.
Supreme Court briefMay 10, 2019
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No. _________
d
IN THE
Supreme Court of the United States
ANDREA HIRST, ET AL.,
Petitioners,
—v.—
SKYWEST, INC., ET AL.,
Respondents.
ON PETITION FOR WRIT OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE SEVENTH CIRCUIT
PETITION FOR A WRIT OF CERTIORARI
GREGORY F. COLEMAN
Counsel of Record
LISA A. WHITE
ARTHUR STOCK
WILLIAM A. LADNIER
RYAN P. MCMILLAN
GREG COLEMAN LAW PC
800 South Gay Street, Suite 1100
Knoxville, Tennessee 37929
(865) 247-0080
greg@gregcolemanlaw.com
Attorneys for Petitioners
i
QUESTION PRESENTED
Must an employee protected by the Fair Labor
Standards Act always allege wage violations averaged
across a specific seven-day workweek, or may an
employee plead a cause of action with alternative
context-specific allegations to meet the plausibility
requirements of Rule 8 and Ashcroft v. Iqbal, 556 U.S.
662 (2009)?
ii
PARTIES TO PROCEEDINGS BELOW
Petitioners Andrea Hirst, Molly Stover, Emily
Stroble Sze, Cheryl Tapp, Renee Sitavich, Sarah
Hudson, Brandon Colson, and Brüno Lozano were
plaintiffs-appellants below.
Respondents SkyWest, Inc. and SkyWest Airlines,
Inc. were defendants-appellees below.
iii
TABLE OF CONTENTS
QUESTION PRESENTED .......................................... i
PARTIES TO PROCEEDINGS BELOW ................... ii
TABLE OF CONTENTS ........................................... iii
TABLE OF AUTHORITIES ........................................ v
OPINIONS BELOW ....................................................1
JURISDICTION ..........................................................1
STATUTORY PROVISIONS INVOLVED ..................1
STATEMENT OF THE CASE ....................................2
I. Factual Background ...............................................2
II. Proceedings Below .................................................8
ARGUMENT:
REASONS FOR GRANTING CERTIORARI ...........13
I. Post-Twombly and Iqbal, the circuits are split
regarding the FLSA pleading requirements. .......... 13
A. Four circuits weigh plausibility according to
Iqbal’s context-specific analysis.......................... 14
B. Four circuits require identifying a specific
workweek that was underpaid to avoid dismissal
on the pleadings. ................................................ 21
II. Circuits that require pleading based on a specific
workweek truncate long-standing administrative
agency guidance. ....................................................... 26
iv
A. Wage averaging requires specific information
and records according to the Wage and Hour
Division’s long-standing directives. .................. 28
B. The Wage and Hour Division intended the
workweek to be the longest period of wage
averaging, not the only acceptable period. ........ 31
III. Workweek averaging is inappropriate in the
context of SkyWest’s scheduling and payroll systems.
................................................................................... 33
A. Pairing-based averaging is the appropriate
context-specific pleading given SkyWest’s complex
payroll system. ................................................. 33
B. For SkyWest flight attendants, the specific
workweek pleading requirement is especially
detrimental. ....................................................... 36
CONCLUSION .......................................................... 37
APPENDIX A: Opinion of the Court of Appeals for the
Seventh Circuit (Dec. 12, 2018) ....................... 1a
APPENDIX B: Memorandum Opinion and Order of
the District Court for the Northern District of
Illinois (Nov. 30, 2017) .................................... 12a
APPENDIX C: Memorandum Opinion and Order of
the District Court for the Northern District of
Illinois (May 24, 2016) .................................... 49a
v
APPENDIX D: Order of the Court of Appeals for the
Seventh Circuit denying rehearing (Dec. 12,
2018)................................................................. 90a
vi
TABLE OF AUTHORITIES
CASES
Page(s)
Ashcroft v. Iqbal,
556 U.S. 662 (2009) ..................................... passim
Barrentine v. Arkansas-Best Freight Sys.,
450 U.S. 728 (1981) .............................................. 26
Bell Atl. Corp. v. Twombly,
550 U.S. 544 (2007) ...................................... passim
Blankenship v. Thurston Motor Lines,
415 F.2d 1193 (4th Cir. 1969) .............................. 26
Brooklyn Savings Bank v. O’Neil,
324 U.S. 697 (1945) .............................................. 35
Busk v. Integrity Staffing Sols., Inc.
(In re Amazon.com, Inc.),
905 F.3d 387 (6th Cir. 2018) ..............14 n.2, 23, 25
Cooley v. HMR of Ala., Inc.,
747 F. App’x 805 (11th Cir. 2018) ......14 n.1, 20, 26
Davis v. Abington Mem’l Hosp.,
765 F.3d 236 (3d Cir. 2014)................14 n.1, 16, 24
Douglas v. Xerox Bus. Servs., Ltd. Liab. Co.,
875 F.3d 884 (9th Cir. 2017) ................................ 32
Dove v. Coupe,
759 F.2d 167 (D.D.C. 1985) ............................ 27, 35
vii
TABLE OF AUTHORITIES
(continued)
Galloway v. Chugach Gov’t Servs.,
199 F. Supp. 3d 145 (D.D.C. 2016) ...................... 21
Hall v. DIRECTV, LLC,
846 F.3d 757 (4th Cir. 2017) ........ 14 n.1, 17, 25, 27
Landers v. Quality Communs., Inc.,
771 F.3d 638 (9th Cir. 2015) ..............13, 14 n.2, 25
Lundy v. Catholic Health Sys. of Long Island, Inc.,
711 F.3d 106 (2d Cir. 2013)................ 14 n.2, 24-25
Manning v. Boston Med. Ctr. Corp.,
725 F.3d 34 (1st Cir. 2013) .................................. 18
Marshall v. Sam Dell’s Dodge Corp.,
451 F. Supp. 294 (N.D.N.Y. 1978) ....................... 27
McDowell v. Purolator Courier Corp.,
25 Wage & Hour Cas. (BNA) 503 (E.D. Ky.
1982) .....................................................................27
Mell v. Gnc Corp.,
No. 10-945, 2010 U.S. Dist. LEXIS 118938, 2010
WL 4668966 (W.D. Pa. Nov. 9, 2010) .................. 20
Overnight Motor Transp. Co. v. Missel,
316 U.S. 572 (1942) ........................................ 23, 26
Pruell v. Caritas Christi,
678 F.3d 10 (1st Cir. 2012) .......... 14 n.1, 15, 24, 27
viii
TABLE OF AUTHORITIES
(continued)
Stein v. HHGREGG, Inc.,
873 F.3d 523 (6th Cir. 2017) ................................ 22
Stevens v. InPhonic, Inc.,
662 F. Supp. 2d 105 (D.D.C. 2009) ...................... 20
Travis v. Ray,
41 F. Supp. 6 (W.D. Ky. 1941) ............................. 27
United States v. Klinghoffer Bros.,
285 F.2d 487 (2nd Cir. 1960) ......................... 23, 27
United States v. Universal C.I.T. Credit Corp.,
102 F. Supp. 179 (W.D. Mo. 1952) ....................... 27
STATUTES
28 U.S.C. § 1254(1) ...................................................... 1
28 U.S.C. § 1331 .......................................................... 8
28 U.S.C. § 1367 .......................................................... 8
29 U.S.C. § 206(a) .............................................. passim
29 U.S.C. § 207(g) .......................................2, 16, 21-22
29 U.S.C. § 213(b)(3) .................................................... 2
29 U.S.C. § 216(b) ........................................................ 8
45 U.S.C. § 181, et seq. ................................................ 2
ix
TABLE OF AUTHORITIES
(continued)
RULES
Fed. R. Civ. P. 8 ................................................. passim
Fed. R. Civ. P. 9 ......................................................... 21
14 C.F.R. 121.467 ........................................................ 3
29 C.F.R. 779.419 ...................................................... 23
OTHER AUTHORITIES
Bureau of Nat’l Affairs, Wage-Hour Records; What
Records to Keep and How to Keep Them (1941)
(reprinted from Wage Hour Manual, 4 WHR 492,
Explanatory Bulletin 4 (September 15, 1941))
........................................................................29, 31
Portal-To-Portal Wages: Hearing Before the
Subcomm. on S. 70 of the S. Comm. on the
Judiciary, 80th Cong. 329 (1947) (statement of Lee
Pressman, General Counsel, Wage and Hour
Division, United States Dep’t of Labor) .............. 29
1
OPINIONS BELOW
The opinion of the Seventh Circuit is reported at
Hirst v. SkyWest, Inc., 910 F.3d 961 (7th Cir. 2018) and
reproduced at App. 1a–11a. The district court’s opinion
dismissing petitioners’ claims with prejudice is reported
at 283 F. Supp. 3d 684 and reproduced at App. 12a–48a.
The district court’s earlier opinion dismissing
petitioners’ FLSA claims without prejudice is
unreported, but available at 2016 WL 2986978 and
reproduced at App. 49a–89a. The court of appeals
denied panel rehearing and rehearing en banc on
January 11, 2019. App. 90a–91a.
JURISDICTION
The court of appeals affirmed in part and reversed
in part the district court’s judgment, then remanded the
case on December 12, 2018. App. 1a. The court of
appeals denied panel rehearing and rehearing en banc
on January 11, 2019. App. 90a–91a. This Court has
jurisdiction under 28 U.S.C. § 1254(1). On April 4, 2019,
this Court entered an Order extending time to file a
petition for certiorari until May 11, 2019.
STATUTORY PROVISIONS INVOLVED
Section 206(a) of the Fair Labor Standards Act, 29
U.S.C. § 206(a) states:
(a) Employees engaged in commerce; . . . Every
employer shall pay to each of his employees who in any
workweek is engaged in commerce or in the production
of goods for commerce, or is employed in an enterprise
2
engaged in commerce or in the production of goods for
commerce, wages at the following rates:
(1) except as otherwise provided in this section,
not less than. . .
(C) $ 7.25 an hour .
Section 213(b)(3) of the Fair Labor Standards Act, 29
U.S.C. § 213(b)(3), states:
(b) Maximum hour requirements
The provisions of section 207 of this title shall not
apply with respect to—
...
(3) any employee of a carrier by air subject to the
provisions of title II of the Railway Labor Act [45 U.S.C.
§ 181 et seq.];
....
STATEMENT OF THE CASE
I.
Factual Background
Respondent SkyWest is a commercial airline that
flies commuter or regional routes for Delta, United, and
other large carriers. SkyWest assigns each of its flight
attendants to a specific base airport or “domicile.” Every
group of flights in a schedule, called a “pairing,” for
every flight attendant begins and ends at their home
base. The pairings consist of a series of flights scheduled
one to four days long. Plaintiffs alleged that SkyWest
paid less than the federal minimum wage, $7.25 per
hour, for compensable work performed by flight
3
attendants in the course of their work. C.A. App. 167,
173, 389, 396-97.
SkyWest pays its flight attendants using a “blocktime” method for calculating wages, with their pay
clocks running only when the aircraft’s main cabin door
is closed. Other compensable work is ignored by
SkyWest’s pay calculations despite being tracked
minute-by-minute every day to meet the Federal
Aviation Administration (“FAA”) strict “duty time”
regulations. See 14 C.F.R. 121.467. As a result, a flight
attendant whose “wage rate” is shown on SkyWest’s
paychecks as $17.50 per block hour never receives pay
close to $17.50 per hour in “straight time wages” (i.e.,
earned hourly pay based on all compensable work).
Instead, block wage rates by design are continuously
falling by differing amounts for each work day and each
pairing. In this system, a flight attendant’s hourly wage
rate can only be calculated retroactively by comparing
bi-monthly paychecks to daily check-in times, actual
flight times, turn times (i.e., the time spent on the
ground between flights), and release times, then adding
in unrecorded work time that occurs virtually every
work day. C.A. App. 156-58, 375-77. Much of this
information, including actual check in times, is
contemporaneously recorded by the airline, but
inaccessible to both current and former employees.
Other critical pieces of information, including daily
schedules and payroll records, are stored on SkyWest’s
proprietary computer system, access to which is blocked
immediately upon an employee’s termination of
employment. C.A. App. 155 n.7, 376 n.7. Neither duty
time nor a sum of all compensable work hours (‘straight
time”) appear on SkyWest flight attendants’ paychecks.
As a result of this odd payroll scheme, SkyWest
flight attendants are being paid on a piece-rate basis,
4
which would be an acceptable method for wage payment
so long as straight time hourly wages never fall below
required minimum wage rates. The “pieces” counted for
flight attendant pay calculations differ from those of
typical piece-rate workers. For example, in a
manufacturing plant, workers may be paid 10 cents per
widget they make on the production line. Here, the
pieces are hours and minutes called “block time.”
Calculating flight attendants’ straight time hourly
wages to confirm minimum wage compliance under the
Fair Labor Standards Act (FLSA) is similar to
determining hourly wages for piece-rate workers. In
their complaints, petitioners allege that under
SkyWest’s payroll system their straight time wages can,
and actually do, fall below $7.25 per hour when their
schedules include short flight times on long workdays.
Yet unlike most piece-rate workers, flight
attendants’ work schedules also change every day,
pairing, week, and month with virtually no regularity.
SkyWest issues its paychecks bimonthly, such that
neither flight attendants’ pairing schedules nor their
pay periods ever align with a 7-day workweek. And to
further complicate matters, SkyWest doggedly fights
against providing employees with any records other
than those it “voluntarily” chooses to provide, which
invariably include critical gaps in information that is
required to accurately to calculate straight time
earnings, especially on a weekly basis.
SkyWest does not dispute that its flight attendants
perform significantly more compensable work over and
above flight time during every pairing or that their
block time wages—the “pieces” counted in this
byzantine payroll system—must be stretched like a
rubber band to cover all compensable working hours of
each pairing. Flight attendants work far longer than
5
just the time when the airplane’s cabin door is closed.
All flight attendants are required to arrive at the
airport and check-in well before their first flights. They
ready planes for passengers and spend hours each
workday loading and unloading travelers. They
straighten the plane cabins between flights, assist
disabled passengers, and must wait out delays before or
between flights, always in uniform and under the
control and supervision of crew support. When a flight
attendant works long days with short flights, far more
than half of her “duty day” will fall outside of block time.
Thus, although hard at work, their straight-time hourly
wages are continuously falling.
The FAA requires that every airline track the
exact length of duty days and turn times between
flights. As a result, SkyWest records exactly how many
minutes a flight attendant was on duty for every
workday and at any given ground stop—including the
periods when the cabin doors are open. But even “duty
time” records do not include all the hours flight
attendants perform compensable work and are under
SkyWest’s control. For example, flight attendants, like
passengers, must deal with delays in clearing security
for their first flights. If they check in early, they must
begin following SkyWest’s directions immediately, but
these minutes or hours are not included in the duty day.
C.A. App. 146, 365. Moreover, each duty day
automatically ends 15 minutes after the cabin door is
opened on the last flight. But if the plane takes longer
to unload—for example, because of the sheer number of
passengers, waiting for wheelchair assistance, or other
factors beyond the flight attendants’ control—that time
is not recorded as part of the duty day despite being
compensable work. C.A. App. 148, 367.
6
In their complaints, the flight attendant-plaintiffs
pleaded details of SkyWest’s payroll system, exact types
and amounts of work performed “off the clock” each day,
and the complex requirements for calculating straight
time wages. E.g., C.A. App. 153-57, 373-77. In addition,
several low-seniority flight attendants pleaded that
they were paid less than federal minimum wage during
workweeks when they were scheduled for short flying
times and long workdays. C.A. App. 170-73, 395-98. All
plaintiffs pleaded wage claims based on state labor
laws, which are not relevant to this petition.
Unlike those employed by other airlines, SkyWest
flight attendants never receive pay based on their “duty
day”—that is, the length of time between their “report
time” (when they must be at the airport after clearing
security) (C.A. App. 148, 151) and their “release time”
(exactly fifteen minutes after the aircraft door is opened
upon landing the last flight of the day) (C.A. App. 148).
No mechanism is built into SkyWest’s payroll system to
verify minimum wage compliance, unlike certain easily
calculable safeguards utilized by other airlines. C.A.
App. 172, 397.
SkyWest does not dispute that it must pay at least
the FLSA minimum wage rates for all compensable
work, but it relies heavily on the FLSA’s lack of a
provision through which employees may request their
own accurate payroll records, thereby allowing
SkyWest to avoid accountability. In general, state labor
laws provide reporting and access provisions that are
lacking in the FLSA, yet for nearly a year, SkyWest
refused to provide the flight attendants with their own
pay and schedule records based on the requirements of
state labor laws. See C.A. App. 77-129, 427-549. Until
ordered to provide “limited discovery” by the district
court, SkyWest only “voluntarily” provided partial
7
records to the former employees. C.A. App. 550. And
even after ordered to respond, SkyWest’s production
was woefully incomplete for calculating straight time
wage compliance under the FLSA for piece-time wage
earners, especially when compared to the Wage and
Hour Division’s recordkeeping requirements.
The most rational way to measure whether a
worker is being paid minimum wage depends on the
job’s scheduling and payroll nuances. In the case of
flight attendants, it makes the most sense to average
earnings across “pairings.” Each pairing represents a
single cohesive unit of labor that a flight attendant is
required to work and is functionally equivalent to the
workweek of other occupations. A given pairing, based
on SkyWest’s scheduling practices, generally spans
three or four days, with multiple flights per day, but it
may be as short as one or two duty days. Within each
pairing, it is not unusual for individual flights to begin
in one time zone and end in another, or for late night
flights to begin on one calendar day and end on another
(at times, seemingly going “backwards” in time). Thus,
an attempt to calculate pay based on a “workweek” for
minimum wage calculations, starting and stopping at
the same time each week, fails. A traditional workweek
measure frequently bisects pairings or even single
flights, and calculations require time zone adjustments.
In contrast, for every flight attendant, every pairing is
a single cohesive schedule that begins and ends at the
employee’s base airport. C.A. App. 151, 370. For
example, a flight attendant based at Chicago O’Hare
Airport begins and ends every pairing at that airport.
Included in the records that SkyWest lateproduced is an example that highlights the hazards of
an employer impeding access to employee records to
avoid accountability. From October 18, 2013 to October
8
20, 2013, plaintiff Sarah Hudson worked a total of 36
hours and 54 minutes of duty time and received 11
hours and 51 minutes of block time credit, at a rate of
$17.50. That works out to $5.62/hour for a three-day
pairing during which she worked longer than 8 hours
each day. Thus, her total pay for that three-day pairing
is far below the federal minimum wage rate of
$7.25/hour.
SkyWest’s system for calculating compensation at
times underpays its employees even when straight time
wages must be averaged weekly, which requires
bisecting pairings and flights and adjusting for time
zones. However, if flight attendants’ pay were correctly
calculated based on a more reasonable, industryspecific per-pairing wage averaging formula, SkyWest’s
actual hourly pay rates would be far more calculable for
employees and employers alike, and its violations would
be far more obvious, alarming, and frequent.
II.
Proceedings Below
The District Court had jurisdiction over the
instant action pursuant to 29 U.S.C. § 216(b), which
confers jurisdiction to federal courts on claims arising
under the Federal Labor Standards Act, and under 28
U.S.C. § 1331, as the principle claims raise questions of
federal law. The District Court had supplemental
jurisdiction over related state law claims alleged by all
plaintiffs (which are not the subject of this petition)
pursuant to 28 U.S.C. § 1367.
In 2015, two groups of former flight attendants—
petitioners here—sued SkyWest alleging that
SkyWest’s average straight time wages and method of
calculating pay violated federal, state and local labor
9
laws, including that the airline failed to always pay
applicable federal minimum wage laws. One group
consisted of flight attendants based out of SkyWest’s
hub in Chicago, who asserted violations of the FLSA
and Illinois laws and ordinances. Hirst, et al., v.
SkyWest, Inc., et al., N.D. Ill. Case No. 1:15‐cv‐02036.
The other group included flight attendants based in
various cities in California, Arizona, and Washington,
and likewise they asserted violations of the FLSA and
of labor laws applicable to employees in the states and
cities in which each flight attendant was based. Tapp,
et al., v. SkyWest, Inc., et al., N.D. Ill. Case No. 1:15‐cv‐
11117. These actions were consolidated by stipulation
in the Northern District of Illinois. C.A. App. 20.
Plaintiffs alleged that SkyWest’s system for
calculating and paying wages violated the FLSA
minimum wage requirements, as well as a host of labor
laws applicable to each plaintiff’s base, and resulted in
its flight attendants being underpaid. Each plaintiff
asserted that SkyWest’s payroll scheme, which pays
only “block time” based on when an aircraft’s main
cabin door is closed, inadequately compensates flight
attendants, especially on extremely long workdays with
short flights. C.A. App 149, 368. They alleged that
SkyWest actually paid flight attendants less than
federal minimum wage, averaged weekly, during
certain workweeks. C.A. App. 170-73, 395-98.
SkyWest responded by moving to dismiss,
asserting that plaintiffs failed to identify a specific
workweek in which they were not fully compensated
under the FLSA. In addition, SkyWest argued that the
flight attendants are unprotected by any state or local
labor laws based on its hodgepodge of preemption
theories, including the dormant commerce clause. See
10
Supreme Court Case No. 18-1097. Specifically, SkyWest
argues that flight attendants are not covered by any
state and local wage laws, whether related to minimum
wage rates, overtime, access to records, or paycheck
requirements. The preemption theories and state labor
protections are irrelevant to this petition.
In its May 24, 2016, Memorandum Opinion and
Order, the district court acknowledged that ‘[a]lthough
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.” App.
61a. It then opined, without citation, “[t]o 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.” App. 64a. The district court then described
a scenario under which the flight attendants would be
underpaid for “one or more series of lengthy duty days.”
“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 [a flight attendant] minimum wage as
mandated under federal law over the course of a
workweek.” App. 66a-67a. The district initially
dismissed the FLSA claims without prejudice. App.
67a.
Given the novel pleading hurdle ordered by the
district court, the flight attendants requested their own
payroll and schedule records from SkyWest pursuant to
requirements of state labor laws. In response, SkyWest
engaged in an unrelenting effort to conceal certain parts
11
of the records, claiming all state labor laws are
inapplicable to all flight attendants. C.A. App. 110. The
records it did provide “voluntarily” were incomplete,
jumbled, or improperly summarized, including charts
which ludicrously claimed plaintiffs made hundreds of
dollars per hour at times.
On December 20, 2016, Plaintiffs concurrently
filed a Second Amended Complaint in Hirst (C.A. App.
136), an Amended Complaint in Tapp (C.A. App. 353),
and an opposed motion for limited discovery (C.A. App.
427). The parties litigated the limited discovery related
issues for months, during which SkyWest filed a
consolidated motion to dismiss on March 1, 2017.
Just eight days prior to filing its consolidated
motion to dismiss, SkyWest again “voluntarily”
produced some of the scheduling and payroll documents
that it spent the better part of a year fighting to hide.
Then, in its motion to dismiss, SkyWest referred to
these newly produced documents claiming they were
“‘central’ to the plaintiff[s’] claim.” (R. 15-cv-02036, 95:
7 n.4).
On November 30, 2017, the district court issued its
memorandum opinion and a final judgment dismissing
all claims of the plaintiffs, including their FLSA
minimum wage claims. App. 48a. The district court
opined that “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.’” App. 24a-25a. It also dismissed
all state statutory claims on its dormant commerce
clause theory. App. 48a. Plaintiffs appealed the district
court’s decision.
12
On appeal, the Seventh Circuit reversed in part,
holding the dormant commerce clause does not preclude
the application of state labor laws to flight attendants.
However, the Seventh Circuit affirmed the dismissal of
Plaintiffs’ FLSA minimum wage claims after
acknowledging that 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.” App. 6a. The
Seventh Circuit found that without pleading at least
one specific workweek that was underpaid, the flight
attendants had not plausibly alleged a violation of
FLSA. App. 7a. As discussed below, in this ruling the
Seventh Circuit rejected the approach taken by the
First, Third, Fourth, and Eleventh Circuits.
SkyWest filed a petition for certiorari in this Court
on February 15, 2019, arguing that airlines have a
constitutional right to ignore all state and local labor
laws including basic minimum wage requirements for
flight attendants. The flight attendants opposed that
petition. See SkyWest, Inc., et al. v. Hirst, et al.,
Supreme Court Case No. 18-1097.
Flight attendants now file this petition for
certiorari, questioning whether an employee protected
by the Fair Labor Standards Act must allege wage
violations during a specific workweek, even where the
employer holds the data necessary for the calculations,
or whether other detailed allegations may meet the
plausibility requirements of Rule 8 and Ashcroft v.
Iqbal, 556 U.S. at 662.
[Remainder of page intentionally left
blank. Petition continues on next page.]
13
ARGUMENT:
REASONS FOR GRANTING CERTIORARI
The issue before the Court is whether employees
must plead a specific workweek in which they were
underpaid to survive a motion to dismiss on the
pleadings. The petitioners assert that such a pleading
requirement ignores industry-specific complexities and
Iqbal’s demand to consider the context of the claims,
and, most importantly, is inconsistent with the
requirements of Federal Rule of Civil Procedure 8(a).
I.
Post-Twombly and Iqbal, the circuits
are
split regarding the FLSA
pleading requirements.
Virtually every circuit that has considered wage
claims under the FLSA has struggled with the “new”
pleading requirements since Twombly and Iqbal.
“Although the circuit courts are in harmony on what is
not required by Twombly and Iqbal, there is no
consensus on what facts must be affirmatively pled to
state a viable FLSA claim post-Twombly and Iqbal.”
Landers v. Quality Communs., Inc., 771 F.3d 638, 642
(9th Cir. 2015). This Court should grant certiorari to
resolve these differences as a matter of a nationwide
need for uniformity to benefit both employees and
employers alike.
Since 2012, at least eight different circuits have
considered wage pleading requirements under the
FLSA, with four (First, Third, Fourth, and Eleventh
Circuits) establishing a context-specific pleading
requirement that closely follows the requirements of
14
Iqbal.1 The D.C. District Court similarly relied on wellestablished pleading requirements of Twombly and
Iqbal. In direct contrast, four circuits (the Second,
Sixth, Seventh, and Ninth Circuits) hold that an
employee must allege a specific workweek during which
they were underpaid to survive a Rule 12 motion to
dismiss.2
A.
Four circuits weigh plausibility
according to Iqbal’s context-specific
analysis.
The following circuits have applied Iqbal, 556 U.S.
at 679, “[d]etermining whether a complaint states a
plausible claim for relief will . . . be a context-specific
task that requires the reviewing court to draw on its
judicial experience and common sense”:
First Circuit
Nevertheless, we think the motion to
amend should be allowed. The precedents on
pleading specificity are in a period of
transition, and precise rules will always be
elusive because of the great range and
Pruell v. Caritas Christi, 678 F.3d 10, 15 (1st Cir. 2012); Davis
v. Abington Mem’l Hosp., 765 F.3d 236, 242-43 (3d Cir. 2014); Hall
v. DIRECTV, LLC, 846 F.3d 757, 777-79 (4th Cir. 2017), cert.
denied, 138 S. Ct. 635 (2018); Cooley v. HMR of Ala., Inc., 747 F.
1
App’x 805, 807-08 (11th Cir. 2018).
Lundy v. Catholic Health Sys. of Long Island, Inc. , 711 F.3d
106, 114 (2d Cir. 2013); Busk v. Integrity Staffing Sols., Inc. (In re
Amazon.com, Inc.), 905 F.3d 387, 405-06 (6th Cir. 2018); Hirst, 910
F.3d at 966 (7th Cir. 2018), App. 8a; Landers v. Quality Communs.,
Inc., 771 F.3d 638, 645 (9th Cir. 2015).
2
15
variations in causes of action, fact-patterns
and attendant circumstances (e.g., warnings,
good faith of counsel). “Determining whether
a complaint states a plausible claim for relief
will . . . be a context-specific task that requires
the reviewing court to draw on its judicial
experience and common sense.” Iqbal, [556
U.S. at 679].
While specifics as to the named plaintiffs
here are lacking, some of the information
needed may be in the control of defendants.
Plaintiffs certainly know what sort of work
they performed and presumably know how
much they were paid as wages; but precisely
how their pay was computed and based upon
what specific number of hours for particular
time periods may depend on records they do
not have. Complaints cannot be based on
generalities, but some latitude has to be
allowed where a claim looks plausible based
on what is known.
Pruell v. Caritas Christi, 678 F.3d at 15 (1st Cir. 2012)
(remanding to allow amendment, pleading cannot be
based on “generalities”).
Third Circuit
None of the named plaintiffs has alleged a
single workweek in which he or she worked at
least forty hours and also worked
uncompensated time in excess of forty hours.
Of the four named plaintiffs who allege that
they “typically” worked at least forty hours
per week, in addition to extra hours
16
“frequently” worked during meal breaks or
outside of their scheduled shifts . . . none
indicates that she in fact worked extra hours
during a typical (that is, a forty-hour) week.
Their allegations are therefore insufficient.
....
In reaching this conclusion, we do not hold
that a plaintiff must identify the exact dates
and times that she worked overtime. For
instance, a plaintiff’s claim that she
“typically” worked forty hours per week,
worked extra hours during such a forty-hour
week, and was not compensated for extra
hours beyond forty hours he or she worked
during one or more of those forty-hour weeks,
would suffice. But no such allegation is
present in this case.
Davis v. Abington Mem’l Hosp., 765 F.3d at 242-43 (3d
Cir. 2014) (affirming district court’s dismissal).
Fourth Circuit
As compared to a more traditional
overtime claim based on an employee’s
standard hourly wage, Defendants’ alleged
piece-rate compensation system presents
certain additional complexity under the
FLSA. See 29 U.S.C. § 207(g) (setting out
various methods by which an employer may
comply with the statute's overtime provisions
under a piece-rate compensation scheme). At
this stage of the litigation, however, we need
not wade into these murky waters.
....
17
In this case, in addition to their common
allegations regarding the nature and
structure of the DIRECTV Provider Network,
Plaintiffs each describe in some detail their
regular work schedules, rates of pay, and
uncompensated work time. Specifically, each
Plaintiff provides an approximation of his
general workweek, with each Plaintiff
alleging that he typically worked in excess
(and, in some cases, well in excess) of forty
hours per week. Supplementing these initial
allegations, each Plaintiff further estimates
the number of hours he worked in any given
week, including a breakdown of the number of
compensable and noncompensable hours he
typically worked, as well as his average
weekly pay and the amount by which this
weekly compensation was typically reduced
through DIRECTV-imposed penalties and
unreimbursed business expenses.
This final level of granularity, coupled
with Plaintiffs’ common allegations regarding
the types of work DIRECTV designated as
compensable and noncompensable, ultimately
nudges Plaintiffs’ claims against Defendants
from the merely conceivable to the plausible.
At this initial stage, that is all that is required
to overcome Defendants’ motion to dismiss.
Hall v. DIRECTV, LLC, 846 F.3d at 777-79 (4th Cir.
2017) (reversing and remanding dismissal), cert.
denied, 138 S. Ct. 635 (2018).
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18
Eleventh Circuit
In their amended complaint, the
employees allege that they routinely worked
more than 40 hours per week without full
compensation because HMR deducted meal
breaks from their pay even when they were
not “completely relieved from duty.” They
state that during meal breaks they were
required to “care for patient needs” and
“tend[] to patients,” and they provide each
employee’s specific job title and list the weeks
each employee claims to have worked more
than 40 hours. Those allegations “plausibly
suggest” that they are entitled to relief under
the FLSA. See Ashcroft v. Iqbal, 556 U.S. 662,
680 (2009); see also Manning v. Boston Med.
Ctr. Corp., 725 F.3d 34, 45-46 (1st Cir. 2013)
(concluding that plaintiffs successfully
pleaded FLSA claims where they alleged that
they spent meal periods “complet[ing] their
regular
working
activities,”
including
“charting, performing administrative tasks,
monitoring
patients,
and
providing
treatment”).
....
[A] detailed description of the exact acts
each plaintiff performed during meal times is
not required. See [Twombly, 550 U.S.] at 555,
(“[A] complaint attacked by a Rule 12(b)(6)
motion to dismiss does not need detailed
factual allegations.”); Manning, 725 F.3d at
46 (“The fact that this assertion is not
accompanied by a detailed list of each and
every activity the plaintiffs and their fellows
19
performed without compensation does not
mandate the complaint’s dismissal.”). The
allegation that each employee was “car[ing]
for patient needs” and “tending to patients,”
when combined with each employee’s specific
job title, is more than “a formulaic recitation
of the elements” of an FLSA claim and is
enough to “give the defendant fair notice” of
the employees’ claims and the “grounds upon
which [they] rest.” Twombly, 550 U.S. at 555
(quotation marks omitted).
Because the amended complaint states
plausible claims under the FLSA, the district
court erred by dismissing with prejudice the
FLSA count.
Cooley v. HMR of Ala., Inc., 747 F. App’x at 807-08 (11th
Cir. 2018) (unreported opinion) (additional reporter
citations omitted).
D.C. District Court
In the circuits that have not weighed in on the
pleading requirements, district courts are grappling
with the same issue and are similarly divided. As the
D.C. District court explained:
In the Court’s view, there is no reason to
treat an FLSA claim in a manner different
from any garden-variety claim. Plaintiffs’
complaint must therefore “‘give the defendant
fair notice of what the . . . claim is and the
grounds upon which it rests,’” Twombly, 550
U.S. at 555 (quoting Conley, 355 U.S. at 47),
allege sufficient facts to establish that the
20
claim is at least plausible, id. at 570, and
avoid undue reliance on “labels and
conclusions,” id. This does not mean, however,
that a complaint must contain “detailed
factual allegations,” id., of the type
[defendant] would require—and that some
courts have required, see, e.g., Mell [v. Gnc
Corp., No. 10-945,] 2010 U.S. Dist. LEXIS
118938, 2010 WL 4668966 [(W.D. Pa. Nov. 9,
2010)], at *5-*9. Nothing in Rule 8(a) or in any
Supreme Court or D.C. Circuit precedent
imposes special pleading requirements in
FLSA cases. Neither Rule 8(a) nor any
controlling
precedent
demands,
as
[defendant] posits, that an FLSA plaintiff
allege who told her about her employer's
policy regarding overtime hours, when she
was told that she was required to work
without recording overtime hours, how her
employer's
policy
was
imposed,
or
approximately how many overtime hours she
worked each week without compensation. Cf.
Dkt. 8-1 at 6 (quoting Mell, 2010 U.S. Dist.
LEXIS 118938, 2010 WL 4668966, at *9).
That type of particularity is required to plead
fraud under Federal Rule of Civil Procedure
9(b), see, e.g., Stevens v. InPhonic, Inc., 662 F.
Supp. 2d 105, 114 (D.D.C. 2009) (explaining
that a complaint alleging fraud or mistake
must “provide a defendant with notice of the
‘who, what, when, where, and how’ with
respect to the circumstances of the fraud” to
satisfy Rule 9(b)’s heightened pleading
standard (internal quotation marks omitted)),
but not to plead a FLSA claim under Rule 8.
21
Galloway v. Chugach Gov’t Servs., 199 F. Supp. 3d 145,
150 (D.D.C. 2016).
Like the D.C. District Court in Galloway, other
district courts are striving to uniformly apply
competing FLSA pleading requirements, with nearly
identical cases (at times against the same employer)
being dismissed in one court while surviving dismissal
on the pleadings in another.
B.
Four circuits require identifying a
specific workweek that was underpaid to
avoid dismissal on the pleadings.
By contrast, the following courts have adopted a
rule that any employee who cannot establish particular
weeks in which they were underpaid prior to discovery
cannot plausibly state a cause of action, regardless of
whether or not necessary schedule and payroll
information has been withheld by an employer.
Second Circuit
We conclude that in order to state a
plausible FLSA overtime claim, a plaintiff
must sufficiently allege 40 hours of work in a
given workweek as
well
as
some
uncompensated time in excess of the 40
hours. See 29 U.S.C. § 207(a)(1) (requiring
that, “for a workweek longer than forty
hours,” an employee who works ‘in excess of’
forty hours shall be compensated time and a
half for the excess hours).
22
Determining whether a plausible claim
has been pled is “a context-specific task that
requires the reviewing court to draw on its
judicial experience and common sense.” Iqbal,
556 U.S. at 679. Reviewing Plaintiffs’
allegations, as the district court thoroughly
did, 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.
Lundy v. Catholic Health Sys. of Long Island, Inc., 711
F.3d 106, 114 (2d Cir. 2013) (requiring pleading a
specific workweek for plausible FLSA overtime claims).
Sixth Circuit
“The FLSA mandates that ‘[e]very
employer shall pay to each of his employees
who in any workweek is engaged in commerce
or in the production of goods for commerce’ a
statutory minimum hourly wage.” Stein v.
HHGREGG, Inc., 873 F.3d 523, 530 (6th Cir.
2017) (citing 29 U.S.C. § 206(a)). “In addition,
if an employee works in excess of forty hours
a week, the employee must ‘receive[]
compensation for his employment in excess of
[forty hours] at a rate not less than one and
one-half times the regular rate at which he is
employed.’” Id. at 536 (quoting 29 U.S.C. §
207(a)). “The ‘regular rate’ is ‘the hourly rate
actually paid the employee for the normal,
nonovertime workweek for which he is
employed,’ and is ‘computed for the particular
23
workweek by a mathematical computation in
which hours worked are divided into straighttime earnings for such hours to obtain the
statutory regular rate.’” Id. at 536-37 (quoting
29 C.F.R. § 779.419). “Assuming a week-long
pay period, the minimum wage requirement
is generally met when an employee's total
compensation for the week divided by the
total number of hours worked equals or
exceeds the required hourly minimum wage,
and the overtime requirements are met where
total compensation for hours worked in excess
of the first forty hours equals or exceeds one
and one-half times the minimum wage.” Id. at
537 (citing Overnight Motor Transp. Co. v.
Missel, 316 U.S. 572, 580 n.16; United States
v. Klinghoffer Bros., 285 F.2d 487, 490 (2d
Cir. 1960)).
Thus, under federal law, Plaintiffs would
be required to identify a particular workweek
in which, taking the average rate, they
received less than the minimum wage per
hour.
Busk v. Integrity Staffing Sols., Inc. (In re Amazon.com,
Inc.), 905 F.3d 387, 405-06 (6th Cir. 2018) (additional
reporter citations omitted).
Seventh Circuit
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
24
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) [App.
32a-35a], 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.
Hirst v. SkyWest, Inc., 910 F.3d 961, 966 (7th Cir.
2018). App. 8a.
Ninth Circuit
We further agree with our sister circuits
that, at a minimum, a plaintiff asserting a
violation of the FLSA overtime provisions
must allege that she worked more than forty
hours in a given workweek without being
compensated for the hours worked in excess of
forty during that week. See Pruell, 678 F.3d
at 13; see also Lundy, 711 F.3d at 114; Davis,
765 F.3d at 242-43. Applying that standard to
the pleadings in this case, Landers failed to
state a claim for unpaid minimum wages and
overtime wages. The complaint did not allege
facts showing that there was a given week in
which he was entitled to but denied minimum
wages or overtime wages.
25
Landers v. Quality Communs., Inc., 771 F.3d at 645
(9th Cir. 2015).
Thus, in 2018 alone, four circuits entered opinions
on the pleading requirements of claims under the
FLSA. Two, including the Seventh Circuit’s decision in
Hirst and the Sixth Circuit’s decision in Busk, 905 F.3d
at 405-06, would require pleading a specific deficient
workweek to survive dismissal. And in the same year,
decisions in the Fourth and Eleventh Circuits fell on the
Iqbal context-specific side. See Hall, 846 F.3d at 777-79
(4th Cir. 2017) (reversing and remanding dismissal),
cert. denied, 138 S. Ct. 635 (2018) and Cooley, 747 F.
App’x at 807-08. The divide between the circuits is
becoming more entrenched and highlights the need for
resolution by this Court.
The likelihood of surviving a pre-discovery motion
to dismiss in a FLSA case now depends less on the facts
of the case and more on the circuit in which the case was
brought and the transparency of the employers’ payroll
system. This Court’s review and clarification of the
pleading requirements of claims brought under the
FLSA is of exceptional nationwide importance. A clear
and uniform rule would protect both employees who
must seek redress from the courts for wages due under
the FLSA and would offer employers the ability to
comply with the law on a uniform basis.
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26
II.
Circuits that require pleading based
on a specific workweek truncate longstanding administrative agency
guidance.
The Wage and Hour Division’s “workweek
averaging” to measure compliance with the FLSA is
frequently cited but rarely consulted. The legislative
history of the Act makes clear that that “the FLSA was
designed to give specific minimum protections to
individual workers and to ensure that each employee
covered by the Act would receive ‘[a] fair day’s pay for a
fair day’s work’ and would be protected from ‘the evil of
“overwork” as well as “underpay.”’” Barrentine v.
Arkansas-Best Freight Sys., 450 U.S. 728, 739 (1981)
(quoting Overnight Motor Transportation Co. v. Missel,
316 U.S. 572, 578 (1942), quoting 81 Cong. Rec. 4983
(1937) (message of President Roosevelt)) (emphasis in
original). As this Court recognizes, the FLSA grants
employees “broad access to the courts” with “no
exhaustion requirement or other procedural barriers.”
Id.
Section 206(a) of the Fair Labor Standards Act
requires that an employer “shall pay to each of his [nonexempt] employees who in any workweek is engaged in
commerce . . . not less than . . . $ 7.25 an hour.” 29 U.S.C.
§ 206(a). Although the “workweek” and “an hour”
terminology have been interpreted in various ways by
district and circuit courts, most accept the Wage and
Hour Division’s 1940 administrative policy suggesting
that averaging hourly wages across a workweek is
reasonable and permissible. “The workweek measuring
rod has never been promulgated as an agency
regulation; however, the Wage and Hour Division
27
continues to adhere to it, and the courts have agreed
that the workweek standard generally represents an
entirely reasonable reading of the statute.” Dove v.
Coupe, 759 F.2d 167, 172 (D.D.C. 1985) (Ginsburg, J.)
(citing Blankenship v. Thurston Motor Lines, 415 F.2d
1193, 1197-98 (4th Cir. 1969)) (emphasis added);
Klinghoffer, 285 F.2d at 490; McDowell v. Purolator
Courier Corp., 25 Wage & Hour Cas. (BNA) 503, 505-06
(E.D. Ky. 1982); Marshall v. Sam Dell’s Dodge Corp.,
451 F. Supp. 294, 301-03 (N.D.N.Y. 1978); Travis v. Ray,
41 F. Supp. 6, 9 (W.D. Ky. 1941). But cf. United States
v. Universal C.I.T. Credit Corp., 102 F. Supp. 179, 183
(W.D. Mo.) (dictum in criminal case), aff’d, 344 U.S. 218
(1952)). Since Dove, no circuit court has held that
weekly averaging cannot be used to measure minimum
wage compliance. Like other circuits, the Seventh
Circuit “adopt[ed] the per-workweek measure for
determining compliance with 29 U.S.C. § 206, without
industry-specific carveouts.” App. 7a.
However, “[t]he precedents on pleading specificity
are in a period of transition, and precise rules will
always be elusive because of the great range and
variations in causes of action, fact-patterns and
attendant circumstances (e.g., warnings, good faith of
counsel). ‘Determining whether a complaint states a
plausible claim for relief will . . . be a context-specific
task that re quires the reviewing court to draw on its
judicial experience and common sense.’” Pruell, 678
F.3d at 15 (quoting Iqbal, 446 U.S. at 663-64).
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28
A.
Wage averaging requires specific
information and records according to the
Wage and Hour Division’s long-standing
directives.
Returning to the original language of the Wage and
Hour Division’s 1940 opinion, the nuances of the issue
in this petition—whether employees must plead that
they were underpaid during one specific workweek to
survive dismissal—come into focus.
On February 5, 1940 the Wage and Hour Division’s
general counsel wrote:
In our opinion the longest period of time
over which wages may be averaged to
determine whether the employer has paid
wages at the rate of [the applicable FLSA
minimum wage] an hour is a workweek and
there may be no averaging of wages over two
or more workweeks.
....
There is no objection, of course, to a
biweekly, semi-monthly or monthly pay
period, but a single workweek is the longest
period which may be taken as the standard for
the purpose of computing the amount of
compensation due at each pay period.
The next question is whether the
workweek will be taken as the standard
period of time over which wages may be
averaged or whether a period less than a
workweek will be taken to determine
compliance with section 6. For enforcement
purposes, the Wage and Hour Division is at
present adopting the workweek as the
29
standard period of time over which wages
may be averaged . . . .
It must be remembered, however, that this
opinion is not binding upon the courts and will
not protect an employer in a civil suit brought
by his employees under the provisions of
section 16(b) of the act. [Examples given
about situations where courts may differ from
the Division’s opinion.] There may be other
cases where the courts might take a period of
less than a workweek as the standard under
section 6, but, as stated above, the Division
will take the workweek as the standard for
determining whether there has been
compliance with the law.
Portal-To-Portal Wages: Hearing Before the Subcomm.
On S. 70 of the S. Comm. On the Judiciary, 80th Cong.
329 (1947) (statement of Lee Pressman, General
Counsel, Wage and Hour Division, United States Dep’t
of Labor) (emphasis added).
By September 1941, difficulties enforcing the
FLSA’s minimum wage were becoming apparent. The
Wage and Hour Administrator, under Section 11(c),
was authorized to require every employer subject to
any provision of the Act “to make, keep, and preserve,”
but the information and data necessary for calculations
varied from section to section of the FLSA as well as by
the payroll structure of employers. Bureau of Nat’l
Affairs, Wage-Hour Records; What Records to Keep
and How to Keep Them 11 (1941) (reprinted from Wage
Hour Reporter, 4 WHR 492, Explanatory Bulletin 4
(September 15, 1941)). The Wage and Hour Division
promulgated a series of record-keeping requirements,
30
forewarning employers that relief from preserving
records would be granted “[o]nly where the
preservation of certain records are found unnecessary
for determining or securing compliance with any
provisions of the Act or Regulations, other than
Recordkeeping Regulations.” Id. at 10. The Wage and
Hour Division’s September 15, 1941 recordkeeping
requirements are virtually identical to those required
now. Compare id. at 12-14 to C.A. App. 182-83, 422-23
(U.S. Dep’t of Labor, Wage and Hour Division, Fact
Sheet, last revised July 2008). These requirements are
particularly important when translating piece-rate
wages into actual hourly wages, as in this case.
As detailed on Wage and Hour Division Fact
Sheet #21, revised July 2008, every employer must
maintain these basic records:
1. Employee’s full name and social security
number.
2. Address, including zip code.
3. Birth date, if younger than 19.
4. Sex3 and occupation.
5. Time and day of week when employee’s
workweek begins.
6. Hours worked each day.
7. Total hours worked each workweek.
8. Basis on which employee’s wages are paid
(e.g., “$9 per hour,” “$440 a week,”
“piecework”).
9. Regular hourly pay rate.
3 The inclusion of recordkeeping of each employee’s sex is the
lone change in requirements since 1941.
31
10. Total daily or weekly straight-time
earnings.
11. Total overtime earnings for the
workweek.
12. All additions to or deductions from the
employee’s wages.
13. Total wages paid each pay period.
14. Date of payment and the pay period
covered by the payment.
C.A. App. 182.
B.
The Wage and Hour Division
intended the workweek to be the
longest period of wage averaging, not
the only acceptable period.
Unlike the Seventh Circuit (and district court) in
this matter, even in the early 1940s the Wage and Hour
Division recognized that certain identifiable facts are
necessary to calculate straight time hourly wages for
employees with piece-rate earnings or more than one
rate of pay—even if averaged based on a workweek.
“The hourly rate for all [variable wage rate] employees
. . . depends on the total hours worked in any workweek
divided into the total straight time earnings, wages or
salary of that workweek. It is necessary, therefore, for
the employer to indicate in his pay-roll records the
period covered by each employee’s workweek. . . .”
Bureau of Nat’l Affairs, Wage-Hour Records 13 (1941).
“The employer may select any time desirable to begin
and end the employee’s workweek, as for instance,
midnight Saturday or high noon Wednesday. . . . A
32
workweek, however, must be established and it may not
then be varied for purposes of evasion of either the
minimum wage or overtime provisions Act.” Id.
(emphasis added). “In order to determine compliance
with the Act, it is necessary for the employer to
maintain records which will establish either daily or
weekly straight-time earnings. This can be done by
showing straight-time earnings or wages by the day or
by keeping the total earnings or wages for the
individual work-week.” Id. (emphases added).
SkyWest, in the district court proceedings,
acknowledged that it does not track the “total hours”
any flight attendant works in any given workweek. C.A.
App. 114, 120, 443-44, 515-17. Nor has it selected a
specific and unvarying time to begin and end their
workweek. C.A. App. 129, 518. And there is no
indication that SkyWest regularly calculates, or is even
aware of, any flight attendants’ straight time earnings.
C.A. App. 91 n.1.
Some employers, unlike SkyWest, include
mechanisms to assure FLSA compliance on a
“workweek” basis. See, e.g., Douglas v. Xerox Bus.
Servs., Ltd. Liab. Co., 875 F.3d 884, 885 (9th Cir. 2017)
(unpublished) (“Under Xerox’s mind-numbingly
complex payment plan, employees earn different rates
depending on the task and the time spent on that task.
. . . If the resulting hourly wage equals or exceeds
minimum wage, Xerox does not pay the employee
anything more. However, if the ratio falls below
minimum wage [averaged weekly], Xerox gives the
employee subsidy pay to bump the average hourly wage
up to minimum wage.”). Meanwhile, other employers
like SkyWest, can (and certainly do) concoct unwieldy
payroll schemes that lack mechanisms to assure
“workweek” compliance to hedge accountability. Where
33
that is the case, a context-specific pleading standard,
like the pairing-measure suggested here, is consistent
with both the Wage and Hour Division’s “no longer than
a workweek” guidance and Iqbal’s context-specific
pleading.
III.
Workweek averaging is inappropriate
in the context of SkyWest’s scheduling
and payroll systems.
A.
Pairing-based averaging is the
appropriate context-specific pleading
given SkyWest’s complex payroll
system.
The Seventh Circuit—and the district court before
it—erred when each held that to plead a viable Fair
Labor Standards Act claim, employees must point to a
single specific week in which they were underpaid. This
specious pleading standard is contrary to the plain
language and legislative intent of the FLSA and would
have a destructive consequence of encouraging
employers to devise payroll systems as complex and
opaque as possible rather than paying employees as
required.
In so holding, the Seventh Circuit truncated the
very administrative agency directives it cites. See
supra Section II. And instead of being consistent with
the holdings of the circuits as it claims, it creates a
wider split between the circuits such that an underpaid
employee’s access to relief under the FLSA is dependent
upon where she works in the country. See supra Section
I. Finally, and most critically, this rigid standard
ignores Ashcroft v. Iqbal ’s admonition that a plausible
34
claim for relief will “be a context-specific task that
requires the reviewing court to draw on its judicial
experience and common sense.” 556 U.S. at 679
(emphasis added). The rigidity of the “single workweek”
pleading standard ignores the complexity of certain
payroll schemes, and if permitted to stand, slams the
doors of the courts to low wage earners in the Seventh
and other “specific workweek” circuits whose
employers, like SkyWest, devise unnecessarily complex
pay structures.
Take, for example, a common scheduling practice
of certain manufacturing plants in which employees
work four days, then have four days off, often working
on a piece-rate pay system. A rigid 7-day workweek
pleading standard splits the employees’ schedule
irregularly. With the current circuit split, half of the
circuits that have weighed in on the FLSA pleading
standard would allow four-day averaging, while the
other half of the circuits are likely to require seven-day
averaging. This Court’s holding in Iqbal, in the
petitioners’ view, would permit four-day averaging.
For the purpose of pleading underpayment of
wages in this case, and consistent with both Iqbal and
the Wage and Hour Division’s administrative opinions,
see supra Section II, it makes the most sense to require
the flight attendant plaintiffs to plead their earnings
averaged across “pairings.” Pairings are the functional
equivalent of the workweek of other occupations,
because each pairing represents a single cohesive unit
of labor as scheduled by the airline. Each pairing
consists of a series of flights beginning and ending at
the employee’s base airport, and one to four days in
length. Thus, each pairing stands alone for scheduling
purposes, often marked by at least twenty-four hours off
35
before and after the pairing to meet FAA rest time
requirements.
Figure 1, Ca. App. 144, is an example of an actual
pairing worked by petitioner Hirst. It is a relatively
simple four-day pairing that the petitioners in their
complaints included for explanatory purposes. It does
not demonstrate a FLSA violation, but it demonstrates
the level of complexity of SkyWest’s scheduling system
and the pieces of time that are (and are not) included in
pay calculations.
Ignoring the complexity of SkyWest’s payroll and
scheduling, the Seventh Circuit erred when it opined
that “[t]he same principles for pleading overtime pay
violations apply to minimum wage violations.” This
assertion ignores the complexity of minimum wage
calculations in a piece-rate system. Through its overreliance on the district court’s analysis, the Seventh
Circuit created a barrier that impedes access to the
courts for employees paid according to complex and
irregular piece-rate pay schemes that result in variable
hourly wages. In holding that to survive a motion to
dismiss, flight attendants must plead “at least one
workweek in which he or she was underpaid,” the
Seventh Circuit’s result directly defeats the purpose of
the FLSA. App. 8a; see Dove, 759 F.2d at 171
(quoting Brooklyn Savings Bank v. O’Neil, 324 U.S.
697, 706 (1945) (“The purpose of the minimum wage
provisions is ‘to protect certain groups of the population
from sub-standard wages . . . due to . . . unequal
bargaining power.’”).
Here, the flight attendants pleaded far more than
“a formulaic recitation of the elements” and certainly
gave the defendant fair notice of their claims and the
grounds for those claims. Twombly, 550 U.S. at 555.
Yet, the specious pleading requirements of the Seventh
36
Circuit and the other “specific workweek” circuits,
discussed supra, would prefer to strip away vital
protections promised to low-wage employees through
the FLSA than to permit that the case be decided on the
merits. These circuits threaten to leave these
employees, including the flight attendants in Hirst,
with little or no legal recourse when their wages fall
below the already-paltry federal minimum wage rate,
especially when an employer can (and does) simply
refuse to provide its employees access to their own
records so they may accurately calculate straight-time
earnings.
B.
For SkyWest flight attendants, the
specific workweek pleading requirement
is especially detrimental.
The Seventh Circuit’s pleading requirement has
an even more catastrophic impact on flight attendants
in light of SkyWest’s claim that it—and other airlines—
have a constitutional right to ignore all state and local
labor laws.4 If the Court were to constrict the
protections of the FLSA and extinguish those offered by
state and local labor laws for flight attendants, these
employees—who must pass some of the strictest
background checks in any industry and are trained to
protect airline passengers in emergencies—would be at
the mercy of the airlines’ goodwill. Yet SkyWest and
other airlines5 apparently see no reason to ensure that
See SkyWest, Inc., et al. v. Andrea Hirst, et al., U.S.
Supreme Court Case No. 18-1097, Petition for a Writ of Certiorari.
5 See SkyWest, Inc., et al. v. Andrea Hirst, et al., U.S.
Supreme Court Case No. 18-1097, Brief amicus curiae of Airlines
for America.
4
37
every flight attendant, regardless of seniority, receives
“a fair day’s pay for a fair day’s work.”
CONCLUSION
The Court should grant certiorari to reign in the
circuits’ varying pleading requirements under the
FLSA, maintaining consistency with the Wage and
Hour Division’s opinion that the “longest period” (not
“only period”) of wage averaging is a workweek, with
the requirements of Twombly and Iqbal, and especially
with the plain language of Federal Rule of Civil
Procedure 8(a).
Respectfully submitted,
/s/ Gregory F. Coleman
Gregory F. Coleman
Counsel of Record
Lisa A. White
Arthur Stock
William A. Ladnier
Ryan P. McMillan
GREG COLEMAN LAW PC
800 S. Gay Street, Suite 1100
Knoxville, TN 37929
T: (865) 247-0080
greg@gregcolemanlaw.com
Attorneys for Petitioners
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
2a
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.
3a
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).
4a
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).
5a
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
6a
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
7a
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
8a
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
9a
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.
10a
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
11a
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.
12a
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
13a
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.
14a
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).
15a
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.
16a
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.
17a
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
18a
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
19a
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.
20a
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
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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
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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
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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
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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
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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
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“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,
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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
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