Tuesday, December 13, 2011

Class Certification Granted In Action Against Kohler Co.

On Tuesday December 13, 2011, Magistrate Judge William E. Callahan, Jr. of the Eastern District of Wisconsin granted an employee’s request to certify an action against Kohler Co. as a class action. The Court certified a class of the following individuals:

All persons who are or have been employed by Kohler as an Administrative Assistant I, Administrative Assistant II, Area Associate I, Area Associate II, Secretary and Senior Secretary in Wisconsin, at any time from September 2, 2007 through the final disposition of this case, who have worked without being compensated for each hour worked under a comp time or compensatory time scheme and/or by following a policy not allowing employees to record every hour worked including working through unpaid lunch breaks.

In certifying the class and discussing the Commonality question from Wal-Mart Stores, Inc. v. Dukes, __ U.S. __, 131 S. Ct. 2541 (U.S. 2011), the Court explained:

Unlike the plaintiffs in Dukes, a common question clearly emerges from the actions of the plaintiffs and the defendant in this case. The plaintiffs argue that they were permitted to work off-the- clock in order to finish assigned work. The plaintiffs agree that there was a policy disallowing overtime, but that in order to complete their work, the plaintiffs needed to work before or after an assigned shift, or through lunch. The plaintiffs testify that the overtime they worked occurred on the defendant's premises. Based on these facts, the plaintiffs assert that the defendant violated Wisconsin's Wage Law.

The plaintiffs do not argue that Kohler had an express policy not to compensate employees for overtime. The plaintiffs acknowledge that Kohler had an express policy not to allow employees to work overtime, but to compensate them appropriately for overtime worked. Despite this express policy, Kohler may still be liable under Wisconsin's Wage Law.

Wis. Adm. Code § DWD 272.12(2)(a)(1) does not contain a requirement that the plaintiff prove that her employer "knew or should have known" that the employee was working. Instead, the section assumes that if hours are being worked on the premises or job site, the "employer knows or has reason to believe that [the employee is] continuing to work and the time is working time." Wis. Adm. Code § DWD 272.12(2)(a)(1). Additionally, the burden rests heavily on the employer to ensure that employees are not performing work that the employer does not want to be performed. Wis. Adm. Code § DWD 272.12(2)(a)(3). Kohler cannot rely on an express policy providing for overtime compensation if the company's practice is to permit overtime to be worked without compensating employees for their overtime. Wis. Adm. Code § DWD 272.12(2)(a)(3).

The class in this action asserts the same injury: work off-the-clock, resulting in the defendant's failure to pay wages due to the plaintiffs.

...

After reviewing the record, the court agrees that the commonality requirement has been met. The plaintiffs present evidence that they had significant workloads. They also present evidence that each plaintiff would work before and/or after his or her scheduled work times, or during lunch, in order to complete this work. The plaintiffs assert that they were not always paid for the overtime hours they worked. At least one plaintiff was told whether or not she could be compensated for overtime after working the overtime hours. Thus, the plaintiffs present a common harm that can be redressed by finding the answer to the question, "Did Kohler have a policy or practice of suffering or permitting its employees to work uncompensated overtime?" This complies with the standard set forth in Dukes.

This adds to a string of cases in which the applicable of the Dukes case to FLSA cases has been narrowed.

The Court's order can be found here.

For more informaiton about this case, contact Larry Johnson at ljohnson@crosslawfirm.com or through Cross Law Firm's wage and hour website.

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