Labor & Employment Law

Affirming that Mere Speculation is not Enough to Sustain FLSA Claim

By Mark E. Tabakman, Esq.

In Bailey et al. v. Border Foods Inc., the U.S. District Court for the District of Minnesota dismissed with prejudice a proposed collective and class action against a Pizza Hut franchisee after finding that the lead plaintiffs failed to adequately plead that their wages fell below the required minimum wage. The plaintiffs, former delivery drivers for Pizza Hut, accused the franchise operator of violating the federal Fair Labor Standards Act and Minnesota Fair Labor Standards Act by failing to pay minimum wages, and making unlawful wage deductions and wrongfully retaining employee gratuities in violation of the state law.

The Court also dismissed without prejudice the state claims against the franchisees, noting that once the federal claims were dismissed, he no longer had jurisdiction over the case. In doing so, he declined to exercise supplemental jurisdiction over the state claims.

In making its decision, the Court stated '[i]n this case, plaintiffs have failed to identify their hourly pay rates, the amount of their per-delivery reimbursements, the amounts generally expended in delivering pizzas, or any facts that would permit the court to infer that plaintiffs actually received less than minimum wage.'   Specifically, the complaint merely alleged that the plaintiffs were 'systematically deprived' of minimum wage. Further, on the plaintiff's consent forms, they wrote they did not 'believe' they were paid enough to cover expenses, which indicated that they were speculating as to whether their pay actually fell below minimum wage.

In deciding to dismiss the federal claims with prejudice, the Court noted that the plaintiffs were given fair notice of their pleading deficiencies but did not request leave to replead.

This decision is a win for employers. Indeed, it shows would-be plaintiffs that a mere 'belief' of an FLSA violation will not be sufficient to sustain a claim in court. 

Full post as published by Wage & Hour - Development & Highlights on October 22, 2009 (boomark / email).