Lynch v. United Servs. The crux of Defendants' argument against predominance is that even if CRST committed acts proscribed by the Consumer Frauds Act, the drivers would also have to demonstrate that these acts or practices resulted in an "ascertainable loss of money or property" by Montoya and each member of the proposed class. I'm wondering if the same applies in this situation? at 23. Finally, Defendants describe a variety of fact-specific scenarios (such as experience-based pay, per-diem pay, and payroll advances) that may determine how much a driver was paid during a particular pay period. The record also indicates that drivers are likely to interface with CRST's Iowa-based dispatchers, human resources staff, and payroll departments in the normal course of business. Defendants make only a passing effort to dispute these elements. "In performing this predictive function" and exercising its "broad discretion" over class certification, the Court must appraise the plaintiff's evidence "critically," while taking care not to "allow[] the defendant to turn the class-certification proceeding into an unwieldy trial on the merits." Therefore, there is no “extra” lodging per diem to add to the M&IE rate. 0. CRST automatically sends drivers two letters seeking to collect these debts before turning over the accounts to a third-party debt collector. PML 2014-031: PML 2014-031 - 9/29/2014 - Travel/Relocation Programs – Lodging/Per Diem Increases for BU 10 (CAPS) and BU 13 (IUOE) Employees PML 2015-004 : PML 2015-004 - 2/20/2015 - Travel/Relocation Programs – Change in the Definition of What May be Claimed as an Incidental The lawsuit sought punitive damages and a permanent injunction. For instance, if your knee got hurt in a car accident, you would gauge your daily pain and all of the daily activities you can’t perform due to your injury. 2008). denied, 138 S. Ct. 256 (2017); see 29 C.F.R. Defendants also point out that there are four phases to CRST's Driver Training Program and that a majority of the potential collective-action group members did not complete all four. The Training Agreement designates which educational facility a driver will attend, describing the facility as an "independent contractor" that is a "separate non CRST affiliated" entity. For example, his November 11, 2014, statement shows a $40 deduction for a drug test, followed by a $10 deduction for the same purpose on his November 20, 2014, statement. Drivers who attend NADTA, CRST's "in-house" driver education school, are charged $4,700 if they drop out during Phase 1. The motion to certify a consumer-fraud class (Dkt. Plaintiff points out that most CRST drivers pass through Iowa, typically on Interstate 80, during their coast-to-coast trips, and many come to Cedar Rapids for a variety of other work-related reasons. § 206(a)(1). Records from other opt-in plaintiffs evince more straightforward theories of minimum-wage violations. Turner v. Younker Bros., Inc., 210 N.W.2d 550, 555 (Iowa 1973)). Currently, the federal minimum wage is $7.25 per hour. (quoting In re Bank of Boston Corp. Sec. Get 1 point on adding a valid citation to this judgment. The statute only requires plaintiffs "to put forth some evidence that the legal claims and factual characteristics of the class in [the] case are similar." A free inside look at CRST Malone salary trends based on 29 salaries wages for 21 jobs at CRST Malone. Those hourly rates range from $0 to $7.19 per hour depending on several variables. The First Circuit also requires that a putative class be "ascertainable" by reference to "objective criteria." contains alphabet), UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS. The FLSA provides that employers must pay their employees "at least a minimum wage for all hours worked." The settlement provided an average of $450 per driver, after fees, costs and administrative expenses are paid, but before taxes. R. Civ. Corp., 434 F. Supp. In re Nexium Antitrust Litig., 777 F.3d 9, 17 (1st Cir. Plaintiff's Consumer Frauds Act claim encompasses a long list of allegedly unfair or deceptive acts or practices. Plaintiff has not demonstrated how he could prove such a driver suffered an "ascertainable loss" under Iowa law without individual issues overwhelming common ones. 29 U.S.C. During this period, Montoya also recorded 15.61 hours of "excess" sleeper-berth time (i.e., time in excess of eight hours per day spent in the sleeper berth of the truck). The Court finds that Montoya fits the bill of typicality for this smaller group because it appears he "can fairly and adequately pursue the interests of the absent class members without being sidetracked by [his] own particular concerns." Between January and July 2017, CRST undertook collection efforts on around 7,500 to 8,000 drivers' accounts, collecting approximately $250,000. You can try one type of driving and easily ask to move to another area. His Phase 1 training took place in Marine City, Michigan. The named plaintiffs in Monday’s case claimed in their lawsuit that because the per diems did not reflect their actual travel expenses, they should have been regarded as compensation and included in their regular rate of pay. Citation. Midway into the litigation, the parties executed a contract governed by California contract law. Phase 1 and Phase 2 drivers were not paid at all. The FLSA requires that workers be paid 1-1/2 times their regular rate of pay for overtime hours. the "per diem" argument. One potential subclass would consist of drivers who attended Phase 1 or Phase 2 sessions in Iowa. Creating a unique profile web page containing interviews, posts, articles, as well as the cases you have appeared in, greatly enhances your digital presence on search engines such Google and Bing, resulting in increased client interest. 2d 234, 241 (D. Mass. The Court finds Plaintiff has satisfied them for reasons already discussed. In large part, this is because Montoya, like the broader group, was subject to a set of standard policies or practices for new drivers that raise common legal questions. The per diem rate for meals & incidental expenses includes all meals, room service, laundry, dry cleaning, and pressing of clothing, and fees and … Defendants rely heavily on language the Kaiser Court used to support this holding, specifically, the notion that the elements of a usury claim "must exist at the inception of the contract, since a contract which in its inception is unaffected by usury cannot be invalidated by a subsequent usurious transaction." CRST has forced per diem, so payroll will show 20 cpm, then below it will shoe 10 cpm per diem added to it. No. Fleet Per Diem Fee Scam Step-by-step explanation of how & why fleets charge per diem admin fees from a tax expert and 20-year taxpayer advocate Read More A mobile app for truckers that automatically tracks their IRS approved per diem and also allows them to track other business expenses while on the road. Fed. 95) is ALLOWED IN PART and DENIED IN PART. 2017), cert. Once you create your profile, you will be able to: Claim the judgments where you have appeared by linking them directly to your profile and maintain a record of your body of work. Auto. The second is when a driver drops out during Phase 1. Please log in or sign up for a free trial to access this feature. Defendants' arguments to the contrary are unavailing. Get 2 points on providing a valid reason for the above R. Civ. As mentioned, during Phases 3 and 4, CRST does not deduct the "tuition" advance of $3,950 to $6,500. Per diem is one method for reimbursing employees for business travel expenses. Based on this language, Defendants posit that a creditor could comply with the usury statute by entering into a contract that provides a legal interest rate on a given debt, only to actually seek to collect a usurious interest rate on that debt. 1993), and therefore need not be paid under the FLSA. And if another company calls CRST seeking to verify a former driver's employment, CRST will state that the indebted driver remains under contract to CRST. Nor did Kye Pawlenko of Hayes Pawlenko, who represents the named plaintiffs. U.S. District Judge Dale Fischer in Los Angeles in 2017 certified statewide and nationwide classes. 2015). Accordingly, Plaintiff has satisfied the adequacy prong. The American Staffing Association, a trade group representing 1,500 staffing firms, said in a 2020 amicus brief backing AMN that healthcare staffing firms are able to ameliorate nursing shortages by hiring traveling nurses. It helps the company save money while seeming giving you more money in your pocket. Now, when I was a solo driver at Schneider, I was told by veteran drivers that it was worth our while to opt out of per diem and eventually signed a statement to do so. 2007). It also resembles a theory under which a Consumer Frauds Act class has previously been certified. O'Brien v. Ed Donnelly Enters., Inc., 575 F.3d 567, 584-85 (6th Cir. Chems., Inc. v. Peters, 417 N.W.2d 437, 441 (Iowa 1987) (citing State ex rel. Here, the company seeks to collect outstanding advances, but not tuition -- unless the student attended NADTA, in which case the company demands a $4,700 tuition fee. The record demonstrates that, for purposes of the three proposed FLSA theories (minimum wage violations, unlawful wage deductions, and "free and clear" violations), Montoya is similarly situated to the group of individuals who participated as contract drivers in CRST's Driver Training Program since December 22, 2013. With respect to adequacy, as above, Defendants point to nothing in the record portending conflict, and they do not challenge the bona fides of Montoya's counsel. Drivers must later repay this cost as an "advance." At 25 cents per mile, this trip paid Montoya $233.88. 1997). The Supreme Court has not weighed in. Where, as here, the parties contest certain legal and factual premises relevant to the Rule 23 inquiry, it may be appropriate for the Court to "probe behind the pleadings" to "formulate some prediction as to how specific issues will play out in order to assess whether the proposed class meets the legal requirements for certification." He argues that the same practices that allegedly violate the FLSA -- failure to pay minimum wage, unlawful wage deductions, and failure to pay wages "free and clear" -- also run afoul of Iowa's wage laws. In this case, Defendants do not dispute numerosity, commonality, or ascertainability. 2018) (comparing collective-action framework with Rule 23). Plaintiff's position is that the 1.5 percent monthly interest called for in the Training Agreement and Employment Contract imposes an annual interest rate of 18 percent -- well in excess of Iowa's maximum allowable rate, which since 2006 has not exceeded 7.25 percent. CVN screenshot of plaintiff attorney Brian Panish showing jurors the aftermath of the collision. 29 U.S.C. 2015) (quoting Comcast Corp. v. Behrend, 569 U.S. 27, 33 (2013)). 19-55784. A payroll statement dated January 20, 2015, reflects deductions totaling $527.50, although the purpose of those deductions is not clear from the face of the document. The motion to certify a consumer-fraud class (Dkt. CRST International Business Salaries 181 salaries (for 106 job titles) Updated Feb 24, 2021 181 CRST International employees have shared their salaries on Glassdoor. For example, new drivers entering Phase 3 are paid 25 cents per mile; so, if a driving team completes a 2,000-mile trip, each driver gets credit for 1,000 miles (regardless of how many miles each drove) and earns $250. Plaintiff Juan Carlos Montoya alleges that Defendants CRST Expedited, Inc., and CRST International, Inc. (collectively, "CRST"), underpaid their long-haul truck drivers, misled them regarding the costs of driver training, and imposed excessive charges to recoup those costs in violation of the federal Fair Labor Standards Act ("FLSA") and Iowa law. Montoya, a Boston resident, worked for Defendants as a truck driver in late 2014. 95) is ALLOWED IN PART and DENIED IN PART. "At this procedural stage, the court does not resolve factual disputes, decide substantive issues going to the ultimate merits, or make credibility determinations." Per diem payments that a healthcare staffing agency gave to traveling workers to cover expenses on top of their normal wages were compensation that should have been included in calculating overtime premiums, a U.S. appeals court said on Monday. An invoice the following month showed a lower balance, apparently the result of CRST changing Montoya's training fee from $6,500 to $3,950. Rather, "[t]he typicality inquiry 'is designed to align the interests of the class and the class representatives so that the latter will work to benefit the entire class through the pursuit of their own goals.'" Sales Practice Litig., 148 F.3d 283, 311 (3d Cir. But that does not necessarily make the drivers any less "similarly situated" with respect to their challenge to CRST's pay practices. Predominance requires Plaintiff to demonstrate "that the questions of law or fact common to class members predominate over any questions affecting only individual members." After splitting those miles with the other driver on his team, Montoya got credit for 935.5 miles. I understand that starting CRST drivers make $.22 per mile the first month, $.10 of which is apparently per diem. 2d 357, 368 (S.D.N.Y. A sexual harassment trial against CRST Expedited of Cedar Rapids and one of its trainers ended after 24 days last week with a verdict of $1.5 million for a former driver trainee. 95) is ALLOWED IN PART and DENIED IN PART. * Enter a valid Journal (must Defendants also nominally challenge the usury class on the grounds of typicality, adequacy, and superiority, but they do not develop these arguments in any meaningful way, and these elements do not require further discussion. Hochstadt v. Boston Scientific Corp., 708 F. Supp. His last trip for the company was in late November 2014, apparently while he was still in Phase 3 of the training program. Then, in Phase 4, CRST begins deducting $40 per week from drivers' pay to recoup the aforementioned Phase 1 "advances" for housing, lodging, and the mandatory physical examination. Superiority means "that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy." Specifically, Montoya, like many other drivers, attended the Phase 2 program in Iowa. 2010) (recognizing that "courts sometimes do skip the first stage of the certification process when extensive discovery has taken place"). "Per diem" or day rate is a fixed amount of reimbursement paid to … In this scenario, the company seeks to recoup the $3,950 to $6,500 tuition fee, along with any other outstanding advances for items like transportation and lodging. After taking advantage of that promised opportunity, drivers discovered that CRST required them to pay back tuition and/or training expenses through wage deductions and/or collections efforts. The Iowa Supreme Court has held that "a creditor need not actually receive the amount charged in excess of the statutory ceiling to violate the [usury] statute." Although some components of the claim present a more obvious "ascertainable loss" than others, they all generally revolve around the concept of false advertising: Drivers joined CRST based on promises of "free," "cover[ed]," or "sponsored" training. P. 23(b)(3)(A)-(D). 2018). 2d 40, 43 (D. Mass. If an employer provides per diem to employees without requesting an expense report, those rates will also be taxed. Therefore, the Phase 4 graduates are eliminated from the proposed class. Accordingly, in this case, because of the need for class discovery on the motion to certify under Rule 23, the Court consolidated the two steps. The lodging cost is based on an average for all participants in the Driver Training Program and does not change based on the actual cost of lodging provided to a particular driver. But there is nothing talismanic about the two-step process, particularly because the First Circuit has never required it. Finally, Plaintiff seeks to certify the following class asserting claims under the Iowa usury law: All individuals who have signed pre-employment contracts and/or driver employment contracts with CRST that have provided for an interest rate on amounts owed at a rate higher than the maximum lawful rate of interest determined by the Iowa Superintendent of Banking (ranging between 3.5 percent and 7.25 percent per annum) at any time since January 21, 2006. - Count I (a collective action under the FLSA): All individuals who have participated as contract drivers in any phase of CRST's Driver Training Program, at any time since December 22, 2013. The court reversed a federal judge in Los Angeles and revived a 2016 certified class action by two former AMN employees who said they were owed additional overtime pay. Guckenberger v. Boston Univ., 957 F. Supp. Id. Plaintiff next seeks to certify a class for alleged consumer frauds: All individuals who have participated as contract drivers in any phase of CRST's Driver Training Program at any time since January 21, 2014. Based on CRST payroll records, Montoya has calculated the hourly pay rate that he and three other opt-in plaintiffs received over the course of several weeks in 2014 and 2015. At some point before Phase 3, drivers must sign a Driver Employment Contract ("Employment Contract"). Id. FOREIGN PER DIEM RATES: Foreign per diem rates are established by the Office of Allowances as maximum U.S. dollar rates for reimbursement of U.S. Government civilians traveling on official business in foreign areas. Defendants challenge certification on the grounds of predominance, typicality, adequacy, and superiority. United States v. Gordon, 852 F.3d 126, 139 n.14 (1st Cir. . § 216(b). Plaintiff has satisfied this element. is not on whether there has been an actual violation of law but rather on whether the proposed plaintiffs are 'similarly situated' under 29 U.S.C. And for workers who did not travel to their jobs, AMN simply included the per diem as part of their regular wages, according to court filings. Iowa law defines "employer" as a person or entity "who in this state employs for wages a natural person." 72) is ALLOWED IN PART and DENIED IN PART. --------. See here for a complete list of exchanges and delays. The focus of the term "employ," in turn, is "only the actual engagement of services in the transaction of business." Although the issue has not been squarely raised and the Court does not decide it here, this is a "less stringent" standard than the one imposed by Rule 23. A unanimous three-judge panel of the 9th U.S. B. See 29 C.F.R. That debt comes due only if the driver fails to complete Phase 3 or Phase 4, at which point it is counted against any owed wages and, typically, sent to collections. 7B Charles Alan Wright et al., Federal Practice and Procedure § 1807 (3d ed. The Training Agreement and Employment Contract are both standardized documents that CRST uses nationwide. It doesn't. § 216(b). In re Credit Suisse-AOL Sec. 564, 567-68 (S.D. Plaintiff has filed motions asking the Court to certify a collective action under the FLSA and three classes for the state-law claims. Co., 729 F. Supp. So, for example, in November 2014, Montoya logged a 1,871-mile trip from Cedar Rapids, Iowa, to Portland, Oregon. See Smilow v. Sw. Bell Mobile Sys., Inc., 323 F.3d 32, 40 (1st Cir. Iowa 2011) (certifying class of consumers who purchased defendant's products based on false advertising that products "provid[ed] certain health benefits"). Ass'n, 491 F. Supp. Also, last year CRST won a poaching lawsuit against Swift Transportation, part of Knight-Swift Transportation, that resulted in a $15 million punitive damages award for CRST; which was reduced by a U.S. District judge in December 2019 to $3 million. Litig., 762 F. Supp. However, determining whether Iowa's wage law applies to CRST drivers writ large presents a major roadblock to certifying the class that Montoya proposes. In this video I explain a little bit about the per diem pay if you guys have any input on it please feel free to comment. Need different hometime, different areas to run, or just want to experience different types of … CRST does not allow drivers to obtain certificates verifying their completion of training until they have satisfied any debts or completed their term of employment. V. Collections , Interest Rates, and Other Practices. Per Diem Rates. Montoya's payroll records also reflect various deductions from his wages. 1996) ("[I]t is clear that the requirements for pursuing a § 216(b) class action are independent of, and unrelated to, the requirements for class action under Rule 23 of the Federal Rules of Civil Procedure. § 714H.5(1) ("A consumer who suffers an ascertainable loss of money or property as the result of a prohibited practice or act in violation of this chapter may bring an action at law to recover actual damages."). Under those circumstances, the driver immediately owes CRST between $3,950 and $6,500 for tuition at the educational facility, plus any remaining Phase 1 expenses, plus interest. After significant class discovery, the Court now must address the core concern of Section 216(b): Have the potential members of the collective-action group shown that they are "similarly situated" for purposes of the FLSA? § 206(a)). San Diego-based AMN, a subsidiary of AMN Healthcare Services Inc, and its lawyers at Akerman did not respond to requests for comment. 3d 277, 290-91 (D. Mass. Montoya worked for CRST from approximately October to December 2014. Publication 1542, Per Diem Rates provides the rates for all continental U.S. areas. During Phases 1 and 2, CRST does not consider drivers to be employees and does not pay them. Such calculations do not necessarily defeat a "similarly situated" finding. Antitrust Litig., 522 F.3d 6, 17 (1st Cir. See O'Brien, 575 F.3d at 585-86 (requiring district court to conduct "a collection of individualized analyses" to ascertain FLSA wage liability); see also Lupien v. City of Marlborough, 387 F.3d 83, 88 (1st Cir. The plaintiffs appealed, and the 9th Circuit on Monday reversed. 95) is ALLOWED IN PART and DENIED IN PART . CRST also offers guaranteed home time. Labor — Fair Labor Standards — Short Title, Labor — Fair Labor Standards — Minimum Wage. Per Diem Rates. The motion to certify the Iowa usury class (Dkt. In 2014, CRST converted its Employment Contracts from eight-month to 10-month terms, simultaneously increasing the tuition fee from $3,950 to $6,500. The court said Fischer had improperly focused on the amount of the payments, rather than how the payments functioned. The remaining Rule 23 elements, less vigorously disputed, can be dealt with in the express lane. Id. But in 2019, he granted summary judgment to AMN, finding that the per diem payments were based on federal reimbursement rates and could reasonably be expected to reimburse clinicians for travel expenses. § 216(b) with respect to their allegations that the law has been violated."). That is not the law. Specifically: (1) misleading advertising, (2) charging drivers more for driver training schools than CRST pays and failing to disclose that fact to drivers, (3) failing to disclose the Driver Training Program dropout rate to drivers, (4) CRST's collections practices, (5) refusing to release drivers' driver training school diplomas, (6) aggressively enforcing the contractual non-competition agreement, and (7) charging a usurious interest rate. The record also contains a series of invoices sent to Montoya later that year and into 2016. The money includes approximately 30% of potential damages on sleeper berth and per diem claims. … Any driver who repaid training-related expenses through wage deductions and/or was subject to collections efforts for such costs suffered an "ascertainable loss" under the Consumer Frauds Act. Trezvant, 434 F. Supp. This money will be considered wages and will be subject to the standard income tax withholding and payroll taxes. Please note that it is unlawful for CRST to take any action against you for participating in this lawsuit. 2016) (finding predominance satisfied for consumer- fraud class based on defendant's "standardized conduct"). An employer may use either per diem method for … See Kelly v. Phiten USA, Inc., 277 F.R.D. Between 50 and 60 percent of those enrolled in the Driver Training Program attend Phase 1 training in Cedar Rapids, Iowa, at the North American Driver Training Academy ("NADTA"). Specifically, it involves a learner's permit course for drivers who lack such a permit, followed by one or two weeks of "truck-driving school" to obtain a CDL. Fed. Defendants point out that over 5,000 members of the putative class have no claim under the usury statute because they completed the driver training program and CRST therefore never sought to collect interest from them. With respect to minimum wage, the payroll statement covering Montoya's trip from Cedar Rapids to Portland reflects that he worked 33 hours during the relevant pay period. In light of the common questions already discussed, class treatment is more efficient and will promote uniformity of decision as to the drivers' wage claims. "); but see Espenscheid v. DirectSat USA, LLC, 705 F.3d 770, 771-72 (7th Cir. The other scenario arises when the driver breaches the Employment Contract or is terminated for cause. 2. The letters also state that if the driver cannot afford to pay the full debt immediately, CRST will "accept monthly payments at 18 [percent] interest.". They also argue that the predominance, superiority, typicality, and adequacy requirements are not met. Drivers attend training sessions on a variety of topics, including driver wellness, filling out time logs, transporting hazardous materials, customer service, truck maintenance, and harassment prevention. See FTR §301-11.100 and §301-11.101 for more information. On the first day of Phase 1, drivers are required to sign a Pre-Employment Driver Training Agreement ("Training Agreement"). Adequacy occasions a two-part inquiry. According to filings in the case, AMN paid workers who traveled more than 50 miles from home for jobs an hourly rate along with a $245 weekly “per diem” designed to cover housing, meals and travel costs. It alleges that CRST engaged in a variety of consumer frauds, such as misleading drivers about "free" training, charging drivers more than their actual costs for educational programs, and failing to disclose the training program's high dropout rate. And the fact that AMN provided per diems to workers who did not travel “confirms that the payments do function as compensation — namely, as a bonus for good work attendance,” Circuit Judge Marsha Berzon wrote.
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