Synthia Ross v. Citizens Financial , 667 F.3d 900 ( 2012 )


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  •                                In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 10-3848
    S YNTHIA G. R OSS, JAMES K APSA, and SHARON W ELLS,
    on behalf of themselves and all others similarly situated,
    Plaintiffs-Appellees,
    v.
    RBS C ITIZENS, N.A. d/b/a C HARTER O NE and
    C ITIZENS F INANCIAL G ROUP, INC.,
    Defendants-Appellants.
    Appeal from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 09 CV 5695—Joan Humphrey Lefkow, Judge.
    A RGUED A PRIL 12, 2011—D ECIDED JANUARY 27, 2012
    Before K ANNE and E VANSŒ ,                Circuit     Judges   and
    C LEVERT, District Judge.ŒŒ
    Œ
    Circuit Judge Evans died on August 10, 2011, and did not
    participate in the decision of this case, which is being
    resolved by a quorum of the panel under 28 U.S.C. § 46(d).
    ŒŒ
    The Honorable Charles N. Clevert, Jr., United States District
    Court for the Eastern District of Wisconsin, sitting by designa-
    tion.
    2                                                No. 10-3848
    K ANNE, Circuit Judge. Synthia Ross, James Kapsa, and
    Sharon Wells 1 filed this class action against RBS Citizens,
    N.A. doing business as Charter One (a related entity,
    Citizens Financial Group, Inc. is also named but for
    simplicity, it need not be mentioned) for allegedly
    violating the Fair Labor Standards Act, 29 U.S.C. § 216(b),
    and the Illinois Minimum Wage Law (“IMWL”), 820 ILCS
    § 105/1 et seq. The central claim is that the plaintiffs
    and other similarly situated employees and former em-
    ployees of Charter One were denied overtime pay to
    which they were entitled. For the IMWL claim, the
    district court granted the plaintiffs’ motion to certify
    two classes. Charter One challenges the district court’s
    class certification order solely on the ground that it
    did not comply with Rule 23(c)(1)(B) of the Federal Rules
    of Civil Procedure. Following oral argument, the
    Supreme Court clarified the Rule 23(a) commonality
    element in Wal-Mart Stores, Inc. v. Dukes, 
    131 S. Ct. 2541
    (2011). Shortly thereafter, we requested the
    parties file statements of position addressing
    whether the class certification order satisfied Dukes.
    We now affirm.
    1
    Plaintiff Wells worked for Charter One in Ohio. She is not a
    party to this appeal because she has no claim against Charter
    One under the Illinois Minimum Wage Law.
    No. 10-3848                                            3
    I. B ACKGROUND
    Charter One operates more than 100 bank branches in
    Illinois. Most are traditional stand-alone branches, and
    the rest are small “in-store” branches usually located
    inside places like supermarkets. The branches are orga-
    nized into seven regions, each with a regional manager
    who reports to the state director. Employees at the
    Illinois branches are organized, for overtime pur-
    poses, into two categories: “exempt” and “non-exempt.”
    The non-exempt category is comprised of employees
    who do more routine tasks—like tellers and personal
    bankers—all of whom are eligible to receive overtime
    pay when they work more than forty hours per week.
    The exempt category is comprised of branch managers
    and assistant branch managers (“ABMs”). These em-
    ployees are ineligible to receive overtime pay.
    Synthia Ross began working as a teller at a Chicago
    branch in 2000 and was later promoted to teller manager
    before her employment terminated in 2007. James Kapsa
    was hired as an ABM at a branch in St. Charles, Illinois,
    in 2007 and became acting branch manager for a short
    period of time before switching roles to become a
    personal banker. Kapsa spent time at several other
    Illinois branches before his employment terminated in
    2009. Ross alleges that Charter One has an unofficial
    policy of denying overtime pay to its non-exempt em-
    ployees by: (1) instructing them not to record hours
    worked per week over forty; (2) erasing or modifying
    recorded overtime hours; (3) giving them “comp time”
    instead of paying overtime; and (4) requiring them to
    4                                               No. 10-3848
    perform work during unpaid breaks. Kapsa alleges
    that Charter One illegally denies ABMs overtime pay by
    misclassifying their positions as exempt even though
    ABMs spend the majority of their time performing non-
    exempt work. Charter One denies that any such
    unofficial policy exists, and further contends that ABMs
    are correctly classified as exempt employees.
    Plaintiffs sought to certify two classes for the IMWL
    claim—the “Hourly” class and the “ABM” class. The
    proposed Hourly class definition is:
    All current and former non-exempt employees of
    [Charter One] who have worked at their Charter
    One retail branch locations in Illinois at any time
    during the last three years, who were subject to
    [Charter One’s] unlawful compensation policies
    of failing to pay overtime compensation for all
    hours worked in excess of forty per work week.
    The proposed ABM class definition is:
    All current and former Assistant Branch Manager
    employees of [Charter One] who have worked at
    their Charter One retail branch locations in
    Illinois at any time during the last three years,
    who were subject to [Charter One’s] unlawful
    compensation policies of failing to pay overtime
    compensation for all hours worked in excess of
    forty per work week.
    In a carefully reasoned seventeen-page opinion and
    order, Judge Lefkow found that the plaintiffs satisfied
    the four class-action prerequisites of Federal Rule of
    No. 10-3848                                                5
    Civil Procedure 23(a), namely: numerosity, commonality,
    typicality, and adequacy of representation. She also
    found that the plaintiffs satisfied Rule 23(b)(3), which
    requires that “questions of law or fact common to
    class members predominate over any questions af-
    fecting only individual members, and that a class action
    is superior to other available methods for fairly and
    efficiently adjudicating the controversy.” The district
    court then certified both classes as opt-out classes under
    Rule 23(b)(3) based on the proposed class definitions.
    Charter One filed this timely interlocutory appeal
    pursuant to Rule 23(f). On September 14, 2011, following
    oral argument, we asked the parties to file statements
    of position describing whether the certified classes
    satisfy the Dukes conception of commonality.
    II. A NALYSIS
    Charter One appealed the district court’s certification
    order, and this interlocutory appeal is now before us on
    (1) the very narrow issue of whether the district court
    judge’s certification order complied with Rule 23(c)(1)(B)2
    2
    In the guise of suggesting that a remand would be futile,
    Charter One devotes a fair portion of its briefs arguing
    that both certified classes are fundamentally unsuitable for
    class treatment. But, our November 30, 2010, order granting
    defendant’s motion for leave to appeal pursuant to
    Rule 23(f) limited our review to “the sole issue of whether
    the district court complied with Rule 23(c)(1)(B).” Thus,
    (continued...)
    6                                                   No. 10-3848
    and (2) whether the two certified classes satisfy the com-
    monality prerequisite post-Dukes. We review class cer-
    tification decisions for an abuse of discretion. Ervin v.
    OS Rest. Servs., Inc., 
    632 F.3d 971
    , 976 (7th Cir. 2011).
    But, “[i]f a district court’s findings rest on an erroneous
    view of the law, they may be set aside on that basis.”
    Cooter & Gell v. Hartmarx Corp., 
    496 U.S. 384
    , 402 (1990)
    (quotation marks omitted); 
    Ervin, 632 F.3d at 976
    .
    A. Defining the Class and the Class Claims, Issues, or Defenses
    Rule 23(c)(1)(B) was added to the Federal Rules in 2003.
    The Rule provides, “An order that certifies a class action
    must define the class and the class claims, issues, or
    defenses, and must appoint class counsel under Rule
    23(g).” Fed. R. Civ. P. 23(c)(1)(B). Although we touched
    briefly on the importance of properly defining the class,
    claims, issues, and defenses in Spano v. Boeing Co.,
    
    633 F.3d 574
    (7th Cir. 2011),3 the exact contours of
    2
    (...continued)
    we decline to review Charter One’s suitability argument
    to the extent it does not directly respond to our Septem-
    ber 14, 2011, order requesting position statements dis-
    cussing whether Dukes alters the district court’s commonality
    analysis.
    3
    In Spano, referring to classes certified under Rule 23(b)(1), we
    wrote, “[T]he most important part of that order is the place
    where it defines the class. This is a vital step. Both the scope
    of the litigation and the ultimate res judicata effect of the
    (continued...)
    No. 10-3848                                                   7
    Rule 23(c)(1)(B) is an issue of first impression for us.
    See also Simer v. Rios, 
    661 F.2d 655
    , 670 (7th Cir. 1981) (pre-
    subsection (c)(1)(B) case finding that proper class iden-
    tification “alerts the court and parties to the burdens
    that such a process might entail” and “insures that
    those actually harmed by defendants’ wrongful con-
    duct will be the recipients of the relief eventually pro-
    vided”).
    Only the Third Circuit has fully addressed the meaning
    of Rule 23(c)(1)(B). Wachtel ex rel. Jesse v. Guardian Life
    Ins. Co. of Am., 
    453 F.3d 179
    (3d Cir. 2006).4 The Wachtel
    court started its analysis, as it must, with the rule’s text.
    See Barnhart v. Sigmon Coal Co., 
    534 U.S. 438
    , 450 (2002).
    The Third Circuit reasoned:
    To “define” a thing or concept is “to state precisely
    or determinately [its boundaries]; to specify” or
    “[t]o frame or give a precise description” of a thing.
    Oxford English Dictionary (2d ed. 1989). According
    to the Rule, those things to be defined in a certifica-
    tion order include the “class and the class claims,
    issues, or defenses. . . .” Fed. R. Civ. P. 23(c)(1)(B)
    3
    (...continued)
    final judgment depend on the class 
    definition.” 633 F.3d at 583
    -
    84 (citations omitted). We ultimately reversed the district
    court’s certification order, and thus, had no need to fully
    interpret Rule 23(c)(1)(B).
    4
    The First Circuit, in dictum, adopted the reasoning in
    Wachtel. In re Pharm. Indus. Average Wholesale Price Litig., 
    588 F.3d 24
    , 38-41 (1st Cir. 2009).
    8                                                No. 10-3848
    (emphasis added). The above elements occur in
    a conjunctive, undifferentiated list, indicating
    that the requirement to “define” the “class claims,
    issues or defenses” is identical to the requirement
    to define the “class” itself within a given certifica-
    tion order. 
    Id. Furthermore, the
    use of the definite
    article “the” before “class claims, issues, or de-
    fenses” connotes comprehensiveness and specific-
    ity, rather than illustrative or partial treatment,
    in defining those aspects of class action certifica-
    tion.
    
    Wachtel, 453 F.3d at 185
    .
    We find this interpretation persuasive, especially when
    read in conjunction with the history and purpose of the
    2003 amendments to Rule 23. Although the Advisory
    Committee Notes accompanying these amendments
    do not specifically address subsection (c)(1)(B), the pub-
    lished report of the Standing Committee on Rules
    of Practice and Procedure introduced the proposed
    Rule 23 amendments by noting that the Rule 23(c)(1)(B)
    requirement “facilitates application of the interlocutory-
    appeal provision of Rule 23(f) by requiring that a court . . .
    define the class it is certifying and identify the class
    claims, issues, and defenses.” Comm. on Rules of
    Practice and Procedure, Judicial Conference, Report of the
    Judicial Conference, 8, 11 (Sept. 2002). Without a precise
    definition of the class, claims, issues, and defenses, it
    would be exceedingly difficult for this court to review
    the propriety of a class certification order.
    No. 10-3848                                                9
    The Third Circuit’s plain reading of the Rule is also
    supported by the Federal Rule’s apparent move
    towards the creation of voluntary trial plans. In ob-
    serving courts’ increased use of class-action trial plans,
    the Advisory Committee noted that the “critical need is
    to determine how the case will be tried.” Fed. R. Civ.
    P. Rule 23 advisory committee’s note. The justification
    for a clear trial plan applies with equal force to subsec-
    tion (c)(1)(B). In other words, there is a critical need
    to define the class, claims, issues, and defenses so the
    parties can adequately prepare for trial. See also 
    Simer, 661 F.2d at 670
    .
    Given the text, history, and purpose of Rule 23 and
    the importance we ascribed to precise class definitions
    in Spano and Simer, we agree with the Third Circuit’s
    interpretation of subsection (c)(1)(B). 
    Wachtel, 453 F.3d at 187-88
    . Therefore, we hold that the appropriate sub-
    stantive inquiry for Rule 23(c)(1)(B) is “whether the
    precise parameters defining the class and a complete list
    of the claims, issues, or defenses to be treated on a class
    basis are readily discernible from the text either of the
    certification order itself or of an incorporated memoran-
    dum opinion.” 
    Id. at 185.
    This means that an order
    (or incorporated opinion) must include two elements:
    “(1) a readily discernible, clear, and precise statement of
    the parameters defining the class or classes to be
    certified, and (2) a readily discernible, clear, and com-
    plete list of the claims, issues or defenses to be treated on
    a class basis.” 
    Id. at 187-88.
    The question confronting
    us now is whether the district judge’s certification
    order meets this standard. Although there might be
    10                                               No. 10-3848
    some room for the district court to have drafted a
    clearer certification order, we find the trial court
    did not abuse its discretion in defining the class and
    the class claims, issues, or defenses for both the Hourly
    and ABM classes.
    1. Defining the Class
    Charter One first challenges whether the class was
    properly defined. The district court’s certification order
    created an Hourly class and an ABM class both of
    which included employees and former employees “who
    were subject to defendants’ unlawful compensation poli-
    cies” (emphasis added). Charter One contends that the
    class certification order creates a conditional class that
    hinges on whether its overtime policy was unlawful. To
    the defendant, the term “unlawful” suggests that the
    court must first determine liability before class member-
    ship can be determined. Without a precise class defini-
    tion, Charter One warns that it is impossible to send
    notice to class members as required by Rule 23(c)(2)(B).
    Although there is perhaps some minor ambiguity in
    the certification order, the district court’s memorandum
    opinion accompanying the order eliminates any
    potential for confusion. In fact, Judge Lefkow concluded
    in her Rule 23(b)(3) predominance analysis that an unlaw-
    ful policy could be inferred based on “the number of
    people making the same allegations across branches,
    managers, positions, and time frames.” Ross v. RBS
    Citizens, N.A., No. 09 CV 5695, 
    2010 WL 3980113
    , at *6
    (N.D. Ill. Oct. 8, 2010). For purposes of class certification,
    No. 10-3848                                                    11
    Judge Lefkow found that all current and former em-
    ployees who have worked at an Illinois Charter One
    location within the last three years were subject to an
    unlawful overtime policy, and as such, qualify as class
    members. Thus, the certification order, when read in
    conjunction with the memorandum opinion, leaves no
    doubt about which employees and former employees
    constitute the class.
    Furthermore, the potential harms of a poorly-defined
    class are not implicated by the district court’s alleged
    lack of precision. For example, our review of the certifica-
    tion order and memorandum opinion was in no way
    diluted by an imprecise class definition. As we have
    already made clear, we read Judge Lefkow’s well-
    reasoned seventeen-page opinion and order to define
    both classes as consisting of all Hourly and ABM em-
    ployees and former employees who have worked at
    Charter One during the previous three years. Similarly,
    the Simer justifications for a clear class definition do
    not come into play. Here, employees and former
    employees within the past three years are on notice of
    how their rights might be affected by litigating this
    dispute as a class because the plaintiffs’ proposed
    notice mirrors the district court’s certification order.5
    5
    The plaintiffs’ Motion for Approval of Class Notices and the
    attached proposed notice for the Hourly class is directed to
    “current and former Charter One Illinois bankers, personal
    bankers, tellers, teller managers, head tellers and senior tellers
    working at Charter One’s Illinois retail branch locations
    (continued...)
    12                                                  No. 10-3848
    Ultimately, we find that the district court defined the
    class in a manner that is “readily discernible from the
    text either of the certification order itself or of an incorpo-
    rated memorandum opinion.” 
    Wachtel, 453 F.3d at 185
    .
    2. Defining the Class Claims, Issues, or Defenses
    Charter One also asserts that the district court abused
    its discretion by identifying only two claims for trial
    instead of identifying a comprehensive list of claims,
    issues, or defenses. See 
    Wachtel, 453 F.3d at 188
    (affirming
    the district court’s definition of the class, but remanding
    because the district court failed to identify a comprehen-
    sive list of claims, issues, or defenses). Charter One con-
    cedes that the district court properly identified two
    claims, but it identifies seven additional questions that
    the district court purportedly should have discussed as
    5
    (...continued)
    who were employed in this position from October 23, 2006 to
    the present.” Further, the description of the Hourly claim
    specifically mentions four mechanisms Charter One allegedly
    employed in failing to pay overtime. Likewise, the proposed
    notice for the ABM class is directed to “all current and former
    Charter One Illinois assistant branch managers who were
    employed in this position from October 23, 2006 to the pres-
    ent.” The description of the ABM lawsuit explains the claim
    as one of incorrect classification of ABMs as exempt person-
    nel. Both class-notice documents leave little room for con-
    fusion among potential class members.
    No. 10-3848                                                 13
    claims or issues.6 Without a comprehensive list of
    issues, Charter One warns that the parties cannot ade-
    quately prepare for trial and potential class members
    cannot make informed decisions about whether to opt
    out of the class.
    Like the district court’s definition of the class, we find
    no abuse of discretion in how Judge Lefkow defined the
    class issues, claims, or defenses. To begin, Charter One’s
    heavy reliance on Wachtel is misplaced. There, the Third
    Circuit chided the district court for using the Latin
    phrase inter alia (“among other things”) because the very
    use of that phrase suggests that the list of common
    issues is intentionally 
    incomplete. 453 F.3d at 189
    . The
    district court in this case did not make the same mis-
    take. The Wachtel court also found the district court’s
    treatment of the claims, issues, and defenses to be
    “unclear, intermittent, and incomplete,” with nothing in
    the certification order that “evidences an intent to explic-
    itly define which claims, issues, or defenses are to be
    treated on a class basis.” 
    Id. Here, the
    district court’s opinion does not suffer from
    the same deficiencies as the Third Circuit found in
    Wachtel. Rather, the plaintiffs’ claims that will be tried
    as a class are “readily discernible” from the district
    court’s order and accompanying opinion. For example,
    6
    For example, Charter One contends that it is unclear whether
    its actual or constructive knowledge of each alleged IMWL
    violation will be tried on a common basis or through some
    type of individual proceeding.
    14                                               No. 10-3848
    Judge Lefkow clearly identified the Hourly class’s
    claim that they were subject to a company policy that
    intentionally failed to pay lawfully earned overtime.
    Ross, 
    2010 WL 3980113
    , at *6 (“[T]he common issue of
    whether a company-wide policy existed to deny
    overtime will predominate over the variations in
    methods used to accomplish the alleged policy.”). The
    district court went so far as to identify four possible
    ways in which the plaintiffs claimed they had been
    forced to work off-the-clock, although Judge Lefkow
    appropriately left room for the introduction of other
    types of evidence illustrating the nature of Charter
    One’s unlawful policy. 
    Id. Explicit identification
    of this
    claim and four possible types of evidence is exactly
    the type of clarity and completeness required by
    Rule 23(c)(1)(B). Likewise, the district court clearly identi-
    fied the ABM class’s claim that their primary duty was
    to perform non-exempt work under an unlawful
    company policy. 
    Id. at *7
    (“[T]he relevant inquiry is what
    an ABM’s primary duty is.”). The district court also
    stated that the application of any IMWL exemptions
    (e.g., executive or administrative exemptions) should
    be tried as a class rather than through individualized
    inquiries. 
    Id. Ultimately, the
    claims identified by the district court
    are the only claims that require resolution at trial and
    the district court appropriately found that these claims
    will be litigated as a class. The seven questions raised
    by Charter One are merely issues of trial strategy or
    proof, rather than overall claims or issues necessitating
    resolution. If we read Rule 23(c)(1)(B) to require a
    No. 10-3848                                               15
    district court to list any possible method of proof, as
    Charter One appears to suggest, the length of such an
    order would border on the absurd. Here, the district
    court rightfully identified the two critical claims and
    the potential for an exemption defense, and found that
    it is all best litigated as a class.
    B. Commonality
    Following oral argument in this case, the Supreme
    Court clarified the Rule 23(a)(2) commonality prerequisite
    in Wal-Mart Stores, Inc. v. 
    Dukes, 131 S. Ct. at 2541
    .
    Shortly thereafter, we issued an order asking the parties
    to file brief statements of position describing whether
    the certified classes satisfy Dukes. We find that Dukes
    does not change the district court’s commonality result,
    and as such find that the district court properly certified
    both classes.
    The commonality prerequisite requires the plaintiff
    to show that “there are questions of law or fact common
    to the class.” Fed. R. Civ. P. 23(a)(2). The Supreme
    Court has interpreted commonality as requiring the
    plaintiff to show that class members “have suffered the
    same injury,” Gen. Tel. Co. of Sw. v. Falcon, 
    457 U.S. 147
    ,
    157 (1982); 
    Dukes, 131 S. Ct. at 2551
    , but notably “[t]his
    does not mean merely that they have all suffered
    a violation of the same provision of law,” 
    Dukes, 131 S. Ct. at 2551
    . “What matters to class certification . . . is
    not the raising of common ‘questions’—even in droves—
    but, rather the capacity of a classwide proceeding to
    generate common answers apt to drive the resolution
    16                                               No. 10-3848
    of litigation.” 
    Id. (emphasis in
    original). To satisfy the
    commonality element, it is enough for plaintiffs to
    present just one common claim. 
    Id. at 2556.
      In Dukes, a nationwide class of 1.5 million current
    and former female employees from 3,400 stores sued Wal-
    Mart, alleging that the company engaged in a pattern
    or practice of gender discrimination in violation of Title VII
    of the Civil Rights Act of 1964. 
    Id. at 2547.
    A Title VII
    disparate-treatment suit of course requires that
    plaintiffs show proof of discriminatory motive or intent.
    Int’l Bhd. of Teamsters v. United States, 
    431 U.S. 324
    , 335-
    36 (1977); 
    Dukes, 131 S. Ct. at 2552
    (“[I]n resolving an in-
    dividual’s Title VII claim, the crux of the inquiry is
    the reason for a particular employment decision.”). In
    Dukes, the Court reversed the district court’s certifica-
    tion order on the grounds that the plaintiff could not
    offer “significant proof that Wal-Mart operated under
    a general policy of discrimination.” 
    Dukes, 131 S. Ct. at 2553
    , 2556 (a policy allowing discretion “is just the op-
    posite of a uniform employment practice that would
    provide the commonality needed for a class action”)
    (quotation marks omitted). In reversing class certification,
    the Court found that there was no unifying motive
    theory holding together “literally millions of employ-
    ment decisions.” 
    Id. at 2552.
      In the present case, Charter One attempts to find sig-
    nificant similarities with Dukes. Charter One’s principal
    contention is that both classes’ claims require the same
    significant and time-consuming individualized liability
    inquiries that the Supreme Court found problematic
    in Dukes. For the Hourly class, Charter One argues
    No. 10-3848                                                  17
    that there are at least four ways in which plaintiffs
    were denied overtime, and sifting through such individ-
    ualized evidence should preclude a commonality find-
    ing. Similarly for the ABM class, Charter One contends
    that a factfinder would be required to individually deter-
    mine whether each ABM performed non-exempt duties.7
    The defendant makes one additional argument re-
    garding the ABM class. Namely, Charter One branch
    managers are vested with the same kind of discretion as
    the store managers in Dukes and such discretion limits
    the ability of the court to find common claims.
    Despite Charter One’s best efforts to fit the present
    case into the Dukes mold, there are significant distinc-
    tions. Perhaps the most important distinction is the size
    of the class and the type of proof the Dukes plaintiffs
    were required to offer. See, e.g., Youngblood v. Family
    7
    Misreading Dukes, Charter One also contends that it has a
    statutory right to present its affirmative exemption defenses
    on an individualized basis, and thus, there is no commonal-
    ity. However, the Dukes passage the defendant cites in
    support of its argument discusses how the Ninth Circuit
    improperly certified a Rule 23(b)(2) class that sought equitable
    relief. In so ruling, the Court struck down the Ninth Circuit’s
    attempt to circumvent 42 U.S.C. § 2000e-5(g)(2)(A) by holding
    that Wal-Mart had a statutory right to avoid equitable
    damages by showing that “it took an adverse employment
    action for any reason other than discrimination.” 
    Dukes, 131 S. Ct. at 2560-61
    (emphasis added). Charter One has no such
    statutory right because both classes are seeking only monetary
    relief through a Rule 23(b)(3) class.
    18                                              No. 10-3848
    Dollar Stores, Inc., No. 09 Civ. 3176 (RMB), 
    2011 WL 4597555
    , at *4 (S.D.N.Y. Oct. 4, 2011) (distinguishing
    Dukes on the ground that New York’s version of the
    FLSA does not require “an examination of the subjective
    intent behind millions of individual employment deci-
    sions”); Bouaphakeo v. Tyson Foods, Inc., No. 5:07-cv-04009-
    JAJ, 
    2011 WL 3793962
    , at *2 (N.D. Iowa Aug. 25, 2011)
    (reasoning that because “Dukes was a Title VII case, the
    focus of the inquiry in resolving each individual’s
    claim was ‘the reason for [the] particular employment
    decision’ ”). In Dukes, 1.5 million nationwide claimants
    were required to prove that thousands of store managers
    had the same discriminatory intent in preferring men
    over women for promotions and pay raises. Here, there
    are 1,129 Hourly class members and substantially
    fewer ABMs, all of whom are based only in Illinois. The
    plaintiffs’ IMWL claim requires no proof of individual
    discriminatory intent. Instead, the plaintiffs’ theory,
    supported by ninety-six Hourly class declarations and
    twenty-four ABM class declarations, is that Charter
    One enforced an unofficial policy in Illinois denying
    certain employees overtime pay that was lawfully due.
    All ninety-six Hourly declarations specifically allege
    that the declarant had been denied lawfully due
    overtime com pensation. Eighty-nine declarations
    further allege that Charter One had a policy instructing
    the declarant not to record earned overtime. Mean-
    while, the majority of the ABM declarants assert that
    they primarily performed non-exempt work. Although
    there might be slight variations in how Charter One
    enforced its overtime policy, both classes maintain a
    No. 10-3848                                          19
    common claim that Charter One broadly enforced an
    unlawful policy denying employees earned-overtime
    compensation. This unofficial policy is the common
    answer that potentially drives the resolution of this
    litigation. 
    Dukes, 131 S. Ct. at 2551
    .
    Appellant’s final criticism of the ABM class equating
    Wal-Mart managers’ promotion discretion with the
    limited discretion vested in Charter One branch
    managers is misplaced. Specifically, the plaintiffs in
    Dukes alleged that the discretion given to Wal-Mart
    managers is what caused female employees to experience
    disparate treatment. 
    Id. at 2548.
    The Supreme Court
    was clearly unable to infer a common claim from an
    allegation that on its face suggested store managers
    exercised significant discretion. 
    Id. at 2554.
    Here, the
    ABM class contends, and is supported in part by twenty-
    four ABM declarations, that a company-wide policy in
    Illinois requires ABMs to perform non-exempt work in
    violation of the IMWL. Although there again might be
    slight variations in the exact duties that each ABM per-
    forms from branch to branch, the ABMs maintain a com-
    mon claim that unofficial company policy compelled
    them to perform duties for which they should have
    been entitled to collect overtime. Contrary to Charter
    One’s assertion, an individualized assessment of each
    ABM’s job duties is not relevant to a claim that an
    unlawful company-wide policy exists to deny ABMs
    overtime pay.
    Ultimately, the glue holding together the Hourly and
    ABM classes is based on the common question of
    whether an unlawful overtime policy prevented em-
    20                                        No. 10-3848
    ployees from collecting lawfully earned overtime com-
    pensation. For that reason, we find that the district
    court’s certification order satisfies the commonality
    prerequisite and the district court properly granted
    class certification.
    III. C ONCLUSION
    For the foregoing reasons, we A FFIRM the district
    court’s order certifying an Hourly and ABM class for
    the plaintiffs’ IMWL claims.
    1-27-12
    

Document Info

Docket Number: 10-3848

Citation Numbers: 667 F.3d 900, 81 Fed. R. Serv. 3d 996, 18 Wage & Hour Cas.2d (BNA) 1121, 2012 WL 251927, 2012 U.S. App. LEXIS 1478

Judges: Kanne, Evans, Clevert

Filed Date: 1/27/2012

Precedential Status: Precedential

Modified Date: 10/19/2024