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Inniss v. Rocky Mountain Inventory, Inc.

Citation: 385 F. Supp. 3d 1165Docket: Civil Action No. 18-cv-1475-WJM-KMT

Court: District Court, D. Colorado; May 29, 2019; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, a former 'Inventory Auditor' for a corporation, brought claims against his employer and its owners, alleging violations of the Fair Labor Standards Act (FLSA) and Colorado wage laws. The plaintiff contended that he was denied overtime pay and proper compensation, asserting that his recorded hours were altered without his knowledge. After raising these concerns, he was terminated, prompting allegations of retaliation. The defendants filed a Partial Motion to Dismiss, challenging the adequacy of the claims, particularly the individual liability of the corporate owners under the FLSA. Although the Tenth Circuit has not explicitly addressed the liability of corporate owners as employers, the court recognized the broad definition of 'employer' within the FLSA and found the plaintiff's allegations plausible. The court also affirmed that the plaintiff’s complaints about wage discrepancies constituted protected activity under the FLSA, supporting his retaliation claim. Regarding causation, the court held that despite the time lapse between the plaintiff's complaints and his termination, the timing was sufficient at the pleading stage to suggest a retaliatory motive. Therefore, the court denied the defendants' motion, allowing the claims to proceed to discovery.

Legal Issues Addressed

Causation in Retaliation Claims

Application: The court found that the timeline between the plaintiff's complaints and termination was sufficient at the pleading stage to suggest causation.

Reasoning: Inniss complained about discrepancies in February 2018 and was terminated two days after a response from Janine Hungerford in June 2018.

Fair Labor Standards Act (FLSA) Claims

Application: The plaintiff alleges violations of the FLSA, including failure to pay overtime and proper wages, which the court found sufficient to meet pleading standards.

Reasoning: Inniss claims include failure to pay owed wages under the FLSA, noncompliance with Colorado wage laws, and retaliation for asserting his rights.

Individual Liability of Corporate Owners under FLSA

Application: The court considered whether corporate owners could be liable as employers under FLSA, noting that while the Tenth Circuit has not established this, the broad definition of 'employer' supports the plausibility of such claims.

Reasoning: The Hungerfords contest the adequacy of the claims for individual liability, noting that the Tenth Circuit has not established that corporate owners can be considered employers under the FLSA.

Pleading Standards for Employer Status

Application: The court determined that specific examples provided by the plaintiff were sufficient to support claims of the Hungerfords' roles as employers under the FLSA.

Reasoning: Inniss provides two specific examples: reprimands from the Hungerfords regarding mileage reports and inquiries about altered hours in the Exaktime system.

Retaliation under the Fair Labor Standards Act

Application: The court held that the plaintiff's complaints regarding pay discrepancies constituted protected activity under the FLSA, supporting his retaliation claim.

Reasoning: Regarding FLSA retaliation, the statute prohibits discrimination against employees for filing complaints related to the FLSA.