Costello v. Home Depot USA, Inc.

928 F.Supp.2d 473

James COSTELLO and Aron Moore, Plaintiffs,

v.HOME DEPOT USA, INC., Defendant.

Civil Action No. 3:11–CV–953 (JCH).

United States District Court, D. Connecticut.

March 5, 2013.

Caitlin Duffy, Olimpio Lee Squitieri, Squitieri & Fearon, New York, NY, Mark P. Kindall, Robert A. Izard, Jr., Izard Nobel, LLP, West Hartford, CT, for Plaintiffs.

RULING RE: DEFENDANT'S MOTION FOR SUMMARY JUDGMENT AS TO JAMES COSTELLO (Doc. No. 93) AND DEFENDANT'S MOTION FOR SUMMARY JUDGMENT AS TO ARON MOORE (Doc. No. 98) ¹

JANET C. HALL, District Judge.

I. INTRODUCTION

Plaintiffs James Costello and Aron Moore bring this action against defendant Home Depot U.S.A., Inc. (“Home Depot”), alleging that they were not paid for overtime work in violation of the Fair Labor Standards Act (the “FLSA”), 29 U.S.C. § 207. Home Depot simultaneously filed these Motions for Summary Judgment as to Costello (Doc. No. 93) and Moore (Doc. No. 98), arguing that there was no violation of the FLSA because both former employees were properly categorized as exempt as executive employees from the FLSA's rules governing overtime payments.

For the following reasons, the Motions for Summary Judgment are denied.

II. STANDARD OF REVIEW

A motion for summary judgment “may properly be granted ... only where there is no genuine issue of material fact to be tried, and the facts as to which there is no such issue warrant judgment for the moving party as a matter of law.” In re Dana Corp., 574 F.3d 129, 151 (2d Cir.2009). Thus, the role of a district court in considering such a motion “is not to resolve disputed questions of fact but only to determine whether, as to any material issue, a genuine factual dispute exists.” Id. In making this determination, the trial court must resolve all ambiguities and draw all inferences in favor of the party against whom summary judgment is sought. See Loeffler v. Staten Island Univ. Hosp., 582 F.3d 268, 274 (2d Cir.2009).

“[T]he moving party bears the burden of showing that he or she is entitled to summary judgment.” United Transp. Union v. Nat'l R.R. Passenger Corp., 588 F.3d 805, 809 (2d Cir.2009). Once the moving party has satisfied that burden, in order to defeat the motion, “the party opposing summary judgment may not merely rest on the allegations or denials of his pleading; rather his response, by affidavits or otherwise as provided in the Rule, must set forth' specific facts' demonstrating that there is ‘a genuine issue for trial.’ ” Wright v. Goord, 554 F.3d 255, 266 (2d Cir.2009) (quoting Fed.R.Civ.P. 56(e)). “A dispute about a ‘genuine issue’ exists for summary judgment purposes where the evidence is such that a reasonable jury could decide in the non-movant's favor.” Beyer v. County of Nassau, 524 F.3d 160, 163 (2d Cir.2008) (quoting Guilbert v. Gardner, 480 F.3d 140, 145 (2d Cir.2007)); see also Havey v. Homebound Mortg., Inc., 547 F.3d 158, 163 (2d Cir.2008) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)) (stating that a non-moving party must point to more than a mere “scintilla” of evidence in order to defeat a motion for summary judgment).

III. FACTUAL BACKGROUND

This case has a somewhat convoluted procedural history. In 2004, two separate federal actions were filed alleging that Home Depot violated the FLSA with regardto merchandising assistant store managers (“MASMs”). These cases were consolidated, and the district court subsequently granted a collective action certification. See Aquilino v. Home Depot, U.S.A., Inc., No. 04–04100, 2011 WL 564039, *1 (D.N.J.2011) (summarizing history). However, in February 2011, the district court decertified the collective action. Id. at *12. Separate multiple-plaintiff actions followed, including the present action. Several of the original plaintiffs in this action were voluntarily dismissed, others were severed and transferred to other districts following an Order of this court (Doc. No. 72). The only remaining plaintiffs in this action are James Costello and Aron Moore.

Home Depot operates large, warehouse-style retail stores that sell home improvement products and services. See Defendant's Local Rule 56(a)(1) Statement Regarding James Costello (“Def.'s 56(a)(1), Costello”) at ¶ 1; Plaintiff James Costello's Local Rule 56(a)(2) Statement (“Costello 56(a)(2)”) at ¶ 1. Home Depot stores are staffed by one Store Manager and up to seven Assistant Store Managers, a group that includes MASMs. Def.'s 56(a)(1), Costello at ¶ 2; Costello 56(a)(2) at ¶ 2. MASMs are the second-highest-ranking employees in Home Depot stores, subordinate only to the Store Manager. Id. The stores are divided into up to eleven core merchandising departments: Lumber, Building Materials, Flooring, Paint, Hardware, Plumbing, Electrical, Garden, Kitchen & Bath, Millwork, and Decor. Def.'s 56(a)(1), Costello at ¶ 3; Costello 56(a)(2) at ¶ 3.

MASMs and Specialty ASMs oversee from one to eleven merchandising departments. Def.'s 56(a)(1), Costello at ¶ 4; Costello 56(a)(2) at ¶ 4; Plaintiff Aron Moore's Local Rule 56(a)(2) Statement (“Moore 56(a)(2)”) at ¶ 4. Merchandising departments are staffed by sales associates and one department supervisor. Id. MASMs supervise the department supervisors and associates assigned to their departments. Id. Costello and Moore dispute whether all of the departments they were assigned to also had an assigned department supervisor, and they maintain that the department supervisors are primarily responsible for supervision of associates in that department. Costello 56(a)(2) at ¶ 4; Moore 56(a)(2) at ¶ 4. The MASM job description states that, among other responsibilities, MASMs are responsible for “[m]aintaining department profitability,” “provid[ing] leadership to Associates,” and “[s]etting store objectives and ensuring [that] they are met.” Def.'s 56(a)(1), Costello at ¶ 5; Costello 56(a)(2) at ¶ 5.

A. James Costello

Costello was hired as a sales associate by Home Depot in March 1997. Def.'s 56(a)(1), Costello at ¶ 6; Costello 56(a)(2) at ¶ 6. On July 29, 2002, Costello was promoted to the MASM position. Def.'s 56(a)(1), Costello at ¶ 7; Costello 56(a)(2) at ¶ 7. Before his promotion, Costello went through a retail management assessment and training program. Id. The parties dispute exactly what the training entailed or whether Costello received continuous training as an MASM, but agree the training included review of a Home Depot manual that covered various parts of store operations. Id.

Costello began working as an MASM in Westerly, Rhode Island in July 2002, and was transferred as an MASM to a store in Waterford, Connecticut in September 2003, where he remained, with the exception of a temporary reassignment to a store in Lisbon, Connecticut, until his employment ended on January 1, 2006. Def.'s 56(a)(1), Costello at ¶ 8; Costello 56(a)(2) at ¶ 8. At the Westerly store, Costellowas assigned to the Lumber, Millwork, Building Materials, Hardware, Pro Desk, and Tool Rental Center departments, and for a short time, the Front Desk. Def.'s 56(a)(1), Costello at ¶ 9; Costello 56(a)(2) at ¶ 9. The Pro Desk, Hardware, and Rental Center departments each had department supervisors, and there was a fourth department supervisor who managed the Lumber, Building Materials, and Millwork departments. Id. These four department supervisors reported to Costello. Id. When Costello was assigned to the Front Desk, an additional supervisor reported to him. Id. A disputed number of other employees, including associates, also worked in the store. Id.

At the Waterford store, Costello was assigned to the Lumber, Building Materials, Millwork, and Hardware departments. Def.'s 56(a)(1), Costello at ¶ 10; Costello 56(a)(2) at ¶ 10. The department supervisor for those four departments reported to Costello. Id. At the Lisbon store, Costello was responsible for the Hardware, Pro Desk, Lumber, and Millwork departments, each of which had its own department supervisors, who reported to Costello. Def.'s 56(a)(1), Costello at ¶ 11; Costello 56(a)(2) at ¶ 11.

Costello resigned from Home Depot on either December 29, 2005 or January 1, 2006, and this resignation occurred around the time allegations by female employees were made against him. Def.'s 56(a)(1), Costello at ¶ 12; Costello 56(a)(2) at ¶ 12. Home Depot claims that an investigation was performed relating to the complaints and that Costello was found to have violated the company's Code of Conduct and his employment was terminated. Def.'s 56(a)(1), Costello at ¶ 12; Costello 56(a)(2) at ¶ 12.

The MASM job description states that the major tasks and responsibilities of the position include, “[r]ecruiting, interviewing applicants and making recommendations to the Store Manager about hiring for open positions.” Def.'s 56(a)(1), Costello at ¶ 14; Costello 56(a)(2) at ¶ 14. When assigned to the Westerly store, Costello assisted in preparing the store for its grand opening and was involved in hiring staff. Def.'s 56(a)(1), Costello at ¶ 15; Costello 56(a)(2) at ¶ 15. Costello conducted 200 or 300 interviews and asked candidates about their product knowledge, departmental preferences, and previous experience. Id. He made recommendations to the store manager or human resources manager about who should be hired based on his interviews, and at least some of these candidates were hired. Id. Costello was then part of a group that was involved in deciding where the new employees would be placed and what salary they would be offered. Id. Costello claims that the final hiring decisions were made by the store manager or human resources manager. Id. Following the opening of the Westerly store, Costello conducted a few additional interviews and recommended that two employees be transferred in to the store from different Home Depot stores. Id. Costello claims that he was not involved in the hiring process at the Waterford store. Id.

Costello taught forklift training classes and, when he had a department...