Walker v. Civility Mgmt. Sols.

1

Mario Walker & Sandra Goins, Plaintiffs, v. Civility Management Solutions, LLC, et al., Defendants.

CIVIL No. GLS-21-2100

United States District Court, D. Maryland, Southern Division

September 12, 2024

MEMORANDUM OPINION

Gina L. Simms United States Magistrate Judge

Pending before the Court is “Plaintiffs' Motion for Partial Summary Judgment” and memorandum in support thereto (ECF Nos. 65, 65-1) (collectively “the Motion”) filed by Plaintiffs Mario Walker (“Plaintiff Walker”) and Susan Goins (“Plaintiff Goins”). Defendants Civility Management Solutions, LLC and Laurie Sayles (collectively “the Defendants”) filed their opposition related thereto (“Opposition”), and Plaintiffs filed a Reply. (ECF Nos. 66, 70). The matter is fully briefed, accordingly no hearing is necessary. See Local Rule 105.6 (D Md. 2023).

For the reasons set forth below, the Motion is DENIED.

I. BACKGROUND

A. Procedural Background^[1]

Plaintiff Walker filed suit (“Walker case”) against the Defendants asserting the following causes of action: Count I, violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., overtime wage violation; Count II, violation of the FLSA, minimum wage violation; Count III, violation of Md. Code Ann. Lab. & Empl. § 3-401 (“MWHL”), overtime wage violations; Count IV, violation of the MWHL, minimum wage violations; Count V, violation of the Maryland Wage Payment and Collection Law, Md. Code Ann. Lab. & Empl. § 3-501 (“MWPCL”), failure to pay wages due; Count VI, breach of contract; and Count VII, unjust enrichment. (Walker Case, ECF No. 1). Plaintiff Goins filed a complaint (the “Goins case”) against the Defendants asserting the following causes of action: Count I, violation of the FLSA, minimum wage violation; Count II, violation of the MWHL, minimum wage violations; and Count III, violation of the MWPCL, failure to pay wages due. (Goins Case, ECF No. 1).^[2]

After Plaintiffs Walker and Goins (collectively “the Plaintiffs”) filed a notice of intent to file motions for summary judgment, the Court issued a memorandum opinion and order granting the Plaintiffs' request. (ECF Nos. 60, 62).

B. Factual Background^[3]

1. Evidence Relevant to both Plaintiffs

a. Undisputed Facts

Defendant Sayles is the sole owner and chief executive officer (“CEO”) of Civility MS, a professional consulting company that provides services primarily to the federal government. (Defendant Sayles Dep., 6:20-7:21, J.A. 000003). As the CEO, Defendant Sayles had the authority to hire and fire employees. (Defendant Sayles Dep., 25:8-11, J.A. 000007). Defendant Sayles also had the authority to determine employee's pay. (Defendant Sayles Dep., 46:16-21, J.A. 000013; Ellis Affidavit ¶ 2, J.A. 000233). During the relevant time period, Dawn Ellis managed Civility MS's payroll as the Finance Manager/Administrator and Accounts Receivables Administrator. (Ellis Affidavit, ¶ 1, J.A. 000233; Defendant Sayles Dep., 24:21-25:1, J.A. 000007).

On or around September 30, 2018, Defendant Sayles informed Civility MS employees that she could no longer afford to pay their salaries. (Plaintiff Walker Dep., 39:4-40:15, J.A. 00009192; Defendant Sayles Dep., 21:9-24:11, J.A. 000006-07; Ellis Affidavit, ¶ 3, J.A. 000233). From October 1, 2018 to February 28, 2019, Plaintiffs maintained their access to Civility MS's office. (Defendant Sayles Dep., 26:1-27:5, J.A. 000008).

Defendants did not maintain accurate employee records, including offer letters and the specific hours that Plaintiffs worked. (Defendant Sayles Dep., 9:13-19:1, J.A. 000003-06; Defendant Sayles Dep., 16:17-18:18, J.A. 000245-46).

b. Material Fact in Dispute: Employees or Laid Off?

The parties dispute Plaintiffs' employment status from October 1, 2018 to February 28, 2019. Per Plaintiffs, they were not laid off and continued to work full-time without pay, with no changes to their daily job responsibilities. (Plaintiff Walker Dep., 109:17-110:5, J.A. 000161-62; Plaintiff Goins's Ans. to Interrog., at No. 10, J.A. 000211; Ellis Affidavit, ¶ 3, J.A. 000233). According to Defendants, Plaintiffs were laid off on September 30, 2018 and were rehired on March 1, 2019, at which time they received new offer letters. (Defendant Sayles Dep., 24:4-29:7, J.A. 000007-08; Defendant Sayles Dep., 66:9-67:7, J.A. 000018).

2. Plaintiff Walker

a. Undisputed Facts

On or about July 25, 2017, Plaintiff Walker was hired as a financial manager at Civility Management Solutions, LLC (“Civility MS”). (Deposition of Plaintiff Walker, “Plaintiff Walker Dep.,” 28:1-9, J.A. 000080). Plaintiff Walker's offer letter promised that he would receive a salary of $100,000 per year for his first three months of employment, and $110,000 per year thereafter. (Plaintiff Walker Dep., 49:18-22, J.A. 000101).

Defendants do not possess any of Plaintiff Walker's offer and termination letters, as his employee file was deleted from Civility MS's online recordkeeping system. (Deposition of Defendant Sayles, “Defendant Sayles Dep.,” 9:13-19:1, J.A. 000003-06; Plaintiff Walker Dep., 92:20-95:19, J.A. 000145-147).

On or around July 16, 2018, Plaintiff Walker became a corporate program manager/business developer after his assignment on the Department of Homeland Security (“DHS”) project ended. (Plaintiff Walker Dep., 28:10-18, J.A. 000080; Plaintiff Walker Dep., 35:9-16, J.A. 0000087; Plaintiff Walker Dep., 52:2-7, J.A. 0000104; Defendant Sayles Dep., 72:914, J.A. 000019). As a corporate program manager, Plaintiff Walker reported directly to Defendant Laurie Sayles (“Defendant Sayles”), sent offer letters to employees, and managed Civility MS contracts as well as employees' and customers' expectations. (Plaintiff Walker Dep., 54:5-17, J.A. 0000104-06; Plaintiff Walker Dep., 87:5-13, J.A. 0000139; Defendant Sayles Dep., 48:18-20, J.A. 0000013).

During Plaintiff Walker's employment, Defendant Sayles approved the purchase of a cot so that Plaintiff Walker could have a place to sleep at the Civility MS office. (Defendant Sayles Dep., 53:2-54:3, J.A. 000014-15). In addition, Plaintiff Walker made personal charges on Civility MS's company credit card, which were later deducted from his paychecks. (Plaintiff Walker Dep., 83:13-84:9, J.A. 000135-36). It is unclear from the record as to when these facts occurred.

Plaintiff Walker was paid a salary in accordance with his offer letter from July 25, 2017 to May 30, 2018, and January 1, 2020 to June 30, 2020. (Plaintiff Walker Dep., 28:1-9, J.A. 000080; Affidavit of Plaintiff Walker, “Plaintiff Walker Affidavit,” ¶ 3, J.A. 000214). However, Plaintiff was not paid a salary and received no pay from June 1, 2018 to June 15, 2018 and from October 1, 2018 to February 28, 2019. (Civility Management Solutions Payroll Details Report, “Plaintiff Walker's Payroll Report,” J.A. 000227). In addition, from July 16, 2018 to July 31, 2018 and March 1, 2019 to December 31, 2019, Plaintiff Walker was paid a salary less than $110,000. (Plaintiff Walker's Payroll Report, J.A. 000226). Finally, Plaintiff Walker received various payment amounts, ranging from $0 to $4,833.61 from June 1, 2018 to September 30, 2018 and December 31, 2019. See generally Plaintiff Walker's Payroll Report, J.A. 000220-227.

Specifically, related to Plaintiff Walker's payments:

Date Range

Amount of payments received

Evidence

June 1, 2018 to June 15, 2018

No pay

(Plaintiff Walker's Payroll Report, J.A. 000227; Plaintiff Walker Dep., 32:17-33:4, J.A. 000084-85)

July 16, 2018 to July 31, 2018

$3,490.08

(Plaintiff Walker's Payroll Report, J.A. 000226)

August 1, 2018 to August 15, 2018

$4,833.61, which included a $4,272.67 bonus payment

(Plaintiff Walker's Payroll Report, J.A. 000226)

August 16, 2018 to September 30, 2018

Approximately $1,042.00

(Plaintiff Walker's Payroll Report, J.A. 000225)

October 1, 2018 to February 28, 2019

No pay

(Plaintiff Walker Dep., 46:12-15, J.A. 000098; Plaintiff Walker Affidavit, ¶ 3, J.A. 000214; Defendant Sayles Dep., 26:3-6, J.A. 000008)

March 1, 2019 to December 31, 2019

Various amounts that ranged from $1,528.85 to $3,346.87

(Plaintiff Walker's Payroll Report, J.A. 000220-24).

In sum, Plaintiff Walker is seeking unpaid regular wages and overtime wages for the periods of June 1, 2018 to December 31, 2019. In particular, he is claiming unpaid wages and/or overtime for the periods of June 1, 2018 - August 15, 2018, August 16, 2018 - September 30, 2018, October 1, 2018 - February 28, 2019, and March 1, 2019 - December 31, 2019.

b. Disputed Facts

According to Plaintiff Walker, he never received a new offer letter indicating that his pay would be reduced upon his promotion to corporate program manager/business developer. (Plaintiff Walker Dep., 32:17-33:4, J.A. 000084-85; Plaintiff Walker Dep., 50:13-51:1, J.A. 000102-03; Plaintiff Walker Affidavit, ¶ 3, J.A. 000214). Defendants counter that when Plaintiff was hired as a corporate program manager on or around July 16, 2018, he received a new offer letter with a reduced salary. (Plaintiff Walker Dep., 37:4-15, J.A. 000089; Defendant Sayles Dep. 11:21-12:9, J.A. 000004; Plaintiff Walker's Payroll Report, J.A. 000225-227). On this issue, Defendant Sayles did not maintain any of Plaintiff Walker's offer letters, and therefore does not know what his reduced salary was. (Defendant Sayles Dep., 27:6-31:11, J.A. 000008-9; Defendant Sayles Dep. 48:7-17, J.A. 000013).

Second Plaintiff Walker was never laid off by Defendants effective September 30, 2018. Thus, between October 1, 2018 to February 28, 2019, Plaintiff Walker continued to work as an employee of Civility MS without any change in his responsibilities. (Plaintiff Walker Dep., 53:254:4, J.A. 000105-06; Plaintiff Walker Dep., 109:17-110:18, J.A. 000161-62; (Affidavit of Dawn Ellis, ...