Court Denies Physical Posting of FLSA Notice: Williams v. Insomnia Cookies, LLC, No. 23-CV-669 (E.D. Mo. Aug. 28, 2024) (J. Autrey)

Plaintiff Michael Williams and Jonn Gibson sued defendants Insomnia Cookies, LLC, Serve U Brands, Inc., and Seth Berkowitz in the United States District Court for the Eastern District of Missouri, raising claims of failure to pay overtime under the Fair Labor Standards Act (FLSA) and Missouri state law. Plaintiff Gibson moved for leave to file a Second Amended Complaint to add claims of quantum meruit and unjust enrichment.

Factual Overview

Michael Williams and Jonn Gibson were employed as Store Managers in Insomnia Cookies stores in the St. Louis area. They initially filed suit in the Southern District of New York, asserting wage and hour claims under the FLSA and Missouri state law. The case was transferred to the Eastern District of Missouri. Plaintiffs filed an Amended Complaint alleging failure to pay overtime under the FLSA and Missouri law, as well as additional claims by Gibson for breach of implied contract and failure to pay delivery experts. The court granted Defendants’ motion to compel arbitration for Williams’ claims and partially granted a motion to dismiss some of Gibson’s claims. Gibson then sought leave to file a Second Amended Complaint to add quantum meruit and unjust enrichment claims.

Legal Analysis

Motion for Leave to Amend: The court found that Gibson’s motion for leave to amend was timely filed, as he was granted an extension to file by May 31, 2024. The court then considered whether amendment was proper under Federal Rule of Civil Procedure 15(a).

FLSA Preemption: The court rejected Defendants’ argument that amendment would be futile due to FLSA preemption of the proposed state common law claims. The court reaffirmed its previous ruling that Congress did not intend to occupy the field of wage and hour law, and that state common law claims of quantum meruit and unjust enrichment are not in conflict with the FLSA.

Class Certification: The court denied Gibson leave to bring the new state law claims on behalf of a class, as the deadline for class certification motions had passed.

Collective Action Certification and Notice Issues

Personal Information Disclosure: The court denied Gibson’s request for detailed contact information of potential collective action members. The court found that the agreed-upon procedures, including the use of a Third-Party Administrator to disseminate notice, were sufficient to effectuate proper notice.

Physical Posting of Notice: The court denied Gibson’s request to require physical posting of notice in Insomnia Cookies locations. The court determined that notice through U.S. Mail, email, and text messages was sufficient, and that physical posting would be redundant and potentially confusing.

The court granted Gibson’s motion for leave to file a Second Amended Complaint to add quantum meruit and unjust enrichment claims on his own behalf only, denied his request for detailed contact information of potential collective action members, and denied his request for physical posting of notice in Insomnia Cookies locations.