Nicola Benbrook sued Pathways Holdings, LLC in the United States District Court for the District of Kansas, raising claims under the Fair Labor Standards Act (FLSA) and the Kansas Wage Payment Act (KWPA). Defendant Pathways Holdings, LLC moved to dismiss plaintiff’s claims under Rule 12(b)(6).
Factual Overview
Nicola Benbrook was employed by Pathways Holdings, LLC, which operates a drug and alcohol rehabilitation facility in Wichita, Kansas, from 2018 to October 2023 as an hourly nonexempt employee. Benbrook alleges that she regularly worked over 40 hours per week and handled goods that had been moved or produced in commerce. The defendant has a policy of deducting 30 minutes from non-exempt employees’ compensation for each shift worked, ostensibly for a lunch break. However, Benbrook claims that employees are not allowed to take uninterrupted lunch breaks due to limited coverage and time constraints. Benbrook alleges that during her entire employment, she was only able to take a 30-minute uninterrupted lunch break on five occasions.
Legal Analysis
FLSA Coverage
The court addressed whether Benbrook sufficiently alleged enterprise coverage under the FLSA. While Benbrook’s allegations regarding handling goods moved in commerce were found to be somewhat lacking, the court considered her arguments and Pathways Holdings’ statements in another case regarding interstate commerce. The court found these sufficient at this stage to establish that Pathways Holdings is a covered employer under the FLSA.
FLSA Gap Time Claim
The court discussed the viability of Benbrook’s claim for unpaid regular hours in weeks where she did not work 40 hours, known as a “gap time” claim. The court noted that such claims are not recoverable under the FLSA when the rate of pay for all hours worked exceeds minimum wage.
KWPA Claims
Overtime Claims: The court addressed whether Benbrook could bring a claim for failure to pay overtime under the KWPA when the FLSA applies. The court reiterated its previous holdings that KWPA-based claims for minimum or overtime wages are preempted by the FLSA.
Gap Time Claims: The court recognized that a plaintiff employed by a covered employer may bring a gap time claim under the KWPA. However, the court found that Benbrook’s factual allegations did not support such a claim, as she alleged working regularly in excess of 40 hours per week.
Willful Conduct
The court examined whether Benbrook sufficiently alleged willful conduct to extend the FLSA’s statute of limitations from two years to three years. The court found Benbrook’s allegations that management was aware of unpaid wages and employees’ complaints sufficient to allege willful conduct at this stage of the proceedings.
The court took the motion to dismiss under advisement and directed Benbrook to file an amended complaint addressing the issues identified in the opinion.
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