Perez v. Repossession Management Services, LLC et al

Filing 38

CONSENT JUDGMENT; this case is closed; signed by District Judge Paul L. Maloney (Judge Paul L. Maloney, acr)

UNITED STATES DISTRICT COURT
OF THE WESTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
EDWARD C. HUGLER, 1 Acting Secretary of
Labor, United States Department of Labor,
Plaintiff,
v.
REPOSSESSION MANAGEMENT
SERVICES, LLC, d/b/a
RMS LLC, and
MICHAEL A. MYERS, an individual,
Defendants.

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Civil action no.: 1:15-cv-01312
Hon. Paul L. Maloney

CONSENT JUDGMENT
Plaintiff, EDWARD C. HUGLER, Acting Secretary of Labor, United States Department
of Labor (“Plaintiff”), having filed his Complaint and Defendants REPOSSESSION
MANAGEMENT SERVICES, LLC d/b/a RMS LLC, a limited liability company, and
MICHAEL A. MYERS, an individual, (collectively, “Defendants”), having appeared by
counsel, having answered, and having been duly advised in the premises, agree to the entry of
this Consent Judgment without contest. Now, therefore, upon motion for the attorneys for
Plaintiff and Defendants, and for cause shown:
JUDGMENT IS HEREBY ENTERED against Defendants pursuant to sections 16(c),
and 17 of the Fair Labor Standards Act of 1938, as Amended, 29 U.S.C. § 201 et. seq. (the
“Act”) as follows.

This action was commenced in the name of Thomas E. Perez, Secretary of the Department of Labor. Mr. Perez is
now the former Secretary of Labor and Edward C. Hugler is now the Acting Secretary. Therefore, Mr. Hugler is
being automatically substituted for Mr. Perez as the Plaintiff, pursuant to Fed. R. Civ. P. 25(d), and the caption of
this action is amended accordingly.
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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED, pursuant to section 17
of the Act, that Defendants, their officers, agents, servants, employees and all other persons in
active concert or participation with them are hereby permanently enjoined and restrained from
violating the provisions of the Act in any of the following manners:
I
Defendants shall not, contrary to sections 6 and 15(a)(2) of the Act, pay any of their
employees who in any workweek are engaged in commerce or in the production of goods for
commerce or who are employed in an enterprise engaged in commerce or in the production of
goods for commerce, within the meaning of the Act, wages at a rate less than $7.25 per hour (or
at a rate less than such other applicable minimum rate as may hereinafter be established by
amendment to the Act).
II
Defendants shall not, contrary to sections 7 and 15(a)(2) of the Act, employ any
employee who in any workweek is engaged in commerce or the production of goods for
commerce, or who is employed in an enterprise engaged in commerce or in the production of
goods for commerce, within the meaning of the Act, for workweeks longer than 40 hours, unless
such employee receives compensation for his employment in excess of 40 hours at a rate not less
than one and one-half times the regular rates at which he is employed.
If Defendants intend to claim an exemption to the overtime requirements of the
Act, prior to claiming such exemption, Defendants shall notify each affected employee in
writing. This written document shall contain the exemption Defendants intend to claim, the basis
for claiming it, and the corresponding Wage and Hour fact sheet.

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III
Defendants shall not fail to make, keep, and preserve records of their employees and of
the wages, hours, and other conditions and practices of employment maintained by them as
prescribed by the regulations issued, and from time to time amended, pursuant to section 11(c) of
the Act and found at 29 C.F.R. Part 516. This includes, but is not limited to, maintaining records
of all hours worked by each non-exempt employee on each workday and in each workweek, and
records of compensation paid to each employee in each workweek, whether payment is made by
a payroll check, personal check, cash, or a combination therof. The records maintained by
Defendants shall also include, but not be limited to, the full name and last-known mailing
address of all employees, the daily starting and stop time of each non-exempt employee, and the
specific method of payment made to each employee.
Defendants shall provide all non-exempt employees with a complete wage statement each
pay period that shows straight time hours, overtime hours, rate of pay, the basis on which
commissions or piece rate pay is determined, deductions, and net pay.
IV
A.

Defendants shall obtain written assurance from all hiring personnel and

management officials that no one under the age of 18 will be permitted to work in any
occupation prohibited by the child labor regulations found at 29 C.F.R. Part 570.
B.

Defendants shall provide copies of Wage and Hour’s child labor bulletin to all

hiring personnel and management and maintain a written record of the names of the individuals
to whom the bulletin is provided and dates provided.
C.

Defendants shall maintain copies of all of the records described above in

Paragraph II, III, and IV of this Consent Judgment for a period of three years.

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D.

Defendants shall provide, via first-class mail or hand delivery, all current and

future employees with Fact Sheet #77A (Prohibiting Retaliation Under the Fair Labor Standards
Act) and post a copy in a prominent place.
E.

Defendants shall post a copy of the Consent Judgment in a prominent place for a

period of three months and also mail a copy to each employee within ten (10) days after this
Consent Judgment is entered by the Court.
F.

In the event that Defendants have or intend to sell, transfer any interest, liquidate

or merge any part of, or otherwise discontinue operations of REPOSSESSION
MANAGEMENT SERVICES, LLC, d/b/a RMS LLC, Defendants agree that the injunctive
relief set forth in Paragraphs I, II, III, and IV of this Consent Judgment shall apply to any and all
successors of REPOSSESSION MANAGEMENT SERVICES, LLC d/b/a RMS LLC
operating at or out of the following locations:
(i)

8038 Maple Ridge Rd., Alger, MI 48610

(ii)

12907 Pleasanton Hwy, Bear Lake, MI 49614

(iii)

26440 W. 8 Mile Road, Southfield, MI 48033

(iv)

G4396 S. Dort Hwy, Burton, MI 48529

(v)

5216 Old 27 N, Gaylord, MI 49735

(vi)

1890 Bristol Avenue NW, Grand Rapids, MI 49504

(vii)

5387 E. Michigan Ave., Kalamazoo, MI 49048

(viii) 12646 0.1 North Rd., Perkins, MI 49872
(iv)

185 W. 7 Mile Rd., Sault Ste. Marie, MI 49783

Defendants shall promptly provide notice and a copy of this Consent Judgment to any
and all successors. Defendants shall provide written notice of any sale, transfer, liquidation,

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merger, or discontinuation of business referenced herein within 30 days of such action. Written
notice should be provided to the Wage and Hour Division at 800 Monroe Avenue NW, Suite
315, Grand Rapids, MI 49503-1451.
V
The Defendants hereby acknowledge and the Court finds that:
A.

Defendant REPOSSESSION MANAGEMENT SERVICES, LLC d/b/a RMS

LLC is an enterprise engaged in commerce or in the production of goods for commerce within
the meaning of section 3(s)(1) of the Act.
B.

Defendant MICHAEL A. MEYERS acted directly or indirectly in the interest of

the corporate Defendant REPOSSESSION MANAGEMENT SERVICES, LLC d/b/a RMS
LLC, and is an “employer” under section 3(d) of the Act and is, as such, individually responsible
for the obligations contained in this Consent Judgment.
C.

All persons hired, engaged, or utilized by Defendants to repossess vehicles in

Defendants' repossession trucks are deemed "employees," as defined by section 3(e) of the
FLSA, 29 U.S.C. § 203(e), and are entitled to the protections afforded to employees under the
FLSA.
VI
FURTHER, JUDGMENT IS HEREBY ENTERED, pursuant to section 16(c) of the
Act, in favor of Plaintiff and against Defendants in the total amount of $53,753.23.
A.

Defendants shall pay Plaintiff the sum of $25,229.88, which represents the unpaid

gross minimum wage and overtime compensation hereby found to be due for the period
December 18, 2012 through May 11, 2015, to the present and former employees named and in

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the amounts set forth in Exhibit A, attached hereto and made a part hereof, plus post-judgment
interest in the amounts set forth herein.
B.

Defendants shall further pay to Plaintiff the sum of $26,623.35, which represents

the liquidated damages hereby found to be due for the period December 18, 2012 through May
11, 2015, to the present and former employees named and in the amounts set forth in Exhibit A,
attached hereto and made a part hereof, plus post-judgment interest in the amounts set forth
herein.
C.

Pursuant to section 16(e) of the Act, Defendants shall further pay to Plaintiff the

sum of $1,900.00 in civil money penalties, plus post-judgment interest in the amounts set forth
herein.
VII
The monetary provisions of Paragraph VI of this Consent Judgment shall be deemed
satisfied by Defendants upon the following:
A.

Defendants shall deliver to Plaintiff an initial payment of $15,000.00 at the time

this Consent Judgment is filed with the Court, and the remaining amounts of unpaid
compensation and liquidated damages, plus post-judgment interest at a rate of one (1) percent,
shall be paid by Defendants to Plaintiff in installments as follows:
Payment Due

Amount Due

June 30, 2017

$9,270.96

September 30, 2017

$9,270.96

December 30, 2017

$9,270.96

March 31, 2018

$11,170.97

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B.

Defendants shall deliver to Plaintiff certified checks or cashier’s checks made

payable to the order of the “Wage and Hour Div., Labor,” and equal to the gross amount plus
post-judgment interest due employees, as set forth above. The aforesaid installment payments
shall be forwarded to the U.S. Department of Labor – Wage and Hour Division, P.O. Box 2638,
Chicago, Illinois 60690-2638. Defendants also shall provide Plaintiff a schedule, in duplicate,
showing the name, last-known address, social security number, and gross amount due for each
employee named in Exhibit A.
C.

Plaintiff shall distribute the proceeds of each installment check (less legal

deductions for each employee’s share of social security and Federal withholding taxes) to the
persons enumerated in Exhibit A, or to their estates if that be necessary, and any amounts of
unpaid compensation, liquidated damages, and post-judgment interest not so paid within a period
of three (3) years from the date of receipt thereof shall, pursuant to section 16(c) of the Act, be
covered into the Treasury of the United states as miscellaneous receipts. Defendants remain
responsible for paying their share of any applicable taxes to the appropriate State and Federal
revenue authorities.
D.

Should Defendants fail to pay any of the aforesaid installment payments on or

before the dates set forth above, the entire amount of the balance of unpaid compensation
remaining shall become due without further notice by Plaintiff to Defendants.
E.

In the event that Defendants have or intend to sell, transfer any interest, liquidate,

or merge any part of, or otherwise discontinue operations of REPOSSESSION
MANAGEMENT SERVICES, LLC, d/b/a RMS LLC, before payment in full is made to
Wage and Hour as required by Paragraphs VI and VII of this Consent Judgment, Defendants
agree that any and all successors shall be liable for the outstanding balance owed to Plaintiff

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under this Consent Judgment. Defendants shall promptly provide notice and a copy of this
Consent Judgment to any and all successors. Defendants shall provide written notice of any sale,
transfer, liquidation, merger or discontinuation of business referenced herein within 30 days of
such action. Written notice shall be provided to the Wage and Hour Division at 800 Monroe
Avenue NW, Suite 315, Grand Rapids, MI 49503-1451.
VIII
Defendants shall not request, solicit, suggest, or coerce, directly, or indirectly, any current
or former employee to return or to offer to return to the Defendants or to someone else for the
Defendants, any money in the form of cash, check, or any other form, for wages previously due
or to become due in the future to said employee under the provisions of this Consent Judgment
or the Act; nor shall Defendants accept, or receive from any employee, either directly or
indirectly, any money in the form of cash, check, or any other form, for wages heretofore or
hereafter paid to said employee under the provisions of this Consent Judgment or the Act; nor
shall Defendants discharge or in any other manner discriminate, nor solicit or encourage anyone
else to discriminate, against any such employee because such employee has received or retained
money due to him from the Defendants under the provisions of this Consent Judgment or the
Act.
IX
FURTHER, it is agreed by the parties herein and hereby ORDERED that each party
bears its own fees and other expenses incurred by such party in connection with any stage of this
proceeding to date with no costs, including, but not limited to, any and all costs referenced under
the Equal Access to Justice Act, as Amended.

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April 13, 2017
DATED: __________________________
/s/ Paul L. Maloney
PAUL L. MALONEY
UNITED STATES DISTRICT COURT JUDGE
The parties hereby consent to the entry of this Consent Judgment:
FOR THE ACTING SECRETARY OF LABOR:
NICHOLAS C. GEALE
Acting Solicitor of Labor
CHRISTINE Z. HERI
Regional Solicitor
/s/ Brooke E. Worden
BROOKE E. WORDEN

DATED: April 12, 2017

/s/ Catherine L. Seidelman
CATHERINE L. SEIDELMAN

DATED: April 12, 2017

P.O. ADDRESS:
Office of the Solicitor
U.S. Department of Labor
230 S. Dearborn St., Room 844
Chicago, IL 60604
P: [phone]
F: [phone]
ANDREW B. BIRGE
Acting United States Attorney
RYAN D. COBB
Assistant United States Attorney
Office of the United States Attorney
Western District of Michigan
330 Ionia NW, 5th Floor
P.O. Box 208
Grand Rapids, MI 49501-0208
T: [phone]
F: [phone]
[e-mail]

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FOR THE DEFENDANTS:
/s/ Michael A. Myers
MICHAEL A. MYERS
Owner

DATED: April 12, 2017

FOR REPOSSESSION MANAGEMENT
SERVICES, LLC, d/b/a RMS, LLC
/s/ Andrew Rodenhouse
ANDREW RODENHOUSE
Attorney

DATED: April 12, 2017

Rodenhouse Kuipers PC
678 Front Ave. NW, Suite 176
Grand Rapids, MI 49504
P: [phone]
F: [phone]

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EXHIBIT A
BACK WAGES AND LIQUIDATED DAMAGES OWED
Employee
1. Kirkland, Kyra
2. McClain, Cortez
3. McMullen, Brian
4. Norman, Zachary
5. Oisten, Billy
6. Pruitt, Mark
7. Scheer, Darlene
8. Schumaker, Katie
9. Schwartz, Joey
10. Troutman, Danielle
Totals:

Back Wages
(paid)
$255.62
$588.19
$8,667.20
$4,838.75
$4,000.00
$4,375.12
(paid)
$2,050.00
$455.00

Liquidated
Damages
$1,149.47
$255.62
$588.19
$8,667.20
$4,838.75
$4,000.00
$4,375.12
$244.00
$2,050.00
$455.00

Total
$1,149.47
$511.24
$1,176.38
$17,334.40
$9,677.50
$8,000.00
$8,750.24
$244.00
$4,100.00
$910.00

$25,229.88

$26,623.35

$51,853.23

Total: $51,853.23

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