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Maclin v. Reliable Reports of Texas, Inc.

United States District Court, N.D. Ohio, Eastern Division

March 26, 2018

HAROLD MACLIN, on behalf of himself and all others similarly situated, Plaintiffs,
v.
RELIABLE REPORTS OF TEXAS, INC., d/b/a Reliable Reports, Inc. Defendant.

          OPINION AND ORDER

          DAN AARON POLSTER UNITED STATES DISTRICT JUDGE

         This case is before the Court on Defendant's Motion to Dismiss Plaintiff's Amended Complaint. (Doc #: 10.) Defendant asks the Court to dismiss the federal overtime claims of non-Ohio residents for lack of personal jurisdiction under Fed.R.Civ.P. 12(b)(2) and to dismiss the state and federal overtime claims for failure to state a claim under Rule 12(b)(6). The Court has reviewed the Motion, the Response brief (Doc #: 11), and the Reply (Doc #: 12), and is prepared to issue a ruling.

         I.

         Defendant Reliable Reports of Texas, Inc. (“Reliable”) is a company that is incorporated and headquartered in Texas. Through the employment of Field Reporting Specialists (“Inspectors”), Reliable provides residential and commercial property inspection services for the underwriting departments of insurance providers. Reliable employs approximately 438 individuals who reside in 34 states conducting business in 38 states. Of those 438 employees, only 14 work in the State of Ohio. Reliable employs 152 people in Texas, including its entire corporate office, as well as 64 members of the field team.

         Plaintiff Harold Maclin is a resident of Cuyahoga County, Ohio. He alleges that he worked as an Inspector for Reliable from July 2016 to 2017. He asserts that the day-to-day duties of an Inspector involve traveling to the property in question to conduct an inspection, completing a report, and then forwarding the report to his/her manager where it is reviewed for accuracy and completeness. Maclin asserts that it was common for him and others to work more than 50-60 hours per week absent overtime pay. More specifically, Reliable would pay inspectors the piece-work rate for hours worked in a week over 40, and not the overtime premium. Additionally, Maclin alleges that Reliable failed to make and preserve accurate records of time worked, much less overtime worked

         Based on these allegations, Maclin filed a Complaint on December 15, 2017, purporting to bring a collective overtime action against Reliable under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (“FLSA”), and a Rule 23 class action against Reliable under the Ohio Minimum Fair Wage Standards Act, O.R.C. §§ 4111.01 et seq. (“OMFWSA”). Maclin defined the FLSA collective as:

All current and former property Inspectors employed by Reliable Reports of Texas, Inc. d/b/a Reliable Reports, Inc. at any time between December 13, 2014 and the present.

         (Comp. ¶ 25.) Maclin defined the OMFWSA class as:

All current and former property inspectors employed by Reliable Reports of Texas, Inc. d/b/a Reliable Reports, Inc. any time between December 13, 2014 and the present.

(Id. ¶ 30.)

         On January 12, 2018, Reliable filed a Motion to Dismiss Plaintiff's Complaint arguing that Reliable is not subject to personal jurisdiction in Ohio with respect to the FLSA claims of non-Ohio plaintiffs, e.g., collective opt-in plaintiff Curtis Weber, who lives and works in Texas. (Doc #: 6-1 at 3-8.) Reliable also argued that the state and federal overtime claims fail to state a claim under the stringent Iqbal/Twombly standards. (Id. at 8-14.) On February 2, 2018, Maclin filed a Response brief and a First Amended Complaint that appeared to respond to Reliable's arguments. (Doc ##: 6, 7.)

         The Amended Complaint contains more factual assertions, and Maclin now defines the FLSA collective as:

All current and former Inspectors employed by Defendant in the United States in the three years prior to filing this ...

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