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`NICHOLAS & TOMASEVIC, LLP
` Craig M. Nicholas (SBN 178444)
` Alex Tomasevic (SBN 245598)
` Shaun Markley (SBN 291785)
`225 Broadway, 19th Floor
`San Diego, California 92101
`Tel: (619) 325-0492
`Fax: (619) 325-0496
`Email: cnicholas@nicholaslaw.org
`Email: atomasevic@nicholaslaw.org
`Email: smarkley@nicholaslaw.org
`
`Attorneys for Plaintiff
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`(5) UNLAWFUL DEDUCTIONS
`FROM WAGES;
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`(6) FAILURE TO INDEMNIFY FOR
`NECESSARY EXPENDITURES;
`AND
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`(7) FAILURE TO PROVIDE
`PROPER WAGE STATEMENTS.
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`DEMAND FOR JURY TRIAL
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`CLASS AND COLLECTIVE COMPLAINT
`
`
`
`Plaintiff,
`
`DANIEL LUDLOW, an individual,
`
`
` vs.
`
`FLOWERS FOODS, INC., a
`Georgia corporation; FLOWERS
`BAKERIES, LLC, a Georgia
`limited liability company;
`
`
`
`Defendants.
`
`
`(2)
`
`UNITED STATES DISTRICT COURT
`
`SOUTHERN DISTRICT OF CALIFORNIA
`
` Case No.
`
`CLASS AND COLLECTIVE ACTION
`COMPLAINT FOR:
`
`
`(1) FAILURE TO PAY OVERTIME
`UNDER THE FAIR LABOR
`STANDARDS ACT (FLSA);
`
`INJUNCTIVE RELIEF AND
`RESTITUTION UNDER
`CALIFORNIA’S UCL;
`
`(3) FRAUD;
`
`(4) FAILURE TO PAY OVERTIME
`UNDER CALIFORNIA LAW;
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`'18
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`CV1190
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`BLM
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`JAH
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`Case 3:18-cv-01190-JO-JLB Document 1 Filed 06/06/18 PageID.2 Page 2 of 30
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`Plaintiff Daniel Ludlow (“Ludlow” or “Plaintiff”) alleges, on information
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`and belief, as follows:
`
`I.
`
`INTRODUCTION
`
`1.
`
`Flowers Foods, Inc., through its regional subsidiaries, deploys an
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`elaborate fraud to cheat its employees, its competition, and the state and federal
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`governments. Flowers1 does so, primarily, by willfully and systematically
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`misclassifying its hundreds of driver/Delivery Employees as “Independent
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`Contractors.” In doing so, Flowers denies these employees, including the named
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`Plaintiff, access to critical benefits and protections they are entitled to by law, such
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`as minimum wage, overtime compensation, indemnification for business expenses,
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`family and medical leave, unemployment insurance, and safe workplaces.
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`Through its willful misclassification, Flowers also robs the federal and state
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`governments of tax revenues and generates losses to state unemployment insurance
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`and workers’ compensation funds and gets an undue advantage over its law-
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`abiding competition.2
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`2.
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`Flowers sells billions of dollars of baked goods to retailers throughout
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`the United States. To help sustain its profits, Flowers has concocted a model
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`where it advertises “independent contractor” distributor opportunities (for
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`“Delivery Employees,” such as Plaintiff). As part of the model, Flowers makes
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`employees purchase a specific sales territory in which the Delivery Employee is
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`supposedly going to purchase, take title to, re-sell, and distribute Flowers’ bakery
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`products to the Delivery Employees’ prearranged (by Flowers) customers. The
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`Delivery Employees often pay in excess of $100,000 for the right to the
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`1 As used here, “Flowers” refers to all Defendants—who carry out the acts
`described herein jointly.
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`2 See U.S. Dept. of Labor, Wage and Hour Division, “Misclassification of
`Employees
`as
`Independent
`Contractors,”
`available
`at
`https://www.dol.gov/whd/workers/Misclassification/
`(describing
`the
`repercussions of misclassification) (last accessed June 1, 2018).
`
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`2
`CLASS AND COLLECTIVE COMPLAINT
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`Case 3:18-cv-01190-JO-JLB Document 1 Filed 06/06/18 PageID.3 Page 3 of 30
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`“independent business opportunity” outlined in Flowers’ advertisements and its
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`uniform Distributor Agreement (“DA”). Delivery Employees also have to cover
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`business operational costs like paying for the vehicles used to carry out their
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`distribution work, gas/mileage, and insurance costs.
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`3.
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`In short, Flowers sells the notion that these “independent contractors”
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`will run and control their own sales-based business with their own customers for
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`their own profit and gain. But Flowers never actually operates its business under
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`these terms, despite Delivery Employees’ heavy investment and reliance on the
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`promises Flowers makes.
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`4.
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`In reality, the distributor role is far from “independent.” For example,
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`for the vast majority of product sales, Flowers itself contracts directly with its own
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`large retailer customers (like Wal-Mart and Costco) and maintains title over the
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`baking products until the retailers take possession. But in no case do Delivery
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`Employees ever actually receive title to products that go into Flowers’ retail
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`locations. Instead, Delivery Employees merely deliver the product and stock
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`Flowers’ customers’ shelves for a non-negotiable commission that Flowers
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`unilaterally establishes.
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`5.
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`Flowers also dictates the set route or territory that the Delivery
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`Employees sell within. Flowers maintains control over that territory or route with
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`respect to things like which Flowers’ products will be available, price, shelf space,
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`displays, and promotions. Flowers also unilaterally dictates when unsold bakery
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`products must be reclaimed from retail locations (a.k.a. “stales” or stale product) as
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`dictated by its retail customers and passed down to Delivery Employees.
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`Curiously, even though Flowers purports to pass “title” to the bakery products to
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`the “independent distributors,” Flowers mandates that stale products must be
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`returned to Flowers warehouse and not used for any other purpose by the Delivery
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`Employees, even where they are forced to pay market price for them.
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`3
`CLASS AND COLLECTIVE COMPLAINT
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`6.
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`Flowers also dictates which products and brands of goods will be sold
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`within each territory. Notably, if Flowers elects to change which retailers it serves
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`or which brands it will carry, the Delivery Employee does not receive a
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`corresponding change in the valuation of the route that he was forced to buy. This
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`is true even where Flowers drastically devalues the Delivery Employee’s route
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`because Flowers unilaterally chose to discontinue a certain brand or stop selling to
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`a particular retailer within that route.
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`7.
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`Flowers also hires management and sales employees at each of its
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`local, regional subsidiaries to carry out sales and to directly supervise and instruct
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`the so-called “independent distributors” in performance of their distribution and
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`merchandizing responsibilities within their routes.
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`8.
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`Flowers also controls the Delivery Employees’ appearance as well as
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`the appearance of their vehicle. For example, Flowers can make Delivery
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`Employees paint their vehicles to Flowers’ specifications or remove advertising
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`that the Delivery Employee has chosen for his/her vehicle. Delivery Employees
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`must also abide by “Good Industry Practices” as defined by Flowers. Failure to
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`abide by any of these requirements risks termination by Flowers and often results
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`in “breach notices” by Flowers where it insists on specific performance obligations
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`with the threat of fines or termination.
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`9.
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`As such, rather than operating the sales-oriented independent business
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`promised to them, Delivery Employees primarily carry out a vital portion of
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`Flowers’ direct-store-delivery (“DSD”) business operations—delivering and
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`merchandizing bakery products to Flowers retail customers for a set commission.
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`10. The discrepancy between the business model set forth in Flowers’ DA
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`and the one actually put in place by Flowers is not accidental. Flowers sees its
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`DSD model and specifically the use of “independent distributors” as a significant
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`competitive advantage. It wants, and legally it needs, the appearance of separate,
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`independent businesses to avoid having to treat “distributors” as employees. Yet, at
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`4
`CLASS AND COLLECTIVE COMPLAINT
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`the same time Flowers must be able to ensure delivery to its blue-chip retail
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`customers and control the timely and effective distribution of its products pursuant
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`to the terms of its contracts with those retailers. Attempting to walk this invisible
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`line or to simply capture the best of both worlds, Flowers presents the illusion of
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`independence in its DA and related advertisements with no intention of actually
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`operating its business as necessitated by its retail customers and its personal
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`preference.
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`11. Plaintiff is a present Delivery Employee who entered into the DA with
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`Flowers. Plaintiff brings this action on behalf of himself and other similarly
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`situated Delivery Employees. This hybrid action is brought as a “collective” action
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`under the Federal Labor Standards Act (“FLSA”) as well as a Federal Rules of
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`Civil Procedure, Rule 23 class action based on numerous violations of California
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`state law. Plaintiff seeks recovery for fraud, lost wages (including overtime),
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`unfair competition, as well as an injunction putting an end to Flowers’ bait-and-
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`switch “independent distributor” business model. He also seeks reimbursement for
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`business expenses and illegal deductions.
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`II.
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`JURISDICTION AND VENUE
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`12. This Court has subject matter jurisdiction over Plaintiff’s federal law
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`FLSA claims pursuant to Title 28 of the United States Code, Sections 1331 and
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`1343(a)(4), because these claims seek redress for violations of Plaintiff’s federal
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`civil and statutory rights. There is also diversity among the parties as Plaintiff is a
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`California citizen who brings claims against out-of-state Defendants. The value of
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`these claims readily exceeds the jurisdictional minimum.
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`III. THE PARTIES
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`13. Plaintiff Daniel Ludlow is, and at all times mentioned was, an
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`individual residing in the County of San Diego, California. Daniel Ludlow is
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`employed by and works for Defendants as a distributor in the State of California,
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`5
`CLASS AND COLLECTIVE COMPLAINT
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`Case 3:18-cv-01190-JO-JLB Document 1 Filed 06/06/18 PageID.6 Page 6 of 30
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`County of San Diego. Daniel Ludlow has been employed by Defendants from
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`approximately 2013, through present.
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`14. Defendant Flowers Foods, Inc. (“Flowers Foods”), is a publicly traded
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`Georgia corporation with its principal place of business in Thomasville, Georgia
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`(NYSE:FLO). It is a leading manufacturer and seller of bakery goods in the United
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`States with gross profits of over $1.9 billion in 2017 (and of over $581 Million in
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`the first quarter alone of 2018). It does business in the County of San Diego,
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`California by establishing subsidiaries with the intent of carrying out operations in
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`this region. This entity establishes layers of national and regional subsidiaries to
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`carry out its sham “independent distributor” business model that in fact just secures
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`workers to carry out the delivery and merchandizing of Flowers’ customers’ retail
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`locations. Flowers Foods ultimately takes responsibility for and recognizes all
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`revenue generated from its sale of bakery goods through its local subsidiaries and
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`its Delivery Employees. It also guarantees and assumes responsibility for the
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`performance of its subsidiaries that execute the DA with Delivery Employees
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`(sometimes called “local subsidiaries”) throughout California. Specifically,
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`“Flowers Foods, Inc. will absolutely and unconditionally guarantee
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`the
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`performance by [its local subsidiary] of [the subsidiary’s] obligations under the
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`Distributor Agreement.” As a result, Flowers Foods, along with Flowers Bakeries,
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`LLC, are ultimately, and jointly, responsible for these claims.
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`15. Flowers Bakeries, LLC, is a Georgia limited liability corporation with
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`its principle place of business in Thomasville, Georgia. This entity is the Flowers
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`Foods subsidiary that is charged with sales related activities. It negotiates with
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`retailers on things such as price, shelf space, and service requirements that are then
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`carried out by the Delivery Employees at the direction of the local subsidiaries.
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`Results of these high-level deals make their way down through the local
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`subsidiaries to the Delivery Employees.
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`6
`CLASS AND COLLECTIVE COMPLAINT
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`Case 3:18-cv-01190-JO-JLB Document 1 Filed 06/06/18 PageID.7 Page 7 of 30
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`16. One step further down the Flowers’ chain is the local DSD
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`subsidiaries such as non-parties Flowers Baking Co. of California, LLC and
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`Flowers Baking Co. of Modesto, LLC.3 These entities’ only member is Flowers
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`Bakeries, LLC (who in turn is entirely owned by Flowers Foods). These local
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`subsidiaries are set up to execute the policies and instructions passed down from
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`the higher up Flowers entities (the Defendants). Each local subsidiary has a
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`president, a vice president of sales, and a director of distributor relations, along
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`with several directors of sales/sales managers. These employees execute sales and
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`pricing agreements as well as visit the actual brick-and-mortar locations that
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`Flowers has contracted to service to keep up customer relationships and ensure the
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`Delivery Employees are meeting their needs as specified in the Flowers Foods
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`negotiated contracts (that Delivery Employees ultimately are tasked with carrying
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`out). They also act as the go-between for Delivery Employees and the other
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`Flowers entities.
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`17. All of these entities, including Defendants, are part of the Flowers
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`enterprise that jointly and collectively manufacture, advertise, sell, and distribute
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`bakery products throughout California and the United States. They operate jointly
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`in carrying out the common fraud and misclassification against their Delivery
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`Employees and the state of California.
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`IV. GENERAL ALLEGATIONS
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`A. Overview of Flowers’ Business
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`18. Flowers Foods, Inc. is a leading national packaged bakery foods
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`company. It bakes, sells, and distributes breads, buns, rolls, snack cakes, and
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`tortillas, among other items throughout the country under well-known brand names
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`3 On information and belief, Flowers Foods initially established a California-wide
`local subsidiary called Flowers Baking Co. of California which later split and
`transferred its Northern California operations to Flowers Baking Co. of
`Modesto and its Southern California operations to Flowers Baking Co. of
`Henderson around February 2014. With the transfers assigned all of its
`Distributor Agreements to these new entities.
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`7
`CLASS AND COLLECTIVE COMPLAINT
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`like “Wonder Bread,” “Sunbeam,” “Tasty Cake,” “Nature’s Own,” and “Dave’s
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`Killer Bread.” It has two business segments—a direct-store-delivery segment
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`(“DSD Segment”) and a warehouse delivery segment. The DSD Segment is at
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`issue here. It produces a wide variety of fresh bakery foods that are sold through a
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`DSD route delivery system to Flowers’ retail and foodservice customers in
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`California and other locations.
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`19. Within the DSD segment, Flowers Foods, Inc. establishes a web of
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`wholly-owned subsidiary companies to enter into agreements with the “Delivery
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`Employees,” such as Plaintiff, who are charged with delivering the bakery products
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`from the warehouse to the retail locations and keeping the shelves stocked.
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`According to Flowers Foods, Inc.’s website, it “sells its products through a
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`network of independent distributors [i.e., Delivery Employees] to retail and
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`foodservice customers.” (https://www.flowersfoods.com/investors/flo-overview/at-
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`a-glance [emphasis added].) These Delivery Employees are, thus, integral to
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`Flowers’ normal business operations—and they are selling for Flowers, not
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`themselves.
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`B. How Flowers Sells Its So-Called “Independent Distributor
`Opportunity” to Delivery Employees.
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`20. Flowers classifies Delivery Employees as “independent contractors”
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`and advertises routes as independent business opportunities for Delivery
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`Employees where the Delivery Employees supposedly buy product from Flowers
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`and re-sell it for a profit. Specifically, in disclosure documents, Flowers represents
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`that the independent contractor Delivery Employee will “pay [Flowers] for the
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`bakery products [distributor] purchase[s] for resale to [distributor’s] outlets.” It
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`reiterates that Flowers “will sell [bakery products] to [distributor] at terms and
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`prices established by [Flowers], and [Flowers] will derive income from these sales.
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`Upon delivery, these products will belong to [the distributor].”
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`8
`CLASS AND COLLECTIVE COMPLAINT
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`21. Flowers makes the same representations in the form DA presented to
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`every Delivery Employee. Flowers states that, under its system, it seeks to divide
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`its bakery goods market into territories operated by “independent contractor
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`distributors.” Flowers claims to grant the right both to sell and distribute authorized
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`Flowers products within the territory. Under this model, as described in the DA,
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`the Delivery Employee will purchase from Flowers, take ownership of the product,
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`and then resell the products to retail outlets within their territories at a profit.
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`22. By claiming that the Delivery Employee is “purchasing” the products
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`from Flowers, Flowers feels it can pass certain business risks to the Delivery
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`Employee. So Flowers makes the Delivery Employees, like Plaintiff, assume the
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`risk of loss for non-payment by Flowers’ retail customers, loss resulting from
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`missing or otherwise unaccounted for inventory, and loss resulting from excess
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`stale products.
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`23.
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`In short, and in no uncertain terms, the disclosure documents and the
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`DA claim that: (1) Flowers sells bakery products to Delivery Employee; (2)
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`Delivery Employee takes title; and (3) Delivery Employee re-sells to retailers at a
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`profit. In the scenario described by Flowers, Flowers makes a profit by selling to
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`the distributor and passing off title at that time. The Delivery Employee then
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`executes its own independent sale to the retailer. Furthermore, Flowers describes
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`itself, in the DA, as merely the agent of the Delivery Employee in reaching
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`agreements for purchases with retail chain accounts that the Delivery Employee
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`then executes. In its description of this tripartite relationship, Flowers states that it
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`will merely carry accounts receivable for these retail accounts and credit the retail
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`sales price to Delivery Employees.
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`24. Flowers uses its described business model to both (1) justify the
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`“independent” nature of Delivery Employees in an effort to support its
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`misclassification of them as independent contractors, and to (2) justify passing
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`9
`CLASS AND COLLECTIVE COMPLAINT
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`business losses and risks to the Delivery Employees who supposedly “take title” to
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`the products.
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`C.
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`Flowers’ Actual Business Model
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`25. Flowers’ representations in its disclosure documents and in its DA are
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`false as evidenced by its own statements and accounting policies. To summarize,
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`Flowers represents to Delivery Employees that they own the product and control
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`their destinies. It does that to justify its misclassification of the Delivery
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`Employees as “independent contractors,” and to thus avoid the wages, employer-
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`side taxes, and other protections and burdens that would normally come with
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`properly categorizing these workers as “employees.” It also does this to justify
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`passing certain risks and losses to the Delivery Employees. But on the other hand,
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`and as proven by its actions as well as what Flowers tells accountants and the
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`Securities and Exchange Commission (“SEC”), Flowers is the one that controls the
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`entire enterprise and actually owns the product. Upon information and belief, this
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`allows Flowers to claim higher revenues and present a healthier business to
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`potential customers and its investors. In short, Flowers is having its cake and eating
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`it too.
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`26. More specifically, rather than selling to and vesting rights in the
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`distributors to make retail sales, Flowers itself negotiates, carries out, and receives
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`gross proceeds from the vast majority of bakery sales which are in turn merely
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`delivered by its “distributors” who receive a commission based on Flowers’ sales.
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`The reality of selling products to national retailers like Wal-Mart and Costco is that
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`deals are negotiated on a national, or at least regional level and then simply carried
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`out by the local subsidiaries that make up Flowers’ DSD Segment. Sales to these
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`retailers accounts for over 75% of Flowers’ business in the increasingly corporate
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`“big retail” market that exists in the United States and California.
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`27. Flowers’ own website and SEC filings confirm that the distributors
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`merely have “the right to distribute,” and that sales are actually made and
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`controlled by Flowers (i.e., Flowers sells products “through” distributors). It is
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`Flowers who enters contracts for retail purchase and negotiates all relevant retail
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`terms like pricing. Individual distributors do not, for example, have a contract with
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`the local Wal-Mart within their territory and have no control over the price Wal-
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`Mart agrees to pay Flowers for products that distributors put on Wal-Mart’s
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`shelves. Price, product selection, and even product placement within these retail
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`locations are all controlled by Flowers well above the Delivery Employees’ level
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`of operation.
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`28. Under Flowers’ actual business model, Delivery Employees do not,
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`in-fact, take title and then resell the products. Instead, Flowers executes sales with
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`retail locations and “distributors receive a percentage of the wholesale price of
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`product sold to retailers and other customers.” In doing so, and as a matter of
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`accounting, Flowers then actually recognizes the sale to the retail customer as
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`revenue “at the time of delivery when title and risk of loss pass to the [retail]
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`customer.” See Flowers’ SEC Form 10-K for fiscal year ended January 1, 2011
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`(“2011 SEC Filing”) at p. F-7.4 Flowers does not recognize the revenue when it
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`supposedly “sells” the products to the Delivery Employees because no sale to these
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`individuals actually occurs. Indeed, in its SEC filings, Flowers explicitly admits
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`that it bears risk of loss and owns title to the products until the retailer or end
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`consumer (like Wal-Mart) actually takes possession. This directly contradicts the
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`representations that Flowers makes to its “distributors,” including in the DA, where
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`Flowers claims the Delivery Employees “buy” the product from Flowers and own
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`it upon taking possession.5
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`29.
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` Flowers’ most recent quarterly SEC filing removes any doubt that the
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`DA and its related disclosures are a sham. In its filing, Flowers explicitly admits
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`4 https://otp.tools.investis.com/clients/us/flowers_foods/SEC/sec-
`show.aspx?Type=html&FilingId=7747320&CIK=0001128928&Index=10000.
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`5 A “sale” consists of passing of title from the seller to the buyer. See U.C.C. 2-106.
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`that, for purposes of sales to its retail chain customers (the vast majority of Flowers
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`products sold), Flowers is the principal, and the employee distributor is the
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`“agent.” See Flowers’ Form 10-Q for the quarterly period ended April 21, 2018
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`(“2018 SEC Filing”), at p. 9.6 This directly contradicts what Flowers told the
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`employee distributors, including Plaintiff, in the franchise disclosure and the DA.
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`30.
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`In that recent filing, Flowers also admits again that revenue is
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`recognized based on the retail sales price (as opposed to the wholesale price it
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`supposedly “sells” products to the Delivery Employee for) only once product is
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`delivered to the end customer. Additionally, “[t]he company retains inventory risk,
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`establishes . . . pricing, and fulfills the contractual obligations for [retail] sales.”
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`See 2018 SEC Filing at p. 9-10. Again, Flowers wants to save money on wages and
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`employment taxes by claiming that employees are “independent distributors,” but
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`it needs to maintain control over the enterprise, the products, and the distribution
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`networks to satisfy its other financial and accounting goals.7
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`31. Additional facts proving Flowers’ control over the relationship with
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`its Delivery Employees (and thus the falsity of the “independent contractor”
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`classification) are as follows:
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`a.
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`Delivery Employees are forced to incorporate and retain a
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`majority ownership in their corporation. I.e., they cannot choose their own business
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`form. This forced corporation then enters into the DA with the Flowers Foods, Inc.
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`subsidiary to show the appearance of a business-to-business relationship.
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`6 https://otp.tools.investis.com/clients/us/flowers_foods/SEC/sec-
`show.aspx?Type=html&FilingId=12761070&CIK=0001128928&Index=10000.
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`7 Notably, prevailing accounting standards dictate that in order for Flowers to
`claim, as it repeatedly does, that it is the principal and the distributor is the
`“agent” in the arrangement, Flowers must be the one that has control over the
`“right to a service to be performed by [the distributor], which gives [Flowers]
`the ability to direct [the distributor] to provide the [distribution] service to
`[retail] customer. . . .” See Accounting Financial Standards Board (FASB),
`Topic 606. This, of course, is directly at odds with Flowers’ characterization
`of the distributors as “independent contractors” that make their own sales and
`over whom they allegedly lack control.
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`b.
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`Despite the forced incorporation, the Delivery Employee
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`himself or herself must personally guarantee the contract. The personal guarantee
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`makes the individual Delivery Employee liable for performance under and
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`compliance with the DA. This gives Flowers its desired individual employee.
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`c.
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`Flowers assigns each Delivery Employee a set route and set
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`brands of Flowers’ bakery products to sell within that route to Flowers’ retail
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`customers. Delivery Employees pay for the rights to the route. The price is usually
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`$100,000 or more. Moreover, Flowers usually finances the purchase of the route at
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`exorbitant interest rates. Flowers then automatically deducts the principal and
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`interest from the commissions otherwise owed to the Delivery Employees.
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`d.
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`Flowers also controls: (i) which retailers will receive which
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`Flowers’ products within the territory; (ii) the price its retailers pay for products;
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`and (iii) which products and brands of goods will remain available to the retailers
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`and, in turn, to the Delivery Employees.
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`e.
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`Flowers maintains the right to change which retailers it and its
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`Delivery Employees serve and which brands will be sold to those retailers or
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`otherwise available within a Delivery Employee’s territory.
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`f. When Flowers makes changes to the products offered and/or
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`the retailers it offers them to, it does not re-value the route the Delivery Employee
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`originally bargained for or otherwise re-evaluate the money the individual owes to
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`Flowers for that route. This is true even where Flowers has drastically reduced the
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`value of a given route by unilaterally choosing to discontinue a product or stop
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`selling to a retailer in that territory.
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`g.
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`Flowers deploys a management structure within each local
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`subsidiary including branch and/or sales managers who manage relationships with
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`retail customers, carry out sales, and directly supervise and instruct the Delivery
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`Employees in performance of their responsibilities. Again, the distributors are not
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`“independent.” They have bosses at Flowers.
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`h.
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`Flowers also dictates when unsold bakery products must be
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`reclaimed from retail locations (a.k.a. “stales” or stale product). Flowers demands
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`that such products, despite supposedly being the “property” of the Delivery
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`Employee, be returned to a Flowers warehouse for Flowers’ further benefit or re-
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`sale, not the Delivery Employees. For example, if there is stale product within a
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`Delivery Employee’s territory above the threshold level unilaterally established by
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`Flowers, Flowers charges the Delivery Employee retail price for the products but
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`maintains possession of these products itself and, on information and belief, sells
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`these products to its thrift customers.
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`i.
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`Delivery Employees must also agree to maintain a certain
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`physical appearance for both themselves and their vehicles. Flowers retains and
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`exercises the right to force Delivery Employees to paint their vehicles to Flowers’
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`specifications or remove advertising that the Delivery Employees have chosen for
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`their vehicle.
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`j.
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`Delivery Employees must abide by “Good Industry Practices”
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`as defined by Flowers. Failure to abide by any of these requirements risks
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`termination by Flowers.
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`k.
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`The DA has no end date and Delivery Employees often work
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`for Flowers for long periods of time. Per Flowers, these are “long-term financing
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`arrangements.”
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`l.
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`Flowers sets a calendar or schedule of days that Delivery
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`Employees must work and what tasks are to be completed on those dates (i.e.,
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`managing inventory vs. dropping new product). Flowers also requires that work be
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`performed on the route each day of the week as its customers require and expect
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`under their contracts with Flowers. Flowers describes its frequency of deliveries
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`and shelf-stocking as “an increasingly important competitive fac