throbber
Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 1 of 23
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`IN THE UNITED STATES DISTRICT COURT
`EASTERN DISTRICT OF LOUISIANA
`
`
`
`
`
` CIVIL NO. 2:22-CV-00641
`
`DAWN BRANCH
`
`Plaintiff,
`
`v.
`
`CVS PHARMACY, INC.
`
`Defendant.
`
`
`
`COMPLAINT
`
`Plaintiff Dawn Branch asserts her causes of action against defendant CVS Pharmacy, Inc.
`
`
`
`
`
`
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`as follows:
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`THE PARTIES
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`1.
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`Plaintiff is Dawn Branch, in both her individual and representative capacities, who is a
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`person of majority, currently domiciled in Louisiana and residing in St. Tammany Parish.
`
`2.
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`Defendant is CVS Pharmacy, Inc. (“CVS”), a foreign corporation incorporated and
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`headquartered in Rhode Island, and which, upon information and belief, is registered and actively
`
`doing business in Louisiana.
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`JURISDICTION AND VENUE
`
`3.
`
`The Court has subject-matter jurisdiction over this matter pursuant to 28 U.S.C. § 1331
`
`(federal question); 29 U.S.C. § 206 (the Fair Labor Standards Act minimum wage provisions); §
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`207 (FLSA overtime wage provision); and § 216 (FLSA collective action provisions) as more
`
`particularly set-out herein.
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`4.
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`The Court has supplemental, subject-matter jurisdiction over Ms. Branch’s Louisiana state
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`law claims pursuant to 28 U.S.C. § 1367(a) because the state-law claims are so related to her
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 2 of 23
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`federal law claims that they form part of the same case or controversy as more particularly set-out
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`herein.
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`5.
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`The Court has personal jurisdiction over CVS Pharmacy Inc. because it is a foreign
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`corporation registered and actively doing business in Louisiana, and, through its registered agent
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`for the service of process, C T Corporation System, is present within Louisiana at the time this suit
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`commenced.
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`6.
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`Alternatively, the Court has personal jurisdiction over CVS Pharmacy Inc. because, upon
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`information and belief, it regularly transacts business in Louisiana; regularly employs Louisiana
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`citizens; derives substantial revenue from the services it provides in Louisiana; committed the
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`unlawful acts in Louisiana that injured Ms. Branch in this case; and committed the unlawful acts
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`in Louisiana otherwise giving rise to the causes of action in this case. Thus, CVS Pharmacy Inc.
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`has established minimum specific contacts with Louisiana, arising from the facts of this case,
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`comporting with the requirements of fair play, substantial justice, and the Fourteenth Amendment
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`of the Constitution of the United States.
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`7.
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`Venue for Ms. Branch’s FLSA and state-law claims is proper in this Court pursuant to 28
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`U.S.C. § 1391(b)(2) because the parties contracted for Ms. Branch’s employment and engaged in
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`the FLSA and state-law wage violations alleged in this matter in this judicial district (specifically,
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`St. Tammany Parish), and Ms. Branch’s resulting harm was suffered in this judicial district (same).
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`PROCEDURAL AND STATUTORY ALLEGATIONS
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`8.
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`At all times, CVS was engaged in interstate commerce by buying medicines and other
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`consumer goods from outside of Louisiana, then shipping those goods to Louisiana, then selling
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`those goods from its Louisiana pharmacies, including the pharmacy Ms. Branch was employed at,
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`to both customers located inside and outside of Louisiana.
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 3 of 23
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`9.
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`In both 2020 and 2021, CVS earned total revenues greater than $500,000.
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`10.
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`On or about June 2020, CVS hired Ms. Branch as its full-time employee in the position of
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`“staff pharmacist.”
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`11.
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`At all times, Ms. Branch in her position of staff pharmacist regularly engaged in interstate
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`commerce by, among other things, regularly receiving, accounting for, and dispensing medicines
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`which had been shipped in interstate travel to customers in Louisiana; by regularly accessing CVS
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`computer systems connected to other systems located outside of Louisiana; and by regularly
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`making phone calls to or communicating with people outside of Louisiana.
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`12.
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`Upon information and belief, Ms. Branch’s position of “staff pharmacist” is a specific job
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`title utilized by CVS pharmacy across its entire pharmacy workforce in Louisiana.
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`13.
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`Upon information and belief, a “staff pharmacist” employed by CVS pharmacy has the
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`same job description and job responsibilities as any other staff pharmacist employed in Louisiana.
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`14.
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`Upon information and belief, and as further alleged below, all “staff pharmacists” located
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`in Louisiana are similarly situated with respect to CVS’s obligation to pay those pharmacists
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`minimum wage and overtime wages under the FLSA.
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`15.
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`At all times, Ms. Branch was assigned to CVS’s Louisiana Pharmacy 05451 located in
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`Franklinton, Louisiana.
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`16. Ms. Branch was continuously employed by CVS until her constructive discharge on or
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`about June 4, 2021.
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`At all times, CVS classified Ms. Branch as its employee.
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`At all times, CVS paid Ms. Branch on an hourly basis (not on a salary basis).
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`At all times, CVS paid Ms. Branch approximately $56.28 per hour.
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`At all times, Ms. Branch was entitled to overtime wages for all hours worked in a week
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`3
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`17.
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`18.
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`19.
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`20.
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 4 of 23
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`greater than 40, except that CVS misclassified Ms. Branch as an exempt employee ineligible for
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`overtime wages under the FLSA.
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`21.
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`At all times, upon information and belief, CVS did not guarantee Ms. Branch any minimum
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`pay on a weekly or less frequent basis.
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`22.
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`Alternatively, upon information and belief, CVS guaranteed Ms. Branch some minimum
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`pay on a weekly or less frequent basis, but that guaranteed pay was no greater than $684 per week.
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`23.
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`Alternatively, upon information and belief, CVS guaranteed Ms. Branch some minimum
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`pay on a weekly or less frequent basis, but that guaranteed pay was not reasonably related to her
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`actual weekly pay.
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`24.
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`Specifically, Ms. Branch earned at on average, approximately, $2,100.00 in hourly wages
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`per week based on the number of hours she actually worked.
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`
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`25.
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`Upon information and belief, whatever minimum pay CVS guaranteed Ms. Branch was
`
`significantly less than her weekly earnings, and had no reasonable relationship to her weekly
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`earnings, such that the minimum guarantee was merely a sham to avoid overtime pay requirements
`
`under federal law.
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`26.
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`Upon information and belief, all of CVS’s staff pharmacists located in Louisiana were –
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`just like Ms. Branch – classified as exempt employees; paid an hourly rate (and not on a salary
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`basis); not paid for more than 37.5 hours per week regardless of how many more hours the
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`pharmacist worked during the week; and either not guaranteed any minimum salary, or guaranteed
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`a minimum salary that had no reasonable relationship to the employee’s actual, weekly earnings.
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`27.
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`To the best of recollection and belief, Ms. Branch always worked more than 40 hours per
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`week, usually, approximately, at least 45 hours per week.
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`28.
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`Nevertheless, CVS never paid Ms. Branch for more than 37.50 work hours per week.
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`29.
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`Upon information and belief, CVS unlawfully and intentionally failed to pay Ms. Branch
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`overtime wages she was due for working more than 40 hours during any given workweek (FLSA).
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`30.
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`On or about June 4, 2021, Ms. Branch was constructively discharged and resigned from
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`her employment.
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`31.
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`At the time of her constructive discharge, upon information and belief, Ms. Branch had
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`unused vacation time which she was owed.
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`32.
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`At the time of her constructive discharge, upon information and belief, Ms. Branch had
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`unpaid wages that she was owed.
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`33.
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`Upon information and belief, CVS unlawfully and intentionally failed to pay Ms. Branch
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`for all her accrued vacation time and paid leave of absence time within two weeks of her
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`termination.
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`34.
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`After her constructive discharge, Ms. Branch gave written and other notice to CVS that she
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`was owed unpaid wages and vacation leave, but to date CVS has not fully paid Ms. Branch these
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`amounts.
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`35.
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`Upon information and belief, CVS unlawfully and intentionally continues to refuse to pay
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`Ms. Branch for her unpaid wages and vacation leave to date.
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`The Plaintiff — Dawn Branch
`
`FACTS
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`Dawn Branch is a 49-year-old woman living with her husband and children in Bush,
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`A.
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`36.
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`Louisiana.
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`37. Ms. Branch is a pharmacist licensed to practice in Louisiana.
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`38. Ms. Branch relies on her income and work as a pharmacist to support her family.
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 6 of 23
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`B.
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`39.
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`40.
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`The Defendant — CVS Pharmacy Inc.
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`CVS Pharmacy Inc. is a corporation incorporated and headquartered in Rhode Island.
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`CVS operates an international chain of drugstores and pharmacies and maintains
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`approximately close to 10,000 retail locations worldwide.
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`41.
`
`42.
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`CVS employs many thousands of people worldwide.
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`CVS is registered in Louisiana and has appointed an agent for service of process in
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`Louisiana.
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`43.
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`44.
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`45.
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`46.
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`CVS maintains many stores and pharmacies in Louisiana.
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`CVS employs many workers in Louisiana.
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`CVS employs many staff pharmacists in Louisiana.
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`Upon information and belief, the most common job title assigned to any of its pharmacist
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`employees assigned to any retail pharmacy is “staff pharmacist.”
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`47.
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`A “staff pharmacist” is not expected to manage other pharmacists assigned to a retail
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`pharmacy.
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`48.
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`Instead, CVS employs other pharmacists in the position of “Pharmacy Managers” who
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`exercise that supervisory responsibility.
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`49.
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`During the relevant times in this case, CVS employed Ms. Branch as a pharmacist and
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`assigned her to its Store 5451 in Franklinton, Louisiana.
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`50.
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`At all times relevant to this case, Ms. Branch’s direct supervisor was Justin Fox, the
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`Pharmacy Manager of Store 5451.
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`51.
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`At all times relevant to this case, Ms. Branch’s second level supervisor was Stacy Polito,
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`the District Manager of Store 5451 and other CVS locations located throughout Louisiana.
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 7 of 23
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`C.
`
`
`52.
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`CVS Misclassified Ms. Branch as an Exempt Employee and Failed to Pay Her
`Minimum Wages and Overtime Wages
`
`Upon information and belief, CVS classified Ms. Branch as an “exempt” employee for
`
`purposes of overtime pay obligations under the FLSA.
`
`53.
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`In reality, upon information and belief, Ms. Branch was really a non-exempt worker who
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`CVS misclassified as “exempt.”
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`54.
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`55.
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`CVS indicated to Ms. Branch that she was paid a “salary” for her work.
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`In reality, upon information and belief, Ms. Branch was not a salaried worker, and CVS
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`paid her an hourly rate for her work with no guaranteed minimum salary per week.
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`56.
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`Specifically, CVS actually paid Ms. Branch the rate of $56.28 for every hour that she
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`worked.
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`57. Ms. Branch’s pay stubs issued by CVS confirmed she was paid at the rate of $56.28 per
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`hour.
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`58.
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`CVS paid Ms. Branch this hourly rate for each hour of work she performed during the week
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`up to a maximum of 37.5 hours in a week.
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`59.
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`After working 37.5 hours in a week, CVS did not pay Ms. Branch any wages no matter
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`how many extra hours she worked.
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`60.
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`But during weeks in which Ms. Branch worked less than 37.5 hours, CVS only paid Ms.
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`Branch for those hours she worked.
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`61.
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`For instance, for the pay period ending on May 29, 2021, Ms. Branch only worked 19.5
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`hours, and CVS only paid Ms. Branch for those hours.
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`62.
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`Overall, based on CVS’s pay policies, Ms. Branch earned approximately $76,031.88 in
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`gross wages in 2020.
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`63.
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`Overall, based on CVS’s pay policies, Ms. Branch earned approximately $44,349.91 in
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 8 of 23
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`gross wages in 2021.
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`64.
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`Overall, based on CVS’s pay policies, had Ms. Branch continued to work for all of 2021,
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`she expected to earn approximately $105,115.04 in gross wages and compensation.
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`65.
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`Upon information and belief, Ms. Branch worked more than 40 hours per week almost
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`every week while she was employed by CVS.
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`66.
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`Upon information and belief, Ms. Branch averaged approximately 45 hours of work per
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`week almost every week she was employed by CVS pharmacy.
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`67.
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`Upon information and belief, Ms. Branch was never paid for any amount of overtime, no
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`matter how many hours she worked in excess of 40 hours a week.
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`68.
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`Upon information and belief, CVS intentionally and unlawfully failed to pay Ms. Branch
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`for the overtime she accrued during her entire career with CVS.
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`69.
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`Upon information and belief, CVS purposefully misclassified Ms. Branch as an “exempt”
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`worker specifically to avoid its overtime obligations under the FLSA.
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`70.
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`71.
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`Upon information and belief, CVS had no good-faith basis for its misclassification.
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`In total, during her entire full-time employment with CVS from June 2020 through June 4,
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`2021, Ms. Branch worked approximately 52 weeks.
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`72.
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`Upon information and belief, working approximately 45 hours per week almost every week
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`during her employment, CVS failed to pay Ms. Branch for at least 255 hours of overtime pay
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`during her employment.
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`73.
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`At the time-and-a-half rate of $84.42 per hour, upon information and belief CVS owes Ms.
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`Branch at least $21,527.10 in unpaid overtime wages.
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`74.
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`Further, upon information and belief, to the extent CVS also failed to pay Ms. Branch any
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`wages at all for the 2.5 hours of work between 37.5 and 40 hours per week she almost always
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 9 of 23
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`worked, CVS failed to pay Ms. Branch approximately 145 hours of regular pay during her
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`employment.
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`75.
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`At the regular rate of $56.28 per hour, upon information and belief, CVS owes Ms. Branch
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`at least an additional, approximate $7,175.70 in unpaid regular wages.
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`D. Ms. Branch Is Similarly Situated to All CVS Staff Pharmacists Employed in
`Louisiana
`
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`76. Ms. Branch is similarly situated to all other CVS staff pharmacists employed in Louisiana
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`for purposes of vindicating both her and their right to receive both minimum and overtime wages
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`under the FLSA.
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`77.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
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`in Louisiana because upon information and belief CVS gives all its staff pharmacists substantially
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`identical job descriptions, responsibilities, and duties.
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`78.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
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`in Louisiana because upon information and belief CVS misclassifies all of their staff pharmacists
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`as exempt from both minimum and overtime wages under the FLSA.
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`79.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
`
`in Louisiana because upon information and belief CVS pays all of their staff pharmacists on an
`
`hourly rate (not on a salary basis).
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`80.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
`
`in Louisiana because upon information and belief CVS does not pay its staff pharmacists for any
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`hours worked during the week greater than 37.5.
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`81.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
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`in Louisiana because upon information and belief all CVS staff pharmacists regularly work more
`
`than 40 hours per week.
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`9
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 10 of 23
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`82.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
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`in Louisiana because upon information and belief CVS does not pay its staff pharmacists for the
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`minimum and overtime wages they are owed.
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`83.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
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`in Louisiana because upon information and belief CVS does not pay its staff pharmacists any
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`guaranteed salary at all; or, if any such salary is paid, the salary has no reasonable relationship to
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`the actual amount of wages the staff pharmacist earns per week.
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`84.
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`Specifically, Ms. Branch is similarly situated to all other CVS staff pharmacists employed
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`in Louisiana because – given that CVS does not pay any of its staff pharmacists on a salary basis
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`– the so-called “professional exemption” of the FLSA does not apply to Ms. Branch or any other
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`staff pharmacist as a matter of law. See 29 C.F.R. § 541.600(a) (requiring employer to pay
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`professional employee on a “salary basis” to claim the exemption); and also 29 C.F.R. §
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`541.600(e) (providing that licensed pharmacists are not the sort of “medical occupation” that may
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`be paid on an hourly rate and still claim the “professional” exemption).
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`85.
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`In other words, Ms. Branch is similarly situated to all other CVS staff pharmacists
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`employed in Louisiana because the only two differences between the compensation Ms. Branch is
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`owed versus what each of her similarly-situated peers is owed is (1) the specific hourly rate paid
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`to each pharmacist, and (2) the number of hours each pharmacist worked (but was not paid for)
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`each week.
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`E.
`
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`86.
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`CVS Has No Good-Faith Basis for Its Misclassification and Failure to Pay Required
`Minimum and Overtime Wages under the FLSA
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`Upon information and belief, and at all relevant times in this matter, CVS knew that its
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`Louisiana staff pharmacists were not exempt under the FLSA’s minimum and overtime wages
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`provisions, yet CVS continued to misclassify its staff pharmacists and refused to pay them their
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 11 of 23
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`owed minimum and overtime wages.
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`87.
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`Upon information and belief, CVS has no good-faith basis for believing its Louisiana staff
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`pharmacists were exempt under the FLSA’s minimum and overtime wages provisions, nor that
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`CVS did not owe them their earned, minimum and overtime wages.
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`F.
`
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`88.
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`CVS Failed to Pay Ms. Branch Accrued, Paid Vacation Leave at the Time of Her
`Constructive Discharge
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`Additionally, upon information and belief, during Ms. Branch’s employment, CVS
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`maintained a paid vacation policy for its staff pharmacists.
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`89.
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`Upon information and belief, that policy, relevant here, provided Ms. Branch with up to
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`150 hours of vacation time, every year beginning on January 1, that accrued incrementally every
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`day for the entire calendar year, culminating in 150 hours of leave as of December 31.
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`90.
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`Upon information and belief, pursuant to that policy, CVS awarded Ms. Branch 150 hours
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`of paid vacation leave on January 1, 2021 on a daily, accruing basis.
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`91.
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`92.
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`Upon information and belief, Ms. Branch used minimal or no vacation time in 2021.
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`Upon information and belief, Ms. Branch had approximately 64.50 hours of accrued
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`vacation time (and an additional 8 hours of paid vacation time known as “Holiday Float” that was
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`also awarded to Ms. Branch per CVS policy) at the time of her constructive discharge on or about
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`June 4, 2021.
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`93.
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`Upon information and belief, Ms. Branch eventually received a final paystub that indicated
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`that her accrued but unpaid balance of vacation time was 64.50 hours, with an additional unpaid
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`balance of 8 hours of “Holiday Float.”
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`94.
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`Thirteen days after her constructive discharge, on June 17, 2021, Ms. Branch contacted
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`CVS’s corporate office to complain about her unpaid vacation leave.
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 12 of 23
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`95.
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`A CVS “Advice and Counsel” employee from its corporate office indicated to Ms. Branch
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`that the CVS employees who could resolve her complaint were Mr. Fox and Ms. Polito, but that
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`the two would not return phone calls or emails from the corporate office regarding the issue.
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`96. Ms. Branch followed up with CVS’s corporate office again on or about June 21, 2021, and
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`the “Advice and Counsel” employee continued to indicate that Mr. Fox and Ms. Polito were not
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`responsive to the corporate office’s requests.
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`97.
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`Thereafter, Ms. Branch sent a formal, written demand for all her unpaid wages and vacation
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`leave via email and U.S. postal service priority mail to Ms. Polito dated June 21, 2021.
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`98. Ms. Branch copied CVS’s corporate office to her email to Ms. Politio.
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`99.
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`In her correspondence, Ms. Branch demanded payment of her unpaid vacation leave
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`Holiday Float time, and other unpaid money owed.
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`100. On June 24, 2021, Ms. Branch made a formal complaint via CVS’s “Ethics Point” online
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`portal stating that she had still not received payment for her unpaid and owed leave.
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`101. On July 3, 2021, Ms. Branch received a pay stub from CVS dated July 1, 2021, indicating
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`an additional payment of 27 hours of unpaid vacation time.
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`102. Ms. Branch never received any indication, explanation, or notice as to how or why CVS
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`had determined or decided to pay her for 27 hours of unpaid leave but did not pay the remaining
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`45.5 hours of combined vacation and Holiday Float leave.
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`103. To date, CVS still fails to pay Ms. Branch for these accrued but unpaid 45.5 hours of
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`combined leave.
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`104. Upon information and belief, at the rate of $56.28 per hour for each hour of unpaid vacation
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`or other leave, CVS owes Ms. Branch at least $2,560.74 in unpaid leave wages.
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 13 of 23
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`CAUSES OF ACTION
`
`A.
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`Unlawful Failure to Pay Overtime Wages in Violation of the Fair Labor Standards
`Act against CVS (Individual Claim)
`
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`105. Ms. Branch states an individual cause of action for unlawful failure to pay overtime wages
`
`against CVS under the Fair Labor Standards Act.
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`106. Under the Fair Labor Standards Act, a covered employer is required to pay an hourly
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`employee overtime wages at the rate of 1.5 times the employee’s regular rate of pay for each hour
`
`over 40 worked in a weekly pay period. 29 U.S.C. § 207(a) et seq. An employer who fails to pay
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`an employee 1.5 times her regular rate of pay for each overtime hour worked owes the employee
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`the lost value of these unpaid wages, doubled as liquidated damages unless the employer proves it
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`acted in good faith. Black v. SettlePou, P.C., 732 F.3d 492, 501 (5th Cir. 2013) (citing 29 U.S.C.
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`§ 216(b) (regarding overtime wages specifically).
`
`107. Here, there is no question that CVS is a covered employer under so-called “enterprise
`
`coverage” because CVS took in more than $500,000 in revenue during the years of Ms. Branch’s
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`employment. In the alternative, Ms. Branch is a “covered employee” because she engaged in
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`interstate commerce as part of her job responsibilities.
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`108. FLSA regulations do exempt employees from payment of minimum and overtime wages
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`to the extent the worker is “employed in a bona fide . . . professional capacity[.]” 29 U.S.C. §
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`213(a)(1). But, to claim the so-called “professional” exemption, the employer must pay his
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`professional employee on a “salary basis.” See 29 C.F.R. § 541.600(a) (so providing). While
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`certain other professional employees who work in “medical occupations” may be excluded from
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`the “salary basis” requirement, federal regulations specifically exclude pharmacists from that
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`exception. See 29 C.F.R. § 541.600(e) (so providing). Accordingly, to qualify for the so-called
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`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 14 of 23
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`“professional” exemption under the FLSA, a person employed as a pharmacist must be paid on a
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`salary basis.
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`109. Otherwise, FLSA regulations also exempt employees from payment of overtime wages if
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`they meet the criteria of “highly compensated employees,” which, relevant to this case, requires
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`that (1) the employee regularly performs professional duties; (2) the employee is paid a “total
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`annual compensation of at least $107,432”; and (3) the employee is paid at least $684 in guaranteed
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`salary per week. See 29 C.F.R. §§ 541.601(a)(1), (b)(1).
`
`110. FLSA regulations define “salary” as compensation paid “on a weekly, or less frequent
`
`basis,” “without regard to the number of days or hours worked.” 29 C.F.R. § 541.602(a) & (a)(1).
`
`Specific to the “highly compensated employee” exemption, the Fifth Circuit en banc recently
`
`reiterated that an employer must still pay such an employee at least the minimum, statutorily
`
`required salary, and that the salary must have a “reasonable relationship” to the amount of wages
`
`the employee actually earns:
`
`[Under] 29 C.F.R. § 541.604(b) . . . “[a]n exempt employee’s earnings may be
`computed on an hourly, a daily or a shift basis, without losing the exemption or
`violating the salary basis requirement, if the employment arrangement also includes
`a guarantee of at least the minimum weekly required amount paid on a salary basis
`regardless of the number of hours, days or shifts worked, and a reasonable
`relationship exists between the guaranteed amount and the amount actually
`earned.” So a daily-rate worker can be exempt from overtime – but only “if” two
`conditions are met: the minimum weekly guarantee condition and the reasonable
`relationship condition.
`
`Hewitt v. Helix Energy Sols. Grp., Inc., 15 F.4th 289, 291 (5th Cir. 2021). To the extent a highly
`
`compensated employee is either not paid the statutorily required weekly salary, or that the
`
`employee’s salary does not have a reasonable relationship to total wages earned, the exemption
`
`does not apply, and the employee must still be paid minimum and overtime wages under the FLSA
`
`See id. at 292 (so holding).
`
`
`
`
`14
`
`

`

`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 15 of 23
`
`111. The Department of Labor has previously rendered a formal opinion that a reasonable
`
`relationship between an employee’s guaranteed weekly salary and actual earnings may not exceed
`
`a 1:1.5 ratio. Meaning, that an employer who regularly pays an employee more than 1.5 times his
`
`guaranteed salary is not paying that worker wages that have a “reasonable relationship” to his
`
`salary; and, in that case, the employer is not entitled to claim any exemption dependent upon
`
`paying its worker on a “salary basis.” See Dep’t of Labor, FLSA 2018-25, “Reasonable
`
`relationship” between salary paid and actual earnings (Nov. 8, 2018).
`
`112.
`
`In this case, no matter whether Ms. Branch meets the criteria concerning (1) the
`
`performance of executive, administrative, and professional duties and (2) the minimum income
`
`threshold under the exempt employee test, Ms. Branch was not paid on a “salary basis” as
`
`contemplated by the FLSA regulations and as interpreted by the Fifth Circuit in Hewitt.
`
`113. First, Ms. Branch was not paid any salary at all (she was instead paid on an hourly basis).
`
`114. Second, even if Ms. Branch was paid some guaranteed, minimum salary per week, that
`
`salary did not have a reasonable relationship with Ms. Branch’s actual earnings of approximately
`
`$8,500 per month.
`
`115. Third and finally, Ms. Branch was not expected to earn the minimum, “total annual
`
`compensation” due to a “highly compensated employee” of $107,432 in 2021 even if her pay did
`
`have some sort of reasonable relationship to her guaranteed salary.
`
`116. Accordingly, Ms. Branch was misclassified by CVS as an exempt employee when in reality
`
`she was owed minimum and overtime wages under the FLSA.
`
`117. Accordingly, CVS owes Ms. Branch unpaid overtime pay for the weeks in which she
`
`worked an excess of 40 hours, at a rate of 1.5 times Ms. Branch’s actual rate of pay.
`
`118. Upon information and belief, Ms. Branch regularly worked at least 45 hours per week in
`
`
`
`
`15
`
`

`

`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 16 of 23
`
`each week she was employed by CVS.
`
`119. Accordingly, CVS is liable to pay Ms. Branch her unpaid overtime wages, totaling
`
`approximately $21,527.10, plus liquidated damages equal to the amount of unpaid overtime wages,
`
`for total damages under FLSA overtime provisions totaling $43,054.20. CVS is also liable to pay
`
`Ms. Branch’s reasonable attorney’s fees and costs incurred in this matter.
`
`B.
`
`Unlawful Failure to Pay Minimum Wages in Violation of the Fair Labor Standards
`Act against CVS (Individual Claim)
`
`
`120. Ms. Branch states an individual cause of action for unlawful failure to pay minimum wages
`
`against CVS under the Fair Labor Standards Act.
`
`121. Plaintiff incorporates herein all prior allegations of this complaint.
`
`122. Additionally, under the Fair Labor Standards Act, “[e]very employer shall pay to each of
`
`his employees . . . not less than . . . $7.25 an hour . . . .” 29 U.S.C. § 206(a)(1).
`
`123. Ms. Branch worked more than 37.5 hours per week almost every week of her employment
`
`with CVS for approximately 52 weeks.
`
`124. Upon information and belief, CVS failed to pay Ms. Branch any wages at all for the 2.5
`
`hours of work between 37.5 and 40 hours per week she almost always worked.
`
`125. Upon information and belief, in total, CVS failed to pay Ms. Branch approximately 145
`
`hours of regular pay during her employment.
`
`126. At the minimum rate of $7.25 per hour, upon information and belief, CVS owes Ms. Branch
`
`at least an additional, approximate $1,051.25 in unpaid regular wages, plus liquidated damages
`
`equal to the amount of unpaid minimum wages, for total damages under FLSA overtime provisions
`
`totaling $2,102.50. CVS is also liable to pay Ms. Branch’s reasonable attorney’s fees and costs
`
`incurred in this matter.
`
`
`
`
`
`
`16
`
`

`

`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 17 of 23
`
`C.
`
`Unlawful Failure to Pay Minimum and Overtime Wages in Violation of the Fair
`Labor Standards Act against CVS (Collective Action Claim)
`
`
`127. Ms. Branch, on behalf of herself and all other employees similarly situated, states a
`
`collective cause of action for unlawful failure to pay minimum and overtime wages against CVS
`
`under the Fair Labor Standards Act. 29 U.S.C. § 216(b) (providing for collective action by one
`
`employee on behalf of herself and other employees similarly situated).
`
`128. Ms. Branch incorporates herein all prior allegations of this complaint.
`
`129. Upon information and belief, Ms. Branch is similarly situated to all other staff pharmacists
`
`employed by CVS pharmacies within the state of Louisiana because:
`
`• CVS assigns all its Louisiana staff pharmacists substantially identical job descriptions,
`
`responsibilities, and duties;
`
`• CVS misclassifies all its Louisiana staff pharmacists as exempt from the minimum and
`
`overtime wages provisions under the FLSA when they are actually not exempt;
`
`• CVS pays all their staff pharmacists on an hourly basis (and not a salary basis);
`
`• CVS does not pay any of its staff pharmacists for any hours worked during a week greater
`
`than 37.5.
`
`• All of CVS’s Louisiana staff pharmacists regularly work more than 40 hours per week but
`
`are not paid required minimum or overtime wages for that work;
`
`• CVS does not pay any of its Louisiana staff pharmacists any guaranteed salary at all; or, if
`
`any such salary is paid, the salary has no reasonable relationship to actual amount of wages
`
`the staff pharmacist earns per week;
`
`• None of CVS’s Louisiana staff pharmacists qualify under the FLSA’s so-called “medical
`
`occupation” exemption as a matter of law;
`
`
`
`
`17
`
`

`

`Case 2:22-cv-00641 Document 1 Filed 03/12/22 Page 18 of 23
`
`• Because CVS does not pay any of its Louisiana staff pharmacists on a salary basis – or,
`
`even if CVS does, the salary has no reasonable relationship to the actual amount of wages
`
`the staff pharmacist earns per week – none of CVS’s Louisiana staff pharmacists qualify
`
`under the so-called “professional exemption” of the FLSA with respect to non-payment of
`
`minimum or overtime wages otherwise due; and,
`
`• The only material issue that differentiates any of CVS’s Louisiana staff pharmacist’s FLSA
`
`claims in this case is the particular number of uncompensated hours the staff pharmacist
`
`worked, and how much unpaid compensation that pharmacist is ultimately due.
`
`130. At the appropriate time, Ms. Branch intends to file a motion with this Court to (1) certify
`
`the class of similarly situated employees in this action as all of CVS’s current and former Louisiana
`
`staff pharmacists for at least the past three years; (2) to require CVS pharmacy to produce a list of
`
`all its current and former Louisiana staff pharmacists for at lea

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