Pilgrim's Pride Corporation
In re Pilgrim's Pride Fair Labor Standards Act Litigation, MDL, Docket No. 1:07-cv-1832
Pilgrim's Pride Bankruptcy Update - Proof of Claim Deadline June 1, 2009
Cohen Milstein represents employees of Pilgrim’s Pride Corporation who were denied overtime pay for work at Pilgrim’s Pride’s chicken processing plants. These employees were not paid for the time they spend putting on, taking off, cleaning, and sanitizing their sanitary and protective equipment that they must wear to perform their jobs on the chicken-processing line. According to federal law, non-exempt employees have a right to receive pay for all time worked, including overtime pay at one and one-half times their regularly hourly rate for hours worked over 40 per week.
On December 1, 2008, Pilgrim’s Pride filed for chapter 11 bankruptcy. The bankruptcy filing operates to automatically stay our litigation seeking unpaid overtime. Plaintiffs have filed a Motion for Relief from the Stay, which is set for a hearing on June 16, 2009. The bankruptcy proceeding is pending before the Honorable D. Michael Lynn in the United States Bankruptcy Court for the Northern District of Texas, Case No. 08-45664.
The Bankruptcy Court has set a deadline of June 1, 2009 at 5:00 p.m. PST, to file a proof of claim form on claims against Pilgrim’s Pride. The Bankruptcy Court has approved a Stipulation Between the Debtors and the Plaintiffs in this litigation to file a single proof of claim on behalf of the members of this collective action. Accordingly, counsel for plaintiffs plan to file a proof of claim on behalf of those individuals who have filed consent forms to join this action on the claims raised in this overtime litigation only.
If you have any other claims against Pilgrim's Pride, you should consult an attorney to represent you on those additional claims as they will not be included in the proof of claim we are filing for unpaid overtime. To preserve your right to pursue any other claims, you will need to file an individual proof of claim form by the June 1, 2009 deadline. For more information from Pilgrim’s Pride about the bankruptcy proceeding and a copy of the Proof of Claim form you may wish to visit Pilgrim's Pride's site: http://www.kccllc.net/pilgrimspride.
Case Background
Chicken processing workers employed by Pilgrim’s have filed a number of similar cases challenging the company’s refusal to pay its workers for all time spent donning and doffing. The Judicial Panel on Multidistrict Litigation transferred all related actions against Pilgrim's to the federal court in the Western District of Arkansas, El Dorado Division, pursuant to 28 U.S.C. § 1407. On March 13, 2008, the court granted the named plaintiffs’ motion to certify the case as a collective action, so that they may represent all of those similarly situated who work or have worked for Pilgrim’s Pride in the states of Texas, Louisiana, Arkansas, Alabama, Georgia, Virginia, Tennessee, North Carolina, West Virginia, and Kentucky. On June 19, 2008, a Court-approved Notice of the overtime lawsuit was mailed to current and former Pilgrim's Pride Corp. chicken processing workers at 21 plants. The Notice advises workers about their rights and options in this suit in both English and Spanish. A copy of the Notice and the Consent Form to join the action are available under Court Documents. The postmark deadline the court set for a consent to join the action was September 17, 2008.
On November 25, 2008, the court entered an comprehensive discovery order, which provided, among other things, for Plaintiffs and Pilgrim’s to each select four “test” facilities in which to conduct discovery.
United States Department of Labor Litigation
In addition to the private litigation, this multi-district litigation proceeding includes an action by the United States Department of Labor, against Pilgrim's Pride requesting companywide injunctive relief for violations of the FLSA as well as overtime compensation and liquidated damages for certain chicken processing employees at a plant in Dallas. Solis v. Pilgrim’s Pride, No. 3-07-cv-1352-B, (N.D. Tex.). The United States Department of Labor has made clear in a filing with the court that the government's action is not subject to the automatic stay of the Bankruptcy Code. 11 U.S.C. § 362(b)(2), (4).
In a similar case against Perdue Farms, Cohen Milstein's representation resulted in a $10 million settlement for the workers, as well as an agreement by Perdue to pay its chicken-processing employees for time spent putting on and taking off their protective gear.
If you are an hourly-paid employee who has questions about this case, please call our toll free hotline: 888-816-4995 or email overtime@cohenmilstein.com.