IN THE UNITED STATES DISTRICT COURT FOR ... - Cleveland.com

3. The Named Plaintiffs in the Lawsuits are Melanie Warren, who worked for
InkStop as a Store Manager, and Carol Laskoski, who worked as an Assistant Store Lead. The
Lawsuits were brought as collective actions under the FLSA on behalf of the Named Plaintiffs
and all others similarly situated. As of the filing of the Joint Motion, 237 additional employees
had already opted into the Lawsuits by submitting consent forms filed with the Court (“Existing
Opt-In Plaintiffs”).
4. The Lawsuits assert identical claims under the FLSA and various state laws on
behalf of two groups of employees, the Non-Payment Group and the Store Manager Group. For
the Non-Payment Group, Plaintiffs seek compensation for both hourly and salaried employees
for the unpaid work performed after September 13, 2009. For the Store Manager Group,
Plaintiffs allege that salaried employees who worked as Store Managers after January 7, 2008
were improperly classified as “exempt” from overtime compensation and are owed unpaid
overtime compensation.
5. Plaintiffs allege that Defendants were “employers” within the meaning of §
203(d) of the FLSA, in that they were “person[s who] act[ed] directly or indirectly in the interest
of an employer,” InkStop, “in relation to employees,” including Plaintiffs and other similarly-
situated employees. Defendants in each case all deny that they are “employers” as defined in the
FLSA and, further, deny any liability or wrongdoing of any nature.
6. The parties have acknowledged that should these cases proceed, many bona fide
disputes over legal and factual issues will have to be litigated, the ultimate resolution of which
will substantially impact the outcome of these matters. Such bona fide disputes include:
a) Whether the individual Defendants can be held personally liable under the
FLSA in the circumstances existing here;
b) Whether these matters should be stayed in light of the fact that Inkstop, the
employing entity, is in bankruptcy proceedings;
3