|ROBERT STEIN and ROBERT BECK, on behalf of
themselves and all other persons similarly situated,
HHGREGG, INCORPORATED and GREGG APPLIANCES,
INC., d/b/a hhgregg,
| No. 16-3364|
Appeal from the United States District Court for
the Southern District of Ohio at Cincinnati.
No. 1:15-cv-00396—Susan J. Dlott, District Judge.
Argued: December 1, 2016
Decided and Filed: October 12, 2017
Before: MOORE, SUTTON, and WHITE, Circuit Judges.
KAREN NELSON MOORE, Circuit Judge. Defendants hhgregg, Inc. and Gregg
Appliances, Inc. have a uniform compensation policy whereby their retail and sales employees,
who are paid solely on the basis of commission, are advanced a “draw” to meet the minimumwage
requirements whenever their commissions fall below minimum wage. The amount of the
draw is then deducted from future earnings in weeks when the employees’ commissions exceed
the minimum-wage requirements. Plaintiffs Robert Stein and Robert Beck, on behalf of
themselves and all other former and current employees of defendants, brought suit claiming
violations of the Fair Labor Standards Act (“FLSA”) and of state law. The district court found
that defendants’ compensation policy was legal, and that plaintiffs therefore could not state a
claim on which relief could be granted. The district court dismissed all of plaintiffs’ federal
claims, and declined to exercise supplemental jurisdiction over their remaining state-law claim.
We REVERSE the district court’s judgment dismissing plaintiffs’ case, and we REMAND the
case for further proceedings.