NICHOLAS G. GARAUFIS, District Judge.
On June 6, 2015, Plaintiffs filed an Amended Complaint asserting claims under of the Fair Labor Standards Act ("FLSA"), New York Labor Law ("NYLL"), New York common law, and New York City Law. (Am. Compl. (Dkt. 14).) Defendants answered on July 10, 2015. (Ans. (Dkt. 19).) Now before the court is Plaintiffs' fully-briefed motion to conditionally certify an FLSA collective action. (Not. of Mot. to Certify a Collective Action (Dkt. 23).) For the reasons stated below, Plaintiffs' motion is GRANTED.
Peter Mongiove ("Mongiove") is employed by Defendants as a pharmacist. (Am. Compl. ¶ 15.) Yarinel Gonzalez ("Gonzalez") is employed by Defendants as a pharmacy technician. (
Plaintiffs allege that each Defendant is part of an integrated enterprise. (
Relevant here, Plaintiffs allege that the policies implemented by the Individual Defendants at each Corporate Defendant violated the FLSA in two ways. First, Plaintiffs allege that they were not paid for each hour that they worked (
29 U.S.C. Section 216(b), which authorizes collective actions under the FLSA, provides in relevant part:
29 U.S.C. § 216(b) (emphasis added). "Thus, Section 216(b) of the FLSA provides a private right of action to an employee to recover unpaid minimum wages and/or overtime compensation from an employer who violates the Act's provisions, and permits such an action to be brought as a collective action."
"To determine whether an action should be certified as an FLSA collective action, a two-step analysis is used."
"Neither the FLSA nor its accompanying regulations define the term `similarly situated.'"
"[T]he second phase of the FLSA collective action inquiry typically occurs after the completion of discovery; at that point, the court makes a factual finding based on the developed record as to whether or not the class members are actually `similarly situated.'"
"The Supreme Court has held that the benefits to the judicial system of collective actions `depend on employees receiving accurate and timely notice concerning the pendency of the collective action, so that they can make informed decisions about whether to participate.'"
Defendants raise a number of arguments in opposition to preliminary certification of a collective action. For the reasons stated below, the court rejects each argument.
Defendants first argue that "the only policy specifically alleged by Plaintiffs in the Amended Complaint-with respect to the collective action allegations—concerns Defendants allegedly having a policy of paying their nonexempt employees at the regular rate of pay" for overtime hours; accordingly, Defendants reason that allegations that employees are similarly situated based on a policy of shaving hours or not paying overtime at all should be disregarded. (Def.'s Mem. in Opp'n to Pls.' Mot. for Conditional Certification of a Collective Action ("Defs.' Mem.") (Dkt. 30) at 7-8.)
Plaintiffs respond that the collective action allegations in the Amended Complaint are not limited to a straight time claim. Specifically, Plaintiffs argue that the Amended Complaint asserts collective claims on behalf of Plaintiffs and other employees due to "Defendants' failure to pay overtime compensation required by federal and state law and regulations to Plaintiffs who worked in excess of forty (40) hours per week." (Pls.' Reply Mem. in. Supp. of Conditional Certification of a Collective Action ("Pls.' Reply") (Dkt. 31) at 2 n.1.)
Although Plaintiffs' Amended Complaint is far from clear, the court finds that it asserts more than just a straight time claim as a collective action.
As a preliminary matter, Defendants are correct that in the section of the Amended Complaint entitled "Collective Action Allegations" Plaintiffs only allege that that Defendants have a policy of paying their employees at the regular rate for hours they worked in excess of 40. (Am. Compl. ¶ 115.)
However, the Amended Complaint, taken as a whole, alleges multiple wrongful pay schemes on behalf of Plaintiffs and "other similarly situated employees" including both "failure to pay overtime compensation required by federal and state law and regulations" and "failure to pay Plaintiffs for all hours worked". (
The court is mindful that "it makes little sense to certify a collective action based on manifestly deficient pleadings."
Defendants next argue that "the evidence relied on by the Plaintiffs . . . demonstrate the
(Pls.' Reply at 2.)
The two schemes Plaintiffs allege are consistent regardless of whether an employee ends up being paid his or her normal wage for overtime hours, or no overtime at all. That is, two illegal schemes—paying straight time rates for overtime hours and time shaving—can consistently result in some employees appearing to claim that they were paid the wrong rate for overtime while others claim they were not paid overtime at all.
Consider two employees: A and B. Employee A actually works 45 hours per week. However, as a result of time shaving, she is credited with working only 42 hours per week. Then, as a result of the employer's failure to pay a proper overtime rate she is paid her normal rate for the two overtime hours for which she is credited. Employee A has not been payed the proper overtime rate for hours 41 and 42 and has not been paid overtime at all for hours 43 through 45. Now consider Employee B, who actually works 41 hours per week. However, as a result of time shaving she is only credited with working 38 hours. Consequently, Employee B would not be paid any overtime compensation at all, and thus, Employee B would not appear to have been paid the wrong overtime rate.
In essence, Defendants' argument is that because Employee A alleges that she was paid the wrong overtime rate and Employee B alleges that she was not paid overtime at all, they have alleged conflicting pay schemes. They have not; instead, the results of two overlapping schemes (wrong rate and time shaving) causes some employees to be paid their normal rate for overtime hours and other employees not to be paid overtime at all. This does not mean that the employees are not similarly situated. Both schemes could affect all employees; in fact, both schemes do actually affect all employees who, despite time shaving, are credited with working over 40 hours ina week.
A close examination of the declarations submitted by Plaintiffs reveals that this is the exact scenario Plaintiffs have alleged. For example, Mongiove alleges that "Defendants regularly shaved off hours from the time clock and failed to pay me for each hour I worked. So even though the pharmacies I worked at regularly closed around 8:30 p.m., Defendants never paid me for the work I performed after 8:00 p.m." (Decl. of Peter Mongiove ("Mongiove Decl.") (Dkt. 25) ¶ 10.) Mongiove further alleges that "Defendants never paid me time-and-a-half for the overtime hours I worked." (
Michael Rivera alleges that he "regularly worked 41 or more hours a week." (Decl. of Michael Rivera ("Rivera Decl.") (Dkt. 27).) Nonetheless, he alleges that "despite regularly working more than 40 hours each week, Defendants paid me $9.50 an hour for up to 40 hours of work. Defendants did not pay me anything for my overtime hours." (
Thus, the allegations in the declarations are not contradictory and do not preclude conditional certification.
Finally, Defendants argue that "Plaintiffs have failed to demonstrate that they are similarly situated to other employees" because (1) Plaintiffs have different job duties than other employees (Defs.' Mem. at 10); (2) Plaintiffs have different pay rates than other employees (
"Indeed, the type of'person-by-person fact-intensive inquiry [sought by Defendants] is premature at the conditional certification stage and has been specifically rejected by courts within this Circuit.'"
To be sure, there are cases where a plaintiff's job duties or pay rate would be relevant at the preliminary certification stage. For example, if the alleged FLSA violation was that plaintiff has been misclassified as an exempt employee, determining whether the proposed members of the collective action had similar job duties may be relevant.
Here, the purported differences between employees identified by Defendants do not affect the applicability of the allegedly unlawful scheme that Plaintiffs have identified; and therefore, the differences are not a bar to preliminary certification. Plaintiffs allege that Defendants had two policies that applied to all employees regardless of job duties or pay rate. In this context, the purported differences between members of the collective action that Defendants identify are simply irrelevant because a common scheme or policy allegedly affects all employees.
Here, Plaintiffs have alleged two schemes that impacted all of Defendants' nonexempt employees. Thus, the court finds that Plaintiffs have adduced sufficient evidence to justify preliminary certification of a collective action.
Having concluded that a collective action should be preliminarily certified, the court turns to the terms of the notice of that collective action.
Defendants argue that "[t]he notice period for all of [the] FLSA claims asserted in the Complaint should be limited to a maximum of three years." (Defs.' Mem. at 13.) Defendants reason that because collective action notice is inextricably tied to the FLSA claims, the notice period should align with the FLSA three year maximum limitations period. (
The court finds that a three-year notice period is more appropriate for two reasons. First, "[t]he Court's discretion to facilitate notice of FLSA claims is premised on its case management authority; that authority is distinguishable in form and function from the solicitation of claims. Authorizing notice for a time period twice the length of the maximum FLSA limitations period would not serve the efficiency goal articulated [by the Supreme Court when it approved court facilitated notice]."
Thus the notice period is limited to three years. "If and when a class is certified under New York law, class members will receive notice at that time through the class action notification process."
Defendants next contend that the notice period should commence from the date of the mailing of the notice. (Defs.' Mem. at 14.) Plaintiffs respond that "the Court should also tie the notice period to the filing of the original Complaint." (Pls.' Reply at 6.)
"[B]ecause the three-year statute of limitations period for willful FLSA violations runs for each individual plaintiff until that individual opts into the action, notice is generally directed to those employed within three years of the date of the mailing of the notice." Martin, No. 15-CV-5237 (PAE), 2016 WL 30334, at *16 (S.D.N.Y. Jan. 4, 2016) (quoting
Defendants argue that "notice should only be disseminated to hourly employees who were paid their regular rate for hour work over 40 per week—which,
As explained above (
Plaintiffs request "the names, last-known mailing addresses, phone numbers, and email addresses of prospective plaintiffs who were employees during the period between February 27, 2009 to the present." (Pls.' Mem. at 13.) Defendants object to providing (1) six years of data, (2) emails and telephone numbers, and (3) digital data. (Defs. Mem. at 15-16.)
First, Defendants are correct that only three years' worth of employee data need to be produced. Because the notice-period is limited to three years, Defendants need only provide information for employees who worked for Defendants in the three years prior to the filing of the Complaint.
Second, telephone numbers and emails should be produced. "In general, it is appropriate for courts in collective actions to order the discovery of names, addresses, telephone numbers, email addresses, and dates of employment of potential collective members."
Third, Defendants have not indicated how producing a digital list of employees' data would be burdensome. Accordingly, the court requires the production of data to be in digital format.
Finally, Defendants have requested thirty (30) days to produce employee data. Plaintiffs have not objected.
Thus, Defendants are ordered to provide to Plaintiffs with a digital list of names, lastknown mailing addresses, phone numbers, and email addresses of prospective plaintiffs who were employees of Defendants during the three years preceding the filing of the Complaint within thirty days of the issuance of this Memorandum and Order.
Defendants argue that a reminder notice should not be permitted because "Plaintiffs have utterly failed to make any showing as to why a reminder notice is necessary." (Defs.' Mem. at 21.) Plaintiffs respond that "[a] reminder notice makes sense because putative opt-in Plaintiffs' FLSA claims continue to run unless they join this action." (Pls.' Reply at 8.)
"[T]here is `no general consensus among district courts as to the propriety of sending reminder notices.'"
Accordingly, Plaintiffs are permitted to send out a reminder notice.
Finally, the parties contest the specific language of the proposed notice on a number of grounds. (
As a preliminary matter, Plaintiffs do not contest Defendants' fifth, sixth, and last change. Accordingly, the court approves Defendants' fifth, sixth, and last change.
"Plaintiffs oppose Defendants' first three proposed changes insofar they impermissibly fail to advise recipients of the Notice that they may have claims under NYLL that relate back to February 27, 2009." (Pls.' Reply at 8.) As explained above, a three year notice period measured from the filing of the Complaint is appropriate here. Thus, Defendants first and second changes are accepted in part. The notice period should be changed to reflect a three year period running from the filing of the Complaint.
Defendants' third proposed change is also accepted in part. Defendants seek to inform potential plaintiffs that "[i]n the Collective Action portion ofthis lawsuit, Plaintiff alleges that Defendants violated federal law by paying employees their regular rate of pay for each hour worked over 40 hours per week." (Defs.' Mem. at 17.) As explained above, the collective action portion is not limited to only an overtime rate claim. Thus, Defendants third proposed change impermissibly narrows the notice. Defendants' addition of Magistrate Judge Levy to the notice is approved.
Defendants' fourth proposed change is accepted in part. As explained above, a three-year notice period measured from the filing of the Complaint is appropriate here. Accordingly, Defendants' changes should be modified to reflect the proper notice period. Additionally, the fourth proposed change should be altered to reflect that all nonexempt employees may join the collective action. Otherwise, the fourth proposed change is accepted.
Defendants' seventh proposed change is accepted. As explained above, notice under the FLSA is distinct from of a state law class action. Thus, the FLSA notice should not reflect the possibility of recovery under New York state law.
Defendants' eighth proposed change is accepted in part. As explained above, Defendants' changes should be modified to reflect the proper notice period—three years from the filing of the Complaint. Additionally, the eighth proposed change should be altered to reflect that all nonexempt employees may join the collective action. Otherwise, the eighth proposed change is accepted.
Plaintiffs do not object to the first paragraph of the ninth proposed change. Thus, the court accepts Defendant's ninth proposed change with respect to the first paragraph. With respect to the second paragraph, Defendants argue that information concerning the payment of attorneys' fees should be omitted as unnecessary and irrelevant. The court disagrees, "[b]ecause the fee structure may impact on `opt-in' Plaintiff's recovery, if any, notice of those agreements should be provided up front."
With regard to the tenth proposed change, Defendants' proposed change is accepted in part. As explained above, a three year notice period measured from the filing of the Complaint is appropriate. Accordingly, Defendants' changes should be modified to reflect the proper notice period. Defendants further request that consents to join be mailed or hand delivered to the Clerk of Court. "Courts within this Circuit have split on whether the consent forms should be returned to the Clerk of the Court or to plaintiff's attorney."
Additionally, Defendants request that the contents under heading fourteen be deleted. The court disagrees, the statement under heading fourteen informs opt-in plaintiffs of their important right to select their own counsel.
Finally, Defendants request to add to the notice that the court has authorized the notice and that the court takes no position with regard to the claims or defenses. Plaintiffs do not appear to object. Accordingly, Defendants' addition is approved.
As modified, the court approves Plaintiffs' proposed notice.
For the reasons states above, Plaintiffs' motion to conditionally certify an FLSA collective action is GRANTED. Additionally, with the modifications outlined above, Plaintiffs' proposed notice is APPROVED.
SO ORDERED.