JOSEPH F. BIANCO, District Judge:
Plaintiff MaryClaire Krumholz ("Krumholz") brought this action against the Village of Northport ("the Village") alleging violations of the Fair Labor Standards Act ("FLSA"), due process violations in contravention of 42 U.S.C. § 1983, and wrongful termination pursuant to New York State law. The Village moved for summary judgment, arguing that plaintiff is an exempt employee under the FLSA, the Village did not violate plaintiff's right to due process, and plaintiff's action under state law is improperly before this Court and is time-barred.
For the reasons set forth below, the Court grants defendant's motion for summary judgment on the FLSA claim, which is the only remaining federal claim. In particular, the Court holds as a matter of law, based upon the uncontroverted facts, that plaintiff was exempt from the FLSA's overtime pay requirements because, as the Village Treasurer, she was "employed in a bona fide executive, administrative, or professional capacity." 29 U.S.C. § 213(a)(1). Although there are some disputed facts regarding certain aspects of plaintiff's duties, it is undisputed that, as the Village Treasurer, she had, inter alia, the following primary duties and authorities: (1) she was responsible for drafting the Village Budget; (2) she had the authority to open bank accounts on behalf of the Village; (3) she had the authority to act as the sole check signatory on behalf of the Village for checks under $5,000; (4) she supervised the work of the person in charge of accounts payable and the person in charge of payroll; and (5) she had the authority to decide where to invest the Village's excess money, and used her judgment to make the decision and get the best interest rate for the Village. These uncontroverted facts demonstrate as a matter of law that her primary duties certainly relate to "the performance of office or non-manual work directly related to the management or general business operations" of the Village, and "include[d] the exercise of discretion and independent judgment with respect to matters of significance." 29 C.F.R. § 541.200(a)(2)-(3). Thus, plaintiff is exempt from the FLSA's overtime pay requirements as an administrative employee. No rational trier of fact could conclude otherwise given these undisputed facts. Accordingly, the disputed facts regarding certain aspects of her other duties simply do not create a genuine issue of material fact for trial on the FLSA claim, and summary judgment in defendant's favor on that claim is warranted. Given that the sole remaining federal claim does not survive summary judgment, the Court in its discretion declines to exercise supplemental jurisdiction over the state law claims, including plaintiff's wrongful termination claim, as well as defendant's counterclaims.
The Court has taken the facts set forth below from the parties' depositions, affidavits, and exhibits, and from the parties' respective Rule 56.1 Statements of Facts. Upon consideration of a motion for summary judgment, the Court shall construe the facts in the light most favorable to the non-moving party. See Capobianco v. City of New York, 422 F.3d 47, 50 (2d Cir.2005). Unless otherwise noted, where a party's 56.1 Statement is cited, that fact is undisputed
Plaintiff was appointed as the Treasurer of the Village of Northport under the proposal of Mayor George Doll pursuant to the New York State Village Law and the vote of the Village Board of Trustees effective June 7, 2006. (Def.'s 56.1 ¶ 4.) Plaintiff's starting salary was $60,000 per year plus $4,500 in lieu of health benefits. (Id.) Plaintiff has a degree in Business Administration from Hofstra University, and was one quarter of the way to obtaining a Masters in Business Administration prior to her employment with the Village. (Id. ¶¶ 1, 2.) Before working as the Village Treasurer, plaintiff was a Certified Public Accountant. (Id. ¶ 2.) She worked as an accountant and an assistant comptroller for private companies. (Def.'s 56.1 ¶ 3; Pl.'s 56.1 ¶ 3.)
The parties do not dispute that plaintiff had the following duties in her position as Village Treasurer: (1) Plaintiff supervised and reviewed the work of the payroll clerk and the accounts payable clerk. (Def.'s 56.1 ¶ 14.) (2) Plaintiff signed off on the work of the persons whom she supervised. She made the final determination as to what was accurate. (Id. at ¶ 15.) (3) Plaintiff was autonomous in respect to those she supervised and relied on her own judgment as to supervision and training. (Id. at ¶ 16.) (4) Plaintiff was one of only four people in the Village authorized to sign checks. The other three were the Village Clerk, the Deputy Village Clerk, and the Deputy Treasurer.
The parties dispute the exact nature of some of plaintiff's duties. For example, defendant states that plaintiff used her judgment to determine what money went into the Village trust fund, and that she
From October 31, 2007 through February 11, 2009, plaintiff drafted Village checks payable to herself for a total of $115,906.77. (Def.'s 56.1 ¶ 57.) Plaintiff had the Village pay the IRS and NYS tax on her behalf for $33,605.61. (Id.) Accordingly, in addition to receiving her annual salary, during the above time period, plaintiff paid herself $149,511.77 from the Village general fund.
Plaintiff's last day of work for the Village was March 5, 2009. (Def.'s 56.1 ¶ 5.) On that day, she was called to a meeting with the Mayor and others concerning the overtime
Plaintiff filed the complaint in this action on October 5, 2009. The Village answered and counterclaimed against the plaintiff on November 25, 2009. The Village filed its motion for summary judgment on September 21, 2011. On December 2, 2011, plaintiff opposed defendant's motion and cross-moved for partial summary judgment. On December 23, 2011, the Village opposed plaintiff's cross-motion and replied in support of its motion for summary judgment. On January 6, 2012, plaintiff replied in support of its cross-motion. The Court
The standards for summary judgment are well settled. Pursuant to Federal Rule of Civil Procedure 56(a), a court may only grant a motion for summary judgment if "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). The moving party bears the burden of showing that he or she is entitled to summary judgment. Huminski v. Corsones, 396 F.3d 53, 69 (2d Cir.2005). "A party asserting that a fact cannot be or is genuinely disputed must support the assertion by: (A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials; or (B) showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact." Fed.R.Civ.P. 56(c)(1). The court "is not to weigh the evidence but is instead required to view the evidence in the light most favorable to the party opposing summary judgment, to draw all reasonable inferences in favor of that party, and to eschew credibility assessments." Amnesty Am. v. Town of W. Hartford, 361 F.3d 113, 122 (2d Cir.2004) (quoting Weyant v. Okst, 101 F.3d 845, 854 (2d Cir.1996)); see Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (summary judgment is unwarranted if "the evidence is such that a reasonable jury could return a verdict for the nonmoving party").
Once the moving party has met its burden, the opposing party "`must do more than simply show that there is some metaphysical doubt as to the material facts.... [T]he nonmoving party must come forward with specific facts showing that there is a genuine issue for trial.'" Caldarola v. Calabrese, 298 F.3d 156, 160 (2d Cir.2002) (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (emphasis in original)). As the Supreme Court stated in Anderson, "[i]f the evidence is merely colorable, or is not significantly probative, summary judgment may be granted." Anderson, 477 U.S. at 249-50, 106 S.Ct. 2505 (citations omitted). Indeed, "the mere existence of some alleged factual dispute between the parties" alone will not defeat a properly supported motion for summary judgment. Id. at 247-48, 106 S.Ct. 2505 (emphasis in original). Thus, the nonmoving party may not rest upon mere conclusory allegations or denials but must set forth "`concrete particulars'" showing that a trial is needed. R.G. Group, Inc. v. Horn & Hardart Co., 751 F.2d 69, 77 (2d Cir.1984) (quoting SEC v. Research Automation Corp., 585 F.2d 31, 33 (2d Cir.1978)). Accordingly, it is insufficient for a party opposing summary judgment "`merely to assert a conclusion without supplying supporting arguments or facts.'" BellSouth Telecomms., Inc. v. W.R. Grace & Co., 77 F.3d 603, 615 (2d Cir.1996) (quoting Research Automation Corp., 585 F.2d at 33).
Defendant argues that plaintiff is exempt from the FLSA because she (1) was "employed in a bona fide executive, administrative, or professional capacity," 29 U.S.C. § 213(a)(1), and/or because (2) she was an appointed policymaker employed by a political subdivision of a state, 29
Under the FLSA, employers engaged in interstate commerce must pay overtime pay to an employee working more than forty hours per week "at a rate not less than one and one-half times the regular rate at which he is employed." 29 U.S.C. § 207(a)(1). Not all workers, however, are covered by this scheme. For example, "any employee employed in a bona fide executive, administrative, or professional capacity" is exempt from the overtime pay requirements. 29 U.S.C. § 213(a)(1). FLSA exemptions such as this one are to be "narrowly construed." Martin v. Malcolm Pirnie, Inc., 949 F.2d 611, 614 (2d Cir.1991) (citing Arnold v. Ben Kanowsky, Inc., 361 U.S. 388, 392, 80 S.Ct. 453, 4 L.Ed.2d 393 (1960)). Moreover, the "employer bears the burden of proving that its employees fall within an exempted category of the [FLSA]." Id. "[I]t is a strict question of law whether the activities and responsibilities of the employee, once established, exempt him or her from the FLSA's overtime requirements." Alberti v. Cnty. of Nassau, 393 F.Supp.2d 151, 174 (E.D.N.Y.2005) (citing Tomney v. Int'l Ctr. for Disabled, 357 F.Supp.2d 721, 739-40 (S.D.N.Y.2005)).
The Department of Labor ("DOL") has enacted regulations that establish a two-pronged test for determining whether an employee is exempt as "employed in a bona fide executive, administrative, or professional capacity" under Section 213(a)(1).
Under the second prong, the employee must engage in certain "primary dut[ies]." 29 C.F.R. §§ 541.100(a)(2), 541.200(a)(2), 541.300(a)(2). An exempt "administrative" employee must engage in the following primary duties:
29 C.F.R. § 541.200(a)(2)-(3).
The regulations further explain each of these requirements. With respect to duties "directly related to management or general business operations," the employee "must perform work directly related to assisting with the running or servicing of the business, as distinguished, for example, from working on a manufacturing production line or selling a product in a retail or service establishment." 29 C.F.R. § 541.201(a). The regulations provide a nonexclusive list of examples of this type of work, including "work in functional areas such as tax; finance; accounting; budgeting; auditing," among other areas. Id. § 541.201(b). With respect to duties demonstrating "discretion and independent judgment," "the exercise of discretion and independent judgment involves the comparison and the evaluation of possible courses of conduct, and acting or making a decision after the various possibilities have been considered." Id. § 541.202(a). Some factors to consider in determining whether the employee exercises discretion are:
Id. § 541.202(b). The regulations note that employees "can exercise discretion and independent judgment even if their decisions or recommendations are reviewed at a higher level." Id. § 541.202(c). Thus, the employee's decisions do not need to "have a finality that goes with unlimited authority and a complete absence of review." Id.
As to the "salary" prong of the test, plaintiff's starting salary was $60,000 per year, which constitutes a weekly salary of $1,153.85. (Def.'s 56.1 ¶ 4.) This salary well exceeds the minimum of $455 per week required for an employee to fall within the Section 213(a) exemption. Plaintiff "regularly received" her pay through direct deposit. (Def.'s 56.1 ¶ 10.) There is no indication that plaintiff's payments were "subject to reduction because of variations in the quality or quantity of the work performed." 29 C.F.R. § 541.602(a). Accordingly, plaintiff satisfies the "salary" prong of the test for an exemption under Section 213(a)(1).
Turning to the first part of the primary duties prong — whether the employee's "work directly related to the management
Plaintiff's duties also satisfy the second prong of the primary duties test — whether she had "discretion and independent judgment" in her role as Village Treasurer. Plaintiff supervised the drafting of the Village budget and reported directly to the Commissioner of Finance, who was a member of the Board of Trustees. (Def.'s 56.1 ¶ 20; Pl.'s 56.1 ¶ 20.) Plaintiff had the assistance of department heads when she drafted the budget. She was the department head for the line of employees of the Treasurer. (Def.'s 56.1 ¶ 21.) Drafting the Village budget constitutes a "major assignment" in the operations of the Village, and demonstrates "authority to commit the employer in matters that have significant financial impact." See 29 C.F.R. § 541.202(b). Moreover, plaintiff's responsibility over the budget-drafting process demonstrates that the plaintiff had "authority to formulate, affect, interpret, or implement management policies or operating practices," since determining how to allocate Village resources may substantially impact policies and operating practices. See id. Additionally, this duty indicates plaintiff's involvement in the Village's long- and short-term business objectives. See id. Thus, this undisputed primary duty, based upon the facts of this case, makes her exempt from the FLSA's overtime requirement under the administrative exemption of Section 213(a)(1).
This Court's holding on this issue is consistent with prior decisions in this
Id. at 174. Plaintiff's responsibilities concerning the Village budget were similar in nature to the responsibilities at issue in Alberti. In drafting the budget, plaintiff necessarily evaluated the reasonableness of proposed expenditures, an exercise demanding discretion and judgment. Although plaintiff's duties did not include approving or disapproving purchases, she nonetheless used discretion and judgment in consulting with other department heads to draft the budget and determine how much money to allocate to each department.
Similarly, in Paul v. UPMC Health System, No. 06-1565, 2009 WL 699943, at *12-13, 2009 U.S. Dist. LEXIS 19277, at *34-35 (W.D.Pa. Mar. 10, 2009), the court held that plaintiff, a manager of grants, funding, and budgets at a mental health service provider, was exempt from FLSA over-time pay requirements under the administrative exemption. In analyzing the plaintiff's primary duties, the court explained:
Id. at *12, 2009 U.S. Dist. LEXIS 19277, at *33-34. In the instant action, although neither party alleges that plaintiff oversaw contract billing, her duties with respect
In particular, in addition to her supervision of the drafting of the Village budget, plaintiff had numerous other duties and authorities, which are uncontroverted, and provide further support for the application of the administrative exemption under Section 213(a)(1). For example, plaintiff had the authority to decide where to invest the Village's excess money. She used her judgment to make the decision and get the best interest rate for the Village.
Plaintiff's duties also included opening bank accounts and signing checks. She was the only person other than the Mayor who was authorized to open banking accounts. (Def.'s 56.1 ¶ 18; Pl.'s 56.1 ¶ 18.) She was one of only four people in the Village authorized to sign checks. The other three were the Village Clerk, the Deputy Village Clerk, and the Deputy Treasurer. (Def.'s 56.1 ¶ 17; Pl.'s 56.1 ¶ 17.) When plaintiff was Treasurer, the Village policy was that she could sign Village checks if they were for less than $5,000, without requiring a second signature. (Def.'s 56.1 ¶ 28.) She exercised this authority regularly, drafting several Village general fund checks payable to herself and signed only by herself for amounts less than $5,000 during the period of October 31, 2007 through February 11, 2009, totaling $115,906.77. (Def.'s 56.1 ¶¶ 11, 12, 29, 39, 57.) These duties provide another indication of plaintiff's authority to commit the Village to matters of significant financial impact.
In sum, even construing the evidence in the light most favorable to plaintiff, the uncontroverted facts demonstrate, for the reasons set forth above, that plaintiff was exempt from the overtime requirements of the FLSA because she was an administrative employee under 29 U.S.C. § 213(a)(1). It is uncontroverted that, as the Village Treasurer, she had, inter alia, (1) responsibility for drafting the Village's budget, (2) the authority to open bank accounts and act as sole check signatory for checks under $5,000, and (3) supervisory authority over the work of the person in charge of accounts payable and the person in charge of payroll.
Having granted summary judgment to defendant on plaintiff's federal claim under the FLSA, the only remaining claims are the plaintiff's state law claim of wrongful termination and the defendant's counterclaims for conversion and breach of fiduciary duty.
For the foregoing reasons, the Court grants defendant's motion for summary
SO ORDERED.
29 U.S.C. § 203(e)(2)(c)(ii)(III).