Aguila v. Corporate Caterers II, Inc.

199 F. Supp. 3d 1358, 2016 WL 4196656, 2016 U.S. Dist. LEXIS 104962
CourtDistrict Court, S.D. Florida
DecidedAugust 9, 2016
DocketCase No. 1:15-cv-24350-KMM
StatusPublished
Cited by5 cases

This text of 199 F. Supp. 3d 1358 (Aguila v. Corporate Caterers II, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aguila v. Corporate Caterers II, Inc., 199 F. Supp. 3d 1358, 2016 WL 4196656, 2016 U.S. Dist. LEXIS 104962 (S.D. Fla. 2016).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS

K. MICHAEL MOORE, CHIEF UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court on Defendants Corporate Caterers II, Inc. and Jim Gass’s Motion to Dismiss (ECF No. 38) Plaintiffs Ricardo Aguila and Teresa Aguila’s Second Amended Complaint (ECF No. 36). The Motion has been fully briefed and is now ripe for review. For the reasons stated below, Defendants’ Motion to Dismiss is GRANTED.

I. BACKGROUND

Plaintiffs Ricardo and Teresa Aguila bring this action pursuant to the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. (“FLSA” or the “Act”), seeking unpaid tips and liquidated damages from individual Defendant Jim Gass and Corporate Defendant Corporate Caterers II. See generally, [1359]*1359Second Am. Compl. (EOF No 36). Plaintiffs are delivery drivers for CCII, a catering company operating out of Miami Dade County, Florida. Id. ¶¶ 4-5, 8-9.

Plaintiffs allege that in the course of their employment, they would routinely complete three to four deliveries per day, five days a week, and “[a]s part of their delivery duties, [they] were to receive tips from each delivery.” Id ¶¶ 8-11. Plaintiffs allege, however, that CCII retained some or all of these tips, in violation of the FLSA. Id. ¶ 12. Defendants now move to dismiss the Second Amended Complaint, arguing that the FLSA does not provide a private cause of action for an employee to sue for withheld tips.

II. LEGAL STANDARD

A motion to dismiss for failure to state a claim merely tests the sufficiency of the complaint; it does not decide the merits of the case. Milburn v. United States, 734 F.2d 762, 765 (11th Cir.1984). To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to “state a claim' to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). The purpose of this requirement is “to give the defendant fair notice of what' the claim is and the grounds upon which it rests.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955.

When considering a motion to dismiss, the court must accept all of the plaintiffs allegations as true, construing them in the light most favorable to the plaintiff. Pielage v. McConnell, 516 F.3d 1282, 1284 (11th Cir.2008). A complaint need not set forth detailed factual allegations, but must contain enough facts to indicate the presence of the required elements. Watts v. Fla. Int’l Univ., 495 F.3d 1289, 1302 (11th Cir.2007). “A pleading that offers ‘a formulaic recitation of elements of a cause of action will not do.’ ” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955). “[C]onclusory allegations, unwarranted deductions of fact or legal conclusions masquerading as facts will not prevent dismissal.” Oxford Asset Mgmt., Ltd. v. Jaharis, 297 F.3d 1182, 1188 (11th Cir.2002).

III. DISCUSSION

The FLSA was “designed to protect workers from the twin evils of excessive work hours and substandard wages.” Howard v. City of Springfield, 274 F.3d 1141, 1148 (7th Cir.2001). To that end, “the statute requires payment of minimum wages and overtime pay, 29 U.S.C. §§ 206, 207, and gives employees deprived of these payments the right to receive them, id. § 216(b).” Malivuk v. Ameripark, LLC, No.: 1:15-2570-cv-WSD, 2016 WL 3999878, at *2 (N.D.Ga. Jul. 26, 2016); see also Lyon v. Whisman, 45 F.3d 758, 764 (3d Cir.1995) (“The substantive sections of the FLSA, narrowly focusing on minimum wage rates and maximum working hours, bear out its limited purpose”). The express private right of action found in § 216(b) of the Act is “limited in an important respect: It is available only when an employee is owed ‘unpaid minimum wages, or [ ] unpaid overtime- compensation’ as a result of a minimum-wage or overtime violation.” Trejo v. Flyman Hosp. Props., Inc., 795 F.3d 442, 445 (4th Cir.2015) (Harris, J. concurring). Here, Plaintiffs allege neither minimum wage nor overtime violations. See generally Second Am. Compl. (ECF No. 36). Accordingly, Defendants argue, Plaintiffs are foreclosed from bringing a claim under the FLSA.

Plaintiffs, however, do not argue that § 216(b), on its own, provides them a right of action for lost tips. Instead, Plaintiffs point to § 203(m) of the Act, com[1360]*1360monly known as the tip credit provision. Section 203(m), which falls under the Definitions section of the FLSA, provides:

In determining the wage an employer is required to pay a tipped employee, the amount paid such employee by the employee’s employer shall be an amount equal to
(1) the cash wage paid such employee which for purposes of such determination shall not be less than the cash wage required to be paid such an employee on August 20, 1996; and
(2) an additional amount on account of the tips received by such employee which amount is equal to the difference between the wage specified in paragraph (1) and the wage in effect under section 206(a)(1) of this title.
The additional amount on account of tips may not exceed the value of the tips actually received by an employee. The preceding 2 sentences shall not apply with respect to any tipped employee unless such employee has been informed by the employer of the provisions of this subsection, and all tips received by such employee have been retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.

29 U.S.C. § 203(m). Put simply, § 203(m) permits an employer to take a credit against the minimum wage by using the employees’ tips as wages, and sets forth the conditions for an employer to take such a tip credit.

Plaintiffs concede that under a consistent body of case law, courts have interpreted § 203(m) to prohibit an employer from retaining an employee’s tips only if the employer pays the tipped employee less than the federal minimum wage. See Trinidad v.

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199 F. Supp. 3d 1358, 2016 WL 4196656, 2016 U.S. Dist. LEXIS 104962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aguila-v-corporate-caterers-ii-inc-flsd-2016.