Arena v. Delux Transportation Services, Inc.

3 F. Supp. 3d 1, 22 Wage & Hour Cas.2d (BNA) 214, 2014 U.S. Dist. LEXIS 24724, 2014 WL 794300
CourtDistrict Court, E.D. New York
DecidedFebruary 26, 2014
DocketNo. CV 12-1718
StatusPublished
Cited by8 cases

This text of 3 F. Supp. 3d 1 (Arena v. Delux Transportation Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arena v. Delux Transportation Services, Inc., 3 F. Supp. 3d 1, 22 Wage & Hour Cas.2d (BNA) 214, 2014 U.S. Dist. LEXIS 24724, 2014 WL 794300 (E.D.N.Y. 2014).

Opinion

MEMORANDUM AND ORDER

WEXLER, District Judge.

Plaintiff brings this action claiming violations of the Fair Labor Standards Act (“FLSA”), New York State Labor Law (“NYLL”), New York Code of Rules and Regulations (“NYCRR”), and for wrongful [3]*3conversion of his funds.1 The gravamen of Plaintiff’s complaint2 is that as a driver of taxicabs, he was defendants’ employee and therefore entitled to the protections of the FLSA and New York labor laws, which he claims were violated here. Specifically, Plaintiff claims he was not paid minimum wage, proper overtime or his “spread of hours” pay. Plaintiff also claims that his funds were wrongfully withheld and converted by defendants.

Defendants Delux Transportation Services, Inc. (“Delux”), Lincoln Holding Corporation, Webster Management, Webster Management, Inc., Willets Management, Inc., Port Conveyance, Delux Taxi of Long Island, Delux Limousine Service, Bay Limousine and Arrow Island Limousine, Inc., Peter Blasucci (“Blasucci”), and Andrea Majer (“Majer”), (collectively, the “Defendants”) move for summary judgment pursuant to Federal Rules of Civil Procedure (“Fed.R.Civ.P.”), Rule 56. Defendants argue that Plaintiff was not an employee, thus precluding his FLSA and New York labor law claims, and even if he were an employee, the taxicab exemptions apply. Furthermore, Defendants claim that even if the FLSA and N.Y. labor laws were applicable, Plaintiff has failed to make a prima facie ease that he was not properly paid, or that Defendants wrongfully converted his wages, warranting summary judgment. Plaintiff opposes Defendants’ motion.

BACKGROUND

The following facts are drawn from the parties’ Local Rule 56.1 Statements, declarations, deposition testimony and other evidence submitted in support of the motion. Defendant Delux and its family of companies named in this action collectively provide a variety of ground transportation services in the Port Washington area of Nassau County. Defendants’ Local Rule 56.1 Statement (“Def. 56.1 Stmt.”), ¶ 2; Plaintiffs Counter-56.1 Statement (“PI. Ctr-56.1 Stmt.”), ¶ 2; Declaration of Peter Blasucci (“Blasucci Dec.”), ¶ 1, 3, 5, 8. De-lux Franchise, Inc. is licensed as a “base owner” by the Town of North Hempstead, and subject to the Town of North Hemp-stead Code (“Town Code”) governing the operation of taxicabs, limousines and private livery cars. See Blasucci Dec., ¶ 11, Ex. A: Base Owner’s License.

1. The Lease Agreement

On November 23, 2011, Plaintiff Arena signed a Taxicab Lease Agreement (“Lease Agreement” or “Agreement”), with Delux Transportation Services Inc. This Agreement defined Delux as the “Lessor” and Arena as the “Lessee” of a taxicab, for which rent was to be paid by Lessee to the Lessor, to be used to transport passengers in accordance with the Town Code. See Blasucci Dec., Ex., C: Taxicab Lease Agreement; Def. 56.1 Stmt., ¶ 3; PI. Ctr-56.1 Stmt. ¶3.3 The Lease Agreement further states that there “does not exist between them the relationship of employer-employee, principal-agent, or master-servant,” and the relationship between the Lessor and Lessee is [4]*4“strictly that of lessor-lessee, the LESSEE being free from interference or control on the part of the LESSOR in the operation of said taxicab.” See Blasucci Ex. C: Taxicab Lease Agreement, at ¶ 5. The Agreement further provides that in addition to paying rent, the Lessee is responsible for a daily security deposit to ensure return of the taxicab in the same condition as accepted by the Lessee. Agreement, at ¶ 6. Under the Agreement, the “LESSOR disclaims any interest in the revenue received by LESSEE from passengers, and LESSEE shall be entitled to receive all such revenue for LESSEE’S own account.” Id., at ¶ 7. Attached to the Lease Agreement was “Schedule A” outlining daily lease rates, in eight and twelve hour shifts, with additional hour to one hour lease increments available. Id., at IT 4; Blasucci Dec., Ex. D: Schedule A.

In June 2012, Arena informed Delux that he wanted to terminate the Lease Agreement, and turned in his charge machine and pager. See Blasucci Dec., at ¶ 34. A few weeks later, Arena returned to Delux, and executed another Lease Agreement, containing essentially the same terms as the Lease Agreement, and an additional term concerning the rental of the pager.4 See Blasucci Dec., ¶ 35-37; Ex. E: Lease Agreement of July 2012. This arrangement lasted a few weeks, and Arena last leased a cab from Delux in August 2012. Blasucci Dec., ¶ 40.

2. Driver Performance and Responsibilities

Prior to signing the Lease Agreement, Arena attended an orientation, for which he did not get paid. Declaration of Joseph Arena (“Arena Dec.”), ¶ 5. At that time, he received a folder containing various documents about driving for Delux, including a Taxi Driver handbook, with zone maps, fare grids & common pick up locations, and various memoranda regarding sales tax information, expected standards on keeping the vehicles cleaned and maintained, standards on interacting with passengers, information on how to fill out forms, use radio terms and collect credit card payments, use of cell phones while driving, advice on handling various customer service situations and fare increases. Arena Dec., ¶ 5-10, Exs. 1-3, 6-9, 11-28, 30-33. He was also forced to watched a video during orientation regarding safe driving techniques, customer service and vehicle maintenance problems. Arena Dec., ¶ 8. After the orientation, he was taken on a tour of the Port Washington area, and was given a handwritten test. Arena Dec., ¶ 9-10. Arena then spent two days training, by riding in the car with another driver, learning, inter alia, how to fill out the forms, communicate with dispatch and use the credit card machine. Arena Dec., ¶ 12. During the second day of this training, Arena drove a veteran driver’s car, picked up his passengers, and was evaluated on his performance. Arena was also not paid for the training days. Arena Dec., ¶ 12-15.

The Town of North Hempstead issued a taxi driver’s license to Arena on November 14, 2011. See Blasucci Dec., ¶ 50, Ex. H: Arena’s taxi driver’s license. As noted above, on November 23, 2011, Plaintiff signed the Lease Agreement as required [5]*5to begin driving for Delux. Arena Dec., ¶ 18-20.

i. Plaintiffs Schedule

Defendants assert that Plaintiff determined his own schedule of when he wanted to lease a cab. Def. 56.1 Stmt., ¶ 7. Plaintiff states that he would propose a schedule to be approved by management. PI. Ctr-56.1 Stmt., ¶ 7; see also Declaration of Theodore J. Hecht (“Hecht Dec.”), Ex. A: Deposition of Joseph Arena (“Arena Dep.”), at 30 (Plaintiff and Delux “came up” with the days he would work). Plaintiff was told he had to work at least one weekend day. Arena Dec., ¶ 25. Other than his testimony that he had to work one weekend day, there is no evidence that Plaintiff was obligated to lease a vehicle for any minimum amount of time.

If Plaintiff chose not to lease a cab on a particular day, there was no significant consequence. Arena testified that he “showed up to the best of [his] ability at the time,” Arena Dep., at 31, and if he wasn’t going to come in, he would have to call in. Id.

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3 F. Supp. 3d 1, 22 Wage & Hour Cas.2d (BNA) 214, 2014 U.S. Dist. LEXIS 24724, 2014 WL 794300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arena-v-delux-transportation-services-inc-nyed-2014.