Brain v. The Execu-Search Group, LLC

CourtDistrict Court, S.D. New York
DecidedFebruary 28, 2024
Docket1:22-cv-08219
StatusUnknown

This text of Brain v. The Execu-Search Group, LLC (Brain v. The Execu-Search Group, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brain v. The Execu-Search Group, LLC, (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT ELECTRONICALLY FILED DOC #: SOUTHERN DISTRICT OF NEW YORK DATE FILED: 2/28/20 24 KATIE BRAIN, individually and for others similarly situated, 1:22-cv-8219 (MKV) Plaintiff, OPINION AND ORDER -against- GRANTING IN PART AND DENYING IN PART MOTION TO THE EXECU-SEARCH GROUP, LLC, DISMISS Defendant. MARY KAY VYSKOCIL, United States District Judge: Plaintiff Katie Brain (“Brain”) brings this putative collective and class action asserting claims under the federal Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. (“FLSA”), and New York Labor Law (“NYLL”), premised on allegations that she did not receive overtime compensation while employed by Defendant The Execu|Search Group, LLC (“ESG”).1 ESG moves to dismiss Brain’s Second Amended Collective and Class Action Complaint (“SAC”) for failure to state a claim upon which relief can be granted pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. For the following reasons, the motion to dismiss is GRANTED in part and DENIED in part. BACKGROUND2 ESG is a specialized staffing company that provides employment and staffing solutions to the medical industry. SAC ¶¶ 1, 31. Brain was employed by ESG from approximately March 2019 to July 2021 in the position of Recruiter. Id. ¶ 13. As a Recruiter, Brain recruited and staffed medical personnel to healthcare organizations. Id. ¶ 57. ESG classified Brain as an exempt 1 ESG was renamed The Tandym Group, LLC in June 2022. [ECF No. 39 at 1 n.1]. This Opinion refers to Defendant as ESG, as named in the Second Amended Collective and Class Action Complaint. [ECF No. 30]. 2 The Court draws its facts from the SAC [ECF No. 30], the factual allegations of which are accepted as true for purposes of resolving this motion. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). employee. Id. ¶¶ 14, 44. Brain was paid an “advance commission” in the form of a monthly flat amount, and she received no overtime compensation. Id. ¶¶ 44, 45. Although labeled an “advance commission,” Brain alleges that this monthly flat payment was “more akin to a salary than a bona fide commission.” Id. ¶ 46. Relying on pay records submitted by Opt-in Plaintiff AnNur Barnett, Brain alleges that because “more than half” of Recruiters’ total earnings did not consist of properly

defined commissions, Recruiters were misclassified as exempt employees, and instead should have been classified as non-exempt. Id. ¶ 49. However, Brain and other Recruiters “regularly worked more than 40 hours each week without receiving overtime compensation as required by the FLSA and NYLL.” Id. ¶ 52. “On average, Brain and Barnett estimate working 45-50 hours or more each week.” Id. ¶ 53. PROCEDURAL HISTORY Brain initiated this action by filing a Complaint asserting claims under the FLSA and the NYLL. [ECF No. 1]. Following the initial exchange of documents related to Brain’s compensation, the parties stipulated that Brain would file an amended complaint. [ECF No. 19],

and thereafter Brain filed the First Amended Complaint. [ECF No. 20]. Pursuant to this Court’s Individual Rules of Practice in Civil Cases, ESG filed a pre-motion letter in anticipation of a motion to dismiss the First Amended Complaint. [ECF No. 23]. In response, Brain moved for leave to amend her First Amended Complaint to address the alleged defects raised in ESG’s pre- motion letter, to which ESG consented. [ECF No. 28]. The Court granted Brain’s request. [ECF No. 29]. Brain filed the operative Second Amended Collective and Class Action Complaint, asserting two claims, one each for ESG’s failure to pay overtime wages under the FLSA and under the NYLL. [ECF No. 30]. ESG again filed a pre-motion letter regarding its anticipated motion to dismiss the SAC. [ECF No. 32]. Brain filed a letter in opposition. [ECF No. 35]. In response to these letters, the Court issued an Order granting ESG leave to file a motion to dismiss the SAC, but first granting Brain an opportunity to amend her complaint once again in response to ESG’s arguments. [ECF No. 36]. The Court noted that “[t]his will be Plaintiff’s last opportunity to amend in response to any issue raised in the parties’ pre-motion letters.” [ECF No. 36]. Brain filed a letter notifying the Court that she did not intend to further amend the SAC in response to any issue

raised in the pre-motion letters. [ECF No. 37]. ESG moved to dismiss the SAC [ECF No. 38], filing a memorandum of law in support [ECF No. 39 (“Def. Mem.”)]. Brain opposed the motion. [ECF No. 40 (“Pl. Opp.”)]. ESG filed a reply in further support of its motion. [ECF No. 43 (“Def. Reply”)]. LEGAL STANDARD I. Rule 12(b)(6): Motion to Dismiss To survive a motion to dismiss pursuant to Rule 12(b)(6), a plaintiff must plead “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible if the complaint contains sufficient “factual content

that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678 (citing Twombly, 550 U.S. at 556). Although the Court “must accept as true all of the allegations contained in a complaint,” this “tenet . . . is inapplicable to legal conclusions” and “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. II. FLSA Overtime Claims Section 207(a)(1) of the FLSA requires that “for a workweek longer than forty hours,” an employer must compensate an employee working any excess hours beyond forty “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). “Employees who are entitled to, but improperly denied, overtime—including employees who are misclassified as exempt from the overtime requirement—may sue to recover ‘unpaid overtime compensation . . . and . . . an additional equal amount as liquidated damages.’” Herrera v. Comme des Garcons, Ltd., 84 F.4th 110, 113–14 (2d Cir. 2023) (quoting 29 U.S.C. § 216(b)). In a case asserting a violation of the FLSA’s overtime provisions, “a plaintiff must sufficiently allege 40 hours of work in a given workweek as well as some uncompensated time in

excess of the 40 hours.” Lundy v. Catholic Health Sys. of Long Island Inc., 711 F.3d 106, 114 (2d Cir. 2013). A plaintiff must “provide sufficient detail about the length and frequency of [her] unpaid work to support a reasonable inference that [she] worked more than forty hours in a given week.” Nakahata v. N.Y.-Presbyterian Healthcare Sys., Inc., 723 F.3d 192, 201 (2d Cir. 2013). Allegations that an employee “regularly worked” more than forty hours per week are merely legal conclusions that constitute “little more than a paraphrase of the statute” and do not, standing alone, establish a plausible overtime claim. Dejesus v. HF Mgmt. Servs., LLC, 726 F.3d 85, 89 (2d Cir.

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Bluebook (online)
Brain v. The Execu-Search Group, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brain-v-the-execu-search-group-llc-nysd-2024.