Callari v. Blackman Plumbing Supply, Inc.

307 F.R.D. 67, 2015 U.S. Dist. LEXIS 43820, 2015 WL 1499088
CourtDistrict Court, E.D. New York
DecidedMarch 31, 2015
DocketNo. 11-cv-3655 (ADS)(SIL)
StatusPublished
Cited by11 cases

This text of 307 F.R.D. 67 (Callari v. Blackman Plumbing Supply, 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
Callari v. Blackman Plumbing Supply, Inc., 307 F.R.D. 67, 2015 U.S. Dist. LEXIS 43820, 2015 WL 1499088 (E.D.N.Y. 2015).

Opinion

ORDER

SPATT, District Judge.

This case arises from allegations by the Plaintiff Michael Callari (the “Plaintiff’) that the Defendants Blackman Plumbing Supply, Inc. (“BPS”), Richard Blackman (“Black-man”) and John Does # 1-10 (collectively, the “Defendants”) improperly denied its inside sales representatives and assistant branch managers overtime compensation pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201-219, and New York Labor Law (“NYLL”) § 650 et seq.

On December 19,2013, the Court issued an order denying, in part, and granting, in part, the Defendants’ motion for summary judgment. The order also granted the Plaintiff leave to file a motion to certify a collective action pursuant to the FLSA § 216(b) and a class action pursuant to Federal Rule of Civil Procedure (“Fed. R. Civ.P.”) 23.

On April 17, 2014, the Plaintiff filed a motion to (i) conditionally certify a collective action pursuant to FLSA § 216(b) and (ii) certify a class action pursuant to Fed. R.Civ.P. 23 for violations of NYLL § 650 et seq.

On November 20, 2014, the Court issued an order referring to United States Magistrate Judge A. Kathleen Tomlinson the portion of the Plaintiffs motion seeking to conditionally certify a collective action pursuant to FLSA § 216(b).

On March 27, 2015, the Judge Tomlinson granted the Plaintiffs motion to conditionally certify a collective action pursuant to 29 U.S.C. § 216(b).

Presently before the Court is the portion of the Plaintiffs motion seeking to certify a class action pursuant to Fed.R.Civ.P. 23. For the reasons set forth below, the Court denies the Plaintiffs motion to certify a class action pursuant to Fed.R.Civ.P. 23.

I. DISCUSSION

A. Underlying Facts

1. The Parties

The Plaintiff was employed by BPS from May 1981 through July 15, 2010, when he retired. (Callari Decl. at ¶ 2.) He was originally hired as an “inside sales representative” in the Mineóla Branch. (Id. at ¶ 3.) In that role, his job duties entailed entering sales orders that were placed over the phone, reviewing opened and pending orders, processing returns, and issuing credits to customers, and sometimes assisting customers at the counter. (Id.; see also December 19, 2013 Summary Judgment Order at 3.)

In 1989, the Plaintiff was promoted to assistant branch manager of the Mineóla Branch, a title that he held until the last day of his employment on July 15, 2010. (Callari Decl. at ¶ 4.)

The Plaintiff has also named John Does # 1 to 10 as Defendants, claiming that they “at all relevant times were, officers, directors, and/or owners and/or one of the ten largest shareholders” of BPS. (Compl. at ¶ 12.)

The Defendant BPS is a company that sells plumbing, heating and cooling supplies from retail and wholesale stores and locations. (The December 19, 2013 Summary Judgment Order at 3.) BPS has twenty branches in the New York, New Jersey, and Pennsylvania area. (Cook Dep. Tr. 18:16.)

Blackman was the owner of BPS prior to his death on September 19, 2012. (Dkt. No. 27; see also Connolly Deck, Ex. H.)

The Plaintiff seeks to certify a class consisting of “all employees of the Defendants during the six years immediately preceding the initiation of this action up to the date of [71]*71this decision, who performed work as inside sales persons and assistant managers.” (The Pl.’s Mem. of Law at 1.)

2. The Relevant FLSA and NYLL Exemptions

BPS paid assistant branch managers a salary and classified them as executive employees exempt from overtime under the FLSA and NYLL. (Cook Dep. Tr. at 89:23-25.) From 1989 until his retirement on July 15, 2010, Plaintiff was an assistant branch manager and thus, pursuant to BPS’s policy, was classified as an executive exempt from receiving overtime. (Callari Decl. at ¶ 11.) In the complaint, the Plaintiff asserts that the Defendants did not properly classify him and other assistant branch managers as exempt executives because their primary job duties were the same as inside sales representatives and did not involve any significant managerial responsibilities. (Compl. at ¶ 20.) As the central issue in this case is the propriety of the Defendants’ policy to allegedly deny assistant branch managers and inside sales representatives overtime compensation under the executive exemption, the Court will provide a brief background as to the applicable legal standards governing that exemption.

The FLSA § 207(a)(1) and 12 NYCRR 142-2.2 require qualifying employers to compensate employees for hours worked in excess of forty hours per work week at a rate not less than one-and-one-half times the regular rate of pay subject to certain exemptions. 29 U.S.C. §§ 206(a)(1), § 207(a)(1); N.Y. Comp.Codes R. & Regs. tit. 12, § 142-2.2. One category of employees exempt from the overtime requirement under FLSA § 213(a)(1) are employees who are employed in a “bona fide executive capacity.”

The applicable Department of Labor regulations classify employees as “executives” if (1) they are “[ejompensated on a salary basis”; (2) their “primary duty is management of the enterprise ... or of a customarily recognized department or subdivision thereof’; (3) they “customarily and regularly direct[ ] the work of two or more other employees”; and (4) they “hafye] the authority to hire or fire other employees or” if their “suggestions and recommendations” on personnel decisions “are given particular weight.” 29 C.F.R. § 541.100(a)(l)-(4). These same factors also govern whether an employee is an executive under the NYLL. See Ramos v. Baldor Specialty Foods, Inc., 687 F.3d 554, 556, n. 1 (2d Cir.2012) (“Like the FLSA, the NYLL ‘mandates overtime pay and applies the same exemptions as the FLSA.’ ”) (quoting Reiseck v. Universal Commc’ns of Miami, Inc., 591 F.3d 101, 105 (2d Cir.2010)).

3. The DOL Investigation

In 2009, an unidentified employee of BPS filed a complaint with the U.S. Department of Labor (“DOL”) Wage and Hour Division alleging that BPS had violated FLSA § 207 by failing to pay its employees for overtime work. (Connolly Deck, Ex. I.) In a report describing the findings of its investigation, the DOL found that for the period July 1, 2006 through July 1, 2008, BPS had committed “overtime violations” for “all salaried Insides Sales and HVAC Counter employees.” (Id.

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307 F.R.D. 67, 2015 U.S. Dist. LEXIS 43820, 2015 WL 1499088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callari-v-blackman-plumbing-supply-inc-nyed-2015.