Chang v. CK Tours, Inc

District Court, S.D. New York·Decided April 26, 2019·No. 1:18-cv-06174·Unknown

Opinion

UNITED STATES DISTRICT COURT Wusne SDSS SOUTHERN DISTRICT OF NEW YORK POCUMEN? ear ery | □ □□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□ We ICALLY BRAN □ XUGUANG CHANG, JUN NING, HAITAO — : ee epost WANG a/k/a Leo Wang, and CHUAN HUI 2 DOR nO ALT. WANG, on their own behalf and on behalfof —: DATE MLE! cl others similarly situated, : 1 hence ee That Plaintiffs, : : 18 Civ. 6174 (PAC) ~against- : CK TOURS, INC d/b/a CK Tours; d/b/a Da : OPINION & ORDER Xing Tours; WIN LI TOURS, INC d/b/a Win Li: Tour; d/b/a Heng Xing Tours; SKYLINER : TRAVEL & TOUR BUS CORP d/b/a Skyliner Travel: HYON-SAK KIM a/k/a Peter Kim, and: JOANNA LAU a/k/a Kin-Ching Lau, Defendanis. : ee ee nn ee ee een eennenen HONORABLE PAUL A. CROTTY, United States District Judge: On July 7, 2018, Plaintiffs commenced this action against CK Tours, Inc., Win Li Tours, Inc., Skyliner Travel & Tour Bus Corp., Hyon-Sak Kim, and Joanna Lau, asserting claims under the Fair Labor Standards Act (“FLSA”) 29 U.S.C. §§ 201 ef seq., and New York Labor Law (“NYLL”). Plaintiffs formerly worked as casino bus tour guides, on buses that traveled from Manhattan or Queens, New York to Foxwoods Resorts Casino in Connecticut. Plaintiffs claim that Defendants failed to pay them minimum wage or overtime wages. Plaintiffs now move for: (1) conditional certification to proceed as a collective action, under § 216(b) of the FLSA; (2) to compel Defendant to produce information regarding similarly situated employees from July 7, 2015 to present; (3) court-authorized notice; and (4) equitable tolling. Defendants oppose the motion, arguing that Plaintiffs are not similarly situated to the broad proposed collective action members and that the proposed notice must be modified. For the following reasons, the Court GRANTS in part Plaintiffs’ motions.

DISCUSSION I. Conditional Certification Under § 216(b) of the FLSA, an employee is allowed to “assert claims on behalf of other

‘similarly situated’ employees.” Myers v. Hertz Corp., 624 F.3d 537, 542 (2d Cir.2010).

Similarly situated employees are required to “opt-in” by filing a written consent, to become part

of the FLSA collective action and to be bound by the judgment. See id. Courts have the

discretion “to facilitate notice to potential plaintiffs to inform them of the pendency of an action

and of their opportunity to opt in as represented plaintiffs.” Jason v. Falcon Data Com, Inc., No. 09-CV--03990 (JG)(ALC), 2011 WL 2837488, at *4 (E.D.N.Y. July 18, 2011). Courts engage in a two-step analysis in deciding whether to certify a collective action

under the FLSA. Myers, 624 F.3d at 554-55. First, a court determines whether notice should be

sent to potential opt-in plaintiffs who may be “similarly situated” to the named plaintiffs, thus

conditionally certifying the collective action. See id. Plaintiffs’ burden at this stage is minimal,

Plaintiffs need only make a “modest factual showing” that they and potential opt-in plaintiffs “together were victims of a common policy or plan that violated the law.” Jd. Plaintiffs can

satisfy their burden by showing “there are other employees ... who are similarly situated with

respect to their job requirements and with regard to their pay provisions.” fd.

Second, following discovery, a court determines whether the “‘collective action’ may go

forward by determining whether the plaintiffs who have opted in are in fact ‘similarly situated’

to the named plaintiffs.” Myers, 624 F.3d at 555. If the plaintiffs are not similarly situated, then

the collective action may be “de-certified” and “the opt-in plaintiffs’ claims may be dismissed

without prejudice.” Id.

Plaintiffs have established that there are additional potential collective action members

who worked as casino tour bus guides through the affidavits of Xuguang Chang, (Dkt. 23-4), Jun

Ning (Dkt. 23-5), Haitao Wang, (Dkt. 23-6), and Chuan Hui Wang, (Dkt. 23-7). These affidavits

admittedly lack detail regarding the other employees who were allegedly similarly situated to the

Plaintiffs—oftentimes describing them by their appearance instead of by full name—but they

indicate that there is a broader class of casino tour bus guides who may have been subject to the

same allegedly illegal flat compensation policy as Plaintiffs. Plaintiffs have not, however, made the requisite modest factual showing that employees

of Defendants who were not casino tour bus drivers—i.e. bus drivers, mechanics, and non-

exempt clerks—were similarly situated to Plaintiffs or were victims of a common policy or plan

that violated the law. See Myers; 624 F.3d at 555. The only statement to support the inclusion of

employees who were not tour guides is from Xuguang Chang’s affidavit: “Throughout my employment with Defendants I befriended some of the tipped employees, who worked as Drivers and Tour Guides at the Defendants Company, who get the same pay rate as I did and are not paid

properly for all the hours worked for the Defendants.” (Dkt. 23-4 10.) This affidavit goes on

to provide support for the assertion that other tour guides were similarly paid, but provides no

details about any drivers who were similarly situated. Plaintiffs’ complaint, briefs, and affidavits

do not state anything further about the Defendants’ payment policies for drivers or other non-tour

guide employees. Plaintiffs’ sole assertion regarding non-tour guide employees is unsupported, and is

insufficient to meet even the modest threshold showing for conditional certification. See

Salomon v, Adderley Indus., Inc., 847 F. Supp. 2d 561, 563 (S.D.N.Y. 2012) (“Of course,

Plaintiffs cannot rely on unsupported assertions to satisfy the modest factual showing.)”; see also

Garriga vy. Blonder Builders Inc., CV 17-497 (IMA) (AKT), 2018 U.S. Dist. LEXIS 171887, at

#18 (E.D.N.Y. Sept. 18, 2018) (“Plaintiffs’ motion for conditional certification as to non- managerial employees . . . fails because Plaintiffs have alleged very little as to the duties of other non-managerial employees.”). The Court GRANTS the motion for conditional certification, but limits the collective to only casino tour bus guides. II. Production of Information Regarding Similarly Situated Employees “To facilitate the notice process, courts routinely order an employer to provide plaintiffs with information regarding potential opt-in plaintiffs.” Salomon, 847 F. Supp. 2d at 566. Plaintiffs seek this information for employees who worked for Defendants from July 7, 2015— three years prior to the commencement of the litigation—to present. Production of this information is appropriate, given that the statute of limitations under the FLSA would be three

years if Plaintiffs can show willfulness. See Iglesias-Mendoza v. La Belle Farm, Inc., 239 E.R.D. 363, 369 (S.D.N.Y. 2007) (“Where willfulness is disputed, the court applies the three-

year statute of limitations for purposes of certifying a representative action.”). Defendants object to the tolling of the limitations period beyond three years of the date of this Order, but Plaintiffs allege that equitable tolling is necessary to protect the Plaintiffs. The

Court adopts the more inclusive date—three years prior to the Complaint—‘“with the understanding that challenges to the timeliness of individual plaintiffs’ actions will be entertained at a later date.” Whitehorn v. Wolfgang's Steakhouse, Inc., 767 F. Supp.

Chang v. CK Tours, Inc, (S.D.N.Y. 2019).

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Related

Myers v. Hertz Corp.
624 F.3d 537 (Second Circuit, 2010)
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160 F. Supp. 3d 605 (S.D. New York, 2016)
Salomon v. Adderley Industries, Inc.
847 F. Supp. 2d 561 (S.D. New York, 2012)