Charles v. United States of Artizia Inc.

District Court, S.D. New York·Decided September 12, 2024·No. 1:23-cv-09389·Unknown

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT ELECTRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK DOC #: ASHANTE CHARLES, individually and on behalf of DATE FILED:_9/12/2024 all others similarly situated, Plaintiffs, 23-CV-09389 (MMG) -against- OPINION & ORDER UNITED STATES OF ARITZIA INC., Defendant.

MARGARET M. GARNETT, United States District Judge: Plaintiff Ashante Charles (“Plaintiff’ or “Charles”) initiated the above-captioned action to recover damages for allegedly delinquent wage payments made to her and similarly situated employees of Defendant United States of Aritzia Inc. (“Defendant” or “Aritzia”) who qualify as manual workers pursuant to New York Labor Law (“NYLL”) Article 6 §§ 190 et seg. Dkt. No. 4 at {1.1 Specifically, Plaintiff alleges that Defendant violated NYLL Article 6 § 191 by paying her, and others similarly situated, bi-weekly, rather than weekly, without authorization from the New York State Department of Labor Commissioner. /d. at [§ 2-3. Before the Court is Defendant’s motion to dismiss pursuant to Federal Rules of Civil Procedure 12(b)(1), 12(b)(6), and 12(f). See Dkt. No. 15. Plaintiff submitted three notices of supplemental authority and Defendant has submitted one notice of supplemental authority, all of which the Court has considered. See Dkt. Nos. 22, 23, 24, 25. For the reasons set forth below, Defendant’s motion to dismiss is DENIED.

' Plaintiff filed her Complaint on October 25, 2023. See Dkt. No. 1. On October 27, 2023, Plaintiff filed her First Amended Complaint (“FAC”). See Dkt. No. 4. The FAC is the operative complaint in this action. Although the caption on the electronic docket in this case refers to the Defendant as United States of “Artizia,” the Court herein uses the parties’ correct spelling of “Aritzia.”

FACTS AND PROCEDURAL HISTORY Defendant Aritzia is a Delaware corporation with its principal place of business in Vancouver, Canada, that owns and operates multiple retail establishments, and employs “in excess of hundreds of employees.” Dkt. No. 4 at ¶¶ 4, 13, 16. Plaintiff Charles alleges that between September 2019 and March 2020 she was a non-exempt, hourly employee at several Aritzia locations, two of which are located in Manhattan. Id. at ¶ 7. According to Plaintiff, more

than 25% of her job duties comprised physical tasks, such as “stocking shelves, moving inventory, receiving, unpacking, organizing, storing, packaging, and labeling merchandise, and generally remaining on her feet for the entirety of her shift.” Id. at ¶ 8.2 1F It is undisputed that Defendant paid Plaintiff on a bi-weekly schedule, instead of a weekly schedule, without authorization from the New York State Department of Labor Commissioner. Id. at ¶ 3; see also Dkt. No. 16 at 1. Plaintiff alleges that the bi-weekly payments prevented her and her putative class members from “spending money earned on a bevy of everyday expenses and to provide for their basic needs, including but not limited to, purchasing food and groceries, making rent or mortgage payments, settling bills for utilities, medical supplies and services, insurance, automobile payments, and other basic living expenses.” Dkt. No. 4 at ¶ 11. The delayed payments caused her to “los[e] the time value of that money” because she “could not save, invest, earn interest on, or otherwise use these monies that were rightfully hers.” Id. at ¶¶ 9.

2 Throughout her FAC, Plaintiff refers to herself and those in her putative class as “manual laborers.” See generally, Dkt. No. 4. Because New York Labor Law Section 191 refers to “manual workers,” and Plaintiff’s only claim arises under Section 191, the Court will construe Plaintiff’s references to manual laborers as manual workers. DISCUSSION Defendant moves to dismiss Plaintiff’s FAC and strike the class allegations therein under Rules 12(b)(1), 12(b)(6), and 12(f) of the Federal Rules of Civil Procedure. See generally Dkt. No. 15. Defendant argues that (1) Plaintiff does not have standing because she has not

established that she suffered an injury in fact or that such injury would be addressed by judicial relief; (2) there is no private right of action for untimely wage payment under Sections 191 and 198(1-a) of the NYLL; and (3) in the event the Court denies Defendant’s motion to dismiss, the class allegations in Plaintiff’s FAC must be stricken because Plaintiff’s putative class is an “impermissible fail-safe class.” Dkt. No. 16 at 1–3. Each argument will be discussed in turn. I. Plaintiff Has Article III Standing To satisfy the Article III injury-in-fact requirement, “a plaintiff must show (1) it has suffered an ‘injury in fact’ that is (a) concrete and particularized and (b) actual or imminent, not conjectural or hypothetical; (2) the injury is fairly traceable to the challenged action of the defendant; and (3) it is likely, as opposed to merely speculative, that the injury will be redressed

by a favorable decision.” Friends of the Earth, Inc. v. Laidlaw Environ. Serv.’s, 528 U.S. 167, 180–81 (2000) (citing Lujan v. Defenders of Wildlife, 504 U.S. 555, 560–61 (1992)). Certain harms “readily qualify as concrete injuries under Article III,” including “traditional tangible harms, such as physical harms and monetary harms.” TransUnion LLC v. Ramirez, 594 U.S. 413, 425 (2021). The Supreme Court has rejected the proposition that “a plaintiff automatically satisfies the injury-in-fact requirement whenever a statute grants a person a statutory right and purports to authorize that person to sue to vindicate that right. Article III standing requires a concrete injury even in the context of a statutory violation.” Spokeo, Inc. v. Robins, 578 U.S. 330, 341 (2016); see also TransUnion, 594 U.S. at 426. Defendant asserts that Plaintiff fails the Article III standing test in two related ways: first, that Plaintiff “has not alleged sufficient facts to plausibly suggest that she suffered any injury in fact beyond this purported injury in law,” Dkt. No. 16 at 15; and, second, that because Plaintiff was paid in full and does not seek unpaid or underpaid wages, “she has no injury that could be

remedied in this suit.” Id. at 15–16. Both arguments fail. Plaintiff’s stated injury is that Defendant’s bi-weekly payment structure violated her right, under Section 191, to receive payment weekly and deprived her of the time value of money which she was owed. Dkt. No. 4 at ¶¶ 9–12. This is an injury that courts throughout the Second Circuit have recognized as sufficient to establish standing. See, e.g., Zachary v. BG Retail, LLC, 22-cv-10521 (VB), 2024 WL 554174, at *3 (S.D.N.Y. Feb. 12, 2024) (“Courts in this Circuit have commonly held that the temporary deprivation of money to which a plaintiff has a right constitutes a sufficient injury in fact to establish Article III standing.” (internal references omitted)); Rankine v. Levi Strauss & Co., 674 F. Supp. 3d 57, 63–64 (S.D.N.Y. 2023) (collecting cases); Levy v. Endeavor Air Inc., 638 F. Supp. 3d 324, 330 (E.D.N.Y. 2022) (“Plaintiffs’ claim

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Charles v. United States of Artizia Inc., (S.D.N.Y. 2024).

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