Chen v. Dun Huang Corp

District Court, S.D. New York·Decided November 8, 2021·No. 1:19-cv-11883·Unknown

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT ee SOUTHERN DISTRICT OF NEW YORK DOC □□ DATE FILED: | 1/8/21 JINXIONG CHEN and CHAN YIN LAU, on their own behalf and on behalf of others similarly situated, 19-CV-11883 (GBD) (BCM) Plaintiffs, MEMORANDUM AND ORDER -against- DUN HUANG CORP, et al., Defendants.

BARBARA MOSES, United States Magistrate Judge. Plaintiffs Jinxiong Chen a/k/a Jason Chen (Chen) and Chan Yin Lau a/k/a Jack Lau (Lau) allege wage violations at "Dun Huang Grand Central," a restaurant located at 320 Lexington Avenue in Manhattan. In this action, brought on behalf of themselves and others similarly situated, plaintiffs allege that they were employed by Dun Huang Corp (the Corporate Defendant), which owns and operates the restaurant, and by Shiyang Li and Yang Liu (the Individual Defendants), who own and/or control the Corporate Defendant, and that these defendants "have a widespread and long-standing policy of underpaying their employees’ statutory minimum wages and willfully not paying their employees with overtime wages of at least one and one-half (1.5x) times the regular pay for all the hours worked in excess of forty (40) in a given week," as required by the Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201 et seg. Pl. Mem. (Dkt. No. 81) at 1; see also First Amended Complaint (FAC) (Dkt. No. 38) 9§ 2-3. Plaintiffs also allege that defendants misappropriated tips left for Dun Huang Grand Central's waiters, and that they violated the minimum wage, overtime, spread-of-hours, wage notice, and wage statement provisions of the New York Labor Law (NYLL) and its implementing regulations. FAC §[f 3-4.

Now before the Court is plaintiffs' motion for an order: (1) granting conditional certification of plaintiffs' FLSA claims as a collective action, pursuant to 29 U.S.C. § 216(b), on behalf of all non-managerial, non-exempt employees who worked at Dun Huang Grand Central from December 29, 2016 (three years prior to the filing of this action) to the present; (2) directing

defendants to provide a list of the names, last known addresses, telephone numbers, email addresses, and social media usernames of all potential collective action members, together with information about where, when, and in what positions they worked; (3) approving plaintiffs' proposed notice and consent form (Notice) (Dkt. No. 80-3), permitting plaintiffs' counsel to disseminate the Notice, in English and Chinese, via mail, email, text message, and/or social media, and to post it on counsel's website, and directing defendants to post it in their restaurant and include it in the pay envelopes of potential collective members; (4) ordering plaintiffs to publish the Notice, in an abbreviated form and at defendants’ expense, on social media and in a newspaper (if defendants fail to furnish a complete contact list or if more than 20% of the Notices are returned as undeliverable with no forwarding address); (5) setting a 90 day opt-in period; and (6) tolling the

statute of limitations for "90 days until the expiration of the Opt-In period." Not. of Mtn. (Dkt. No. 79)at 1-2; Pl. Mem. at 19-25.1 The motion is "within the scope of my authority under 28 U.S.C. § 636(b)(1)(A)." Sanchez v. Salsa Con Fuego, Inc., 2016 WL 4533574, at *1 (S.D.N.Y. Aug. 24, 2016) (Moses, M.J.) (quoting Nahar v. Dozen Bagels Co. Inc., 2015 WL 6207076, at *1 (S.D.N.Y. Oct. 20, 2015)); see also Warman v. Am. Nat’l Standards Inst., 2016 WL 3647604, at *1 n.1 (S.D.N.Y. June 27, 2016) ("Motions for conditional certification of a collective action under the FLSA are non-dispositive.").

1 Plaintiffs' requests that the Notice be disseminated in English and Chinese and that it be included in the employees’ pay envelopes (or be disseminated by "any other methods by which employees receive their paycheck information") are made only in their brief. See Pl. Mem. at 20, 23. For the reasons set forth below, plaintiffs' motion will be granted in part. I. BACKGROUND A. Factual Background Except where otherwise indicated, the facts in this Memorandum and Order are taken from plaintiffs' First Amended Complaint and the affidavits submitted in support of their motion.2 Plaintiff Chen was employed as a waiter at Dun Huang Grand Central for approximately

four months, from on or about January 29 through on or about June 2, 2019. Chen Aff. (Dkt. No. 80-6) ¶ 3. Plaintiff Lau was also employed as a waiter at Dun Huang Grand Central, for approximately six months, from on or about March 13 through on or about September 26, 2019. Lau Aff. (Dkt. No. 80-5) ¶ 3. The Corporate Defendant owned and operated the restaurant. See Pl. Mem. at 2. The Individual Defendants were plaintiffs' "principal bosses," although they "delegated the authority to hire and fire employees to on-site managers." FAC ¶ 33(c). Defendant Li also "disbursed to managers pay to be distributed to employees." Id.; see also id. ¶¶ 17, 25 (alleging that defendant Liu was known as the "big boss"; that defendant Li was known as the "boss"; and that both Individual Defendants delegated the day-to-day management of Dun Huang Grand Central to "Andy," who is not named as a defendant herein).3

2 At the conditional certification stage, courts "should not weigh the merits of the underlying claims," Hamadou v. Hess Corp., 915 F. Supp. 2d 651, 662 (S.D.N.Y. 2013) (citing Lynch v. United Servs. Auto Ass’n, 491 F. Supp. 2d 357, 368 (S.D.N.Y. 2007)), and should not "resolve factual disputes, decide substantial issues going to the ultimate merits, or make credibility determinations." Jackson v. Bloomberg, L.P., 298 F.R.D. 152, 158 (S.D.N.Y. 2014) (internal quotation marks omitted). Accordingly, where there is a conflict between the parties as to the facts underlying plaintiffs' wage and hour claims, I treat plaintiffs' attestations as true. See Cortes v. New Creators, Inc., 2015 WL 7076009, at *1 n.1 (S.D.N.Y. Nov. 12, 2015). 3 Plaintiffs also allege, somewhat vaguely, that the Individual Defendants had some (unspecified) ownership interest in the Corporate Defendant. See FAC ¶¶ 16, 33(d); Pl. Mem. at 2 (asserting that Dun Huang Corp "owns and controls the operations of" the restaurant and that Li and Liu "own and/or control" Dun Huang Corp). Chen attests that throughout his employment at the restaurant he worked either an early shift or a late shift. When he worked the early shift he was on duty six days per week, from 11:00 to 21:30, with a one-hour break, for a total of 9.5 hours a day or 57 hours per week. Chen Aff. ¶ 4. When he worked the late shift he was on duty five days per week, from 11:30 to 22:00, with a one-

hour break, for a total of 9.5 hours a day or 47.5 hours per week. Id. The only "exception to this schedule" was that for three to four weeks (at an unspecified time), Chen worked for five days rather than six days per week. Id. ¶ 6.4 Throughout his employment, Chen was paid a flat rate of $900 per week, Chen Aff. ¶ 9, with $160 by check and the remainder in cash. Id. ¶ 10. At all relevant times, he was "not paid overtime for [his] overtime work." Id. ¶ 11. He also attests that his tips were misappropriated, with his employer taking "the entirety of customer tips." Id. ¶ 13. Chen further attests that he is owed four weeks' salary ($3600), which defendants have not paid to date. Id. ¶ 16. He does not identify the time period for which he was not paid his salary. Similarly, Lau attests that he worked either five or six days per week. Lau Aff. ¶¶ 4-5. From

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