COLOSIMO v. FLAGSHIP RESORT DEVELOPMENT, LLC.

CourtDistrict Court, D. New Jersey
DecidedMarch 31, 2021
Docket1:17-cv-03969
StatusUnknown

This text of COLOSIMO v. FLAGSHIP RESORT DEVELOPMENT, LLC. (COLOSIMO v. FLAGSHIP RESORT DEVELOPMENT, LLC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
COLOSIMO v. FLAGSHIP RESORT DEVELOPMENT, LLC., (D.N.J. 2021).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

CRISTINA COLOSIMO, individually : Hon. Joseph H. Rodriguez and on behalf of herself and all others similarly situated, : Civil Action No. 17-3969

Plaintiff(s), : OPINION

v. :

FLAGSHIP RESORT DEVELOPMENT : CORPORATION, : Defendant.

This matter is before the Court on the parties’ motions for summary judgment. Having considered the parties’ submissions, the arguments advanced at the hearing in this matter on November 10, 2020. For the reasons stated on the record, and those that follow, this Court will grant Defendant’s motion and deny Plaintiffs’ motion. I. Background Plaintiff initiated this proposed collective action pursuant to the Fair Labor Standards Act (“FLSA”) on behalf of nonexempt employees of the Defendant who were misclassified as contractors and not paid overtime for work in excess of 40 hours in a work week. Plaintiff alleges Defendant failed to pay overtime compensation in violation of the FLSA and the New Jersey Wage and Hour Law. The facts of this case are largely uncontested. Defendant, Flagship Resort Development Corporation owns and operates a facility in Atlantic City, New Jersey where deeded time shares are sold on site. Complaint, ¶28 at Ex. “A.” Plaintiffs operated as licensed Real Estate Sales Associates on behalf of Defendant and worked five days per week. Id. ¶32; Ex. “B” 63:1-64:21, Schedules at Ex. “C.” Plaintiffs were employed as salespersons to market and sell time share units in Atlantic City and neighboring communities. Plaintiffs sold deeded timeshares, travel club programs, trial memberships, vacation clubs and/or upgrades to existing memberships. Defendant required Plaintiff to execute an Independent Contractor – Sales Agent Agreement, classifying Plaintiff as an independent contractor rather than an

employee. Plaintiffs allege that they regularly worked more than 40 hours per week but was paid for only 40 hours of work during each week, and that they were compensated on a commission basis. On April 5, 2018, Plaintiff filed a timely Motion for Conditional Collective Action Certification with respect to the FLSA claim for all current and former employees of Defendants who were engaged in the sale of time shares or other products and services at any of Defendants’ locations at any time during the three-year period prior to the date the Complaint in this action was filed.1 The Court granted the motion and discovery followed.

II. Standards of Review A. The Fair Labor Standards Act and The New Jersey Wage and Hour Law In 1938, Congress enacted the Fair Labor Standards Act “to aid the unprotected, unorganized and lowest paid of the nation's working population; that is, those employees who lacked sufficient bargaining power to secure for themselves a minimum subsistence wage.” Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697, 707 n.18 (1945). Section

1 This three-year time limit comports with the statute of limitations for the FLSA, which is three years for willful violations and two years for non-willful violations. See 29 U.S.C. § 255(a). 216(b) of the FLSA provides a “collective action” mechanism that allows an employee alleging an FLSA violation to bring an action on behalf of himself “and other employees similarly situated.” 29 U.S.C. § 216(b); Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66, 69 (2013). Unlike class actions under Rule 23, the FLSA “collective action” requires plaintiffs who desire to be included to affirmatively “opt in” to the litigation by filing a

written consent with the court. 2 “The FLSA establishes federal minimum-wage, maximum-hour, and overtime guarantees that cannot be modified by contract.” Genesis, 569 U.S. at 69. The NJWHL is the New Jersey state equivalent of the FLSA, it requires employers to compensate employees at a wage rate no less than the federal minimum set by the FLSA. N.J. Stat. Ann. 34:11-56a4. “The Supreme Court of New Jersey has recognized the similarity between the statutes, adding that ‘[s]tatutes addressing similar concerns should resolve similar issues ... by the same standard.’” Brunozzi v. Crossmark, Inc., No. 13-4585, 2016 WL 112455, at *5 (D.N.J. Jan. 11, 2016) (quoting Hargrove v. Sleepy’s LLC, 106 A.3d 449, 458 (N.J. 2015)). Therefore, the Court will analyze Plaintiff’s FLSA and NJWHL claims simultaneously. Courts in the Third Circuit apply a two-step certification process

to FLSA collective actions. Halle v. W. Penn Allegheny Health Sys. Inc., 842 F.3d 215, 224 (3d Cir. 2016). The first step, conditional certification, requires only a “modest factual showing” that there is a “factual nexus between the manner in which the employer’s alleged policy affected [the named plaintiff] and the manner in which it affected the proposed collective action members.” Id. The second step, final

2 Rule 23 establishes three types of class actions. Class actions under Rules 23(b)(1) and 23(b)(2) require participation from individuals who fall within the definition of the class. Fed. R. Civ. P. 23(b)(1); Fed. R. Civ. P. 23(b)(2). Under Rule 23(b)(3), a plaintiff must “opt out” if he or she does not wish to be bound by the judgment. Fed. R. Civ. P. 23(b)(3). certification, is where the court “makes a conclusive determination as to whether each plaintiff who has opted in to the collective action is in fact similarly situated to the named plaintiff.” Adami v. Cardo Windows, Inc., 299 F.R.D. 68, 78 (D.N.J. 2014) (internal quotation marks omitted). “The ‘sole consequence’ of conditional certification is the dissemination of court-approved notice to potential

collective action members.” Id. “At the second stage, with the benefit of discovery, ‘a court following this approach then makes a conclusive determination as to whether each plaintiff who has opted in to the collective action is in fact similarly situated to the named plaintiff.’” Camesi v. University of Pittsburgh Medical Center, 729 F.3d 239, 243 (3d Cir. 2013) (quoting Symczyk v. Genesis Healthcare Corp., 656 F.3d 189, 193 (3d Cir. 2011), rev’d on other grounds, Genesis Healthcare, 569 U.S. 66). Plaintiffs’ case has already progressed past the first step, conditional certification or the “notice stage.” Morisky v. Pub. Serv. Elec. & Gas Co., 111 F. Supp. 2d 493, 497 (D.N.J. 2000). This Court found that Plaintiff had made at least a “modest factual showing” that the employees identified in his complaint are “similarly situated” by “produc[ing] some evidence, beyond pure speculation, of a factual nexus between the

manner in which the employer's alleged policy affected [Plaintiffs] and the manner in which it affected other employees.” Zavala v. Wal Mart Stores, Inc., 691 F.3d 527, 535- 36 n.4 (3d Cir. 2012) (quoting Symczyk, 656 F.3d at 193 rev'd on other grounds, Symczyk, 133 S. Ct. at 1526 (internal quotations omitted)). See Adami, 299 F.R.D.

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COLOSIMO v. FLAGSHIP RESORT DEVELOPMENT, LLC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/colosimo-v-flagship-resort-development-llc-njd-2021.