Cortese v. Skanska USA, Inc.

CourtDistrict Court, S.D. New York
DecidedMay 26, 2020
Docket1:19-cv-11189
StatusUnknown

This text of Cortese v. Skanska USA, Inc. (Cortese v. Skanska USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cortese v. Skanska USA, Inc., (S.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -----------------------------------x ANTHONY CORTESE : : Plaintiff, : : 19-cv-11189(JSR) -v- : : OPINION SKANSKA USA INC. et al. : : Defendants. : -----------------------------------x

JED S. RAKOFF, U.S.D.J. Plaintiff Anthony Cortese, a crane operator affiliated with a New Jersey-based union local, alleges that he was underpaid by defendants Skanska USA and Skanska Koch for regular-hour and overtime work that he performed on the New York side of the George Washington Bridge. He moves under 29 U.S.C. § 216(b) for conditional certification of a Fair Labor Standards Act (FLSA) collective,1 and defendants move under Fed. R. Civ. P. 12(b)(6) to dismiss seven of the nine counts of plaintiff’s complaint.2 On April 20, this Court entered a bottom-line order granting in part and denying in part the motion to dismiss and granting the motion for conditional certification. ECF No. 34. This Opinion provides the reasons behind those decisions.

1 Motion for Conditional Certification of FLSA Collective Action, ECF No. 11 (Feb. 14, 2020).

2 Motion to Dismiss, ECF No. 15 (Feb. 14, 2020). BACKGROUND This is a putative FLSA collective action and Rule 23 class action alleging various wage and overtime violations, as well as

breach of contract and unlawful retaliation. Plaintiff Anthony Cortese is a member of the International Union of Operating Engineers, Local 825, based in New Jersey. Compl. ¶ 22, ECF No. 1 (Dec. 6, 2019). He alleges that, for several months in 2019, he was employed by defendants Skanska USA and Skanska Koch as a crane operator on the George Washington Bridge restoration project, which is managed by the Port Authority of New York and New Jersey. Id. ¶¶ 17-21. During the course of his employment, plaintiff regularly performed work, including overtime work, on both the New Jersey side and the New York side of the span. Id. ¶ 27-28. Plaintiff alleges that many other workers did the same: the project was

staffed by union laborers based in both New York and New Jersey, and because of “constructability, practicality and feasibility issues,” all of these employees were permitted to work on both sides of the state line. Id. ¶¶ 25-26. The gravamen of plaintiff’s complaint is that he was compensated at the prevailing wage rate set by the federal Davis-Bacon Act for crane operators in New Jersey (a base rate of $54.13 per hour) even for work that he performed on the New York side of the bridge, which, he claims, should have been remunerated at the equivalent New York prevailing wage (and his overtime wages calculated as one-and-a-half times that rate). This would be either the New York City prevailing wage set

pursuant to § 220 of the New York Labor Law (NYLL) ($81.54 per hour), or at least the Davis-Bacon Act prevailing wage for New York ($76.43 per hour). Id. ¶¶ 29, 40; see also First Amended Compl. ¶ 37, ECF No. 37 (May 4, 2020).3 Plaintiff asserts two bases for his entitlement to the New York prevailing wage for work performed in New York. The first is contractual. Compl. ¶¶ 1, 17, 35-36. The contract between defendants and the Port Authority — which this Court ordered produced following oral argument on March 20, see Order, ECF No. 35 (Mar. 20, 2020) — provides that defendants must compensate

3 As discussed infra, the contract between defendants and the Port Authority is most naturally read to entitle plaintiff to the New York prevailing wage set by the Davis-Bacon Act for work performed in New York. However, in supplemental briefing and then in a First Amended Complaint, see ECF Nos. 28, 37, plaintiff argues that this contract should be read to require the slightly-higher NYLL prevailing wage, as this is the wage that New York-based laborers on the George Washington Bridge project were purportedly paid. The Court need not decide at this stage of the litigation which of these two wages the contract entitles plaintiff to receive, as both are significantly higher than the New Jersey wage he alleges he received, and so a plausible entitlement to either is sufficient to sustain his FLSA and contract claims. The remainder of this discussion therefore elides the distinction between these two prevailing wage schemes. Also, in addition to the base wages noted above, plaintiff also alleges that he was entitled to certain supplemental benefits, see Compl. ¶¶ 33-36, 37-40, which this discussion also omits for the sake of simplicity. plaintiff at “at least the [Davis-Bacon Act] prevailing rate of wage . . . in the locality in which the [w]ork is being performed.” Contract § 52, Ex. D to Supp. Decl. of Gregory Begg,

ECF No. 29-2 (Apr. 8, 2020) (emphasis supplied). The second is statutory. Plaintiff asserts that New York law, specifically, NYLL § 220, entitles laborers on public works projects to receive a particular prevailing wage for work performed in the state. Compl. ¶¶ 18, 31. These facts, according to plaintiff, give rise to nine causes of action. Count One alleges an overtime violation under FLSA, 29 U.S.C. § 207, claiming that plaintiff was entitled to be compensated for overtime performed on the New York side of the bridge at one-and-a-half times the New York prevailing wage rate, not one-and-a-half times the lower New Jersey rate. Compl. ¶¶ 60-64. This count appears to be predicated on either a

contractual or a statutory entitlement to the higher wage. Next, Counts Two through Four allege that defendants’ failure to pay the New York prevailing wage for work performed in New York — both regular and overtime work — violated plaintiff’s statutory entitlement under NYLL § 220 to receive a New York prevailing wage.4 Compl. ¶¶ 65-69; 70-73; 74-78. These

4 More specifically, Count Two is for overtime pay, Count Three is for regular pay, and Count Four is for failure to provide wage statements. counts are predicated on the asserted statutory entitlement to the higher wage. Counts Five through Seven assert state common law claims,

arising under the contract between defendants and the Port Authority, for quantum meruit, unjust enrichment, and breach of contract, alternatively. Compl. ¶¶ 79-84; 85-88; 89-93. Finally, in Counts Eight and Nine, plaintiff alleges in his individual capacity that defendants unlawfully retaliated against him for raising the issue of his entitlement to a higher wage, in violation of the NYLL and FLSA. Compl. ¶¶ 94-105; 106- 116. MOTION TO DISMISS Defendants move under Fed. R. Civ. P. 12(b)(6) to dismiss Counts One through Seven of the Complaint. Counts Eight and Nine, the retaliation claims brought by plaintiff in his

individual capacity, are not at issue on this motion. As stated in the Court’s order of April 20, the motion is granted in part and denied in part. This Opinion considers plaintiff’s claims in a different order than presented in the Complaint, beginning with the NYLL claims. I. Counts Two through Four: The NYLL Claims Counts Two through Four assert that NYLL § 220(3)(a) entitles plaintiff to the New York prevailing wage for work performed on the New York side of the George Washington Bridge, and thus to one-and-a-half times that amount for such overtime work. These claims are dismissed because plaintiff did not exhaust his administrative remedies as required by the statute.

Sections 220(7) and (8) of the NYLL set forth an administrative scheme for hearing and remedying violations of the statute’s prevailing wage scheme.

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Cortese v. Skanska USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cortese-v-skanska-usa-inc-nysd-2020.