Ding v. The Mask Pot Inc.

CourtDistrict Court, E.D. New York
DecidedSeptember 30, 2022
Docket1:20-cv-06076
StatusUnknown

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

Bluebook
Ding v. The Mask Pot Inc., (E.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

AI MIN DING, JUN LI, and XIAO MING CHEN,

Plaintiffs, v. MEMORANDUM AND ORDER

THE MASK POT, BK SPICE WORLD INC., HUI 20-CV-06076 (LDH) FANG, YUNFU YANG, JIN WANG, JOHN JIN, and WEI ZHAO

Defendants.

LASHANN DEARCY HALL, United States District Judge: Jun Li and Xiao Ming Chen (together, “Plaintiffs”), along with Ai Min Ding,1 bring the instant action, on behalf of themselves and others similarly situated, against The Mask Pot d/b/a Xiang Hot Pot, Yunfu Yang (together, the “Mask Pot Defendants”), BK Spice World d/b/a Xiang Hot Pot, Hui Fang, and Wei Zhao (together, the “BK Spice World Defendants”), Jin Wang, and John Jin (collectively with the Mask Pot Defendants, BK Spice World Defendants, and Wang, the “Defendants”) alleging willful violations of the Fair Labor Standards Act (“FLSA”) 29 U.S.C. § 201, et seq and New York Labor Law (“NYLL”) N.Y. Lab. L. § 190 et seq, including failure to pay minimum wage, overtime, and spread of time premium, as well as failure to keep employment records, provide time of hire wage notices, and to provide wage statements. The Mask Pot Defendants and BK Spice World Defendants move to dismiss Plaintiffs’ claims against them pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure.

1 By Stipulation and Order dated October 25, 2021, the proceedings between Ding and the Mask Pot Defendants were stayed pending arbitration. Therefore, this memorandum and order considers dismissal of only those claims brought by Plaintiffs Li and Chen. BACKGROUND2 Plaintiffs Li and Chen were both food preparers who at all times relevant to the claims worked for the Mask Pot Defendants. (First Am. Compl. (“FAC”) ¶¶ 8,9, ECF No. 32.) Li was hired on October 1, 2018 and was laid off on February 16, 2020 (id. ¶ 8), and Chen was hired October 24, 2017 and was laid off on March 8, 2020, (id. ¶ 9.)

Plaintiffs allege that although they did not work at BK Spice World, both BK Spice World and the Mask Pot operated as a together as “Xiang Hot Pot.” (Id. ¶ 47.) Both entities shared staff, advertised jointly, and had common ownership. (FAC ¶¶ 47–49.) Plaintiffs allege that Fang has an ownership interest in both entities, based on the entities’ liquor licenses, and that Fang hired managers who worked at both entities. (FAC ¶¶ 18–19.) Indeed, Fang hired Plaintiffs’ manager, Yang, to work at the Mask Pot. (FAC ¶¶ 18, 27.) They allege that while Yang worked at the Mask Pot, he had hiring power, supervised Plaintiffs, and controlled their work, but that Yang was transferred in November 2018 to BK Spice World where he remained until November 2019. (FAC ¶¶ 25–28.) It is not clear from the FAC who managed the Mask

Pot and supervised Plaintiffs from November 2018 to November 2019. Plaintiffs allege, on information and belief, that there were widespread violations of FLSA, NYLL, and NYHRL, by Defendants’ failures to pay overtime, and otherwise comply with labor law requirements. (FAC ¶ 2.) Li alleges from September 1, 2018 to November 20, 2018, he worked 48 hours each week; he was terminated on November 20, 2018, but rehired on September 11, 2019, and from that date to February 9, 2020, he worked 48 hours week. (FAC ¶¶ 91–94.) Li alleges that he was never given overtime pay, spread of hours premiums for shifts that lasted longer than ten hours, or a statement of his weekly earnings. (FAC ¶¶ 101–104.)

2 The following facts taken from the Complaint are assumed to be true for the purpose of this memorandum and order, unless otherwise stated. Chen alleges that he worked 45 hours per week from October 24, 2017 through November 24, 2017, and 51 hours per week from November 25, 2017 through March 8, 2020. (FAC ¶¶ 106– 107.) Chen claims he was never given overtime pay, spread of hours premium for hours shifts that lasted longer than ten hours, or a statement of his weekly earnings. (FAC ¶¶ 113–116.) STANDARD OF REVIEW

To withstand a Rule 12(b)(6) motion to dismiss, a complaint “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible when the alleged facts allow the court to draw a “reasonable inference” of a defendant's liability for the alleged misconduct. Id. While this standard requires more than a “sheer possibility” of a defendant's liability, id., “[i]t is not the Court's function to weigh the evidence that might be presented at trial” on a motion to dismiss, Morris v. Northrop Grumman Corp., 37 F. Supp. 2d 556, 565 (E.D.N.Y. 1999). Instead, “the Court must merely determine whether the complaint itself is legally sufficient, and, in doing so,

it is well settled that the Court must accept the factual allegations of the complaint as true.” Id. (citations omitted). DISCUSSION The FLSA creates liability for any “employer” who violates its terms. See 29 U.S.C. § 207(a)(1). Under the FLSA, “employer” is defined broadly, reaching “any person acting directly or indirectly in the interest of an employer in relation to an employee.” 29 U.S.C. § 203(d). Multiple entities may be considered a single employer for the purposes of FLSA.3 Of relevance

3 The single-integrated-enterprise doctrine has been recognized in the context of Title VII, the New York Human Rights Laws, and the National Labor Relations Act. See, e.g., Clinton’s Ditch Co-op Co. v. N.L.R.B., 778 F.2d 132, 137 (2d Cir. 1985) (explaining the doctrine in the context of the National Labor Relations Act); Arculeo v. On-site Sales & Mktg., LLC, 425 F.3d 193, 197–98 (2d Cir. 2005) (explaining the doctrine in the Title VII context and here, “the single employer theory applies ‘where two nominally separate entities are actually part of a single integrated enterprise,’ such that an employee need not have worked at each entity in order to hold each liable for employment-related violations.” Chang Yan Chen v. Lilis 200 W. 57th Corp., No. 19-cv-7654, 2020 WL 7774345, at *3 (S.D.N.Y. Dec. 30, 2020). Given the definition’s breadth, and FLSA’s remedial nature, “the determination of

whether an employer-employee relationship exists . . . should be grounded in economic reality rather than technical concepts.” Irizarry v. Catsimatidis, 722 F.3d 99, 104 (2d Cir. 2013) (citing Barfield v. NYC Health & Hosps. Corp., 537 F.3d 132, 141 (2d Cir. 2008)) (quotations omitted). Courts consider whether a defendant exercised formal control over a plaintiff’s employment, see Carter v. Dutchess Community Coll., 735 F.2d 8, 12 (2d Cir. 1984), or “functional” control, see Zheng v. Liberty Apparel Co. Inc., 355 F.3d 61 (2d Cir. 2003).4 I.

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Ding v. The Mask Pot Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ding-v-the-mask-pot-inc-nyed-2022.