Garcia v. Skechers USA Retail, LLC

CourtDistrict Court, E.D. New York
DecidedMarch 15, 2024
Docket1:23-cv-01055
StatusUnknown

This text of Garcia v. Skechers USA Retail, LLC (Garcia v. Skechers USA Retail, LLC) 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
Garcia v. Skechers USA Retail, LLC, (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------x RONALDO GARCIA, individually and on behalf of others similarly situated,

Plaintiff, MEMORANDUM & ORDER 23-CV-1055 (PKC) (JAM) - against -

SKECHERS USA RETAIL, LLC,

Defendant. -------------------------------------------------------x PAMELA K. CHEN, United States District Judge: Plaintiff Ronaldo Garcia (“Plaintiff” or “Garcia”), individually and on behalf of others similarly situated, brings this action against Defendant Skechers USA Retail, LLC (“Defendant” or “Skechers”) under New York Labor Law (“NYLL”) §§ 191 and 196. Presently before the Court is Defendant’s motion to dismiss pursuant to Federal Rules of Civil Procedure (“FRCP”) 12(b)(1) and 12(b)(6). For the reasons that follow, Defendant’s motion is denied in its entirety. BACKGROUND I. Factual Allegations1 Plaintiff was employed by Defendant as a stockroom associate from approximately April 2021 until June 2021 at one of Skechers’ locations in Queens, New York. (Compl., Dkt. 1, ¶ 7.) While employed by Defendant, Plaintiff typically performed physical tasks for more than 25% of his workday. (Id. ¶ 8.) His responsibilities included “lifting and moving heavy boxes in furtherance of shipping, receiving, picking, packing, and loading and unloading shipments.” (Id.)

1 For the purposes of Defendant’s Rule 12(b)(6) motion, the Court “accept[s] all well- pleaded allegations in the complaint as true, drawing all reasonable inferences in the plaintiff’s favor.” Int’l Code Council, Inc. v. UpCodes Inc., 43 F.4th 46, 53 (2d Cir. 2022); Hamilton v. Westchester Cnty., 3 F.4th 86, 90–91 (2d Cir. 2021) (same). Throughout the entirety of his employment, Plaintiff was compensated on a bi-weekly, rather than weekly, basis. (Id. ¶ 9.) This injured Plaintiff “in that he was temporarily deprived of money owed to him, and he could not save, invest, earn interest on, or otherwise use [the] monies that were rightfully his.” (Id. (“[E]very day that said money was not paid to him in a timely

fashion, [Plaintiff] lost the time value of that money.”).) By failing “to pay Plaintiff and other employees who worked in manual labor positions their wages earned within seven days of the end of their workweeks, Defendant deprived the employees of the use of money that belonged to them.” (Id. ¶ 10.) Consequently, Plaintiff and other employees like him “were unable to do those things that every person does with their money, such as paying bills or buying goods that they needed and/or wanted to buy.” (Id.; see also id. ¶ 11 (“[O]wing to the delinquency of these payments, Plaintiff and putative class members were prevented 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.”).) Conversely, Defendant, by retaining wages that were rightfully owed to Plaintiff and other similarly situated employees, benefited “from the time value of the money at issue, and the free use of such funds, at the expense of Plaintiff and putative class members.” (Id. ¶ 12.) For example, Defendant “was free to utilize [the withheld] funds to purchase goods and services, as well as save, invest, or earn interest on them.” (Id.) II. Procedural History Plaintiff filed this action on February 8, 2023, on behalf of himself and a putative class of similarly situated employees. (See generally Compl.) The Complaint alleges that Defendant violated NYLL § 191(1)(a) (“Section 191”) by failing to pay Plaintiff and members of the putative class on a timely basis.2 (Id. ¶¶ 23–26.) On April 7, 2023, Defendant requested a pre-motion conference (“PMC”) to discuss an anticipated motion to dismiss. (See Dkt. 7.) Plaintiff responded to oppose the PMC request on

April 13, 2023. (See Dkt. 8.) The Court granted Defendant’s request and held a PMC with the parties on June 1, 2023. (See 5/2/2023 Docket Order; 6/1/2023 Min. Entry.) The motion was fully briefed as of August 22, 2023. (See Dkts. 13–17.) On January 23, 2024, Defendant filed a letter to call the Court’s attention to Grant v. Global Aircraft Dispatch, Inc., 204 N.Y.S.3d 117 (N.Y. App. Div. 2024), a recent decision from the New York Supreme Court, Appellate Division, Second Department. (See Dkt. 19.) Subsequently, Plaintiff filed letters informing the Court about three other relevant decisions, Zachary v. BG Retail, LLC, No. 22-CV-10521 (VB), 2024 WL 554174 (S.D.N.Y. Feb. 12, 2024), Gamboa v. Regeneron Pharmaceuticals, Inc., No. 22-CV-10605 (KMK), 2024 WL 815253 (S.D.N.Y. Feb. 27, 2024); and Bazinett v. Pregis LLC, 23-CV-790 (MAD), 2024 WL 1116287 (N.D.N.Y. March

14, 2024). (Dkts. 24–26.) LEGAL STANDARDS I. FRCP 12(b)(1) “A case is properly dismissed for lack of subject matter jurisdiction under [FRCP] 12(b)(1) when the district court lacks the statutory or constitutional power to adjudicate it.” Makarova v. United States, 201 F.3d 110, 113 (2d Cir. 2000). To survive a motion to dismiss for lack of

2 The Complaint also asserts a cause of action alleging that Defendant failed to provide the notice required by NYLL § 195(1)(a) upon hiring. (Id. ¶¶ 27–31.) However, Plaintiff withdrew this claim after Defendant produced documentary evidence demonstrating that the factual allegations underlying it were mistaken. (See Dkt. 8 at 1 n.1.) standing, the “plaintiff must allege ‘facts that affirmatively and plausibly suggest that it has standing to sue.’” Reyes v. Sofia Fabulous Pizza Corp., No. 13-CV-7549 (LAK) (JCF), 2014 WL 12768922, at *2 (S.D.N.Y. Apr. 7, 2014) (quoting Amidax Trading Grp. v. S.W.I.F.T. SCRL, 671 F.3d 140, 145 (2d Cir. 2011)), R. & R. adopted, 2014 WL 1744254 (S.D.N.Y. Apr. 24, 2014).

II. FRCP 12(b)(6) To survive a motion to dismiss under FRCP 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Hogan v. Fischer, 738 F.3d 509, 514 (2d Cir. 2013) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678 (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556 (2007)). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. The pleading standard does not require detailed factual allegations, but still “requires more than labels and conclusions, and a formulaic recitation of a cause of action’s elements will not do.” Twombly, 550 U.S. at 555. In addressing the sufficiency

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Bluebook (online)
Garcia v. Skechers USA Retail, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-skechers-usa-retail-llc-nyed-2024.