Guevara v. Goodnight Group LLC

CourtDistrict Court, S.D. New York
DecidedJanuary 10, 2022
Docket1:20-cv-05330
StatusUnknown

This text of Guevara v. Goodnight Group LLC (Guevara v. Goodnight Group LLC) 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
Guevara v. Goodnight Group LLC, (S.D.N.Y. 2022).

Opinion

VOIP. oUIN DOCUMENT ELECTRONICALLY FILED UNITED STATES DISTRICT COURT DOC #: SOUTHERN DISTRICT OF NEW YORK DATE FILED: 1/10/2022 STEPHANIE RUIZ GUEVARA and SANDRA HERAS, on behalf of themselves, FLSA Collective Plaintiffs and the Class, 20-CV-5330 (BCM) Plaintiffs, MEMORANDUM AND ORDER -against- FINE & RARE OPERATIONS LLC d/b/a FINE & RARE, FLATIRON ROOM OPERATIONS LLC d/b/a THE FLATIRON ROOM, GOODNIGHT GROUP LLC, and THOMAS TARDIE, Defendants.

BARBARA MOSES, United States Magistrate Judge. Plaintiffs Stephanie Ruiz Guevara and Sandra Heras were employed by Fine & Rare Operations LLC (F&R LLC) and worked at Fine & Rare restaurant (Fine & Rare), located at 9 East 37th Street in Manhattan. Guevara was a busser for approximately three months, from November 2019 to February 2020. See First Amended Complaint (FAC) (Dkt. No. 42) § 30(a). Heras alleges that she was a server and food runner from June 2017 to August 2019. FAC 4 31(a). Fine & Rare is promoted as part of the Goodnight Group "family of venues," which also includes a second restaurant, The Flatiron Room (Flatiron Room), located at 37 West 26th Street in Manhattan.! Alleging that both restaurants are owned and controlled by Thomas Tardie and are operated as a "single integrated enterprise," FAC 9 10, 13, plaintiffs brought this action on behalf of themselves and others similarly situated against F&R LLC, Flatiron Room Operations LLC d/b/a The Flatiron Room (FIR LLC), Goodnight Group LLC (collectively the Corporate

See Goodnight Group, https://goodnightgroup.nyc/ (last visited Jan. 10, 2022); Fine & Rare, https://fineandrare.nyc/ (last visited Jan. 10, 2022); The Flatiron Room, https://www.theflatironroom.com/ (last visited Jan. 10, 2022).

Defendants), and Tardie, alleging that defendants violated the minimum wage, overtime, tip- pooling, meal credit, spread-of-hours, wage notice, and wage statements provisions of the Fair Labor Standards Act (FLSA), the New York Labor Law (NYLL), and their implementing regulations. See FAC ¶¶ 43-63.

Now before the Court is plaintiffs' motion (Mot.) (Dkt. No. 60) for an order: (1) granting conditional certification of plaintiffs' FLSA claim as a collective action, pursuant to 29 U.S.C. §216(b), on behalf of "themselves and all current and former non-exempt employees (including but not limited to delivery persons, waiters, bartenders, barbacks, runners, bussers, cooks, food preparers, dishwashers, porters or hosts), employed by Defendants for the six (6) year period prior to the filing of the Complaint"; (2) directing defendants to provide the names and contact information of all potential collective members to plaintiffs' counsel; (3) approving plaintiffs' proposed Notice of Pendency of Lawsuit Regarding Wages (Notice) (Dkt. No. 61-1), authorizing plaintiffs to mail it to potential collective members (in English and Spanish), and directing defendants to post it in both restaurants; and (4) tolling the statute of limitations "until such time

that Plaintiff is able to send notice to protentional opt-in plaintiffs." Mot. Ex. 1 (Dkt. No. 60-1), at 1-2; see also Pl. Mem. (Dkt. No. 61) at 1, 14-23. For the reasons set forth below, plaintiffs' motion will be granted in part. I. BACKGROUND A. Plaintiffs' Claims Except where otherwise indicated, the facts set forth herein are taken from the declarations submitted by each plaintiff, and by their counsel, in support of the collective certification motion. Plaintiff Guevara was employed by F&R LLC as a busser at Fine & Rare from November 2019 through February 2020. Guevara Decl. (Dkt. No. 63) ¶¶ 1, 4. Plaintiff Heras attests that she was employed by F&R LLC as a server and food runner at Fine & Rare from June 2017 through August 2019. Heras Decl. (Dkt. No. 64) ¶¶ 1, 4.2 Neither plaintiff ever worked at Flatiron Room. Both plaintiffs complain that their employer improperly deducted an hourly tip credit and a per-shift meal credit from their wages in violation of relevant provisions of the FLSA and related

regulations. Specifically, both attest that they were paid the "tip credit minimum wage," Guevara Decl. ¶ 6; Heras Decl. ¶ 6, but were required to engage in non-tipped "side-work," such as preparing food, making coffee, polishing silverware, restocking the bathrooms, and taking out the garbage, for twenty percent or more of their workday. Guevara Decl. ¶ 8; Heras Decl. ¶ 9. The FLSA, 29 U.S.C. § 203(m)(2)(A), "permit[s] an employer to pay a tipped worker a cash wage that is lower than the statutory minimum wage, provided that the cash wage and the employee's tips, taken together, are at least equivalent to the minimum wage." Inclan v. N.Y. Hosp. Grp., Inc., 95 F. Supp. 3d 490, 497 (S.D.N.Y. 2015). "[W]hen 'an employee performs both tipped and untipped work, the question of whether an employer is entitled to apply a tip credit for minimum wage purposes turns on whether the employee spends more than twenty percent of his or her work week

performing non-tipped work. If so, the employer is not entitled to apply a tip credit, and must pay that employee the full minimum wage.'" Gamero v. Koodo Sushi Corp., 272 F. Supp. 3d 481, 500 (S.D.N.Y. 2017) (quoting Islam v. BYO Co. (USA), 2017 WL 2693717, at *4 (S.D.N.Y. June 20, 2017)), aff'd, 752 F. App'x 33 (2d Cir. 2018). Both plaintiffs further attest that they were subjected to an "illegal tip pooling system" in which the managers, who were paid on a salary basis, also participated. Guevara Decl. ¶ 10; Heras

2 This appears to be inaccurate. Plaintiff Heras's pay records, as well as an email she wrote to Fine & Rare General Manager Dasha Naymon on August 24, 2018, reflect that she voluntarily left her employment in August 2018. (Dkt. Nos. 82-1, 82-2.) Nonetheless, because the motion before me seeks only conditional certification of an FLSA collective, I accept, for present purposes, that Heras worked at Fine & Rare through August 2019. See Part II(A), infra. Decl. ¶ 11. In addition, plaintiff Heras asserts that she was never given "proper written or oral notice that a tip credit was being taken from my wages." Heras Decl. ¶ 8.3 Guevara makes no comparable claim regarding lack of notice of the tip credit.4 Under the FLSA, the tip credit "shall not apply with respect to any tipped employee unless "all tips received by such employee have

been retained by the employee," and the employee "has been informed by the employer of the provisions of this subsection." 29 U.S.C. § 203(m)(2)(A). While tip pooling among tipped employees is permissible, the employer may not "allow[ ] managers or supervisors to keep any portion of employees' tips, regardless of whether or not the employer takes a tip credit." Id.; see also 29 C.F.R. § 531.54 (tip pool must be "limited to employees who customarily and regularly receive tips" and may not include "managers and supervisors"). The FLSA's tip credit notice provision "does not require that the notice be given in writing," Hernandez v. Jrpac Inc., 2016 WL 3248493, at *23 (S.D.N.Y. June 9, 2016), but does require the employer to "show that it has informed employees that tips are being credited against their wages." Inclan, 95 F. Supp. 3d at 497 (quoting Reich v.

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Guevara v. Goodnight Group LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guevara-v-goodnight-group-llc-nysd-2022.