Jacob v. Duane Reade, Inc.

289 F.R.D. 408, 2013 WL 1137024, 2013 U.S. Dist. LEXIS 38675
CourtDistrict Court, S.D. New York
DecidedMarch 20, 2013
DocketNo. 11 Civ. 0160 (JPO)
StatusPublished
Cited by25 cases

This text of 289 F.R.D. 408 (Jacob v. Duane Reade, 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
Jacob v. Duane Reade, Inc., 289 F.R.D. 408, 2013 WL 1137024, 2013 U.S. Dist. LEXIS 38675 (S.D.N.Y. 2013).

Opinion

MEMORANDUM AND ORDER

J. PAUL OETKEN, District Judge:

Plaintiffs, individually and on behalf of all others similarly situated, assert that Defendants Duane Reade, Inc. and Duane Reade Holdings, Inc. (collectively “DR”) violated the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. (“FLSA”), and New York Labor Law § 650 et seq. (“NYLL”), by failing to [411]*411compensate their assistant store managers (“ASMs”) for hours worked in excess of forty hours per week. Plaintiffs now move for class certification of their NYLL claims pursuant to Federal Rule of Civil Procedure 23. For the reasons that follow, Plaintiffs’ motion is granted.

I. Factual Background

DR owns and manages approximately 250 “retail drug and consumer convenience stores” within New York City and its surrounding metropolitan area. Jacob v. Duane Reade, Inc., No. 11 Civ. 160, 2012 WL 260230, at *1 (S.D.N.Y. Jan. 27, 2012). There are currently around 750 present and former ASMs who were classified by DR as such during the relevant class period. (Memorandum of Law in Support of Motion for Class Certification, Dkt. No. 92 (“Pl.’s Mem.”), at 1, 15; Memorandum of Law in Opposition, Dkt. No. 100 (“Def.’s Opp.”), at 2-3.) All ASMs are classified as exempt from FLSA (Duane Reade Job Description, Fuchs Deck, Dkt. No. 97, Ex. 56.) Moreover, all ASMs are uniformly, and similarly, treated as exempt from the overtime wage protections of the NYLL. (Brooks Deck, Dkt. No. 93, Ex. D (“Costa Tr.”), at 22:3-20.)

The NYLL protects employees by requiring their employers to pay a “premium rate of one and one-half times their regular rate of pay for hours worked in excess of 40 in a workweek.” (See Ph’s Mem. at 11.); see also NYLL § 650 et seq.; N.Y. Comp.Codes R. & Regs. Tit. 12, § 142-2.2 (“An employer shall pay an employee for overtime at a wage rate of one and one-half times the employee’s regular rate in the manner and methods provided in and subject to the exemptions of sections 7 and 13[,] of 29 U.S.C. 201 et seq., the Fair Labor Standards Act of 1938, as amended; provided, however, that the exemptions set forth in section 13(a)(2) and (4) shall not apply.”).

DR and Plaintiffs agree that ASMs are classified as exempt from the overtime wage protections of the NYLL. However, they disagree as to the soundness of this classification and the motives behind it. Whereas DR asserts that the ASM job description accurately denotes ASMs’ “duties, responsibilities, and expectations” (Def.’s Opp. at 1), Plaintiffs contend that ASMs are miselassified within a managerial role so as to maintain their exempt status within the strictures of FLSA and the NYLL. (Ph’s Mem. at 10-11.) While Plaintiffs assert that such a misclassification case is ideally situated for the class action mechanism (see generally id.), DR argues that the individualized proof necessary to determine whether a given ASM’s duties deviate from the managerial description of the position is ill-suited for class-wide determination. (Def.’s Opp. at 1-2.) And though courts in this district have certified similar — or nearly identical — classes in the past, see, e.g., Damassia v. Duane Reade, Inc., 250 F.R.D. 152, 156 (S.D.N.Y.2008), DR asserts that the Supreme Court’s recent decision in Wal-Mart Stores, Inc. v. Dukes, — U.S.-, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011) altered the landscape so as to make such certifications untenable whenever they are subject to extreme variants of individualized proof.

According to DR, ASMs’ primary responsibilities include, inter alia: (1) “[a]ssist[ing] with the overall management of the store along with, and in the absence of, the Store Manager, and assisting] with directing loss prevention, merchandising, staffing, customer service, and inventory control”; (2) “[a]ssist[ing] in the development and execution of strategy objectives with the Store Manager to optimize sales and profitability”; (3) “[a]ssist[ing] store manager with monitoring scheduling and budget results to achieve payroll budges”; and (4) “[p]rovid[ing] performance input and conducting] annual performance appraisals for non-exempt store associates.” (Fuchs Deck, Ex. 56.) ASMs’ so-called “Supervisory Responsibilities” include “supervising], developing], training], managing]]],] and motivating] non-exempt store associates in accordance with Duane Reade policies and procedures” and “[r]ecruit[ing], recommending] and interviewing] qualified candidates to Store Manager.” (Id.)

According to DR, ASMs are “salaried, management employees,” whose “primary function” is to “assist the SM and manage the day-to-day operations of the store.” (Def.’s Opp. at 3-4.) ASMs are paid between [412]*412$35,000 and $63,000 per year — a figure dependent on both individual performance and the success of their stores. (Id. at 4.)

DR asserts that, during 2007 and 2008, DR initiated an “overhaul” of the ASM position, which was designed to transform the position into one of stronger management — “with better managers and leaders.” (Id. at 9.) Such changes included the addition of a training program named “Leading at Duane Reade Management Essentials,” and a revamping of the ASM position’s educational and work qualifications. (Id. at 9-10.) Additionally, circa 2008, DR created a new position called “Shift Leader” (“SL”), which is a non-exempt position, “primarily filled through internal promotion” (id. at 10), constituting an “entry level supervisory key holder position” (Costa Tr. at 80:19-81:8.)

II. Procedural History

Plaintiff Mani Jacob (“Jacob”) filed a class action complaint in the Southern District of New York in January 2011, asserting that DR misclassified its ASMs in order to avoid paying overtime pay as required by FLSA and the NYLL. (See Pl.’s Mem. at 2.) At the same time, Plaintiff Lesleena Mars filed a similar complaint in the Eastern District of New York. She later voluntarily dismissed that complaint, joining Jacob’s lawsuit. (Id.) In March 2011, Jacob filed an amended class action complaint, naming Mars as an additional plaintiff. (See Second Amended Class Action Complaint, Dkt. No. 25 (“Compl.”).) In April 2011, DR filed its answer, asserting that its ASMs are legitimately classified as exempt administrators or executives under the FLSA and NYLL, from which it follows that they are not entitled to overtime pay. (See Answer to Amended Class Action Complaint, Dkt. No. 27 (“Answer”).)

Plaintiffs initially moved for conditional class certification of the FLSA collective, which this Court granted on January 27, 2012. See Jacob, 2012 WL 260230. In Jacob, this Court determined that under FLSA’s “modest factual showing” standard, Plaintiffs had demonstrated that they were sufficiently similarly situated to proceed collectively for the purposes of their FLSA claims. Id. at *8-9. Plaintiffs now move for class certification of their NYLL claims, pursuant to Rule 23 of the Federal Rules of Civil Procedure.

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Bluebook (online)
289 F.R.D. 408, 2013 WL 1137024, 2013 U.S. Dist. LEXIS 38675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacob-v-duane-reade-inc-nysd-2013.