Katz v. Equinox Holdings, Inc.

CourtDistrict Court, S.D. New York
DecidedApril 29, 2022
Docket1:20-cv-09856
StatusUnknown

This text of Katz v. Equinox Holdings, Inc. (Katz v. Equinox Holdings, 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
Katz v. Equinox Holdings, Inc., (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED Sonor nner nemo snes DOC #: MONIQUE KATZ, individually and on behalf of: DATEFILED: 4/29/22 all others similarly situated, and YEKATERINA SKIDANENKO, : : 20-CV-9856 (VEC) Plaintiffs, : : MEMORANDUM -against- : OPINION AND ORDER EQUINOX HOLDINGS, INC., : Defendant. : panne KX VALERIE CAPRONI, United States District Judge: Plaintiffs Monique Katz and Yekaterina Skidanenko bring this action against Defendant Equinox Holdings, Inc. (“Equinox”) for failure to pay wages pursuant to federal, state, and city law, among other claims. On October 28, 2021, Ms. Katz moved for conditional certification of a collective of personal trainers who allegedly worked without proper compensation; on January 21, 2022, Defendant moved to dismiss Ms. Katz’s claims pursuant to Federal Rule of Civil Procedure 12(b)(6).! For the following reasons, Defendant’s motion is DENIED, and Plaintiff Katz’s motion is GRANTED. BACKGROUND Equinox 1s a nationwide fitness company with gyms throughout the State of New York. Am. Compl., Dkt. 55 2, 22, 45. Equinox employs personal trainers at different tiers: Tier 1 and Tier 2 trainers (“Low-Tier Trainers”), who primarily perform floor shifts, including cleaning, demonstrating workouts, and recruiting members for private training; and Tier 3, Tier

| Although Defendant initially moved to dismiss Ms. Skidanenko’s claims as well, it has withdrawn the portions of its motion that pertain to her claims. Def. Reply, Dkt. 71 at 1 n.1.

3+, and Tier X trainers (“High-Tier Trainers”), who primarily perform private personal training sessions. Id. ¶¶ 5, 47, 52. Equinox hired Monique Katz as a Tier 1 personal trainer in August 2015; by August 2016 she had been promoted to Tier 3. Id. ¶¶ 173, 177. Equinox hired Yekaterina Skidanenko as a Tier 1 personal trainer in July 2019; she stopped working due to an injury in October of that

same year. Id. ¶¶ 226–29. Ms. Katz and Ms. Skidanenko assert claims of unpaid minimum wages, spread of hours, and unpaid overtime compensation in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and New York state and city laws. Id. ¶¶ 333– 360, 251–300.2 Ms. Katz also asserts that Defendant violated the Family and Medical Leave Act, 29 U.S.C. § 2615 et seq., by denying her benefits under the act and then retaliating against her for exercising her rights under the act. Id. ¶¶ 306–320. This action was brought by Ms. Katz in the Southern District of New York on November 23, 2020. See generally Compl., Dkt. 1. At the time Ms. Katz filed her lawsuit, Ms. Skidanenko had a previously-filed lawsuit pending in the Eastern District of New York. After Judge Kuntz

denied Equinox’s motion to dismiss Ms. Skidanenko’s action, see Skidanenko v. Equinox Holdings Inc. et al., No. 20-CV-01550, Dkt. 35 (E.D.N.Y. June 29, 2021); Tripp Decl., Ex. B, Dkt. 60-2, the parties agreed to consolidate the actions in the Southern District. Pls. Opp., Dkt. 66 at 4. Plaintiff Katz thereafter filed a motion to conditionally certify a collective, see Not. of Mot., Dkt. 38, which Defendant opposes, see Def. Opp., Dkt. 68. On January 21, 2022, Defendant moved to dismiss portions of Plaintiffs’ Amended Complaint, see Not. of Mot., Dkt. 58; Plaintiffs oppose the motion, see Pls. Opp, Dkt. 66.

2 After paragraph 360 of the Amended Complaint, likely due to a typographical error, the numbering of the paragraphs restarts at 251. The Court has nonetheless cited to the numerals listed in the Amended Complaint throughout this opinion. DISCUSSION I. Legal Standard To survive a motion to dismiss under Rule 12(b)(6), “a complaint must allege sufficient facts, taken as true, to state a plausible claim for relief.” Johnson v. Priceline.com, Inc., 711 F.3d 271, 275 (2d Cir. 2013) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555–56 (2007)). A

claim is facially plausible when the factual content pleaded allows a court “to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). “[T]o survive a motion under Rule 12(b)(6), a complaint does not need to contain detailed or elaborate factual allegations, but only allegations sufficient to raise an entitlement to relief above the speculative level.” Keiler v. Harlequin Enters., Ltd., 751 F.3d 64, 70 (2d Cir. 2014) (citation omitted). When considering a Rule 12(b)(6) motion to dismiss, the Court draws all reasonable inferences in the light most favorable to the plaintiff. See Gibbons v. Malone, 703 F.3d 595, 599 (2d Cir. 2013) (citation omitted). II. Ms. Katz Has Stated a Claim Under the FLSA

In order to state a claim under the FLSA for unpaid overtime work, “a plaintiff must sufficiently allege 40 hours of work in a given workweek as well as some uncompensated time in excess of the 40 hours.” Bonn-Wittingham v. Project OHR, Inc., 792 F. App’x 71, 75 (2d Cir. 2019) (cleaned up). Plaintiffs must “provide sufficient detail about the length and frequency of their unpaid work to support a reasonable inference that they worked more than [40] hours in a given week.” Id. (citing Nakahata v. N.Y.-Presbyterian Healthcare Sys., Inc., 723 F.3d 192, 201 (2d Cir. 2013)). Defendant argues that Ms. Katz’s FLSA overtime claim must be dismissed for failing to identify uncompensated overtime hours worked in a particular workweek. Def. Mem., Dkt. 59 at 5–9. Plaintiffs assert that Judge Kuntz’s prior denial of Equinox’s motion to dismiss Ms. Skidanenko’s original complaint precludes this Court’s analysis of this claim, but that, even if Judge Kuntz’s decision does not have a preclusive effect, Ms. Katz has properly stated a claim.3 Pls. Opp. at 5–15. The Court finds that issue preclusion does not apply, but that Ms. Katz has sufficiently pled an overtime violation.

Issue preclusion applies when (1) the identical issue was raised in a previous proceeding; (2) the issue was actually litigated and decided in the previous proceeding; (3) the party raising the issue had a full and fair opportunity to litigate the issue in that previous proceeding; and (4) the resolution of the issue was necessary to support a valid, final judgment on the merits. Zapata v. HSBC Holdings PLC, 414 F. Supp. 3d 342, 348 (E.D.N.Y. 2019), aff’d, 825 F. App’x 55 (2d Cir. 2020) (citation omitted). Ms. Katz’s claim founders on the very first element: that the identical issue was raised in the prior proceeding. Id. Ms. Katz, who worked at a different tier than Ms. Skidanenko, alleges different workweeks in which she worked overtime without compensation, and alleges different kinds of unpaid activities that made up that overtime work;

she has made entirely different factual allegations, even if her allegations give rise to the same type of legal claim. Def. Reply, Dkt. 71 at 1.4 The Court therefore turns to the merits of Defendant’s motion.

3 Equinox does not contest that issue preclusion applies to Ms.

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Katz v. Equinox Holdings, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/katz-v-equinox-holdings-inc-nysd-2022.