Kim v. DKCOSMETICS

CourtDistrict Court, S.D. New York
DecidedFebruary 23, 2022
Docket1:19-cv-09079
StatusUnknown

This text of Kim v. DKCOSMETICS (Kim v. DKCOSMETICS) 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
Kim v. DKCOSMETICS, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------- X : GA HO KIM, : : Plaintiff, : : 19-CV-9079 (JMF) -v- : : OPINION AND ORDER DK COSMETICS et al., : : Defendants. : : ---------------------------------------------------------------------- X JESSE M. FURMAN, United States District Judge: Plaintiff Ga Ho Kim brought this suit against Jong Kyun “John” Lee and four corporate entities that he controls — DK Cosmetics (“DKC”), DK Cos Corp. (“DKCC”), Club Clio Corp. (“CCC”), and Club Clio NYC Corp. (“CCNC”) — alleging claims under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq.; the New York State Labor Law (“NYLL”), N.Y. Labor Law § 650 et seq.; and the New Jersey Wage and Hour Law (“NJWHL”), N.J.A.C. § 12:56-2.1 et seq. See ECF No. 2 (“Compl.”). The Court conditionally certified the case as a collective action under the FLSA, see ECF No. 46, and one person, Aeri Moon, consented to join as a Plaintiff, see ECF No. 61. Kim and Moon now move, pursuant to Rule 56 of the Federal Rules of Civil Procedure, for partial summary judgment. ECF No. 86 (“Pls.’ Mem.”), at 1. DKCC cross-moves for partial summary judgment as well, seeking a declaration that it was not Plaintiffs’ employer before its date of incorporation, October 1, 2018. ECF No. 90 (“Defs.’ Opp’n), at 11. For the reasons that follow, Plaintiffs’ motion is granted in part and denied in part and Defendants’ cross-motion is granted. BACKGROUND The following facts, drawn from the admissible materials submitted in connection with this motion, are either undisputed or described in the light most favorable to the non-moving party, except where noted. See Costello v. City of Burlington, 632 F.3d 41, 45 (2d Cir. 2011). Lee is the sole owner of the four corporate Defendants. ECF No. 82 (“Pls.’ Rule 56.1 Stmt.”), ¶¶ 3, 10, 29, 37. At all relevant times, CCC and CCNC (together, the “Club Clio”) operated stores located in Flushing, Queens, and Union Square, Manhattan, respectively, that

sold Korean-made cosmetics. Id. ¶¶ 5, 7, 11, 12. DKC and DKCC (together, the “DK Cosmetics Entities”) were cosmetic wholesalers that share offices in Flushing, Queens, and Manhattan, as well as a warehouse in Ridgefield, New Jersey. Id. ¶¶ 30-34, 38-41. Kim was hired to work for the Club Clio in New York on May 16, 2016, as an assistant manager. Id. ¶¶ 74, 78, 87. He worked at both the Flushing and Union Square retail stores, id. ¶¶ 79, 80, and was paid a fixed monthly salary, id. ¶ 82. On October 16, 2017, Kim was reassigned to work in the New Jersey warehouse, id. ¶¶ 116-17, where he was also paid a fixed salary, id. ¶¶ 120-21. In each case, Kim worked over forty hours most weeks. Id. ¶¶ 94, 119; ECF No. 87 (“Defs.’ Rule 56.1 Resp.”), ¶¶ 94, 119. Defendants, however, produced only one record of an overtime payment, for February 2018. Pls.’ Rule 56.1 Stmt. ¶ 51.

Moon was hired at the Club Clio on November 20, 2014, and worked there until July 15, 2018, with three leaves of absence, from May 16, 2016, to June 15, 2016, in September 2016, and from December 26, 2016, to June 23, 2017. Id. ¶¶ 99-100. She was paid a fixed monthly salary. Id. ¶¶ 102-05. Defendants allege that Moon was hired as a part-time employee and, at some unspecified time, transitioned to a full-time employee. Defs.’ Rule 56.1 Resp. ¶¶ 157-58; ECF No. 89 (“Wang Decl.”), ¶ 3-4. The details of Moon’s employment are less clear, however, because she was not deposed due to her deployment with the U.S. Navy. Defs.’ Opp’n 2; see also ECF No. 98-2. On September 30, 2019, Kim brought this case, seeking recovery of unpaid overtime wages, spread-of-hours premiums, and statutory damages for violations of state record-keeping and notice requirements. Compl. ¶ 2. On April 24, 2020, the Court conditionally certified the case as a collective action under the FLSA. ECF No. 46. Moon’s consent to join the collective action was received on October 29, 2020. ECF No. 61.

SUMMARY JUDGMENT STANDARD Summary judgment is appropriate when the record demonstrates that there are no genuine disputes as to any material facts and that one party is entitled to judgment as a matter of law. See Fed. R. Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). A genuine dispute of material fact exists “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). The moving party bears the initial burden of informing the Court of the basis for its motion and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, that demonstrate the absence of a genuine dispute regarding any material fact. See Celotex, 477 U.S. at 323; Fed. R. Civ. P. 56(c). In ruling on a motion for summary judgment, all evidence

must be viewed in the light most favorable to the non-moving party, Overton v. N.Y. State Div. of Mil. & Naval Affs., 373 F.3d 83, 89 (2d Cir. 2004), and the Court must “resolve all ambiguities and draw all permissible factual inferences in favor of the party against whom summary judgment is sought,” Sec. Ins. Co. of Hartford v. Old Dominion Freight Line, Inc., 391 F.3d 77, 83 (2d Cir. 2004). Where, as here, both sides move for summary judgment, a court is “required to assess each motion on its own merits and to view the evidence in the light most favorable to the party opposing the motion, drawing all reasonable inferences in favor of that party.” Wachovia Bank, Nat’l Ass’n v. VCG Special Opportunities Master Fund, Ltd., 661 F.3d 164, 171 (2d Cir. 2011). Thus, “neither side is barred from asserting that there are issues of fact, sufficient to prevent the entry of judgment, as a matter of law, against it.” Heublein, Inc. v. United States, 996 F.2d 1455, 1461 (2d Cir. 1993). DISCUSSION In their opposition to Plaintiffs’ motion for summary judgment, Defendants concede several important facts. First, they admit that Lee was Kim and Moon’s “employer” under the

FSLA, NYLL and NJWHL; that the two Club Clio entities were Kim’s and Moon’s employers while they worked at the retail stores in New York; and that DKC was Kim’s employer when he worked at the warehouse in New Jersey. Defs.’ Opp’n 8-9. Second, they admit that Kim and Moon “did not receive all the overtime to which they were entitled” and generally agree with the method of calculation put forward by Plaintiffs, subject to a few factual disputes, discussed below. Id. at 2. And third, they admit that the Club Clio entities failed to provide certain notices required under the NYLL in Plaintiffs’ primary language, Korean, and that the wage statements that Club Clio provided did not contain all of the information required by the NYLL. Id. at 10- 11; see also N.Y.

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Bluebook (online)
Kim v. DKCOSMETICS, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kim-v-dkcosmetics-nysd-2022.