Mei Kum Chu v. Chinese-American Planning Council Home Attendant Program, Inc.

194 F. Supp. 3d 221, 2016 WL 3753098
CourtDistrict Court, S.D. New York
DecidedJuly 11, 2016
Docket16-cv-3569 (KBF)
StatusPublished
Cited by9 cases

This text of 194 F. Supp. 3d 221 (Mei Kum Chu v. Chinese-American Planning Council Home Attendant Program, 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
Mei Kum Chu v. Chinese-American Planning Council Home Attendant Program, Inc., 194 F. Supp. 3d 221, 2016 WL 3753098 (S.D.N.Y. 2016).

Opinion

OPINION & ORDER

KATHERINE B. FORREST, District Judge

Plaintiffs Mei Kum Chu, Sau King Chung, and Qun Xiang Ling commenced this action, on behalf of themselves and all others similarly situated, by filing a summons and complaint (“Complaint”) in the New York Supreme Court, New York County, on April 11, 2016. The Complaint allege claims against plaintiffs’ former employer, defendant Chinese-American Planning Council Home Attendant Program, Inc. (“CPC”), under the New York Labor Law (“NYLL”), as well as - claim's for breach of contract and unjust enrichment arising from CPC’s alleged violations of the New York Home Care Worker Wage Parity Act (“Parity Act”) and the New York City Fair Wages for Workers Act (“Fair Wages Act”). (Compl., ECF No. 1-1.) Plaintiffs were employed by CPC as home care aides to care for disabled and elderly individuals in and around New York City, and allege that CPC failed to, inter aha, pay them minimum wages, overtime wages and spread-of-hours ■ wages, and furnish proper wage statements. ■ On May 13, 2016, CPC removed this action to this Court on the basis of federal question jurisdiction pursuant to 28 U.S.C. § 1331, on the ground that all of plaintiffs’ claims are completely preempted by § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185, (Notice of Removal ¶ 4, ECF No. 1.)

Shortly before plaintiffs commenced this action, this Court addressed a similar lawsuit in which' current CPC employees brought claims under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 206, 207, and also brought New York state law claims. See Chan v. Chinese-American Planning Council Home Attendant Program, Inc. (“Chan”), No. 15-CV-9605 (KBF) (S.D.N.Y.). That action is currently stayed following the Court’s grant of CPC’s motion to compel arbitration based on a collective. bargaining agreement (“CBA”), as supplemented by a Memorandum of Agreement made effective December 1, 2015 (“2015 MOA”), that was executed by CPC and the bargaining representative for CPC’s employees, 1199 SEIU United Healthcare Workers East (“1199”). Because the operative complaint in Chan asserted a federal law claim under the FLSA,. there was no dispute that the Court had jurisdiction to adjudicate that motion.

Now pending before the Court are two threshold motions — a motion to compel arbitration by CPC (ECF No. 5), and a motion to remand this action to state court by plaintiffs (ECF No. 15). In its motion, CPC contends that all of plaintiffs’ claims are subject to mandatory arbitration because such claims are expressly covered by the grievance and arbitration provisions contained in the 2015 MOA. (See Kirschner Aff., Ex. 2 (“2015 MOA”), ECF No. 24.) Plaintiffs oppose CPC’s motion on the ground that they are not covered by the 2015 MOA, which contained new mandatory arbitration provisions, because they were no longer employees at the time that the 2015 MOA became effective. Plaintiffs also argue that the prior Memorandum of Agreement, dated June 6, 2014 (see Kirschner Aff., Ex. 3 (“2014 MOA”)), does not require the parties to submit to binding arbitration for these claims. With respect to their motion to remand, plaintiffs- argue that LMRA preemption does not apply because their state law claims do not depend on the CBA and the Court need not interpret the CBA to adjudicate them. CPC counters that resolution of plaintiffs’ claims will require substantial interpretation of the CBA.

[224]*224For the reasons set forth below, the Court concludes that LMRA preemption does not apply and, as a result, the Court lacks subject matter jurisdiction over this action. Accordingly, plaintiffs’ motion to remand this action to state court is GRANTED. In light of that determination, CPC’s motion to compel arbitration is DENIED as moot.

I. FACTUAL BACKGROUND1

Plaintiffs Mei Kum Chu, San King Chung and Qun Xiang Ling were each previously employed by CPC as home care aides. Chu’s employment concluded on approximately October 14, 2013; Chung’s employment concluded on approximately January 18, 2013; and Xiang’s employment concluded on approximately June 1, 2015. (Compl. ¶¶ 24-26.) Plaintiffs’ putative class consists of all home care aides employed by CPC to provide care services in clients’ homes between April 1, 2008 and June 1, 2015. (Compl. ¶ 16.) CPC is a not-for-profit corporation that provides home health care services to elderly and disabled residents of New York City. (Compl. ¶¶ 13, 23.) As detailed below, the Complaint alleges that CPC engaged in a number of unlawful wage and hour practices vis-a-vis plaintiffs and the putative class members.

The Complaint alleges that CPC had a “policy and practice” of paying plaintiffs “one hourly rate of pay during weekdays and a slightly higher hourly rate during weekends.” (Compl. ¶ 29.) The Complaint also alleges that CPC regularly assigned plaintiffs to work 24-hour shifts (without receiving at least five hours of uninterrupted sleep time or three hours of meal and other break time), which required plaintiffs to “remain in the client’s home or by the client’s side for the entire 24-hour period to provide services, to monitor the client’s location, and to be ‘on call’ to immediately provide services to the client as needed.” (Compl. ¶¶ 30-32.) CPC also had a “policy and practice” of paying plaintiffs “their hourly rate for only 12 hours of work during a 24-hour shift, plus a flat, per diem amount set at $16.95.” (Compl. ¶ 34.) CPC also had a “policy and practice” of not paying plaintiffs “their regular rate for all hours up to 40 in weeks during which [pjlaintiffs ... worked overtime hours.” (Compl. ¶ 36.) Additionally, CPC failed to provide notices required by NYLL § 195 and 12 N.Y. C.R.R. § 142-3.8 on pay statements that it distributed to plaintiffs. (Compl. ¶ 61.) Based on the aforementioned alleged conduct, the Complaint asserts seven state law causes of action — five claims pursuant to the NYLL and two common law claims. These claims are as follows.

Starting with plaintiffs’ NYLL claims, Count I alleges that CPC failed to pay the statutorily required minimum wage in violation of NYLL § 652 and 12 N.Y.C.R.R. § 142-3.1. (Compl. ¶¶ 68-73.) Count II alleges that CPC failed to pay the statutorily mandated overtime rate for all hours worked in excess of 40 per week, in violation of NYLL Article 19, § 650, et seq., and 12 N.Y.C.R.R. § 142-3.2, because CPC did not pay plaintiffs their regular rate for all hours up to 40 hours in weeks in which they worked overtime when plaintiffs were assigned to work 24-hour shifts. (Compl. ¶¶ 74-78.) Count III alleges that CPC failed to pay an additional hour of pay at the basic minimum hourly wage [225]*225rate for every day that plaintiffs worked a spread of hours that exceeded 10 hours (or a shift in excess of 10 hours), in violation of NYLL §§ 190, ,et seq., and 650, et seq., and 12 N.Y.C.R.R. § 142-3.4. (Compl. ¶¶ 79-82.) Count IV alleges that CPC failed to pay plaintiffs all wages which they were owed whenever plaintiffs were assigned to work 24-hour shifts, in violation of NYLL § 191 (Compl. ¶¶ 83-86.) Count V alleges that CPC willfully failed to provide plaintiffs with the requisite paystubs as set -forth by NYLL § 195 and 12 N.Y.C.R.R. § 142-3.8, which prejudiced plaintiffs’ ability to ascertain and assert their legal rights. (Compl. ¶¶ 87-88.)

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194 F. Supp. 3d 221, 2016 WL 3753098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mei-kum-chu-v-chinese-american-planning-council-home-attendant-program-nysd-2016.