Mitchell v. Ceros, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 10, 2022
Docket1:21-cv-01570
StatusUnknown

This text of Mitchell v. Ceros, Inc. (Mitchell v. Ceros, 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
Mitchell v. Ceros, Inc., (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK KATHLEEN MITCHELL, Plaintiff, 21 Civ. 1570 (KPF) -v.- OPINION AND ORDER CEROS, INC., JENNIFER SCHWALB, and MELISSA WYGANT, Defendants. KATHERINE POLK FAILLA, District Judge: Plaintiff Kathleen Mitchell brings this action against her former employer, Ceros, Inc. (“Ceros”), as well as Jennifer Schwalb, Ceros’s Chief People Officer, and Melissa Wygant, Ceros’s Head of Professional Services (the “Individual Defendants,” and together with Ceros, “Defendants”), alleging violations of the Equal Pay Act of 1963 (the “EPA”), 26 U.S.C. § 206(d); the New York Equal Pay Law, a part of the New York Labor Law (the “NYLL”), N.Y. Lab. Law §§ 650-665, 195, 198; and the New York City Human Rights Law (the “NYCHRL”), N.Y.C. Admin. Code §§ 8-101 to 8-134. Defendants now move for partial dismissal of Plaintiff’s Amended Complaint, which is the operative pleading in this matter. For the reasons that follow, the Court denies Defendants’ motion. BACKGROUND1 A. Factual Background Ceros is a New York corporation that provides a cloud-based platform encompassing a collaborative, real-time digital canvas, upon which designers

1 This Opinion draws its facts from the Amended Complaint (the “AC” (Dkt. #12)), the well-pleaded allegations of which are taken as true for purposes of this motion. For ease of reference, the Court refers to Defendants’ memorandum of law in support of their motion to dismiss the Amended Complaint as “Def. Br.” (Dkt. #18); Plaintiff’s create animated, interactive content. (AC ¶ 8). Plaintiff began working for Ceros as a Junior Producer in August 2018 at a starting salary of $60,000. (Id. at ¶ 12). Although Plaintiff attempted to negotiate a higher starting salary, she

was ultimately unsuccessful. (Id.). In August 2019, she was promoted to Producer and her salary increased to $68,000. (Id. at ¶ 13). In November 2019, Ceros hired another Producer named Anish Joshi, a man with roughly the same number of years of work experience in advertising as Plaintiff. (AC ¶¶ 14, 15). Prior to the COVID-19 pandemic, Plaintiff and Joshi worked side-by-side in Ceros’s open-plan office space. (Id. at ¶ 19). The two shared the same job duties and responsibilities at Ceros, which required them to use the same skills. (Id. at ¶ 20). Specifically, as Producers, Plaintiff

and Joshi were each responsible for working with clients and internal teams to launch online interactive content. (Id.). This included working externally with clients to develop the desired content and working internally with Ceros teams to produce the content. (Id.). As part of this work, both Plaintiff and Joshi were responsible for creating and adhering to schedules and budgets. (Id.). Plaintiff and Joshi both reported directly to non-party Kevin Au, who was responsible for their day-to-day supervision; and Au reported to Wygant, who had interviewed both Plaintiff and Joshi before Ceros extended them job offers.

(Id. at ¶¶ 16-18). On occasion, Wygant would assign work to Plaintiff and Joshi herself. (Id. at ¶ 18).

memorandum of law in opposition to Defendants’ motion to dismiss as “Pl. Opp.” (Dkt. #19); and Defendants’ reply memorandum as “Def. Reply” (Dkt. #20). Shortly after Joshi was hired, Plaintiff discovered a Slack channel available to all Ceros employees. (AC ¶ 21). In the channel, Plaintiff found messages exchanged among members of Ceros’s management team, including

Au, Wygant, and a non-party human resources employee, discussing interviewing and hiring Joshi. (Id.). As part of this discussion, the group noted that while Plaintiff’s pay was in the “high sixties,” the group decided to offer Joshi a starting salary of $90,000. (Id. at ¶ 22). The group did not offer an explanation as to why Joshi should earn so much more than Plaintiff, nor did the group discuss raising Plaintiff’s salary to match Joshi’s. (Id.). In or around January 2020, after seeing the Slack discussion, Plaintiff prepared a written complaint about Ceros paying her less than her male

counterpart, which she read aloud and subsequently emailed to Schwalb. (AC ¶¶ 10, 23-24). Schwalb then held a meeting with Plaintiff and Au, and another meeting with Plaintiff and Wygant. (Id. at ¶ 25). During the latter meeting, Wygant began to cry when Plaintiff confronted her about her participation in the Slack discussion. (Id. at ¶ 26). Although Wygant claimed that she had not realized the pay disparity between Plaintiff and Joshi, Plaintiff reminded Wygant that this disparity had been explicitly mentioned in the Slack discussion. (Id.). At the end of the meeting, Defendants promised to rectify the

situation, stressed their commitment to gender equality and transparency, and told Plaintiff that she was free to discuss this issue with anyone in the company. (Id. at ¶ 27). The following month, Schwalb informed Plaintiff that her salary would be increased by $5,000, bringing it to $73,000 — still far below Joshi’s $90,000 salary. (Id. at ¶ 28). Several months later, in late 2020, an intern at Ceros was offered a full-

time position with the company. (AC ¶ 29). The intern, who knew about Plaintiff’s experience, told her manager with respect to the offered promotion, “I don’t want what happened to [Plaintiff] to happen to me.” (Id.). Shortly thereafter, Schwalb berated Plaintiff for sharing her claims of unequal pay with the intern, exclaiming that “I thought you let [the pay disparity] go! Why do you keep talking about it?” (Id. at ¶ 30). When Plaintiff responded that, contrary to Schwalb’s suggestion, she still cared about being paid far less than her male counterpart, Schwalb stated, “Sometimes it’s just about bullshitting

in an interview[.]” (Id. at ¶ 31). Plaintiff understood Schwalb’s comment to be a defense of the company’s unequal pay practices. (Id.). On January 7, 2021, Schwalb and Au held a Zoom meeting with Plaintiff during which Au informed Plaintiff that Ceros was terminating her employment. (AC ¶¶ 32-33). When Plaintiff responded that she believed she was being retaliated against for making complaints about her unequal pay, Schwalb stepped in to raise several purported performance deficiencies that Plaintiff alleges were “plainly pretextual.” (Id. at ¶¶ 33-35).2 In relevant part,

Schwalb stated that she had personally reviewed emails reflecting these performance issues, and that Plaintiff’s termination was supported by Plaintiff’s

2 According to Plaintiff, there had been no issue at all with Plaintiff’s performance until she complained of unequal pay. (AC ¶ 35). team’s leadership, including Wygant. According to Plaintiff, Defendants’ treatment caused her to suffer monetary loss, humiliation, and emotional distress. (Id. at ¶ 38).

B. Procedural Background Plaintiff filed the initial Complaint in this action on February 22, 2021. (Dkt. #1). On April 19, 2021, Defendants requested leave to file a motion to dismiss portions of Plaintiff’s Complaint. (Dkt. #8). Plaintiff opposed this request in a letter filed on April 22, 2021. (Dkt. #10). The Court responded by directing Plaintiff to file an amended complaint by May 14, 2021, and directing Defendants to respond to the amended complaint, in the form of either an answer or a pre-motion letter, by June 4, 2021. (Dkt. #11). Plaintiff filed the Amended Complaint on May 14, 2021, alleging (i) wage

discrimination in violation of the EPA (Count One); (ii) retaliation by Defendants Ceros and Schwalb in violation of the EPA (Count Two); (iii) wage discrimination in violation of the NYLL (Count Three); (iv) retaliation by Defendants Ceros and Schwalb in violation the NYLL (Count Four); (v) wage discrimination in violation of the NYCHRL (Count Five); and (vi) retaliation by Defendants Ceros and Schwalb in violation of the NYCHRL (Count Six). (Dkt.

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