Neor v. Acacia Network, Inc.

District Court, S.D. New York·Decided October 19, 2023·No. 1:22-cv-04814·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK GIITOU NEOR and TYRONE WALLACE on behalf of themselves, FLSA Collective Plaintiffs, and the Class, Plaintiffs, – against – OPINION & ORDER ACACIA NETWORK, INC., d/b/a 22-cv-04814 (ER) ACACIA NETWORK, ACACIA NETWORK HOUSING INC., d/b/a ACACIA NETWORK, PROMESA RESIDENTIAL HEALTH CARE FACILITY, INC., d/b/a PROMESA, and JOHN DOE CORP 1–100, Defendants. RAMOS, D.J.: Giitou Neor and Tyrone Wallace (collectively “Plaintiffs”) bring this action against defendants Acacia Network, Inc., d/b/a Acacia Network, Acacia Network Housing Inc., d/b/a Acacia Network, Promesa Residential Health Care Facility, Inc., d/b/a Promesa, and John Doe Corporations 1-100 (collectively, “Acacia”). Plaintiffs allege that Acacia violated the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”), and request damages consisting of unpaid wages, including overtime, statutory penalties, liquidated damages, interest, and attorneys’ and expert fees. Pending before the Court is Acacia’s partial motion to dismiss the NYLL claim alleging failure to provide proper wage statements and notices for lack of subject matter jurisdiction. Doc. 35 at 1. Also before the Court is Acacia’s motion to strike ¶¶ 29–31 and ¶¶ 38–39 of Plaintiffs’ Third Amended Complaint (“TAC”) for exceeding the Court’s grant of leave to amend. Id. For the reasons set forth below, Acacia’s partial motion to dismiss is GRANTED, and its motion to strike is DENIED. I. BACKGROUND A. Factual Background1 Plaintiffs bring this class action on behalf of employees who worked for Acacia on or after June 8, 2016 (six years before Plaintiffs filed their first Complaint on June 8, 2022). Doc. 31 at ¶ 12. Acacia is a not-for-profit corporation, headquartered in the Bronx, that subleases hotels and accommodations to the government to use as housing and assistance centers for the homeless in New York City. Id. at ¶¶ 7–8. Acacia controls defendant Promesa Residential Health Care Facility, Inc. (“Promesa”). Id. at ¶ 7(d). Neor worked at Promesa as a youth social worker from January 2019 until May 14, 2020. Id. at ¶¶ 24–25. She was scheduled to work from 8:00 am to 4:00 pm, five days per week with a one-hour unpaid lunch break. Id. at ¶ 27. Acacia consistently required her to work through her lunch break and after her shift ended at 4:00 pm, even though her supervisor frequently required her to “clock out” at 4:00 pm. Id. at ¶¶ 28–31. Neor was never paid for her work during her lunch hour and rarely paid for her work after her scheduled shift. Id. at ¶ 31. Wallace worked for Acacia from March 21, 2018, until December 28, 2021. Id. at ¶ 34. He was regularly scheduled to work from 9:00 a.m. to 5:00 p.m., five days per week, with a one-hour unpaid lunch break. Id. at ¶¶ 36–37. He also was required to work during his unpaid lunch break and after his shift ended at 5:00 pm. Id. at ¶¶ 37–38. Plaintiffs claim that Acacia provided them with improper wage statements and notices under the Wage Theft Protection Act (“WTPA”) of the NYLL. Id. at ¶ 41. Specifically, Plaintiffs allege that the number of hours listed on the wage statements they received from Acacia was inaccurate because the statements understated the number of hours they worked. Id. at ¶ 44. They argue that the wage statements were improper

1 The facts alleged in the TAC, Doc. 31, are substantially similar to the allegations in Plaintiffs’ First Amended Complaint (“FAC”). Doc. 20. The Court’s recitation of the facts in its Opinion & Order on February 7, 2023 (“February 2023 Order”), is adopted herein, Doc. 26 at 2–3, a brief summary of which is provided below along with any newly alleged and pertinent facts. because they did not include the “actual number of hours that employees worked.” Doc. 37 at 7. B. Procedural Background2 On February 7, 2023, the Court issued the February 2023 Order denying Acacia’s motion to dismiss Plaintiffs’ non-neutral rounding claim, Doc. 26 at 7, but granting its motion to dismiss Plaintiffs’ claim alleging failure to provide proper wage statements and notices under the NYLL. Id. at 9. However, the Court permitted Plaintiffs to amend their complaint to replead their claims under the WTPA. Id. at 10. On March 9, 2023, Plaintiffs filed the Second Amended Complaint (“SAC”). Doc. 27. On March 30, 2023, Acacia requested leave to file another motion to dismiss Plaintiffs’ WTPA claims. Doc. 28. The Court held a premotion conference on April 5, 2023, at which it granted Plaintiffs leave to file a TAC to cure defects with its WTPA claim. Min. Entry dated April 5, 2023. On April 10, 2023, Plaintiffs filed the TAC. Doc. 31. On April 28, 2023, Acacia filed this motion to dismiss Plaintiffs’ WTPA claim and strike certain paragraphs of the TAC. Doc. 35. C. Complaint History Acacia asks the Court to strike five paragraphs of the TAC, ¶¶ 29–31 and ¶¶ 38– 39, because they “exceeded the leave to amend granted by the Court.” Doc. 35 at 1. As described below, the slight amendments made to the various iterations of the Complaints did not exceed the Court’s grant of leave to amend. Plaintiffs’ Allegations Regarding Plaintiff Neor in ¶¶ 29–31 of the TAC. In their original Complaint, Plaintiffs alleged that [t]hroughout her employment, [] NEOR was regularly scheduled to work five (5) days per week … from 8:00 am to 4:00 pm with one (1) unpaid hour break. On a daily basis, despite [] the set schedule, [she] was required to continue working until 6:00 pm.

2 A recitation of the procedural history prior to February 7, 2023, is set forth in the February 2023 Order. Doc. 26 at 3–4. Doc. 1 at ¶ 27 (emphasis added). Plaintiffs also asserted that Neor was required to work through her lunch breaks. Id. at ¶ 28. Thus, according to the original complaint, Neor allegedly worked fifty hours per week. Id. at ¶ 27. In the FAC, Plaintiffs explained that Neor was compensated according to her official schedule (still 8:00 am to 4:00 pm, five days per week), which only required her to work thirty-five hours each week. Doc. 20 at ¶ 27. Plaintiffs once again claimed that Neor was required to work through her lunch break, id. at ¶ 29, and also provided additional detail on Neor’s work after 4:00 pm. Id. at ¶¶ 31–33. Specifically, the FAC alleged that [t]hree times a week at 4:00 pm, [Neor] was required to transport children … for various consultations or appointments, during which time she was required to stay with the children. After the appointment or consultation was over, [] NEOR then had to bring the children back … The whole process lasted at least two (2) hours, meaning that three (3) days a week [Neor] did not finish working until at least 6:00 pm. Id. at ¶ 32. The FAC further alleged that on the other two days each week, Neor would “attend children’s therapy groups at 4:00 [pm],” which lasted forty-five minutes. Id. at ¶ 33. After these therapy sessions, Neor would spend thirty minutes returning the children to their shelter accommodations. Id. Thus, twice per week, Neor worked until approximately 5:15 pm. Id. In sum, the FAC alleges that Neor worked forty-eight hours and thirty minutes each week. Id. at ¶ 34. In the SAC, Plaintiffs realleged nearly identical facts to the FAC. Doc. 27 at ¶¶ 27–31. Specifically, Plaintiffs alleged that Neor was scheduled to work from 8:00 am to 4:00 pm with one unpaid hour for her lunch break five days per week. Id. at ¶ 27. However, Neor was required to work through her lunch break, id. at ¶ 28, and after her scheduled shift ended at 4:00 pm. Id. at ¶¶ 29–30. The SAC alleged that in total, Neor worked approximately forty-eight hours and thirty minutes each week. Id. at ¶ 31.

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Neor v. Acacia Network, Inc., (S.D.N.Y. 2023).

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