Ramos v. Telgian Corp.

176 F. Supp. 3d 181, 2016 U.S. Dist. LEXIS 44321, 2016 WL 1306531
CourtDistrict Court, E.D. New York
DecidedMarch 31, 2016
Docket14-CV-3422 (PKC)
StatusPublished
Cited by1 cases

This text of 176 F. Supp. 3d 181 (Ramos v. Telgian Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramos v. Telgian Corp., 176 F. Supp. 3d 181, 2016 U.S. Dist. LEXIS 44321, 2016 WL 1306531 (E.D.N.Y. 2016).

Opinion

MEMORANDUM & ORDER

PAMELA K. CHEN, United States District Judge

Plaintiffs Dennis Ramos, Ed Rodriguez, Edward Kralick, and Daniel Emerson1 (collectively, “Plaintiffs”) brought this action to recover, on behalf of themselves individually and all similarly situated individuals, unpaid overtime compensation from Defendant Telgian Corporation (“Defendant” or “Telgian”), under Sections 207 and 216 of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 207, 216(b), and, individually, unpaid overtime and spread-of-hours compensation under the New York Labor Law (“NYLL”), NYLL § 663, and the New York Codes, Rules, and Regulations (“NYCRR”), 12 NYCRR §§ 142-2.2,142-2.4.2

The parties have cross-moved for summary judgment. Defendants seek dismissal [184]*184of all of Plaintiffs’ claims, arguing that Plaintiffs were properly compensated for all overtime hours pursuant to the fluctuating workweek (“FWW”) method, and that Plaintiffs earned more than the minimum wage, such that they are not entitled to spread-of-hours compensation. Plaintiffs seek a finding that Defendant failed to comply with the FLSA, NYLL, and NYCRR by only compensating Plaintiffs for overtime hours at a rate of one-half their regular hourly rate. Plaintiffs also argue that summary judgment should be granted in their favor with respect to Defendant’s liability for Plaintiffs’ spread-of-hours claim. For the reasons set forth below, Defendant’s motion for summary judgment is GRANTED IN PART and DENIED IN PART, and Plaintiffs’ cross-motion for summary judgment is DENIED.

FACTUAL BACKGROUND

I. Plaintiffs’ Employment with Telgian

Defendant Telgian provides, inter alia, fire alarm and sprinkler inspection services.3 (Def. 56.1 ¶ 1.) Defendant employed Plaintiffs as fire protection inspectors for the following time periods: Ramos from August 26, 2013 until his resignation on [185]*185May 2, 2014 (Pl. 56.1 ¶1; Def. 56.1 ¶ 2); Rodriguez from May 10, 2010 until his resignation on February 7, 2014 (Pl. 56.1 ¶ 2; Def 56.1 ¶ 3); Kralick from August 26, 2002 until his termination on December 16, 2011 (Pl. 56.1 ¶ 3; Def 56.1 ¶ 4); and Emerson from approximately March 2007 until his resignation on approximately July 4, 2014 (Pl. 56.1 ¶ 4; Def. 56.1 ¶ 5).

II. Plaintiffs’ Compensation Agreements

At or about the time each Plaintiff was interviewed and hired, they received an offer letter and Overtime Compensation Consent Agreement (“Compensation Agreement”), which acknowledged the terms and conditions of their compensation. (Def. 56.1 ¶8.) Each Plaintiff was required to sign the Compensation Agreement. (Id. ¶ 9.) Amanda Flori, Defendant’s Human Resources Supervisor, testified that, as a general matter, employees “have a reasonable amount of time to review the [hiring] documents before executing and returning” them to Defendant. (Flori Tr.4 at 105:17-106:20.)

In each of the Plaintiffs’ Compensation Agreements, the formula for calculating their regular rates of pay was described as “Weekly salary / 40 workweek hours.” (Pl. 56.1 ¶ 11; Ambinder Deck Ex. G at ECF 51, 53, 56, 58.)5 The Compensation Agreements further stated that the formula for calculating Plaintiffs’', “Half-Time - Rate” was “Regular Rate x (Pl. 56.1 ¶ 12.) Finally, the Compensation Agreements stated that the formula for calculating Plaintiffs’ “OT [overtime] Pay” was “HalfTime Rate x Number of Hours Worked over 40.” {Id. ¶ 13.) The Agreements also provided that “[o]vertime [would] be acceptable with prior approval, and on an as-needed basis” (Ambinder Deck Ex. G), though Defendant’s Human Resources Supervisor testified that “with the amount of work [Defendant] ha[s], it’s just kind of a blanket approval for now that overtime is allowed.” (Flori Tr. at 178:22-179:10.)

With respect to overtime compensation, Plaintiffs’ Compensation Agreements stip[186]*186ulated that the overtime calculation would be computed “pursuant to 29 U.S.C. Sec. 207(g)(3) and 29 C.F.R.778.114[,] wherein when an employee who works more than 40 hours in a workweek and is not docked for time not worked,6 the employer, is then [permitted] to compensate the employee at a half-time rate.” (Ambinder Decl. Ex, G at ECF 51, 53, 66, 58.) The Compensation Agreements further provided “Sample Overtime Calculation^],” stating the “# of Hours,” “Salary,”7 “Regular Rate,” “Halftime Rate,” “OT Pay,” and “Total Pay” under four scenarios: where the employee worked 30, 40, 50, and 60 hours. In each example, the “Salary” remained the same, and the “Regular Rate” and “Half-time Rate” similarly remained constant. (Am-binder Decl. Ex. G at ECF 51, 53, 56, 58.)8 The “OT Pay” differed only based on the number of hours worked over 40. (Ambin-der Decl. Ex. G at ECF 51, 53; 56, 58.)

Plaintiffs’ Compensation Agreements also explained the method by which Plaintiffs’ overtime would be calculated as follows: “For each workweek that I work in excess of 40 hours, my overtime rate will be my normal hourly rate multiplied by .5,” ie., “if [a Plaintiffs] normal hourly rate is $10 per hour, and [he] work[s] 50 hours, [he] would be paid 40 x $10 plus 10 x $5 for a total of $450.” (Pl. 56.1 ¶ 15.) The Compensation Agreements, however, did not explain whether there was a fixed weekly salary in this hypothetical, or whether the $450 was in addition to any such fixed weekly salary or represented the total compénsation for that week. (Am-binder Decl. Ex. G at ECF 51, 53, 56, 58.) Each Plaintiffs regular rate was calculated by annualizing their bi-weekly salary and dividing by 2,080 hours, or 40 hours per week times 52 weeks of the year, and each Plaintiffs overtime rate was calculated by multiplying that rate by 0.5. (Def. 56.1 ¶ 37.) Plaintiffs’ regular rate did not vary from week to week and was never calculated by dividing Plaintiffs’ salaries by the total number of hours they worked in a given week. (Pl. 56.1 ¶¶'8,18.)

Defendant’s Human Resources Supervisor testified that employees compensated under the FWW method would be paid the same weekly salary regardless of whether they worked less than 40 hours that week, (Flori Tr. at 177:21-178:3, 180:22-181:9.) The salaries listed in Plaintiffs’ payroll records,9 however, occasionally deviate from [187]*187Plaintiffs’ fixed weekly salaries, .with no apparent' explanation on the face of the records. (Compare, e.g., Ambinder Opp. Deck Ex. A at ECF 9 (Ramos’s earnings statement from pay date December 13, 2013 listed salary under “Current Period” as “1679.70”), mth Def. 56.1 ¶ 32 (Ramos’s bi-weekly salary was $1,760.00); compare Ambinder Opp. Deck Ex. B at ECF 46 (Rodriguez’s earnings statement from pay date December 13,2013 listed salary under “Current Period” as “1728.00”), with Def. 56.1 ¶ 33 (Rodriguez’s bi-weekly salary at end of employment in February 2014 was $1,922.40).)

It is undisputed that Plaintiffs’ salaries compensated them in excess of the minimum wage, generally substantially so, even for the weeks in which they worked the greatest number of hours during their tenures at Telgian. (See Joint Supp.

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Bluebook (online)
176 F. Supp. 3d 181, 2016 U.S. Dist. LEXIS 44321, 2016 WL 1306531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramos-v-telgian-corp-nyed-2016.