Roach v. T.L. Cannon Corp.

889 F. Supp. 2d 364, 2012 WL 3686004, 2012 U.S. Dist. LEXIS 120507
District Court, N.D. New York·Decided August 24, 2012·No. No. 3:10-CV-0591 (TJM/DEP)·Published·Cited by 2 cases

Opinion

DECISION & ORDER

THOMAS J. McAVOY, Senior District Judge.

I. INTRODUCTION

The plaintiffs in this action, all former employees of the defendants, have commenced this action, styled as a Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and New York State Labor Law collective and class action, against the operators of approximately fifty-three Apple-bee’s Neighborhood Grill and Bar Restaurants (“Applebee’s”) throughout New York [366] State. In their complaint Plaintiffs allege the existence of systemic policies and practices in place at defendants’ restaurants resulting in violations of various provisions of the New York State Labor Law and the FLSA. This action has been preliminarily certified as a collective action for purposes of Plaintiffs’ claims under the FLSA, limited to one Applebee’s location. The motion for broader FLSA collective action certification, and for Rule 28 class certification with regard to their claims under the New York Labor Law, however, was denied without prejudice.

Defendants have now moved for summary judgment pursuant to Fed.R.Civ.P. 56 seeking judgment in their favor on certain claims pertaining to the named Plaintiffs. See Mot. dkt. # 66. Plaintiffs opposed the motion, dkt. # 72, and Defendants replied, dkt. # 73. Since the submission of the summary judgment motion, Plaintiffs moved for leave to file a second amended complaint, dkt. # 90, and filed a motion for class certification pursuant to Rule 23 and for conditional certification pursuant to the Fair Labor Standards Act. See dkt. # 91. The motion to amend was granted by Magistrate Judge Peebles on the consent of Defendants. See 8/15/12 Text Ord. The Second Amended Complaint does not add new claims, see dkt. # 90-1, p. I,1 and the motion for class certification is currently outstanding. See 8/15/12 Text Order (granting parties’ request to adjourn motion to the 9/28/12 motion calendar). This Decision and Order will be limited to the arguments presented in the motion addressed to certain claims by the named Plaintiffs.2

II. BACKGROUND

The majority of the material facts on this motion are not disputed, see Plaintiffs’ Response to Defendants’ Local Rule 7.1(a)(3) Statement, Doc. # 72-2, and such facts will be discussed where relevant below.

III. STANDARD OF REVIEW

On a motion for summary judgment the Court must construe the properly disputed facts in the light most favorable to the non-moving party, see Scott v. Harris, 550 U.S. 372, 127 S.Ct. 1769, 1776, 167 L.Ed.2d 686 (2007), and may grant summary judgment where “there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a); see O’Hara v. National Union Fire Ins. Co. of Pittsburgh, PA, 642 F.3d 110, 116 (2d Cir.2011).

IV. DISCUSSION

a. Spread of Hours Claims

The first dispute concerns application of New York’s former restaurant industry “spread of hours” provision,3 12 N.Y.C.R.R. § 137-1.7. See Shahriar v. Smith & Wollensky Restaurant Group, [367] Inc., 659 F.3d 234, 242 n. 4 (2d Cir.2011).4 Section § 137-1.7 appeared in New York’s Compilation of Codes, Rules and Regulations in the subpart of Chapter 12 addressed to minimum wages in the restaurant industry. It provided: “On each day in which the spread of hours exceeds 10, an employee shall receive one hour’s pay at the basic minimum hourly wage rate before allowances, in addition to the minimum wages otherwise required in this Part.” 12 N.Y.C.R.R. § 137-1.7 (2010); see Shahriar, 659 F.3d at 241-42 (Section 137-1.7 “required employers to pay servers an extra hour’s pay at the regular minimum wage for each day they work more than ten hours.”).

Defendants contend that § 137-1.7 applied only to employees earning at the minimum wage; Plaintiffs contend that § 137-1.7 applied to all non-exempt employees regardless of pay rate. There is no controlling authority on this issue, and case law has varied as to its interpretation of this regulation.

Plaintiffs argue that the Court should follow the reasoning of Doo Nam Yang v. ACBL Corp., 427 F.Supp.2d 327 (S.D.N.Y.2005), and the cases that have cited Yang. In Yang, the District Court chose not to defer to an April 12, 2006 New York State Department of Labor Opinion Letter that interpreted 12 N.Y.C.R.R. § 142-2.4, an analogous provision to § 137-1.7.5 The Opinion Letter stated that “the ‘spread of hours’ regulation does not require all employees to be paid for an additional hour, but merely that the total wages paid be equal to or greater than the total due for all hours worked at the minimum wage plus one additional hour at the minimum wage.” NY DOL April 12, 2006 Opinion Letter. The Yang Court, noting that it was not bound by the New York State Department of Labor’s interpretation, chose to interpret § 142-2.4 itself and held that the regulation was applicable to all hourly paid employees regardless of whether they made more than the minimum wage. Yang, 427 F.Supp.2d at 339-40.

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Roach v. T.L. Cannon Corp., 889 F. Supp. 2d 364, 2012 WL 3686004, 2012 U.S. Dist. LEXIS 120507 (N.D.N.Y. 2012).

889 F. Supp. 2d 364 (Roach v. T.L. Cannon Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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