Yap v. Mooncake Foods, Inc.

146 F. Supp. 3d 552, 2015 U.S. Dist. LEXIS 156403, 2015 WL 7308660
CourtDistrict Court, S.D. New York
DecidedNovember 18, 2015
Docket13 Civ. 6534 (ER)
StatusPublished
Cited by54 cases

This text of 146 F. Supp. 3d 552 (Yap v. Mooncake Foods, 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
Yap v. Mooncake Foods, Inc., 146 F. Supp. 3d 552, 2015 U.S. Dist. LEXIS 156403, 2015 WL 7308660 (S.D.N.Y. 2015).

Opinion

OPINION AND ORDER

Ramos, District Judge

Plaintiffs Kew Sing Yap (“Yap”) and Tasi Nima Sherpa (“Sherpa”) (collectively, “Plaintiffs”) bring this action under the Fair Labor Standards Act (“FLSA”), the New York Labor Law (“NYLL”), and New York’s Codes, Rules, and Regulations (“NYCRR”). Compl. (Doc. 1). Plaintiffs allege that they and all other similarly situated employees are entitled to wrongly withheld minimum wage, overtime, and spread-of-hours pay from the chain of four Manhattan restaurants operating under the banner Mooncake Foods (“MCF Chain”).

Plaintiffs bring this suit against. four corporate defendants and three individual defendants (collectively, “Defendants”). The four corporate defendants are the restaurants constituting the MCF Chain: Mooncake Foods, Inc. d/b/a Mooncake Foods SOHO (“MCF SoHo”), Buddha Foods, Inc. d/b/a Mooncake Foods Chelsea (“MCF Chelsea”), Fat Dragon Foods, Inc. d/b/a Mooncake Foods Hell’s Kitchen (“MCF HeU’s 'Kitchen”), and Zen Master Foods, Inc. d/b/a Mooncake Foods- (“MCF FiDi”). Plaintiff's aüege that Defendant Peter Lee is the Chief Executive Officer and shareholder of the MCF Chain,1 that Defendant Kenny Luong is the manager of MCF Chelsea and shareholder of the MCF Chain, and that Defendant Amy Luong is shareholder of the MCF Chain. Compl. ¶¶ 11, 13-14.2 Plaintiffs also aUege that, all three individual defendants exercise “sufficient control of MCF Chain’s day to day operations to be considered an employer of Plaintiffs and those similarly situated under the FLSA,” and were' all “actively involved-in managing the restaurants’ operations.” Id. ¶¶ 11-15.

Plaintiff Yap asserts that he was employed as a deliveryman at MCF Hell’s Kitchen from January 1, 2011 through February 15, 2012. Yap Affirmation in Support of Plaintiffs’ Motion for Conditional Certification (‘Tap Aff.”) (Doc. 30) ¶ 5. During that time, Yap claims that both he and his “co-workers” regularly worked more than forty hours per week, but were denied the full minimum wage, overtime, and spread-of-hours pay to which they were entitled under the FLSA and NYLL. Yap Aff. ¶¶ 7-24; see also Compl. ¶¶ 32-39.

Plaintiff Sherpa asserts that he was employed as a chef at MCF SoHo from February 2008 to January 8, 2011. Sherpa Affirmation in Support of-.Plaintiffs’ Mo[557]*557tion for Conditional Certification (“Sherpa Aff.”) (Doc. 31) ¶ 5. During that time, Sherpa claims that both he and his “fellow chefs” regularly worked more than forty hours per week, but were denied the full minimum wage, overtime, .and spread-of-hours pay to which they were entitled under the FLSA and NYLL. Sherpa Aff. ¶¶ 6-20; see also Compl. ¶¶ 32-39.

There are two motions before this Court. First, on February 28, 2014, Defendants MCF Chelsea and MCF FiDi moved under Federal Rule of Civil Procedure (“FRCP”) 12(c) for a judgment on the pleadings in their favor, arguing that Plaintiffs failed to allege facts plausibly demonstrating that these two particular MCF restaurants were Plaintiffs’ “employers,” as required under the FLSA. (Doc. 17). This motion is DENIED.3 '.

Second, on March. 3, 2014, Plaintiffs moved for conditional- certification of a FLSA Collective Action constituting all hourly paid, non-managerial employees who worked at one of the MCF Chain restaurants during the past three years, and asked the Court to authorize expedited notice to the collective and to equitably toll the statute of limitations. (Doc. 27). This motion is GRANTED in part and DENIED in part.,

I. Plaintiffs Adequately Allege a Single Integrated Enterprise

Pursuant to FRCP 12(c), Defendants MCF FiDi and MCF Chelsea ask the Court to dismiss them from the case because they are distinct corporate entities for whom neither Plaintiff ever worked. See Memorandum of Law in Support of Motion To Dismiss Defendants Buddha Foods, Inc. and Zen Master Foods, Inc. (Doc. 18) 4; see also Declaration of Peter Lee (“Lee Decl.”) (Doc. 20) ¶ 4 (stating that each of the four MCF locations is separately incorporated, “has a separate set of books,” has “its own bank account and Tax I.D. number,” and does not co-mingle funds with .other locations). Plaintiffs respond in opposition that MCF FiDi and MCF Chelsea “are part of a single employer along with the other Mooncake Foods locations,” and thus are properly named as defendants in.the instant suit. Memorandum of Law in Opposition to Defendants’- Motion To Dismiss1 and Motion for Summary Judgment (“Pis.’ Dismiss Opp’n”) (Doc. 35) 1.

In so arguing, Plaintiffs rely on the so-called “single integrated enterprise” theory, Pis.’ Dismiss Opp’n at 5-12, according to which “’an employee, who is technically employed on the books of one entity, which is deemed to be part of a larger ’single-employer’ entity, may impose liability for certain violations of employment law not only on the nominal employer but also on another entity comprising part' of the single integrated employer.’” Spiciarich v. Mexican Radio Corp., No. 14-Cv-9009 (SHS), 2015 WL 4191532, at *5 n. 5 (S.D.N.Y. July 10, 2015) (quoting Arculeo v. On-Site Sales & Mktg., LLC, 425 F.3d 193, 198 (2d Cir.2005)). “The Second Circuit has never endorsed this theory of liability in the FLSA context, and district courts in this Circuit are divided on its application to FLSA and NYLL cases.” 7d4 ‘ .

The Court agrees with Plaintiffs that the theory is at least potentially available in FLSA cases, given the proper evidence. [558]*558“While the Second Circuit has yet to rale on whether the ’integrated enterprise/single employer doctrine’ is applied in FLSA cases, the ’shared policy concerns underlying the... doctrine and the FLSA’ urge the theory’s application to FLSA claims.” Lopez v. Pio Pio NYC, Inc., No. 13 CV 4490 (HB), 2014 WL 1979930, at *3 (S.D.N.Y. May 15, 2014) (quoting Chen v. TYT E. Corp., No. 10 Civ. 5288 (PAC), 2012 WL 5871617, at *3 (S.D.N.Y. Mar. 21, 2012)).- “Absent a clear resolution of this issue, district courts have discretion to consider the theory because the Second Circuit ’has treated employment for FLSA purposes as a flexible concept to be determined on a case-by-case basis by review of the totality of the circumstances.’” Id. (quoting Barfield v. N.Y.C. Health & Hosps. Corp., 537 F.3d 132, 141-42 (2d Cir.2008)).

To determine whether distinct entities operate as a single integrated enterprise, “courts consider (1) interrelation of operations, (2) centralized control of labor relations, (3) common management, and (4) common ownership or financial control.” Juarez v. 449 Rest., Inc., 29 F.Supp.3d 363, 367 (S.D.N.Y.2014) (citation omitted). Based on these factors, Plaintiffs’ submissions plausibly allege that the four Moon-cake Foods restaurants operate as a single integrated enterprise, constituting a single employer for FLSA purposes.

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146 F. Supp. 3d 552, 2015 U.S. Dist. LEXIS 156403, 2015 WL 7308660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yap-v-mooncake-foods-inc-nysd-2015.