6:23-cv-06685
W.D.N.Y.May 28, 2024Background
- Plaintiff Katelyn Abbott-Marsh, on behalf of herself and a proposed class, alleges violations of the Fair Labor Standards Act (FLSA), New York Labor Law (NYLL), and the New York Wage Theft Act by Arnot Health, Inc.
- Count three of her complaint specifically asserts that Arnot unlawfully deducted wages by using timekeeping software (Kronos) to automatically deduct 30 minutes for meal breaks, even when employees worked through those breaks.
- Plaintiff contends these deductions were not corrected, resulting in unpaid overtime and non-overtime wages due to time rounding/editing policies.
- Defendant moved to dismiss count three, arguing it fails to state a claim under NYLL § 193 because the complaint does not allege a 'specific deduction from wages,' but rather a mere failure to pay wages.
- The motion tests whether automatic, uncorrected deductions for meal breaks and wage underpayment can support a claim under NYLL § 193.
- District Judge Frank P. Geraci, Jr. denied Arnot Health’s motion to dismiss and ordered an answer due by June 18, 2024.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Does NYLL § 193 cover claims regarding unpaid wages, | Such conduct is covered by | Only specific, identified deductions from | Yes, claim for uncorrected wage |
| like meal break deductions and rounding practices? | § 193 as unlawful wage | wages (not failures to pay) are covered. | deductions states a claim. |
| deductions. | |||
| Do Second Circuit summary orders bind the district | No, state law is governed | Cites Second Circuit summary order to | No, federal summary orders do not |
| court on New York state law questions? | by NY's highest court. | argue for dismissal. | bind re: interpretation of NY law. |
Key Cases Cited
- Ryan v. Kellogg Partners Institutional Servs., 19 N.Y.3d 1 (NY Ct. App. 2012) (held that a failure to pay wages, such as a bonus, is covered by NYLL § 193)
- Costello v. Curan & Ahlers, LLP, 2024 NY Slip Op 00757 (plaintiff stated a § 193 claim for failing to pay portions of salary and nondiscretionary bonuses)
- Zinno v. Frank J. Schlehr, M.D., P.C., 175 A.D.3d 843 (state court held § 193 covered underpaid wages)
- Ackerman v. NY Hosp. Med. Ctr. of Queens, 127 A.D.3d 794 (affirmed that § 193 claim can be based on improper wage withholding)