84 F.4th 110
2d Cir.2023Background
- Thirteen former employees of Dover Street Market New York (DSMNY) sued, alleging they were misclassified as exempt managers, paid a salary, and denied overtime under the FLSA and NYLL.
- Plaintiffs alleged a regular five-shift workweek (opening shift ~9:00–6:00; closing ~10:15–7:00), i.e., about 43.75–45 hours/week, plus additional uncompensated duties (working through lunch, ~5 hours/week post-work duties, ~3 hours/week handling shipments, and occasional 13‑hour shifts during seasonal changeovers).
- The District Court dismissed the FLSA claim for insufficient specificity about hours (faulting alleged gaps and group pleading) and declined supplemental jurisdiction over NYLL claims.
- On appeal the Second Circuit reviewed the Rule 12(b)(6) dismissal de novo and considered prior pleading standards for FLSA overtime claims.
- The Second Circuit concluded the complaint plausibly alleged a regularly scheduled workweek exceeding 40 hours and that Plaintiffs were misclassified; it vacated the dismissal and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Pleading specificity for FLSA overtime | Alleging a regularly scheduled workweek over 40 hours (and misclassification) is enough; need not list every week | Plaintiffs must plead specific weeks/hours (week-by-week) to show >40 hours in a given workweek | Court held plaintiffs need only plausibly allege a 40+ hour regular workweek and some uncompensated time; no requirement to list each week |
| Compensability of lunch breaks / early/late time | Alleged they were not completely relieved during lunch and had early arrivals/late departures — those minutes count as work | Defendants argued allegations insufficiently specific about duration/frequency of work during lunch | Court held alleged lack of bona fide meal period (required to be completely relieved) is sufficient; need not quantify minutes per lunch break |
| Group pleading / reliance on common allegations | Common, typical schedule across similarly situated named plaintiffs fairly pleads the regular schedule and its duration for each plaintiff | Group pleading undermines notice; allegations about a group over many years are too generalized | Court found group pleading not fatal here because the regular schedule is central and each plaintiff alleged when they worked that schedule |
| Timeliness / statute of limitations & supplemental jurisdiction | Plaintiffs preserved claims; specific timeliness defenses were not decided below | Defendants noted many plaintiffs may be time‑barred and urged dismissal of untimely allegations | Court declined to rely on timeliness on appeal and remanded for district court to address preserved timeliness issues; vacated dismissal and remanded (district court may consider limitations on remand) |
Key Cases Cited
- Lundy v. Cath. Health Sys. of Long Island, Inc., 711 F.3d 106 (2d Cir. 2013) (plaintiff must sufficiently allege 40 hours in a given workweek and some uncompensated time in excess of 40)
- Nakahata v. New York-Presbyterian Healthcare Sys., Inc., 723 F.3d 192 (2d Cir. 2013) (FLSA claims require some specificity about length and frequency of unpaid work)
- Dejesus v. HF Mgmt. Servs., LLC, 726 F.3d 85 (2d Cir. 2013) (alleging work "in some or all workweeks" is insufficient)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (plausibility standard for pleadings)
- Alix v. McKinsey & Co., 23 F.4th 196 (2d Cir. 2022) (standards for de novo review of Rule 12(b)(6) dismissal)
- Scott v. Chipotle Mexican Grill, Inc., 954 F.3d 502 (2d Cir. 2020) (employees misclassified as exempt may recover unpaid overtime and liquidated damages)
- DiVittorio v. Equidyne Extractive Indus., 822 F.2d 1242 (2d Cir. 1987) (group pleading doctrine in fraud contexts; defendants must be informed of their alleged roles)
