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AREVALO v. SELDAT DISTRIBUTION, INC.
3:16-cv-00712
| D.N.J. | Feb 9, 2016
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Background

  • Five former employees (Arevalo, Lemos, Yunga, Conce, Iturriaga) allege payroll and employment abuses by Seldat Distribution, Seldat Corporation, and CEO Daniel Dadoun arising from work at a Dayton, NJ location.
  • Plaintiffs worked in HR (one manager, others assistants); several worked overtime but claim they were not paid proper overtime rates—often receiving only $1 extra/hour for Saturday/overtime shifts.
  • Arevalo initially paid hourly, later salaried; others remained hourly. Plaintiffs allege they were non-exempt and entitled to 1.5× pay for hours over 40/week.
  • Arevalo complained to the DOL about unpaid overtime and payroll practices; three co-plaintiffs gathered payroll records and assisted her. Iturriaga also complained.
  • Shortly after the DOL complaint and internal complaints, Arevalo, Yunga, Lemos, and Conce were terminated; Iturriaga voluntarily separated. Plaintiffs allege the terminations were retaliatory.
  • After separation, defendants allegedly filed a lawsuit and made statements accusing Plaintiffs of theft; Plaintiffs assert these statements are defamatory and were made in retaliation.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Unpaid overtime under FLSA Plaintiffs: non-exempt employees worked >40 hrs/wk but were not paid 1.5× regular rate; payroll scheme intentionally deprived them of overtime Defendants: (not pled in complaint) likely to argue proper classification, pay methodology, or that payments complied with law Not yet decided — claim asserted in complaint
FLSA retaliation for complaining/assisting DOL Plaintiffs: termination followed protected complaints and assistance to DOL; Dadoun participated in retaliatory firing Defendants: (anticipated) will deny causal link or assert legitimate, non-retaliatory reasons for termination Not yet decided — claim asserted in complaint
New Jersey Wage & Hour / Wage Payment Law violations Plaintiffs: state statutes mirror unpaid overtime/wage claims; seek unpaid wages and penalties Defendants: (anticipated) will contest liability or applicability of statutory provisions Not yet decided — claim asserted in complaint
CEPA/Wrongful termination and Defamation (NJ common law) Plaintiffs: reported illegal practices (and alleged misuse of Arevalo’s identity); were fired and thereafter accused publicly of theft—malicious, false statements caused reputational and economic harm Defendants: (anticipated) will assert defenses such as truth, privileged communications, or legitimate business reasons for suit/statements Not yet decided — claims asserted in complaint

Key Cases Cited

  • International Shoe Co. v. Washington, 326 U.S. 310 (1945) (minimum contacts test for personal jurisdiction)
  • Barratt v. Cushman & Wakefield, Inc., 144 N.J. 120 (1996) (discussing remedial purpose of CEPA)
  • Abbamont v. Piscataway Twp. Bd. of Ed., 138 N.J. 405 (1994) (CEPA construed liberally to protect employees who report illegal workplace activity)
Read the full case

Case Details

Case Name: AREVALO v. SELDAT DISTRIBUTION, INC.
Court Name: District Court, D. New Jersey
Date Published: Feb 9, 2016
Docket Number: 3:16-cv-00712
Court Abbreviation: D.N.J.