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