Ayres v. Shiver
1:21-cv-00473
E.D.N.YAug 6, 2021Background:
- Ayres alleges she was hired as Chief Operating Officer and Corporate Secretary of Prudent Revere beginning February 1, 2019 and worked through the fall of 2020 but was not paid her wages.
- Her written compensation allegedly included a $350,000 base salary plus up to $437,500 in bonuses (nearly $800,000 total potential annual compensation).
- She sued under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL) for unpaid wages and minimum wage violations; defendants moved to dismiss under Rule 12(b)(6).
- In opposition, Ayres clarified she intended to assert NYLL §§ 191 and 193 claims (pay frequency and unlawful deductions).
- The complaint lacked factual allegations needed to state FLSA/NYLL claims (no workweek hours, specific deductions, applicable minimum wage rate, or alleged statutory violation).
- The court granted defendants’ motion to dismiss; dismissal was with prejudice unless Ayres sought leave to amend within 30 days.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FLSA supports a general "unpaid wages" claim | Ayres contends she was not paid wages due and seeks recovery under the FLSA | FLSA only provides claims for violations of minimum wage or overtime, not general contract nonpayment | Dismissed: FLSA does not provide a general unpaid-wages cause of action absent minimum-wage or overtime violation |
| Whether NYLL Article 6 (including §191 and §193) supports her unpaid-wages claim | Ayres asserts NYLL violations for pay frequency (§191) and improper deductions (§193) | Defendants argue Article 6 does not create a general wage claim and exemptions apply; no specific deductions alleged | Dismissed: Article 6 not a catchall; §191 exemption applies to high‑paid executives; §193 requires alleging a specific deduction |
| Whether FLSA minimum wage claim adequately pleaded | Ayres alleges she earned far less than contracted due to nonpayment and thus did not receive minimum wages | Defendants argue pleader failed to allege hours worked, workweeks, or average hourly wage to show statutory shortfall | Dismissed: Complaint fails to allege hours or average hourly rate necessary to state minimum‑wage claim |
| Whether NYLL minimum wage claim adequately pleaded | Ayres argues state minimum wage claim parallels FLSA; seeks relief under NYLL | Defendants note varying NY minimum rates by location/size and lack of factual allegations (location specifics, employer size, hours) | Dismissed: Plaintiff failed to allege place of work, employer size, or hours to calculate state minimum wage entitlement |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading must state a plausible claim; conclusory allegations insufficient)
- Operating Local 649 Annuity Tr. Fund v. Smith Barney Fund Mgmt. LLC, 595 F.3d 86 (2d Cir. 2010) (accept well‑pleaded allegations and draw reasonable inferences for Rule 12(b)(6))
- Lundy v. Catholic Health Sys. of Long Island Inc., 711 F.3d 106 (2d Cir. 2013) (FLSA pleading requires nonconclusory factual matter; standard for minimum‑wage/overtime pleadings)
- Barrentine v. Arkansas‑Best Freight Sys., Inc., 450 U.S. 728 (1981) (FLSA’s principal purpose is protection against substandard wages and oppressive hours)
- Nakahata v. New York‑Presbyterian Healthcare Sys., Inc., 723 F.3d 192 (2d Cir. 2013) (FLSA provides remedies only for minimum‑wage or overtime violations, not every contract dispute)
- Rogers v. City of Troy, 148 F.3d 52 (2d Cir. 1998) (existence of FLSA does not federalize ordinary breach‑of‑contract claims)
- Pachter v. Bernard Hodes Grp., Inc., 10 N.Y.3d 609 (N.Y. 2008) (NYLL §191 exemption for bona fide executive/administrative/professional employees earning above statutory weekly threshold)
- Goldberg v. Jacquet, [citation="667 F. App'x 313"] (2d Cir. 2016) (§193 requires allegation of a specific deduction from wages)
- Andryeyeva v. N.Y. Health Care, Inc., 33 N.Y.3d 152 (N.Y. 2019) (NYLL minimum wage purpose and framework)
- Galeana v. Lemongrass on Broadway Corp., 120 F. Supp. 3d 306 (S.D.N.Y. 2014) (plaintiff can recover under the greater applicable federal or state minimum wage rate)