Hart v. Rick's Cabaret International, Inc.
60 F. Supp. 3d 447
S.D.N.Y.2014Background
- This is a wage-and-hour class action by exotic dancers against Rick’s Cabaret NY and related entities alleging FLSA and NYLL violations.
- Court previously held the dancers were employees entitled to minimum wage and that Peregrine is liable; other employers’ liability remained disputed.
- The five issues narrowed for trial include whether additional damages are recoverable, willfulness/liquidated damages, and joint liability of non-Peregrine defendants.
- Today’s rulings address: offset of performance fees under NYLL, retention of gratuities under NYLL § 196-d, admissibility of expert Dr. Crawford, class certification, and partial damages summary judgment.
- Summary judgment is granted on some damages, denial on others, and the class and expert rulings are retained for trial.
- The class period and damages framework were previously set, with rulings on the nature of performance fees, gratuities, and tip-outs guiding trial issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether performance fees can offset NYLL minimum wages | Dancers’ fees are gratuities to dancers, not club wages; no NYLL offset. | Club argues World Yacht-style service charges may offset wages. | No offset under NYLL; fees are gratuities not offset. |
| Whether the Club violated NYLL § 196-d by retaining gratuities | Dance Dollars; $2 retention per Dance Dollar is unlawful retention of gratuities. | Retention may be allowed if properly classified and disclosed. | Unlawful retention; $2 per Dance Dollar constitutes gratuities retained by Club. |
| Whether the expert Crawford’s damages model should be struck | Crawford’s method is reliable and needed for class damages. | Methodology contains arbitrary assumptions and should be excluded. | Dr. Crawford’s testimony and report admitted; methodology deemed reliable. |
| Whether the class should be decertified post-Comcast/Dukes | Class is cohesive; damages calculable class-wide via model. | Post-Dukes/Comcast undermines commonality/predominance. | Class certification remains; decertification denied. |
| Damages: partial summary judgment on minimum wages and gratuities | Certain records yield calculable damages; seek summary judgment on those. | Questions remain about tip-outs and unrecorded time. | Partial summary judgment granted for specific damages totaling $10,866,035; other amounts await trial. |
Key Cases Cited
- Samiento v. World Yacht, Inc., 10 N.Y.3d 70 (N.Y. 2008) (distinguishes service charges from gratuities under NYLL 196-d)
- World Yacht, Inc. v. Dept. of Labor, -- (--) (venue for World Yacht standard on service charges and gratuities (cited for the NYLL framework))
- Sirota v. Solitron Devices, Inc., 673 F.2d 566 (2d Cir. 1982) (class certification standards and 23(a) requirements)
- Comcast Corp. v. Behrend, 133 S. Ct. 1426 (2013) (damages must be measurable on a class-wide basis under Rule 23(b)(3))
- Dukes v. Wal-Mart Stores, Inc., 131 S. Ct. 2541 (2011) (commonality required for class certification; capacity to generate common answers)