954 F.3d 573
2d Cir.2020Background
- Plaintiffs (Travis Hayward and 28 opt-in employees) worked for IBI Armored Services transporting money in NYC; Hayward earned $11/hr in 2014 and $12/hr in 2015.
- Plaintiffs sued under the FLSA and New York Labor Law (NYLL), claiming unpaid minimum wage, overtime, spread-of-hours, and defective wage statements since May 2014.
- Defendants moved for summary judgment on overtime claims for 25 plaintiffs who conceded they fall within the FLSA Motor Carrier Exemption (29 U.S.C. § 213(b)(1)).
- The district court granted partial summary judgment, holding that because the NYLL adopts the FLSA exemptions (including the Motor Carrier Exemption), those employees are not entitled to any NYLL overtime.
- Plaintiffs appealed, arguing that 12 N.Y.C.R.R. § 142-2.2 requires payment of overtime at 1.5 times the minimum wage for employees who are subject to FLSA exemptions like the Motor Carrier Exemption.
- The Second Circuit concluded the district court erred: § 142-2.2’s second sentence requires overtime at 1.5 times the basic minimum hourly rate for employees "subject to the exemptions of section 13," and thus vacated and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether NYLL § 142-2.2 permits overtime pay for employees covered by FLSA exemptions (e.g., Motor Carrier Exemption), and at what rate | Hayward: § 142-2.2 requires employers to pay FLSA-exempt employees overtime at 1.5× the minimum wage | Defendants: FLSA exemptions (including Motor Carrier) exempt employees from NYLL overtime entirely | The court held § 142-2.2 obligates employers to pay FLSA-exempt employees overtime at 1.5× the basic minimum hourly rate; vacated and remanded |
Key Cases Cited
- City of Syracuse v. Onondaga County, 464 F.3d 297 (2d Cir. 2006) (de novo review of statutory interpretation on summary judgment)
- United States ex rel. Eisenstein v. City of New York, 556 U.S. 928 (2009) (statutory-construction principle: give effect to all provisions)
- Pettis Moving Co. v. Roberts, 784 F.2d 439 (2d Cir. 1986) (FLSA does not preempt state regulation of overtime wages)