INTRODUCTION
Plaintiff Jeff Buehlman ("Plaintiff") commenced this action on December 14, 2015, against defendants Ide Pontiac, Inc. ("Ide"), and Anne Ide ("Anne Ide") (collectively "Defendants"), asserting causes of action under the Fair Labor Standards Act,
Currently before the Court are two motions. Plaintiff seeks summary judgment in his favor and final certification of the matter as a collective action pursuant to
BACKGROUND
The background of this case is set forth in detail in the Court's November 7, 2016 Decision and Order (Dkt. 25) (the "November 2016 Decision"), familiarity with which is assumed for purposes of this Decision and Order. The Court has summarized the key details below.
Plaintiff was employed by Ide from 2002 until August 19, 2015. (Dkt. 15-5 at ¶ 16; Dkt. 18-1 at ¶ 16). Plaintiff's job title was "partsman." (Dkt. 15-5 at ¶ 17; Dkt. 18-1 at ¶ 17). Plaintiff was paid the same hourly rate for each hour that he worked, including for hours in excess of forty. (Dkt. 15-5 at ¶ 19; Dkt. 18-1 at ¶ 19). Plaintiff's primary responsibility was requisitioning, stocking, and dispensing automotive parts in Ide's service center. (Dkt. 15-5 at ¶ 22; Dkt. 18-1 at ¶ 22). As a partsman at Ide, "approximately 70% of [Plaintiff's] job duties [was] ordering, stocking, organizing and dispensing parts for mechanics to use in the course of servicing vehicles at Ide." (Dkt. 15-5 at ¶ 26; Dkt. 18-1 at ¶ 26). Plaintiff claims that he also "unloaded trucks ..., ran errands to other company locations, packed up and shipped return items to Honda, and sometimes even performed minor janitorial duties if asked." (Dkt. 18-2 at 1).
Plaintiff commenced the instant action on December 14, 2015. (Dkt. 1). Defendants filed their Answer on February 1, 2016. (Dkt. 6). On May 16, 2016, Defendants filed a motion for summary judgment. (Dkt. 15). Plaintiff thereafter filed a cross-motion for summary judgment (Dkt. 18) and a motion to strike (Dkt. 21).
On November 7, 2016, United States District Judge Michael A. Telesca decided Defendants' motion for summary judgment, Plaintiff's cross-motion for summary judgment, and Plaintiff's motion to strike. (See Dkt. 25). Defendants' motion for summary judgment was denied in part and granted in part, and Plaintiff's cross-motion for summary judgment and motion to strike were denied. (Id. at 2). In denying Defendants' motion for summary judgment in part, the Court adopted the analysis in McBeth v. Gabrielli Truck Sales, Ltd. ,
On November 8, 2016, this case was transferred to the undersigned. (Dkt. 26). Thereafter, on December 7, 2016, Defendants filed a motion for certification of the November 2016 Decision for interlocutory
On May 4, 2017, Plaintiff filed a motion to preliminarily certify this matter as a collective action under
Defendants' pending motion for reconsideration and to decertify the collective action and Plaintiffs' pending motion for summary judgment and final certification were both filed on May 23, 2018. (Dkt. 56; Dkt. 57). Opposition papers were filed on June 21, 2018 (Dkt. 59; Dkt. 60), and replies were filed on July 5, 2018 (Dkt. 62; Dkt. 63). Oral argument was held before the undersigned on December 5, 2018. (Dkt. 67). On December 10, 2018, Plaintiff filed a request for additional briefing (Dkt. 69), which Defendants opposed (Dkt. 68). The Court denied the request for additional briefing on December 13, 2018. (Dkt. 70).
DISCUSSION
I. Motion for Reconsideration
A. Legal Standard
The Court first considers Defendants' request for reconsideration of the November 2016 Decision. Under Fed. R. Civ. P. 54(b), this Court has inherent power to reconsider its own decisions prior to the entry of a judgment adjudicating all the claims. See Fed. R. Civ. P. 54(b) ("[A]ny order or other decision ... that adjudicates fewer than all the claims ... does not end the action as to any of the claims or parties and may be revised at any time before the entry of a judgment adjudicating all the claims and all the parties' rights and liabilities."). However, the Second Circuit has "limited district courts' reconsideration of earlier decisions under Rule 54(b) by treating those decisions as law of the case." Official Comm. of Unsecured Creditors of the Color Tile, Inc. v. Coopers & Lybrand, LLP ,
B. Reconsideration of the November 2016 Decision is Warranted
Defendants seek reconsideration of that portion of the November 2016 Decision denying their motion for summary judgment as to Plaintiff's claims for unpaid
With respect to Plaintiff's overtime claims, the November 2016 Decision considered the dispositive issue of whether Plaintiff's employment with Defendants fell within the scope of the Exemption. Encino Motorcars directly conflicts with the analysis set forth in the November 2016 Decision (and reiterated in the August 2017 Decision) as to this issue.
In Encino Motorcars , the Supreme Court considered whether the Exemption "applies to service advisors-employees at car dealerships who consult with customers about their servicing needs and sell them servicing solutions," and concluded that it did.
Encino Motorcars is in direct conflict with the November 2016 Decision, which found as a matter of law that the term "servicing," as used in the Exemption, did not include "being involved in or integral to the service process," and that Plaintiff did not fall within the purview of the Exemption because he "did not actually work on vehicles." (Dkt. 25 at 10-11 (quotations omitted); see also Dkt. 47 at 9 (describing the November 2016 Decision as having found that "a partsman must have actually worked on vehicles in order to fall within the purview of the Exemption") (quotation omitted) ). Moreover, because Encino Motorcars is a decision of the Supreme Court, this Court is bound by it. Encino Motorcars therefore represents an intervening change in the controlling law and warrants reconsideration of the November 2016 Decision.
C. Defendants are Entitled to Summary Judgment on Plaintiff's Unpaid Overtime Claims
Encino Motorcars necessitates revisiting the Court's prior finding that Plaintiff's work for Defendants was not subject to the Exemption. On reconsideration, the Court finds that, applying the definition of "servicing" established in
As the Court explained in the November 2016 Decision, the Exemption "has three requirements": (1) an individual must fall within the regulatory definition of partsman; (2) an individual must have been primarily engaged in selling or servicing vehicles; and (3) the individual must have been employed by a nonmanufacturing establishment primarily engaged in the business of selling vehicles. (Dkt 25 at 5-14). Turning to the first of these requirements, the Court previously found that the parties "agree that Plaintiff was a 'partsman' as defined in
The next requirement-that Plaintiff must have been primarily engaged in selling or servicing vehicles-is where the Court previously found in favor of Plaintiff. In particular, and as previously discussed, the Court found that Plaintiff was not primarily engaged in servicing vehicles because, while his work was "integral to the service process," he "did not actually work on vehicles." (Dkt. 25 at 10-11) (quotations omitted). Encino Motorcars now compels a contrary conclusion. As set forth above, Encino Motorcars makes clear that work that is "integral to the service process" falls within the definition of "servicing" as that term is used in the Exemption. Moreover, Encino Motorcars specifically identifies a partsman who "obtain[s] the vehicle parts ... and provide[s] those parts to the mechanics" as an individual who is "integrally involved in the servicing process."
In connection with Defendants' motion for summary judgment, Plaintiff admitted that, as a partsman at Ide, approximately 70% of his job duties consisted of "ordering, stocking, organizing and dispensing parts for mechanics to use in the course of servicing vehicles at Ide." (Dkt. 15-5 at ¶ 26; Dkt. 18-1 at ¶ 26). On these facts, and applying the definition of "servicing" set forth in Encino Motorcars , a reasonable jury would be compelled to conclude that, while employed by Defendants, Plaintiff was primarily engaged in servicing vehicles.
Finally, with respect to the requirement that Plaintiff be employed by a nonmanufacturing establishment primarily engaged in the business of selling vehicles, the applicable regulations provide that, "[a]s applied to the establishment, primarily engaged means that over half of the establishment[']s annual dollar volume of sales made or business done must come from sales of the enumerated vehicles."
For the foregoing reasons, under the standards set forth in Encino Motorcars , Defendants have demonstrated as a matter of law that, during his employment at Ide, Plaintiff was a partsman primarily engaged in servicing automobiles while employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles to ultimate purchasers. Accordingly, Plaintiff was exempt from the overtime payment requirements of both the FLSA and the NYLL, and Defendants are entitled to summary judgment as to his claims for unpaid overtime.
The Court's conclusion that Defendants are entitled to summary judgment in their favor on Plaintiff's claims for unpaid overtime also necessarily means that Plaintiff's motion for summary judgment as to those claims must be denied. Plaintiff's motion is premised entirely on the Court's prior determination that Plaintiff was not subject to the Exemption because his work did not involve servicing automobiles. Because the Court has, for the reasons discussed at length above, reconsidered and reversed that determination based on Encino Motorcars , Plaintiff cannot demonstrate that he is entitled to summary judgment in his favor.
II. Defendants' Motion for Decertification and Plaintiffs' Motion for Final Certification
A. Legal Standard
In addition to seeking reconsideration of the November 2016 Decision, Defendants
"Section 216(b) of the FLSA authorizes collective actions to recover damages for unpaid wages where all employees are 'similarly situated.' " Ruiz v. Citibank, N.A. ,
District courts in this circuit apply a two-step method for determining whether to exercise their discretion under § 216(b) :
The first step involves the court making an initial determination to send notice to potential opt-in plaintiffs who may be "similarly situated" to the named plaintiffs with respect to whether a FLSA violation has occurred. The court may send this notice after plaintiffs make a modest factual showing that they and potential opt-in plaintiffs together were victims of a common policy or plan that violated the law. At the second stage, the district court will, on a fuller record, determine whether a so-called "collective action" may go forward by determining whether the plaintiffs who have opted in are in fact "similarly situated" to the named plaintiffs. The action may be "de-certified" if the record reveals that they are not, and the opt-in plaintiffs' claims may be dismissed without prejudice.
B. Decertification is Appropriate in this Case
In this case, considering the factors identified above, the Court finds that decertification is warranted. Other than Plaintiff, two individuals have opted into this action-Heather Stanwix and Jonathan Pensgen (collectively the "Opt-In Plaintiffs"). (See Dkt. 46; Dkt. 48). Ms. Stanwix and Mr. Pensgen each submitted brief declarations to the Court stating that they were employed in the parts departments of various Ide automotive dealerships and that their duties consisted "primarily
Based on the record before the Court, it appears that Plaintiff's employment setting and the Opt-In Plaintiffs' employment settings varied in material ways. In particular, the Court notes that Plaintiff and the Opt-In Plaintiffs, at various times, worked for different automotive dealerships. See Scott ,
Having determined that decertification is appropriate, the Court will dismiss the claims of the Opt-In Plaintiffs without prejudice. See Ruiz ,
With respect to the statute of limitations for any such potential standalone action, "[i]n collective actions, the statute of limitations resumes after a court's determination to decertify a class." McEarchen v. Urban Outfitters, Inc. , No. 13CV3569RRMJO,
CONCLUSION
For the foregoing reasons, Defendants' motion for reconsideration and decertification of the matter as a collective action (Dkt. 56) is granted. Plaintiff's motion for summary judgment and final certification (Dkt. 57) is denied. The Opt-In Plaintiffs'
SO ORDERED.
Notes
Plaintiff also asserted an individual claim for spread-of-hours compensation under the NYLL. The Court granted summary judgment to Defendants as to this claim on November 7, 2016. (Dkt. 25 at 23).
As explained in the November 2016 Decision, the Exemption excludes from the FLSA's overtime payment requirement "any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers."
As set forth in the November 2016 Decision, "primarily engaged" in this context is defined as "the major part or over 50 percent of the ... partsman's time" having been spent "selling or servicing vehicles." (Dkt. 25 at 7 (quoting
The statute of limitations for actions under the FLSA is "generally two years, but extends to three years for willful violations," Pest v. Bridal Works of New York Inc. ,
Despite the fact that his Complaint makes no reference whatsoever to not having been provided notice under NYLL § 195, in his motion for summary judgment, Plaintiff argued that he was entitled to summary judgment on his "NYLL Notice Claim" based on § 195. (See Dkt. 57-1 at 17-18). In opposition, Defendants pointed out that the § 195 obligation to provide written notice of employees' pay rates at the time of hire was enacted in 2009, when Plaintiff had been working for Ide for many years, and therefore did not apply to Plaintiff. (Dkt. 60-2 at 10-11). In reply, Plaintiff conceded that "he was hired prior to the NYLL requirement of providing certain notices at the time of hire" and "acquiesce[d] to the dismissal of his claim for failure to provide notice at the time of hire as required by NYLL § 195." (Dkt. 62 at 11). As such, to the extent the Complaint in this matter can be read as asserting a claim under NYLL § 195 (which the Court does not believe it does), Plaintiff is not entitled to summary judgment on any such claim, and the claim is dismissed.
