OPINION AND ORDER
In Sеptember 2015, Plaintiff Kevin Dow-ney was hired by Defendant Adloox Inc.— an advertising technology company—as Vice President of Sales in its newly opened New York City office, Adloox Inc. (“Adloox U.S.”) is the United States-based, wholly owned subsidiary of Adloox (“Adloox France”), a French corporation (collectively, “Defendants”), Less than two months after hiring Downey, Adloox U.S. terminated his employment. Downey, who was fifty-one at the time of his termination, now sues Adloox U.S. and Adloox France, alleging age discrimination under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq.\ the New York State Human Rights Law (“NYSHRL”), N.Y. Exec. Law § 296; and the New York City Human Rights Law (“NYCHRL”), N.Y.C. Admin. Code § 8-107. He also brings claims under New York law for fraudulent inducement and
BACKGROUND
The relevant facts, taken from the Complaint and assumed to be true for purposes of this motion, can be stated briefly. See, e.g., Gonzalez v. Hasty,
Once the non-compete issue was resolved, Downey began working for Adloox U.S. pursuant to an executed employment agreement. (Id. ¶ 32). Starting on September 7, 2015, he spent a few days training in Adloox’s London office and then returned to the Adloox U.S. office in New York City, where his work included networking with industry contacts, selling Adloox services to potential customers, and interviewing potential sales associates for the New York office. (Id. ¶¶ 32-33). Downey reported directly to supervisors from Ad-loox France, as he was the sole Adloox U.S. employee at the time and Adloox U.S. and Adloox France were both managed by the same people acting as Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. (Id. ¶¶ 22-23). In late October 2015, Downey spent time preparing the cоmpany for a major marketing exhibition in New York. (Id. ¶ 38). On October 29, 2015, Downey turned over his list of business contacts at the request of the CEO (id. ¶ 39); the next day, Downey was fired via an email sent from the CFO in Paris. (Id. ¶ 40).
Downey alleges that, during the course of his employment, his supervisors repeatedly referred to him as the “old timer.” (Id. ¶ 34). Additionally, while Downey was interviewing potential sales staff for Adloox U.S., company executives sent emails indicating a desire to employ only “young sharks” and instructing the company’s recruiter to “target candidates aged ideally around 30 (35 big max).” (Id. ¶¶ 35-36). At one point, Downey recommended a сandidate over the age of thirty-five, but
LEGAL STANDARD
To survive a motion to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure, “a plaintiff asserting an employment discrimination complaint under the ADEA must plausibly allege that adverse action was taken against her by her employer, and that her age was the ‘but-for’ cause of the adverse action.” Marcus v. Leviton Mfg. Co., Inc.,
DISCUSSION
As noted, Downey alleges age discrimination under the ADEA, NYSHRL, and NYCHRL as well as state law claims for fraudulent inducement and unjust enrichment. The Court will address the ADEA claim first, then turn to the remaining claims.
A. The ADEA Claim
Wisely, Defendants do not dispute that the allegations in the Complaint are sufficient to raise an inference of age discrimination. Given, among other things, evidence that supervisors repeatedly called Downey the “old timer,” that executives explicitly advocated for hiring “young sharks” and rejected at least one candidate as “[t]oo old/senior,” and that Adloox U.S. replaced Downey with a thirty-one year old, the allegations are plainly sufficient to give “ ‘plausible support to a minimal inference’ of the requisite discriminatory cаusality.” Marcus,
As the Court explained, Section 623(h)(2) was not part of the original ADEA. Id. Instead, it was added in 1984 in response to several court of appeals decisions holding that “the ADEA did not apply to ‘Americans employed outside the United States by American employers.’” Id. (quoting Cleary v. United States Lines, Inc.,
The Court cited several other considerations in support of its conclusion that Section 623(h)(2) did not bar the plaintiffs ADEA claim. First, “the plain language of the corresponding foreign-employer exclusions in Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990 indicates that a foreign employer’s domestic operations are not excluded from the reach of those statutes,” Id. at 43 (citations omitted). “It is not apparent,” the Court reasoned, “why the domestic operations of foreign companies should be subject to Title VII and the ADA, but not to the ADEA.” Id. Second, the ADEA “is remedial and humanitarian legislation” and “should be construed liberally to achieve its purpose of proteсting older employees from discrimination.” Id. (internal quotation marks omitted). An “exemption” for “the domestic operations of foreign employers,” the Court concluded, “would only undermine the purpose of the ADEA to ‘promote employment of older persons based on their ability rather than age.’ ” M (quoting 29 U.S.C. § 621(b)). Third, applying the ADEA to “foreign enterprises’ U.S. branches” is consistent with the proposition that foreign corporations operating in the United States are entitled to “no more than equal treatment with domestic corporations.” Id. (internal quotation marks omitted). As the Cоurt observed: “U.S. subsidiaries of foreign corporations are generally subject to U.S. antidiscrimination laws, and, absent treaty protection ... [,] a U.S. branch of a foreign corporation is not entitled to an immunity not enjoyed by such subsidiaries.” Id. at 44 (citation omitted).. And finally, the Court found confirmation of its analysis in the position of the Equal Employment and Opportunity Commission (“EEOC”)—“the agency charged with the enforcement of the ADEA”—that the “the law generally applies ‘to foreign firms operating on U.S. soil.’ ” Id. (quoting E.E.O.C, Policy Guidance,. N-915.039, Empl. Prac. Guide (CCH) 5183, 6531 (March 3,1989)).
On its face, Morelli would seem to stand for the proposition that Sеction 623(h)(2) is concerned only with the reach of the ADEA’s extraterritorial application and has no application to ■ the circumstances here, involving a domestic company wholly owned by a foreign entity. Notably, that reading has been adopted by several district courts, including some in this Circuit, See, e.g., Ingenito v. Riri USA, Inc., No. 11-CV-2569 (MKB),
Adloox argues that Morelli is distinguishable, however, because it involved a “branch office” of a foreign company, whereas Downey was directly employed by a wholly owned domestic subsidiary of the foreign company. (See Defs.’ Reply 7-8). Admittedly, that argument does find some support in the language of several district court opinions. See, e.g., Haugh v. Schroder Inv. Mgmt. N. Am. Inc., No. 02-CV-7955 (DLC),
In the Court’s view, this reasoning is unpersuasive. If the single-employer doсtrine applies in the case of a domestic subsidiary and a foreign parent, then the domestic employee of a wholly owned U.S. subsidiary is treated, constructively at least, as if he were the employee of the foreign parent—in which case, the situation is indistinguishable from the one in
Admittedly, Brown involved Title VII, while this case involves the ADEA. But, as noted above, the Morelli Court emphasized that Title VII and the ADEA should be understood to have a similar substantive reach. See
On this view, the viability of Downey’s ADEA claim against Adloox France does not turn on Section 623(h)(2), but rather, as in Brown, on whether Ad-loox France can be treated as his employer pursuant to the single-employer doctrine. That depends on a fact-intensive inquiry into whether there is “evidence of (1) interrelation of operations, (2) centralized control of labor relations, (3) common management, and (4) common ownership or financiаl control.” See Brown,
Defendants’ second argument for dismissal of Downey’s ADEA claim—that Adloox U.S. does not have enough employees to qualify as an “employer” within the meaning of the statute (Defs.’ Mem. 6-10; Defs.’ Reply 1-6)—is more easily rejected. For one thing, the twenty-employee minimum is an element of a claim under the ADEA, not a jurisdictional issue. See Newsom-Lang v. Warren Intern.,
B. The NYSHRL and NYCHRL Claims
Defendants’ primary argument with respect to Downey’s NYSHRL and NYCHRL claims—that Adloox U.S. does not meet the employee-threshold requirements for coverage under those laws, see N.Y. Exec. Law § 292(5); N.Y.C. Admin. Code § 8-102[5] (Defs.’ Mеm. 12-13; Defs.’ Reply 8)—fails for the same reasons. See, e.g., Turley v. ISG Lackawanna, Inc.,
C. The Fraudulent Inducement Claim
By contrast, Downey’s fraudulent inducement claim fails as a matter of law. As a general matter, an at-will employee—which is what Downey was—may not “evade the bar against suing for wrongful, termination by suing in tort,” Jelks v. Citibank N.A., No. 99-CV-2955 (JSM),
Applying those standards here, Downey’s claim must be dismissed. Dow-ney alleges that he relied on Adloox U.S.’s promise of employment, but there- is no suggestion that promise was false, let alone .false when it was made, given that Adloox U.S. did subsequently employ Downey. Downey does not allege, and certainly does not allege with the particularity required by Rule 9(b), any false representation by Adloox U.S. with respect to the duration or nature of his employment. See, e.g., Jelks,
D. The Unjust Enrichment Claim
Finally, Downey’s unjust enrichment claim must also be dismissed. To state a claim for unjust enrichment under New York law, a plaintiff must show: (1) the defendant was enriched (2) at the
In arguing otherwise, Downey asserts that his claim “is based on” Defendants’ “appropriation” of his “marketing/sales blueprint for the US market, and list of business contacts, both which [he] developed separate from his employment at Ad-loox.” (Docket No. 33 (“PL’s Opp’n”), at 19). But Downey fails to cite any authority that would support an unjust enrichment claim of that sort. More fundamentally, whether or not Downey “developed” his “marketing/sales blueprint for the US market, and list of business contacts” outside of his employment, he provided them to Defendants in connection with his employment (and his efforts to secure such employment). It follows that any claim he has relates to the compensation and benefits that he received in exchange for what he provided as part of his employment. Any such claim, however, would have to be based on the terms of the parties’ contract (and Downey alleges no breach here); it may not be brought as a quasi-contract claim. See, e.g., Jia Chen v. Anti Commc’ns, LLC, No. 14-CV-6629 (SJF),
CONCLUSION
For the reasons stated above, Defendants’ motion to dismiss the Second Amended Complaint is GRANTED in part and DENIED in part. Specifically, Dow-ney’s age discrimination claims under the ADEA, NYSHRL, and NYCHRL survive, while his New York state law claims for fraudulent inducement and unjust enrichment must be and are dismissed.
Unless and until the Court orders otherwise, Defendants shall file an answer with respect to the surviving claims within three weeks of this Opinion and Order.
The Clerk of Court is directed to terminate Docket No. 27.
SO ORDERED.
Notes
. On February 24, 2017, Downey filed a Motion for Leave To File a Third Amended Complaint, primarily to add another plaintiff. (Docket Nos. 37-38). This Opinion and Order does not address the motion for leave to amend and treats the Second Amended Complaint as the operative complaint for present purposes.
. Defendants also move to dismiss the Complaint for lack of subject matter jurisdiction under Rule 12(b)(1) of the Federal Rules of Civil Procedure. (Docket No. 28 ("Defs,’ Mem.”), at 12). But Rule 12(b)(1) is not relevant here because, as discussed below, Defendаnts’ arguments are almost certainly not jurisdictional. In any event, the result would be same whichever subsection of Rule 12 applies.
. The Morelli Court seemed to treat the question of whether Section 623(h)(2) barred suit as a jurisdictional issue. See
. As in Morelli, that conclusion is further reinforced by reference to the policy guidance of the EEOC. That guidance does not explicitly address the circumstances presented here, but it makes plain the EEOC’s view that Section 623(h)(2) was intended only to limit the scope of the amended definition of employee to exclude certain employees at workplaces in foreign countries, not employees at workplaces within the United States. See E.E.O.C., N-915.039, Policy Guidance: Application of the Age Discrimination in Employment Act of 1967 and the Equal Pay Act of 1963 to America Firms Overseas, Their Overseas Subsidiaries, and Foreign Firms (1989) ("Both citizens and aliens working in the United States are generally protected by the ADEA.... Example: Arthur, a 55-year-old resident alien of the U.S., works for a foreign corporation operating in Ohio. Arthur files a charge with the Commission because his foreign employer has a firm policy requiring all persons over 56 to retire. Arthur should obtain relief since the ADEA generally covers the employment practices of a foreign employer inside the United States.”).
