Fowler v. SCORES HOLDING COMPANY, INC.Fowler v. SCORES HOLDING COMPANY, INC.
DECISION AND ORDER
Plaintiff Ruth Fowler (“Fowler”) brought this action invoking the Court’s diversity jurisdiction pursuant to 28 U.S.C § 1332(a) and alleging that defendant Scores Holding Company, Inc. (“Scores Holding”) discriminated against her based on sex, created a hostile work environment for her on account of her sex, and unlawfully demanded part of the gratuities she received for her work. Defendant now moves to dismiss Fowler’s claims pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure (“Rule 12(b)(6)”). Scores Holding asserts that: (1) Fowler has failed to state a claim for discrimination arising out of her employment because she was an independent contractor and not an employee; and (2) even if Fowler was an employee, Scores Holding was not her employer. For the reasons discussed below, Scores Holding’s motion to dismiss is DENIED. 1
I. BACKGROUND 2
This case arises out of the employment of Fowler as an exotic dancer at Scores West Side (“Scores West”), a nightclub on the west side of Manhattan.
Fowler was hired to dance by a Scores West manager following an audition, and worked as a dancer at Scores West from September 2005 until January 2006. Fowler alleges that Scores Holding exercised control over matters relating to the staffing, training, appearance and conduct of the workers, managers and supervisors at Scores West.
Fowler alleges that while shе was a dancer at Scores West the supervisors and/or managers subjected her to, among other things, unwelcome touching, grabbing and/or groping of her body, and unwelcome comments about her body. The supervisors and/or managers also deceptively drugged her and forced her to engage in sexual acts with a manager. Scores Holding knew of this behavior, but took no remedial or corrective action.
Fowler alsо alleges that the supervisors and/or managers at Scores West Side intimidated dancers into acquiescing to their sexually harassing and discriminatory behavior by threatening the dancers with discharge and/or termination of employment.
Lastly, Fowler claims that during a scheduled work-shift, a manager grabbed a steak he had ordered at Scores West and, without provocation, smeared it all over her face. The steak attack rеsulted in bruises all over Fowler’s face and caused her to be absent from the nightclub for approximately one week. When Fowler returned to Scores West, she informed the nightclub’s lawyer of the incident but no remedial or corrective action was taken.
II. DISCUSSION
A. LEGAL STANDARD
In assessing a motion to dismiss under Rule 12(b)(6), dismissal of a complaint is appropriate if the plaintiff has failed to offer factual allegations sufficient to render the assertеd claim plausible on its face.
See Ashcroft v. Iqbal,
— U.S. -,
For the purposes of deciding a motion to dismiss, the Court accepts the factual allegations in a complaint as true, and draws all reasonable inferences in the plaintiffs favor.
See Iqbal,
“The
Iqbal
plausibility standard applies in conjunction with employment discrimination pleading standards.”
See Gillman v. Inner City Broad. Corp.,
No. 08 Civ. 8909,
B. EMPLOYEE OR INDEPENDENT CONTRACTOR
A threshold issue in this dispute is whether Fowler was an employee or independent contractor. The NYSHRL covers employees, not independent contractors.
See Eisenberg v. Advance Relocation & Storage, Inc.,
Under the NYSHRL, whether a worker is an employee or an independent contractor requires application of the common law of agency.
See Eisenberg,
At the motion to dismiss stage, however, the Court need only assess whether the plaintiff has alleged sufficient facts to support a facially plausible claim for relief under the NYSHRL. Whether Fowler was, as a matter of law, an employee or an independent contractor, cannot be conclusively determined on the face of the Complaint.
See Banks v. Correctional Servs. Corp.,
In her Complaint, Fowler alleges, among other things, that the supervisors or managers at Scores West selected and hired dancers; exercised control over staffing, training, appearance, аnd conduct of the nightclub’s workers; and scheduled work shifts.
(See
Complaint at 2-3.) Fowler also alleges that Scores Holding exercised control over staffing, training, appearance and conduct of the workers, managers and supervisors at Scores West. In essence, Fowler has alleged that Scores Holding controlled the manner and means by which she performed her job responsibilities. Because the greatest emphasis is tо be placed on such control when balancing the
Reid
considerations,
see Eisenberg,
Scores Holding also contends that Fowler’s claims under the NYCHRL should be dismissed because she was not an employee. However, as described above. Fowler has stated a plausible claim that she was an employee of Scores Holding. Further, even if she was not an employee, independent contractors fall under the protection of the NYCHRL if they are “natural persons” who “carry out work in furtherance of an employer’s business enterprise.” NYCHRL § 8-102(5);
see also Banks,
C. FOWLER’S EMPLOYER
Scores Holding also contends that Fowler’s claims should be dismissed because Scores Holding was not Fowler’s employer for the purposes of the employment discrimination statutes or labor laws. Despite working at Scores West, Fowler has brought this suit against Scorеs Holding and alleges that Scores Holding and Scores West were joint employers. Fowler alleges that Scores Holding had “centralized control of labor relations, whereby its licensees, including Scores West Side, followed uniform policies, standards, and common management.” (Complaint at 2.)
Under New York law, there are two well-established doctrines — the single and joint employer doctrines — that allow
The joint employer doctrine applies where there is no single integrated enterprise, but where two employers “handle certain aspects of their employer-employee relationship jointly.”
Id.
An employee formally employed by one entity can be found to be constructively employed by another entity, and thus may impose liability fоr violations of employment law on the constructive employer.
See id. “A
joint employer relationship may be found to exist where there is sufficient evidence that the respondent had immediate control over the other company’s employees.”
NLRB v. Solid Waste Servs., Inc.,
To determine whether two separate entities should be considered a single employer for the purposes of employment discrimination claims, courts have relied on four considerations: (1) interrelation of operations; (2) centralized control of labor relations; (3) common management; and (4) common ownership or financial control.
See Cook v. Arrowsmith Shelburne, Inc.,
Scores Holding argues that, despite some connections between Scores Holding and the nightclub, the connections did not amount to a joint employer relationship. Further, Scores Holding contends that only the nightclub, Scores West, was a signatory to the employment contract with Fowler.
Nevertheless, the Court finds that Fowler has satisfied her pleading burden as to this issue. Fowler’s allegations are sufficient to put Scores Holding on notice of the theory of employer liability upon which her claims are based. Further, the determination of whether Scores Holding was Fowler’s employer is a question of fact that cannot be decided on a motion to dismiss.
See Lihli Fashions Corp. v. NLRB,
D. SEX DISCRIMINATION CLAIMS
Having found that Fowler has satisfied her pleading burden as to the two threshold issues raised by Scores Holding, the Court will now consider the sufficiency of each of Fowler’s claims in turn.
Fowler first alleges discrimination based on sex under the NYSHRL and the NYCHRL. New York courts require the same showing for claims brоught under the NYSHRL as federal employment discrimination claims brought under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e (“Title VII”).
See Abdu-Brisson v. Delta Air Lines, Inc.,
To state a prima facie case for employment discrimination under the NYSHRL and NYCHRL, a plaintiff must show that: (1) she was a member of a protected class; (2) she was qualified for her position; (3) she suffered an adverse employment action; and (4) the circumstances give rise to an inference of discrimination.
See McDonnell Douglas Corp. v. Green,
In her Complaint, Fowler alleges that Scores Holding discriminated against her based on her sex, in violation of the NYSHRL and NYCHRL. As described above, Fowler alleges a series of harassing and discriminatory acts directed at her, and also generally alleges that dancers were coerced into sexual acts with managers or supervisors in order to retain their job and job responsibilities. These allegations make it plausible that Fowler experienced a materially adverse change in the conditions of her employment because of
The Court notes that Fowler has to-date not pled that she suffered an adverse employment action, as required under both the NYSHRL and the NYCHRL. At most, Fowler has pled that she was coerced into sexual acts for fear of a materially adverse сhange in the conditions of her employment. Further, Fowler has not yet connected any change in the conditions of her employment to discrimination based on her sex. Nevertheless, the Court finds that, given the permissive pleading requirements for employment discrimination claims, Fowler has satisfied her burden at this stage.
See Harper v. New York City Hous. Auth.,
No. 09 Civ. 5303,
E. HOSTILE WORE ENVIRONMENT CLAIMS
Fowler also alleges that Scores Holding subjected her to a hostile work environment, in violation of the NYSHRL and NYCHRL. Hostile work environment claims under New York law are also analyzed based on the standards developed in the Title VII context.
See Reed v. A.W. Lawrence & Co., Inc.,
The Court is persuaded that Fowler has alleged sufficient facts to support her claim that Scores Holding is liable for creating a hostile work environment. Fowler has alleged that supervisors and managers at Scores West touched her, grabbed and groped hеr body, made unwelcome comments about her body, forcibly kissed her, and made her engage in sexual acts with a manager. Fowler has also alleged that a manager smeared a steak all over her face. Taking Fowler’s allegations as true, the Court finds that a reasonable person could conclude that the working conditions at Scores West were objectively hostile and abusive. Fowler has alleged sufficiently severe and persistent incidents directed at her allegedly because of her sex to state a facially plau
F. UNLAWFUL WAGE DEDUCTIONS
Fowler lastly alleges unlawful wage deductions under New York law. New York Labor Law § 193(l)(a) provides that, “[n]o employer shall make any deduction from the wages of an employee, except deductions which: (a) are made in accordance with the provisions of any law or any rule or regulation issued by any governmental agency....” N.Y. Lab. Law § 193(l)(a). Further, § 196-d of the New York Labor Law provides that an employer may not demand or accept, directly or indirectly, any part of the gratuities received by an employee and may not “retain any part of a gratuity or of any charge purported tо be a gratuity for an employee.”
See Krebs v. Canyon Club, Inc.,
Fowler alleges that Scores Holding unlawfully demanded or accepted, directly or indirectly, part of the gratuities she received during the course of her employment at Scores West. {See Complaint at 6.) Fowler alleges that Scores West supervisors and/or managers took out a percentage of the dancers’ gratuities for themselves and that she was required to share part оf her gratuities with employees other than waiters, servers, busboys, or similar employees at Scores West. Further, Fowler alleges that Scores Holding exercised control over the payment methods of Scores West patrons, and the distribution of gratuities to workers at Scores West. On the basis of these allegations, the Court finds that Fowler has made a facially plausible claim for relief under New York law.
III. ORDER
For the reasons discussed above, it is hereby
ORDERED that the motion (Docket No. 10) of defendant Scores Holding Company, Inc. to dismiss the complaint, or in the alternative for summary judgment, is DENIED; and it is further
ORDERED that the parties are directed to appear at a pretrial conference on January 29, 2010, at 3:45 p.m. and, in preparation for that conference, to confer and propose an agreed upon Case Management Plan in the form provided by the Court.
SO ORDERED.
Notes
. Scores Holding also moves for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. However, before a Court grants summary judgment, the nonmovant "must have had the opportunity to discover information that is essential to his opposition to the motion for summary judgment.”
Hellstrom v. U.S. Dep't of Veterans Affairs,
. The following facts are taken from Fowler’s Complaint, dated September 4, 2008 (the "Complaint”), and all documents attached thereto or referenced therein. The Court accepts the facts alleged here as true for the purpose of ruling on a motion to dismiss.
See Spool v. World Child Int’l Adoption Agency,
. In
Reid,
the Supreme Court articulated the following non-exhaustive set of considerations: (1) the hiring party’s right to control the manner and means by which the product is accomplished; (2) the skill required; (3) the source of the instrumentalities and tools; (4) the location of the work; (5) the duration of the relationship between the parties; (6) whether the hiring party has the right to assign additional projects to the hired party; (7) the extent of the hiring party’s discretion over when and how long to work; (8) the method of payment; (9) the hired party's role in hiring and paying assistants; (10) whether the work is part of the regular business of the hiring party; (11) whether the hiring party is in business; (12) the provision of employee benefits; and (13) the tax treatment of the hired party.
See