Cruz v. Plaza Motors of Brooklyn Inc. – Class Action for Overtime

 

On November 7, 2016, several current and former employees of Plaza Motors of Brooklyn filed a class and collective action Complaint against the company in the U.S. District Court for the Eastern District of New York, which is assigned case number 1:16-cv-6177.

Scope of class and collective action members:

The case involves two classes of employees.

First, all individuals whom the company has employed or is employing as parts counterpersons at any time since November 7, 2010 (“Class Members”). This is for all Plaza Motors dealerships.

Second, all individuals whom the company has hired since April 9, 2011 – regardless of position. (“Sub-Class Members”).

 

Claims in the lawsuit:

The lawsuit alleges the following causes of action on behalf of the class and collective action members.

 

1. Failure to pay overtime under the Fair Labor Standards Act (“FLSA”) and New York Labor Law (“Labor Law”).

These claims are based on the company paying the counterpersons the same hourly rate for all hours worked – even when they worked more than 40 hours in week.

2.  Off-the-clock work under the FLSA and Labor Law

These claims are based on (i) the company automatically deducting a one-hour lunch break from the counterpersons pay even though they regularly did not take a one-hour lunch break and (ii) the counterpersons regularly having their breaks interrupted.

 

3.  Failure to Provide the Notice and Acknowledgement of Pay Rate and Payday under NYLL § 195.1(a).

Under the Labor Law, employers are required to give this Notice to employees within 10 business days of hiring them. For any violations that occurred between April 9, 2011 and February 26, 2015, the Sub-Class Members are entitled to recover from Plaza Motors $50.00 for each work week that the violations occurred or continued to occur, or a total of two thousand five hundred dollars.

For any violation that occurred on or after February 27, 2015, the Sub-Class Members are entitled to recover from Plaza Motors $50.00 for each work day that the violations occurred or continued to occur, or a total of $5,000.00.

Case Status:

  • On November 7, 2016, Plaintiffs filed the Complaint.
  • On March 24, 2017, Plaintiffs moved to conditionally certify the collective action under the FLSA. If the court grants this relief, counterpersons who worked for the company during a specific time period will have an opportunity to assert their FLSA claims in this case.

 

If you have questions about this lawsuit, please contact Douglas Lipsky of Bronson Lipsky at 212.444.1024 or dl@bronsonlipsky.com

 

*This update is current as of April 24, 2017 and is based on information that is publicly available.