Court Opinion

ID: 9947044
Source: CourtListenerOpinion
Date Created: 2024-03-01 21:09:11.3473+00
Date Added: 2024-06-11T14:25:45.704087
License: Public Domain

Esposito v Hair Bar NYC Inc.
               2024 NY Slip Op 30608(U)
                   February 27, 2024
           Supreme Court, New York County
        Docket Number: Index No. 152517/2022
               Judge: Dakota D. Ramseur
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                       publication.
                                                                                                    INDEX NO. 152517/2022
  NYSCEF DOC. NO. 72                                                                          RECEIVED NYSCEF: 02/27/2024

                             SUPREME COURT OF THE STATE OF NEW YORK
                                       NEW YORK COUNTY
            PRESENT:        HON. DAKOTA D. RAMSEUR                              PART                              34M
                                                                     Justice
            -------------------------------------------------X
                                                                                INDEX NO.          152517/2022
             LUCENIA ESPOSITO,
                                                                                MOTION DATE             N/A
                                                Plaintiff,
                                                                                                    00_2_ __
                                                                                MOTION SEQ. NO. _ _ _
                                        - V -

             HAIR BAR NYC INC.,HAIR BAR NYC DELRAY BEACH
                                                                                   DECISION + ORDER ON
             INC, BENY MOLAYEV
                                                                                          MOTION
                                                Defendant.
            -----------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 002) 31, 32, 33, 34, 35,
            36,37, 38, 39,40,41,42,43,44,45,46,47,48,49, 50, 51, 52, 53
            were read on this motion to/for                              ORDER MAINTAIN CLASS ACTION

                   In March 2022, plaintiff Lucenia Esposito commenced this Labor Law class action
           against corporate defendants Hair Bar NYC, Inc. and Hair Bar NYC Delray Beach, Inc. and
           individual defendant Beny Molayev. As a former employee who worked as a stylist at Hair Bar
           NYC, plaintiff alleges that Molayev owns and operates four New York salons as part of a single
           integrated enterprise and that wage/leave policies at these salons violate several provisions of the
           New York Labor Law and Family Medical Leave Act (hereinafter, "FMLA"). In this motion
           sequence (002), plaintiff moves pursuant to CPLR 901 and 902 for class certification. The
           proposed class consists of "all non-exempt employees that were employed by Defendants at any
           of their salons 'Hair Bar NYC' at any time between March 24, 2016, and the present." (NYSCEF
           doc. no. 35, proposed notice to class.) For the following reasons, plaintiffs motion is granted.

                                                             BACKGROUND

                    On September 16, 2021, plaintiff began her employment as an Assistant Hair Sty list at
           the Hair Bar NYC salon located at 180 Lafayette St., New York, New York. (NYSCEF doc. no.
           2 at~ 24, complaint.) Defendants scheduled her to work four days per week, from 9:45 a.m. to
           7:00 p.m. for a total of 37 hours per week. (Id. at~ 26.) Nonetheless, she alleges that defendants
           required her to arrive early and stay late, time for which she was not compensated. (NYSCEF
           doc. no. 36 at~ 4, plaintiff affidavit.) For scheduled work, defendants paid her a $100 daily flat
           rate per day, averaging approximately $10.81 per hour. (NYSCEF doc. no. 2 at~ 27.) During
           her employment, plaintiff alleges that defendants paid below the basic minimum wage, even
           after accounting for wages supplemented by tips. (Id. at~ 33.) Nonetheless, defendants (1) took a
           tip credit, (2) did so even though she engaged in non-tipped work for approximately 95% of the
           total hours she worked each week, (3) failed to provide her with notice of the amount of the
           credit, and (4) failed to provide her with proper wage statements reflecting payments to her and
           the tip credit taken. (Id. at~ 29; NYSCEF doc. no. 36 at~~ 7, 11-14.)

             152517/2022 ESPOSITO, LUCENIA vs. HAIR BAR NYC INC. ET AL                              Page 1 of 6
             Motion No. 002

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                                                                                                    INDEX NO. 152517/2022
  NYSCEF DOC. NO. 72                                                                        RECEIVED NYSCEF: 02/27/2024

                   On or about November 3, 2021, plaintiff alleges that she suffered a medical incident
           while at work that required immediate treatment. She avers that defendants did not allow her to
           seek medical treatment and fired her on the spot. (NYSCEF doc. no. 2 at ,-i 50.) Accordingly, she
           alleges defendants violated certain statutory rights protected by the FMLA.

                    Plaintiff alleges that Beny Molayev founded Hair Bar NYC and is its current CEO.
           According to her, he and Hair Bar NYC operate four salons in New York-located at 180
           Lafayette Street, 31 West 46th Street, 416 3rd Ave, and 115-121 Spruce Street-as a single
           integrated enterprise. (NYSCEF doc. no. 33 at 6, plaintiff memo oflaw.) During her
           employment, Hair Bar NYC had a policy of interchanging or rotating stylists, including her,
           between the different salons on an as-needed basis. (NYSCEF doc. no. 36 at ,-i 8.) Through her
           work at each store (id.) and conversations she had with other stylists (id. at 3), plaintiff avers that
           defendants had similar compensation policies at each salon (id. at ,-i 9-10 ["I can confirm that any
           complaint that my coworkers had about Defendants was similar at all Defendants' stores. When
           working at other New York locations, I learned that Defendants were indeed compensating
           everyone on a fixed daily salary that resulted in shorting everyone's pay"].) Nonetheless,
           plaintiff has not submitted sworn affidavits from coworkers testifying to defendants' policies at
           the three other salons.

                                                       DISCUSSION

                   Preliminarily, since plaintiff seeks class certification against Molayev and Hair Bar NYC
           Delray Beach, neither of whom is technically her employer, she must demonstrate that Molayev
           operates the four salons (or their corporate entities) as a single integrated enterprise. (See Fowler
           v Scores Holding Co., Inc., 677 F.Supp.2d 673, 680-681 [SDNY 2009].) In assessing whether
           separate entities are run as such an enterprise, courts use a four-factor test that considers whether:
           (1) operations are interrelated, (2) labor relations are under centralized control, (3) the different
           entities have common management, and (4) the entities are under common ownership or
           financial control. (Id. at 681, citingArculeo v On-Site Sales & Mktg., LLC, 425 F.3d 193, 198
           [2d Cir. 2005].) While no one factor is determinative, the central concern is the control of labor
           relations. (Zuccarini v PVH Corp., 2016 NY Slip Op 30350 [U] at *4 [Sup. Ct. NY County
           2016].)

                     Here, plaintiff has demonstrated that Molayev operates the four hair salons as a single
           enterprise. First, Molayev admits that he is the president and owner of the corporate entities that
           own and operate the four salons. (NYSCEF doc. no. 50 at ,-i 4, Molayev affidavit.) Second, Hair
           Bar NYC operates a single website with a "Book Now" link that directs customers to book
           appointments at any one of the four stores in New York. (NYSCEF doc. no. 37, exhibit c.) Third,
           plaintiff has demonstrated that control over Hair Bar NYC's workforce is sufficiently
           centralized: she avers, and Molayev admits, that she and her coworkers were occasionally
           required to cover understaffed shifts at different salons when necessary. (See NYSCEF doc. no.
           50 at ,-i 5 ["At times, employees and stylists may be asked on occasion to fill in at another
           location [and it is their decision whether to do so].") In opposition, defendants contend that "each
           corporation has a separate tax identification number, separate payroll, separate employees,
           separate stylists, and separate insurance ... and employees of each salon are not interchangeable"
           such that they do not run a single enterprise." (NYSCEF doc. no. 52 at 11, def. memo oflaw.)

            152517/2022 ESPOSITO, LUCENIA vs. HAIR BAR NYC INC. ET AL                               Page 2 of 6
            Motion No. 002

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  NYSCEF DOC. NO. 72                                                                         RECEIVED NYSCEF: 02/27/2024

           Defendants' arguments, however, do not reflect the factual allegations plaintiff has made, or
           indeed, those facts to which Molayev has admitted. Again, while each salon may employ their
           own stylists, their employees are undoubtedly interchangeable, as demonstrated by Molayev's
           acknowledgment that Hair Salon NYC would request employees take shifts at other branches.
           That each entity may have separate tax identification numbers and payrolls demonstrates only
           that they are different entities-not the absence of a single integrated enterprise. Lastly,
           defendants argue that "plaintiff does not specifically identify the name of her employer or
           identify any of the entities that operate at any of the aforementioned locations." However,
           defendants have cited no authority, and the Court is unaware of any authority, for the proposition
           that each corporate entity comprising the single integrated enterprise must be named as a
           defendant for plaintiff to obtain class certification. Accordingly, plaintiff has established that
           Molayev and the four New York salons operate as a single integrated enterprise.

                   CPLR 902 provides that a class action may only be maintained if the five prerequisites
           promulgated by CPLR 901 (a) are met. (Pludeman v Northern Leasing Sys., Inc., 74 AD3d 420,
           421 [1st Dept 2010]; CPLR 902.) These prerequisites are: (a) (1) the class is so numerous that
           joinder of all members is impracticable (numerosity); (2) questions oflaw or fact common to the
           class predominate over questions of law or fact affecting individual class members
           (commonality); (3) the claims or defenses of the class representatives are typical of those in the
           class (typicality); (4) the class representatives will fairly and accurately protect the interest of the
           class; and (5) a class action represents the superior method of adjudicating the controversy
           (superiority). (Id.; CPLR 901 [a].)

                    The party seeking class certification bears the burden of establishing the prerequisites
            provided by CPLR 901 (a) by tendering evidence in admissible form. (Weinstein v Jenny Craig
            Operations, Inc., 138 AD3d 546, 547 [1st Dept 2016]; Kudinov v Kel-Tech Constr. Inc., 65
            AD3d 481, 481 [1st Dept 2009].) Conclusory allegations are insufficient to satisfy the moving
            party's burden. (Feder v Staten Island Hosp., 304 AD2d 470,471 [1st Dept 2003]; Pludeman, 74
            AD3d at 422.) Whether these prerequisites have been met and, thus, whether a lawsuit qualifies
            as a class action, rests within the trial court's sound discretion. However, the court must be
            mindful that class certification should be liberally construed. (Kudinov, 65 AD3d at 481.)
            Further, the Court recognizes that "claims for uniform systemwide wage violations are
            particularly appropriate for class certification" since the cost of litigating individually often
            outweighs the value of the individual's claim. (Andryeyeva v New York Health Care, Inc., 33
            NY3d 152, 184 [2019].)

                    As to plaintiff's FMLA cause of action, plaintiff alleges that she ordinarily worked 37
            hours per week plus an additional unscheduled four hours per work, or 41 altogether. (NYSCEF
            doc. no. 36 at ,i 4.) She alleges that she worked from September 16, 2021, through November 3,
            2021, or little more than six weeks, meaning plaintiff worked approximately 246 hours total.
            However, to allege a Family Medical Leave Act violation, a plaintiff must assert that she worked
            for her employer for 12 months or 1,250 hours. (Matter of Martinez v City of New York, 206
            AD3d 532, 532-533 [1st Dept 2022].) Since plaintiff cannot plausibly assert she worked the
            requisite amount oftime at Hair Bar NYC, the Court cannot grant class certification on this

             152517/2022 ESPOSITO, LUCENIA vs. HAIR BAR NYC INC. ET AL                               Page 3 of 6
             Motion No. 002

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  NYSCEF DOC. NO. 72                                                                                      RECEIVED NYSCEF: 02/27/2024

           claim. (See Matter of Monroe St. v City ofNew York, 202 AD3d 542, 543 [1st Det 2022] ["Since
           petitioner's substantive claims are without merit, there is no basis for certification of a class"].) 1

                    As to the New York Labor Law claims, plaintiff contends that she has demonstrated each
           of the five prerequisites described above: she avers that (1) defendants, at any one time, have
           between 12-15 employees at each salon (NYSCEF doc. no. 36 at, 15), which courts recognize
           as being sufficiently numerous (see Consol Rail Corp. v Town of Hyde Park, 47 F3d 473,483
           [2d Cir. 1995]; Jimenez v Summit Sec. Servs., 2023 NY Slip Op 34011 [U] at * 5 [Sup. Ct. NY
           County 2023 ]); (2) essential questions of law and fact related to defendants' business practices
           and compensation policies are common to all members of the proposed class and predominate
           over those questions involving respective individuals; (3) plaintiff's claims-as an employee
           who did not receive a basic minimum wage or wage statements--derive from, or are typical of,
           the same practice or course of conduct that give rise to the claims of other class members (see
           Pludeman v Northern Leasing Sys., Inc., 74 AD3d 420,421 [1st Dept 2010]); (4) she will
           adequately represent the interests of the class; and (5) class action is superior to other forms of
           dispute resolution since class actions are "the best method of adjudicating" wage and hour
           disputes (see Andryeyeva,33 NY3d at 184.)

                   The Court agrees. Based on personal observation, plaintiff alleges that the class consists
           of anywhere between 40 and 100 members, which sufficiently demonstrates the numerosity
           requirement. (See Globe Surgical Supply v GEICO Ins. Co., 59 AD3d 129, 137-138 [2d Dept
           2008] [finding the numerosity requirement satisfied where the proposed class was "at a
           minimum between 10 and 100 (class members)"]; Borden v 400 E. 55th St. Assoc., L.P. (24
           NY3d 382, 399 [2014] [acknowledging that the legislature envisioned, however remotely, a
           properly certified class containing as few at 18 members]; Consol Rail Corp. v Town of Hyde
           Park, 47 F3d 473, 483 [2d Cir. 1995] ["numerosity is presumed at a level of 40 members"].)
           Outside the FMLA claims that the Court has already denied class certification, there appears to
           be no dispute that questions of law and fact predominate over individual questions under the
           Labor Law and that her claims arise out of a common practice or course of conduct as other
           members. (See NYSCEF doc. no. 52 at 12-13.) Defendants neither suggest that plaintiff cannot
           adequately represent the interest of the class nor deny that Labor Law claims, because they tend
           to involve relatively modest monetary figures, are particularly appropriate for class action.

                   In their opposition, defendants cite this Court's decision in Aldape v Ocinomled, Ltd.
           (2023 NY Slip Op 50811 [U] [Sup. Ct. NY Count 2023] [Ramseur, J.]) to argue that plaintiff has
           not demonstrated evidence of a potential class of people harmed by defendants' alleged unlawful
           business practices. In Aldape, the Court stressed that the plaintiff therein did not work at three of
           the four restaurants comprising the single integrated enterprise and, therefore, had no personal
           knowledge of their policies and practices. Instead, the allegations against these other restaurants
           originated from conversations he had with his coworkers. (Id. at *2.) With respect to these three

            1
            It is unclear to what extent plaintiff seeks class certification based on this claim. In her proposed notice of class
           action, plaintiff asserts that she is seeking unpaid wages, statutory penalties, liquidated damages, and attorneys' fees.
           She then states that she is also seeking damages for violations of the FMLA. (NYSCEF doc. no. 35 at I, 3.)
           Elsewhere in the proposed notice, plaintiffs appear to limit the class action to those claims under the New York
           Labor Law. (Id. at 4 ["Your rights and options: You have to decide whether to file the attached Opt-Out From to be
           excluded from the Class with respect to the New York Labor Law claims"].)
                152517/2022 ESPOSITO, LUCENIA vs. HAIR BAR NYC INC. ET AL                                          Page 4 of 6
                Motion No. 002

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  NYSCEF DOC. NO. 72                                                                                      RECEIVED NYSCEF: 02/27/2024

            entities, then, the Court found that Aldape's affidavit was insufficient to support class
            certification because it relied entirely on conclusory allegations and inadmissible hearsay. In the
            Court's words, since Aldape did not furnish supporting affidavits from those employees who had
            worked at the other establishments, "such a dearth of evidence means the existence of potential
            class members [at these other restaurants] remains entirely speculative and does not meet even
            the liberal standard for granting class certification." (Id. at *4.) Here, unlike in Aldape, plaintiff
            indeed furnishes an affidavit in which avers she worked in the three other salons and describes
            various personal observations, including that she and her coworkers worked overtime, for which
            they were not paid, and were engaged in non-tipped activity for more than 50% of their work
            day. (NYSCEF doc. no. 36 at ,r,r 4, 7-9.)

                    Defendants raise several other objections, each relating to the sufficiency of plaintiff's
            proffered evidence on her Labor Law and FMLA claims. 2 They contend that plaintiff failed to
            provide corroborating documentary evidence that she worked at the other three locations (and
            which days), spoke to her fellow employees, worked more than 37 hours per week but was paid
            only for scheduled hours, was paid less than minimum wage, and was not provided written wage
            notices. (See NYSCEF doc. no. 52 at 9-11.) However, in assessing whether certification is
            appropriate, courts do not consider whether a plaintiff's claims have merit; instead, the inquiry is
            minimal and limited to whether, on the surface of the complaint, there appears to be a cause of
            action that is not a sham. (See, Pludeman, 74 AD3d at 422; Brandon v Chefetz, 106 AD2d 162,
            168 [1st Dept 1985].) Under this standard, plaintiff's sworn testimony, based on personal
            knowledge, is clearly sufficient. (See Jenny Craig Operations, Inc., 138 AD3d 546, 547 [1st
            Dept 2016].) To the extent that defendants argue their records show they compensated her at a
            rate above minimum wage (NYSCEF doc. no. 52 at 9) and that she did not work more than 37
            hours in a given week (id.), defendants' only evidence consists of an affidavit from Molayev.
            They did not attach wage statements or other records establishing plaintiff's hours or wages.

                    Lastly, since the proposed class consists of employees who have each suffered relatively
            modest damages that may not otherwise motivate them to bring actions individually due to the
            costs of litigation, the Court finds class action to be the superior method for adjudicating
            plaintiff's Labor Law claims.

                     Accordingly, for the foregoing reasons, it is hereby

                  ORDERED that plaintiff Lucenia Esposito's motion for class certification pursuant to
            CPLR 901 and 902 is granted; and it is further

                    ORDERED that this class action is certified as a class action, with the class being defined
            as follows: All non-exempt employees that were employed by Defendants at any of their salons
            'Hair Bar NYC' at any time between March 24, 2016, and the present; and it is further

            2 In their memorandum of law in opposition, defendants appear to argue that the definition of the proposed class is

            overbroad. (See NYSCEF doc. no. 52 at 9 ["Likewise, receptionists and managers perform different duties and are
            paid differently than assistant stylists, and thus, are not subject to the same wage and hour policies."].) Other than
            this single statement, defendants do not seek to limit the proposed class to stylists.
             152517/2022 ESPOSITO, LUCENIA vs. HAIR BAR NYC INC. ET AL                                              Page 5 of 6
             Motion No. 002

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  NYSCEF DOC. NO. 72                                                                        RECEIVED NYSCEF: 02/27/2024

                   ORDERED that plaintiff is appointed Lead Plaintiff and Class Representative; and it is
           further that Lee Litigation Group, PLLC shall serve as class counsel; and is further

                  ORDERED that counsel for the Class submit to the Court for its approval the text of a
           proposed Notice to the Class, including an opt-out provision, that adheres to the class definition
           described above within thirty (30) days; and it is further

                  ORDERED that counsel for the parties shall appear at 60 Centre Street, Courtroom 341 at
           9:30 a.m. on March 19, 2024, for a preliminary conference with the Court; and it is further

                    ORDERED that counsel for plaintiffs shall serve a copy of this order, along with notice
           of entry, on all parties within ten (10) days of entry.

                   This constitutes the Decision and Order of the Court.

                   2/27/2024
                     DATE                                                                       EUR, J.S.C.
            CHECK ONE:                   CASE DISPOSED                  NON-FINAL DISPOSITION

                                         GRANTED         □ DENIED       GRANTED IN PART           □ OTHER
            APPLICATION:                 SETTLE ORDER                   SUBMIT ORDER

            CHECK IF APPROPRIATE:        INCLUDES TRANSFER/REASSIGN     FIDUCIARY APPOINTMENT     □ REFERENCE

            152517/2022 ESPOSITO, LUCENIA vs. HAIR BAR NYC INC. ET AL                               Page 6 of 6
            Motion No. 002

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