Athayde v. Dogpound Fitness, Inc.

Background

On January 10, 2025, the parties submitted letter briefs about two issues for trial: the method for calculating overtime damages and compensation for Plaintiff's out-of-state work related to Dogpound Fitness, Inc.

Overtime-Damages Method

The court stated that it will instruct the jury that, for periods when Plaintiff was paid on a salary basis, if the jury finds that he was non-exempt, the weekly salary is subject to a rebuttable presumption that it covered only the first 40 hours worked. Hours beyond 40 would be treated as overtime and paid at one and one-half times the regular hourly rate.

The presumption may be rebutted by an employer-employee agreement stating that the salary covered a different number of hours, or by the parties' entire course of conduct as shown by testimonial and documentary evidence.

Out-of-State Work

The court stated that New York Labor Law will apply to periods when Plaintiff resided in New York State but performed short-term or incidental work for Defendants outside the state. At the Final Pretrial Conference, the parties must be prepared to discuss the nature and duration of any long-term employment Plaintiff performed outside New York for Defendants.

The parties must also discuss whether the court should allow Plaintiff to conform his pleadings under Federal Rule of Civil Procedure 15(b)(2), which concerns issues tried by the parties' express or implied consent, so that California law could govern certain employment periods.

Disposition and Scope

The order establishes the legal instructions the court plans to give the jury on the identified damages and choice-of-law issues and directs further discussion at the Final Pretrial Conference. The opinion does not state a final determination of liability, the amount of damages, or which law will govern any long-term out-of-state employment. Judge Sarah Netburn issued the order on January 13, 2025.