Alfonso v. Mougis Logistics Corp.

Background

Donald Alfonso sued Mougis Logistics Corp. on behalf of himself and others similarly situated. He alleged that he worked as a delivery driver from January 4, 2021, through the filing of his amended complaint on August 5, 2021. According to the allegations, he was paid $20 per hour, or $160 per day, and regularly worked five days per week. He claimed that he spent substantial time loading his delivery truck, including time that Mougis Logistics did not treat as compensable, and that his workdays sometimes lasted until 7:30 p.m.

The amended complaint asserted one federal claim under the Fair Labor Standards Act (FLSA), alleging a minimum-wage violation. It also asserted New York claims involving minimum wages, overtime, recordkeeping, and spread-of-hours pay. Mougis Logistics moved to dismiss under Federal Rule of Civil Procedure 12(b)(6), which allows dismissal for failure to state a legally sufficient claim. It also argued that the court should decline supplemental jurisdiction over the New York claims if the FLSA claim was dismissed.

FLSA Minimum-Wage Claim

The court explained that an FLSA minimum-wage claim must allege an employment relationship, work involving interstate commerce, and the approximate number of hours for which the employee did not receive the minimum wage. The court found that Alfonso adequately alleged the employment and interstate-commerce elements.

The court nevertheless held that Alfonso had not plausibly alleged that his average hourly wage fell below the federal minimum wage of $7.25. Alfonso alleged weekly pay of $800, based on five days at $160 per day. Even accepting his allegations that he worked as many as 13 hours per day, the court calculated that his pay would have exceeded $12 per hour. The court also rejected the theory that failing to pay separately for some hours automatically created an FLSA minimum-wage violation when the employee’s average weekly hourly wage remained above the federal minimum.

New York Claims and Disposition

After dismissing the only federal claim, the court declined to exercise supplemental jurisdiction over Alfonso’s New York claims. The court stated that the case was at an early stage and that the relevant considerations, including judicial economy, convenience, fairness, and respect for state courts, favored declining jurisdiction. The New York claims were therefore dismissed without prejudice for lack of subject-matter jurisdiction.

Judge Liman granted Mougis Logistics’s motion to dismiss the FLSA minimum-wage claim without prejudice. The court dismissed the New York claims without prejudice and directed the Clerk of Court to close the motion. The opinion states that Alfonso had 30 days, until January 5, 2022, to file a further amended complaint limited to the FLSA minimum-wage claim and addressing the identified deficiencies. If he did not do so, the court stated that it would dismiss the federal claim with prejudice and close the case.