Giallanzo v. City of New York

Background

Robert Giallanzo, a former New York City Department of Transportation employee, sued the City of New York under the Fair Labor Standards Act (FLSA), the federal law requiring overtime pay for covered employees who work more than 40 hours in a week. Giallanzo retired in January 2020 and claimed that he had accumulated 837 hours and 50 minutes of unused compensatory time that represented unpaid FLSA overtime. He sought payment for those hours, liquidated damages, and attorneys’ fees and costs.

Giallanzo worked as a highway repairer and supervisor highway repairer before becoming an Area Supervisor in 2005. The City conceded that he was entitled to payment for 59 hours and 30 minutes of overtime earned in those earlier, FLSA-covered positions. The dispute concerned whether he was exempt from FLSA overtime requirements while serving as an Area Supervisor and whether the 778 hours and 20 minutes listed as “COMP TIME” on his pay records represented additional unpaid overtime.

The City moved for partial summary judgment, asking the Court to rule in its favor except as to the 59 hours and 30 minutes. Giallanzo cross-moved for summary judgment as to all 837 hours and 50 minutes. The Court reviewed Magistrate Judge Kevin Nathaniel Fox’s Report and Recommendation and the City’s objections.

Executive exemption

The FLSA excludes certain employees working in a bona fide executive capacity from its overtime requirements. Under the Department of Labor’s regulation, the employer must establish that the employee was paid on a salary basis, had management as the primary duty, regularly directed at least two employees, and either had hiring or firing authority or made recommendations about employment decisions that carried particular weight.

The Court held that the City established the salary-basis requirement as a matter of law. It also held that the evidence required resolving the management and supervision requirements in the City’s favor. Giallanzo’s primary duty was management, and his responsibilities for assigning, inspecting, and supervising crews and handling personnel matters showed that he regularly directed at least two employees.

The Court did not resolve the final requirement. Giallanzo had no established authority to hire or fire employees, and the parties disputed whether his recommendations about discipline, retention, or termination were given particular weight. The Court found enough evidence for a jury to decide that question, but not enough for the City to win as a matter of law. As a result, whether the executive exemption applied to Giallanzo’s Area Supervisor work must be decided at trial.

Pay records and overtime hours

The Court accepted the City’s declaration explaining the payroll codes for purposes of summary judgment, although it noted that the declaration was not precise and might need stronger support at trial. The Court also allowed Giallanzo’s paystubs to be considered.

The Court granted Giallanzo summary judgment as to liability for 59 hours and 30 minutes listed as “CT (FLSA).” The parties agreed that these hours represented uncompensated overtime earned in FLSA-covered positions before Giallanzo became an Area Supervisor. The ruling did not decide whether Giallanzo worked additional unpaid overtime in any position.

The Court denied summary judgment to both sides concerning the 778 hours and 20 minutes listed as “COMP TIME.” A jury could accept the City’s explanation that those hours reflected non-FLSA compensatory time, but it could also find that the records did not accurately capture additional overtime. The Court also found that the applicable hourly rate or rates for the 59 hours and 30 minutes, and for any additional overtime established at trial, remained unresolved.

Liquidated damages and disposition

The Court denied both parties’ motions for summary judgment on liquidated damages. Under the FLSA, liquidated damages may be available unless the employer proves that it acted in good faith and had objectively reasonable grounds for believing it complied with the law. The Court concluded that the issue was premature and fact-dependent because the full scope of the City’s potential FLSA liability had not yet been determined.

Judge Engelmayer’s final order denied the City’s partial summary-judgment motion in its entirety; granted in part Giallanzo’s motion as to liability for the 59 hours and 30 minutes of “CT (FLSA)” time; and otherwise denied Giallanzo’s motion. The case was to proceed to trial on the executive-exemption issue, any additional unpaid overtime, the applicable pay rate or rates, and liquidated damages.