Kamiel v. Hai Street Kitchen Co.

Background

Sheri Kamiel sued Hai Street Kitchen & Co. LLC, Sakura Dining Corporation, Sun Joon Kim, and Daisuke Kawauchi under the Americans with Disabilities Act, the New York City Human Rights Law, and the New York State Human Rights Law. She also brought minimum-wage and overtime claims under the Fair Labor Standards Act and the New York Labor Law.

Kamiel alleged that she worked for Hai Street and Sakura from about October 7, 2017, until her termination on about September 29, 2018. She alleged that she was not paid for all hours worked, including time spent traveling to Costco for the employers. She also alleged that she told the defendants about a planned hysterectomy, requested medical leave, and was fired one day before the leave was scheduled to begin.

The court had previously entered a default judgment against all defendants, but later vacated that judgment as to Kawauchi after finding that Kamiel had not shown he was served at his actual place of business. Kawauchi then moved to dismiss the claims against him. Magistrate Judge Stewart D. Aaron recommended dismissing the claims under the Americans with Disabilities Act, the Fair Labor Standards Act, the New York City Human Rights Law, and the New York Labor Law; allowing the New York State Human Rights Law claims to proceed; and allowing amendment of the federal and state wage claims.

Court’s Analysis

The district court reviewed the portions of the recommendation that Kawauchi challenged in detail and reviewed the unchallenged portions for clear error. A motion to dismiss tests whether the complaint alleges enough facts to make a claim legally plausible; it does not decide whether the alleged facts are ultimately true.

For the New York State Human Rights Law disability-discrimination claim, the court held that Kamiel plausibly alleged that she was qualified for her job, suffered an adverse employment action, and was terminated because of her disability. The court emphasized that she allegedly disclosed her upcoming surgery and expected recovery period on August 27, 2018, and was terminated about five weeks later, one day before her leave was to begin. At the pleading stage, that timing supported a plausible inference of discrimination.

The court also held that Kamiel plausibly alleged retaliation under the New York State Human Rights Law. The alleged protected activity was her disclosure of, and request for, disability leave—not her earlier complaint about sexual harassment. The court found a plausible causal connection because the defendants allegedly approved her leave, Kawauchi acknowledged her request, and she was terminated shortly before the leave was scheduled to start.

The court further held that Kamiel plausibly alleged Kawauchi’s individual liability. The complaint alleged that Kawauchi was president of Hai Street and Sakura, had authority to terminate Kamiel, threatened that she would lose her job, and was involved in the events leading to her termination. The court did not decide whether Kawauchi could also be liable under an aiding-and-abetting theory because it sustained the claims on other grounds.

The court dismissed the Americans with Disabilities Act and New York City Human Rights Law claims. Kamiel had conceded that she could not state those claims against Kawauchi; she also acknowledged that the New York City law did not apply because her employment was in Westchester.

The court dismissed the Fair Labor Standards Act and New York Labor Law minimum-wage and overtime claims because the amended complaint did not adequately plead the hours Kamiel worked or her hourly rate. The court nevertheless found that the complaint adequately alleged that Kawauchi was an employer under those laws. Because information in Kamiel’s affidavit suggested that amendment might not be futile, the court granted her leave to file a second amended complaint addressing those wage claims.

Disposition

Judge Paul A. Engelmayer accepted and adopted Judge Stewart D. Aaron’s report and recommendation. The order granted in part and denied in part Kawauchi’s motion to dismiss. It dismissed the claims against Kawauchi under the Americans with Disabilities Act, the Fair Labor Standards Act, the New York City Human Rights Law, and the New York Labor Law; denied the motion to dismiss the New York State Human Rights Law claims; and granted Kamiel leave to file a second amended complaint concerning the Fair Labor Standards Act and New York Labor Law claims. The clerk was directed to close the motion.