Varela et al v. North Shore-Long Island Jewish Health System et al

Filing 156

ORDER granting in part and denying in part 98 Motion to Dismiss; denying as moot 99 Motion to Certify Class; granting in part and denying in part 145 Motion to Dismiss. For the reasons set forth in the attached Memorandum and Order, defendants ' motion to dismiss is granted in part and denied in part. Specifically, plaintiffs' FLSA claims -- construed only as claims regarding overtime and not as claims regarding "straight time" or "gap time" pay -- are dismis sed without prejudice for failure to state a claim. Likewise, plaintiffs' NYLL claim is dismissed without prejudice for failure to state a claim. Plaintiffs' RICO cause of action is denied with prejudice to the extent that this claim is b ased upon defendants' failure to pay plaintiffs overtime, and thus is duplicative of plaintiffs' FLSA claim. However, to the extent that the RICO cause of action is based upon defendants' alleged failure to pay plaintiff for "str aight time" wages, this claim is not preempted by the FLSA. Nevertheless, this remaining RICO cause of action is dismissed without prejudice for failure to state a claim. As to plaintiffs' state common law claims, these claims are dismiss ed with prejudice as preempted by the FLSA to the extent that they seek overtime wages and thus are duplicative of the FLSA claim. The surviving common law claims are construed as seeking only unpaid "straight time" pay. However, plaintif fs' breach of implied oral contract, breach of express oral contract, breach of implied covenant of good faith and fair dealing, quantum meruit, fraud, and negligent misrepresentation claims are dismissed without prejudice for failure to state a claim. Plaintiffs' estoppel claim is dismissed because, as pled by plaintiffs, "estoppel" is not a distinct cause of action but instead is an equitable bar to defendants' assertion of a statute of limitations defense. Plaintiff s, however, may assert equitable estoppel at an appropriate point in the litigation, should defendants choose to assert a statute of limitations defense. Regarding plaintiffs' ERISA claims, the claim for failure to keep accurate records is dism issed without prejudice for failure to plead exhaustion of administrative remedies. As to the breach of fiduciary duty claim, the Court is denying defendants' motion to dismiss this claim, but will allow defendants to renew this motion after th e parties have conducted limited discovery on the issue of how benefits are determined under the controlling ERISA plans. Defendants' motion to dismiss on the grounds of LMRA preemption is also denied at this juncture without prejudice. Finall y, plaintiffs' motion for expedited notice is denied without prejudice to renewal at a later date, if plaintiffs choose to re-plead their FLSA claims and are able to sufficiently plead a cause of action. Ordered by Judge Joseph F. Bianco on 3/16/2011. (Graves, Kelly)