Kloppel v. HomeDeliveryLink Inc.

DECISION AND ORDER INTRODUCTION   Plaintiffs Mike Kloppel and Adam Wilson (“Plaintiffs”) filed this putative class action on May 9, 2017, alleging that Sears Holding Corporation and Sears, Roebuck & Company (collectively, “Sears”) and Defendant HomeDeliveryLink (“HDL” or “Defendant”) misclassified them as independent contractors and took deductions from their wages in violation of New York Labor Law (“NYLL”). See ECF No. 1. On July 7, 2017, Plaintiffs filed an amended complaint. ECF Nos. 9, 10. On February 28, 2018, the Court issued a Decision and Order granting Sears’s motion to dismiss in full and granting in part and denying in part HDL’s motion to dismiss the amended complaint. See ECF Nos. 12, 20, 31. The only surviving claims are against HDL for (1) illegal deductions pursuant to NYLL §193, (2) illegal kickback of wages pursuant to NYLL §198-b, and (3) record-keeping violations pursuant to NYLL §195. ECF No. 31. HDL now moves for judgment on the pleadings pursuant to Federal Rule of Civil Procedure (“Rule”) 12(c) on the §193 and §198-b claims. ECF No. 67. For the reasons set forth below, HDL’s motion for judgment on the pleadings is GRANTED IN PART and DENIED IN PART. BACKGROUND¹ Plaintiffs, along with other similarly situated individuals they seek to represent, delivered Sears merchandise to customers’ homes throughout New York State. Plaintiffs, through business entities, contracted with HDL, a third-party logistics provider, rather than directly with Sears. Plaintiffs allege that HDL treated them as independent contractors even though they were rightfully employees under New York law. They further allege that HDL unlawfully deducted “certain expenses directly from the compensation it [paid to Plaintiffs], including when HDL determine[d], in its sole discretion, that a delivery ha[d] been made in a manner it deem[ed] to be unsatisfactory (e.g., damaged goods, damage to customer property).” ECF No. 10 31. HDL “would also deduct other expenses from the compensation it pa[id] such as the cost of truck rental and fuel” and “the costs of workers’ compensation insurance and general liability insurance. Id.