On September 11, 2012 a suit was filed in New York by employees against LHDR Help, Legal Helpers Debt Resolution, Macey Aleman Hyslip & Searns, Thomas Macey, Jeffrey Aleman, Jeffrey Hyslip, Jason Searns, Credit Advocates Law Firm, and Ryan Sasson.
The suit was filed by Benjamin Xue, Esq. & Brian Shenker, Esq, 401 North Broadway, Suite 1009, New York, New York, 212-219-2275.
The most startling allegation made in the complaint, for me, was ?Plaintiffs were also forced to endure an unprofessional and discriminatory work environment. Drug use, including marijuana and cocaine, ran rampant in the company. In fact, managers and supervisors were aware that drugs were stored at the business location and employees and supervisors used drugs or had knowledge of drug use at the business location.?
This is an interesting suit since not long ago Ryan Sasson was brought onboard at LHDR to clean things up. ? Source
The Suit
This lawsuit seeks to recover unpaid minimum wage and overtime compensation for Plaintiffs and their similarly situated co-workers who have been employed by LHDR HELP, LLC, LEGAL HELPERS DEBT RESOLUTION, LLC, MACEY, ALEMAN, HYSLIP & SEARNS, THOMAS G. MACEY, JEFFREY J. ALEMAN, JEFFREY HYSLIP, JASON E. SEARNS, CREDIT ADVOCATES LAW FIRM, LLC, and RYAN SASSON (collectively ?LHDR? or ?Defendants?) in New York State.
2. LHDR Help, LLC is a Delaware based debt~resolution company operating in New York and other states throughout the country. Legal Helpers Debt Resolution, LLC is a Nevada based debt-resolution company which does business in New York through the law firm partnership of Macey, Aleman, Hyslip & Searns, which claims to be the nation?s largest debt resolution law firm.
Notably, Legal Helpers Debt Resolution, LLC a/k/a Law Offices of Macey, Aleman, Hyslip & Seams were recently sued by the Illinois Attomey General for consumer fraud. A settlement was reached whereby Defendants can no longer offer debt settlement in Illinois.
Upon information and belief; lawsuits have also been filed against Defendants for similar reasons in Califomia and New Jersey.
Plaintiffs worked for LHDR as ?debt consultants? in Defendants? Manhattan office. ?Debt consultants? duties are to call individuals, identified by Defendants, and attempt to sign people up for debt settlement programs, and to answer phone calls. Plaintiffs are provided a script and their sole duty is to make phone calls to individuals, also known as ?leads.? ?Debt consultants? must receive approval from Defendants prior to making any debt resolution offer to a client.
?Debt consultants? are compensated by Defendants entirely through commissions. Commission is not guaranteed. In order to receive commission, ?consultants? must sign up a client for debt settlement enrollment program with Defendants and said client must begin making debt settlement payments to Defendants for Plaintiffs to receive their commission. Plaintiffs? receipt of commissions is conditioned upon the completion of transactions by other LHDR employees.
Defendants gave ?debt consultants? productivity goals on daily, weekly, and monthly basis. In order to meet the productivity goals, ?debt consultants? are often required to work in excess of 40 hours per week. Sometimes ?debt consultants? were required to come to work on Saturdays. Debt consultants often worked over 12 hours per day in order to meet their productivity goals.
Defendants would discipline or penalize ?debt consultants? who did not arrive at work at the hours specified by Defendants.
Plaintiffs bring this action on behalf of themselves and similarly situated current and former employees of Defendants who elect to opt-in to this action pursuant to the FLSA, 29 U.S.C. ?? 201 et seq., and specifically, the collective action provision of 29 U.S.C. ? 216(b), to remedy violations of the wage-and-hour provisions of the FLSA by Defendants that have deprived Plaintiffs and others similarly situated of their lawfully earned wages.
Plaintiffs also bring this action on behalf of themselves and all similarly situated current and former employees of Defendants who worked in New York pursuant to Federal Rule of Civil Procedure 23 to remedy violations of the NYLL, Article 19, ?? 650 et seq., and the supporting New York State Department of Labor Regulations.
THE PARTIES
Plaintiffs
Plaintiff David Song is an adult individual who is a resident of Manhasset, New York.
Plaintiff David Song was employed by Defendants as a ?debt consultant? in their Manhattan office from approximately December 2011 until approximately August 2012.
Plaintiff Edwin Mosquera was employed by Defendants as a ?debt consultant? in their Manhattan office from approximately December 201 1 until approximately June 2012.
Plaintiff Gerald Roger has been employed by Defendants as a ?debt consultant? in their Manhattan office from approximately July 2011 to the present.
Each Defendant has had substantial control over Plaintiffs? working conditions, and over the unlawful policies.
LHDR Help, LLC
LHDR Help, LLC is a foreign business corporation, organized and existing under the laws of Delaware.
LHDR Help, LLC has a place of business in New York located at 1400 Broadway, New York, NY 10018.
Upon information and belief; LHDR Help, LLC is a subsidiary of and/or is controlled by Legal Helpers Debt Resolution, LLC, Macey Aleman, Hyslip & Seams, and Credit Advocates Law Firm, LLC.
Throughout the relevant period, LHDR Help, LLC employed Plaintiffs and similarly situated employees within the meaning of the FLSA and NYLL.
LHDR Help, LLC is a covered employer within the meaning of the FLSA and NYLL and, at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
At all times relevant, LHDR Help, LLC maintained control, oversight and direction over Plaintiffs and similarly situated employees, including timekeeping, payroll, and other employment practices that applied to them.
LHDR Help, LLC applies the same employment policies, practices, and procedures to all ?debt consultants? and employees similarly situated to Plaintiffs.
At all times relevant, LHRD Help, LLC?s annual gross volume of sales made or business done was not less than $500,000.
LHDR Help, LLC is the entity listed on Plaintiffs? paystubs.
Legal Helpers Debt Resolution, LLC
Legal Helpers Debt Resolution, LLC is a foreign business corporation, organized and existing under the laws of Nevada.
Legal Helpers Debt Resolution, LLC has a place of business in New York located at 1400 Broadway, New York, NY 10018.
Upon information and belief, Legal Helpers Debt Resolution, LLC is owned, controlled, and/or a subsidiary of Macey, Aleman, Hyslip & Seams, LHDR Help, LLC, and Credit Advocates Law Firm, LLC.
Throughout the relevant period, Legal Helpers Debt Resolution, LLC employed Plaintiffs and similarly situated employees within the meaning of the FLSA and NYLL.
Legal Helpers Debt Resolution, LLC is a covered employer within the meaning of the FSLA and NYLL and, at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
At all times relevant, Legal Helpers Debt Resolution, LLC maintained control, oversight and direction over Plaintiffs and similarly situated employees, including timekeeping, payroll, and other employment practices that applied to them.
Legal Helpers Debt Resolution, LLC applies the same employment policies, practices, and procedures to all ?debt consultants? and employees similarly situated to Plaintiffs.
At all times relevant, Legal Helpers Debt Resolution, LLC?s annual gross volume of sales made or business done was not less than $500,000.
Macey, Aleman, Hyslip & Searns
Macey, Aleman, Hyslip & Seams is a foreign business entity of unknown form and existing under the laws of Illinois.
Macey, Aleman, Hyslip & Seams has a place of business in New York located at 1400 Broadway, New York, NY 10018.
Upon information and belief, Macey, Aleman, Hyslip & Seams owns or is owned, controlled, or a subsidiary of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Credit Advocates Law Firm, LLC.
Throughout the relevant period, Macey, Aleman, Hyslip & Seams employed Plaintiffs and similarly situated employees within the meaning of the FLSA and NYLL.
Macey, Aleman, Hyslip & Seams is a covered employer within the meaning of the FLSA and NYLL and, at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
At all times relevant, Macey, Aleman, Hyslip & Seams maintained control, oversight and direction over Plaintiffs and similarly situated employees, including timekeeping, payroll, and other employment practices that applied to them.
Macey, Aleman, Hyslip & Seams applies the same employment policies, practices, and procedures to all ?debt consultants? and employees similarly situated to Plaintiffs.
At all times relevant, Macey, Aleman, Hyslip & Searns?s annual gross volume of sales made or business done was not less than $500,000.
Thomas G. Macey
Upon information and belief; Thomas G. Macey has a place of business at 1400 Broadway, New York, NY 10019.
Upon information and belief, at all relevant times, Thomas G. Macey has been the owner of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Searns.
Upon information and belief, Thomas G. Macey has had the power over personnel decisions at LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Searns.
Upon information and belief, at all times relevant, Thomas G. Macey has also had the power to stop any illegal pay practices that harmed Plaintiffs and similarly situated employees.
Upon information and belief, Thomas G. Macey has had the power to enter into contracts on behalf of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Seams.
Thomas G. Macey is a covered employer within the meaning of the FLSA and the NYLL, and at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
Jeffrey J. Aleman
Upon information and belief, JeHrey J. Aleman has a place of business at 1400 Broadway, New York, NY 10018.
Upon information and belief, at all relevant times, Jeffrey J. Aleman has been the owner of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Searns.
Upon information and belief, JeHrey J. Aleman has had the power over personnel decisions at LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Seams.
Upon information and belief at all times relevant, Jeffrey J. Aleman has also had the power to stop any illegal pay practices that harmed Plaintiffs and similarly situated employees.
Upon information and belief Jeffrey J. Aleman has had the power to enter into contracts on behalf of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Searns.
Jeffrey J. Aleman is a covered employer within the meaning of the FLSA and the NYLL, and at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
Jeffrey Hyslip
Upon information and belief, Jeffrey Hyslip has a place of business at 1400 Broadway, New York, NY 10018.
Upon information and belief, at all relevant times, Jeffrey Hyslip has been the owner of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Seams.
Upon infomation and belief, Jeffrey Hyslip has had the power over personnel decisions at LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip &
Seams.
Upon information and belief, at all times relevant, Jeffrey Hyslip has also had the power to stop any illegal pay practices that harmed Plaintiffs and similarly situated employees.
Upon infomation and belief, Jeffrey Hyslip has had the power to enter into contracts on behalf of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Searns.
Jeffrey Hyslip is a covered employer within the meaning of the FLSA and the NYLL, and at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
Jason E. Searns
Upon infomation and belief, Jason E. Searns has a place of business at 1400 Broadway, New York, NY 10018.
Upon information and belief, at all relevant times, Jason E. Searns has been the owner of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Seams.
Upon infomation and belief; Jason E. Seams has had the power over personnel decisions at LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip &
Searns.
Upon infomation and belief, at all times relevant, Jason E. Searns has also had the power to stop any illegal pay practices that harmed Plaintiffs and similarly situated employees.
Upon information and belief; Jason E. Searns has had the power to enter into contracts on behalf of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey, Aleman, Hyslip & Seams.
Jason E. Seams is a covered employer within the meaning of the FLSA and the NYLL, and at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
Credit Advocates Law Firm, LLC
Credit Advocates Law Firm, LLC is a foreign professional service limited liability company existing under the laws of Florida.
Credit Advocates Law Firm, LLC has a place of business in New York located at 1400 Broadway, New York, NY 10018.
Upon information and belief; Credit Advocates Law Firm, LLC owns or is owned, controlled, or a subsidiary of LHDR Help, LLC, Legal Helpers Debt Resolution, LLC, and Macey Aleman, Hyslip & Searns.
Throughout the relevant period, Credit Advocates Law Firm, LLC employed Plaintiffs and similarly situated employees within the meaning of the FLSA and NYLL.
Credit Advocates Law Firm, LLC is a covered employer within the meaning of the FLSA and NYLL and, at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
At all times relevant, Credit Advocates Law Firm, LLC maintained control, oversight and direction over Plaintiffs and similarly situated employees, including timekeeping, payroll, and other employment practices that applied to them.
Credit Advocates Law Firm, LLC applies the same employment policies, practices, and procedures to all ?debt consultants? and employees similarly situated to Plaintiffs.
At all times relevant, Credit Advocates Law Firm, LLC?s annual gross volume of sales made or business done was not less than $500,000.
Ryan Sasson
Upon information and belief; Ryan Sasson has a place of business at 1400 Broadway, New York, NY 100l8.
Upon information and belief; at all relevant times, Ryan Sasson has been a supervisor and manager working for Legal Helpers Debt Resolution, LLC and is in charge of the Client Support division and the Negotiation and Settlement division.
Upon information and belief Ryan Sasson has had the power over personnel decisions at Legal Helpers Debt Resolution, LLC.
Upon information and belief; at all times relevant, Ryan Sasson has also had the power to stop any illegal pay practices that harmed Plaintiffs and similarly situated employees.
Upon information and belief, Ryan Sasson has had the power to enter into contracts on behalf of Legal Helpers Debt Resolution, LLC.
Ryan Sasson is a covered employer within the meaning of the FLSA and the NYLL, and at all times relevant, employed and/or jointly employed Plaintiffs and similarly situated employees.
Facts
Plaintiffs bring the First and Third Causes of Action, pursuant to FLSA, 29 U.S.C. ? 2l6(b), on behalf of themselves and all similarly situated persons who work or have worked for Defendants as ?debt consultants? in New York State, on or after the date that is three years before the filing of the Complaint in this case, who elect to opt-in to this action (the ?FLSA Collective?).
All of the work that Plaintiffs and the FLSA Collective have performed has been assigned by Defendants, and/or Defendants have been aware of all the work that Plaintiffs and the FLSA Collective have performed.
As part of its regular business practice, Defendants have intentionally, willfully, and repeatedly engaged in a pattern, practice, and/or policy of violating the FLSA with respect to Plaintiffs and the FLSA Collective. This policy and pattern or practice includes, but is not limited to:
Willfully failing to pay its employees, including Plaintiffs and the FLSA Collective, overtime wages for hours that they worked in excess of 40 hours per workweek; and b. Willfully failing to record all of the time that its employees, including Plaintiffs and the FLSA Collective, have worked for the benefit of Defendants.
Defendants are aware or should have been aware that federal law required them to pay employees performing non-exempt duties an overtime premium for hours worked in excess of 40 per workweek.
Plaintiffs and the FLSA Collective perform or performed the same primary duties.
Defendants? unlawful conduct has been widespread, repeated, and consistent.
The members of the Rule 23 Class are so numerous that joinder of all members is impracticable.
Upon information and belief, the size of the Rule 23 Class is at least 50 individuals.
Although the precise number of such employees in unknown, the facts on which the calculation of that number depends are presently within the sole control of Defendants.
Defendants have acted or have refused to act on grounds generally applicable to the Rule 23 Class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the Rule 23 Class as a whole.
Throughout the duration of their employment with Defendants, Plaintiff consistently worked more than 40 hours per week, and oftentimes worked more than 60 hours per week.
Plaintiffs? work projects were delegated to them by their supervisors. Plaintiffs?
hours were also dictated by their supervisors.
Defendants were aware that Plaintiffs were working well over 40 hours per workweek, but Defendants failed to pay any overtime compensation for any of the hours they worked over 40 in a workweek.
Plaintiffs were compensated solely by commissions earned and received no hourly pay or salary.
Defendants did not keep accurate records of hours worked by Plaintiffs. Plaintiffs were not required to clock in or out or otherwise record their time and their hours are not reflected on their paystubs.
Plaintiffs? primary duties were routine tasks, including, but not limited to:
- Calling potential clients to get them to sign up for debt reduction programs; and
- Soliciting new clients.
Plaintiffs? primary duty was not directly related to Defendants? management or general business operations.
Plaintiffs? primary duty did not include the exercise of discretion and independent judgment regarding matters of significance.
Plaintiffs were also forced to endure an unprofessional and discriminatory work environment. Drug use, including marijuana and cocaine, ran rampant in the company. In fact, managers and supervisors were aware that drugs were stored at the business location and employees and supervisors used drugs or had knowledge of drug use at the business location.
Plaintiffs, including David Song and Edwin Mosquera, were subject to a hostile work enviromnent and race discrimination. Plaintiffs? supervisors continually and against Plaintiffs? protests made derogatory comments to Song and Mosquera regarding their race. Such conduct included but is not limited to inappropriate emails, inappropriate comments, and gestures.
During approximately the first two months of Plaintiffs? employment by Defendants, Plaintiffs were paid only a draw, without earning any commissions. Plaintiffs were required to repay the draw to Defendants once they began eaming commissions. Plaintiffs? rate of pay during such periods fell below the required minimum wage.
124. Defendants willfully failed to compensate Plaintiffs the applicable minimum hourly wage, in violation of 29 U.S.C. 206(a).
Defendants? violation of the FLSA, as described in this Complaint, has been willliil and intentional.
Due to Defendants? FLSA violations, Plaintiffs and other similarly situated employees are entitled to recover from Defendants, jointly and severally, their unpaid minimum wages and an equal amount in the form of liquidated damages, as well as reasonable attomeys? fees and costs ofthe action, pursuant to the FLSA, specifically 29 U.S.C. 216(b), all in an amount to be determined at trial. ? Source
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