NEW YORK (LN) — The First Department unanimously reversed a Court of Claims dismissal of the overtime lawsuit, holding that the claimants' 123-page claim satisfied substantive pleading requirements and that the statute of limitations accrues with each paycheck rather than on a single date.
The appellate court determined that the claim complied with Court of Claims Act § 11(b) because it detailed each claimant's position, employment duration, pay rates, and the specific FLSA violations alleged. Claimants also annexed timesheet charts listing the hours each claimant allegedly worked in the weeks between March 2022 and January 2025.
The court rejected the lower court's finding that the entire claim accrued on a single date, September 27, 2024. Instead, the panel relied on Second Circuit precedent to rule that "each paycheck represents a potential cause of action" and that a new violation accrues on the next regular payday following the work period.
Despite reinstating the claim, the First Department affirmed the Court of Claims' denial of the claimants' request for permission to file a late claim. The appellate court found no basis to disturb the lower court's decision, noting that claimants failed to comply with Court of Claims Act § 10(6), which requires that a proposed claim containing all required information accompany a motion for leave to file late.
The court noted that the claimants failed to attach the proposed claim to their motion, a defect that constituted grounds for denial under the plain meaning of the statute.
The Attorney General's notice rejecting the initial service of the claim was effective because it specified the claim was "incomplete" and unverified. Consequently, the six-month limitation period began on November 27, 2024, meaning the complete and verified claim served on May 27, 2025, was within the statutory period.
The decision was issued by a panel consisting of Justice Moulton, Presiding Justice, and Justices Scarpulla, Kapnick, Shulman, and Michael.