United States District Court, N.D. Alabama, Southern Division
MEMORANDUM OPINION AND ORDER 
H. ENGLAND, III UNITED STATES MAGISTRATE JUDGE.
April 5, 2019, Defendants Roberto's Used Cars, Inc.,
Maria Catano, Jose Guadalupe Catano,  Jamie Perez, and Alejandro
Reynosa (collectively, the “Defendants”) moved to
dismiss the complaint pursuant to Fed.R.Civ.P. 12(b)(6).
(Doc. 7). On April 19, 2019, Plaintiff Jesus Aguiar
(“Aguiar” or “Plaintiff”) moved to
strike exhibits to the motion to dismiss or, in the
alternative, convert the motion to one for summary judgment
and allow discovery prior to ruling upon it. (Doc. 11). The
same day, Aguiar filed a separate response to the motion,
again alternatively requesting discovery. (Doc. 12). The
undersigned set a deadline for Defendants to oppose the
motion to strike, (doc. 14), but Defendants did not file a
Rule of Civil Procedure 12(b)(6) permits dismissal when a
complaint is deficient under Rule 8 and fails to state a
claim upon which relief can be granted. Under Rule 8(a)(2), a
pleading must contain “a short and plain statement of
the claim showing that the pleader is entitled to
relief.” “[T]he pleading standard Rule 8
announces does not require ‘detailed factual
allegations,' but it demands more than an unadorned,
Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct.
1937, 1949 (2009) (citing Bell Atl. Corp. v.
Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955 (2007)). Mere
“labels and conclusions” or “a formulaic
recitation of the elements of a cause of action” are
insufficient. Iqbal, 556 U.S. at 678, 129 S.Ct. at
1949 (citations and internal quotation marks omitted).
“Nor does a complaint suffice if it tenders
‘naked assertion[s]' devoid of ‘further
factual enhancement.'” Id. (citing
Twombly, 550 U.S. at 557, 127 S.Ct. 1955).
Additionally, “[i]n alleging fraud or mistake, a party
must state with particularity the circumstances constituting
fraud or mistake.” Fed.R.Civ.P. 9(b).
survive a motion to dismiss, a complaint must contain
sufficient factual matter, accepted as true, to state a claim
to relief that is plausible on its face.”
Iqbal, 556 U.S. at 678, 129 S.Ct. at 1949 (citations
and internal quotation marks omitted). A complaint states a
facially plausible claim for relief “when the plaintiff
pleads factual content that allows the court to draw the
reasonable inference that the defendant is liable for the
misconduct alleged.” Id. (citation omitted).
The complaint must establish “more than a sheer
possibility that a defendant has acted unlawfully.”
Id.; see also Twombly, 550 U.S. at 555, 127 S.Ct. at
1965 (“Factual allegations must be enough to raise a
right to relief above the speculative level.”).
Ultimately, this inquiry is a “context-specific task
that requires the reviewing court to draw on its judicial
experience and common sense.” Iqbal, 556 U.S.
at 679, 129 S.Ct. at 1950.
to the complaint, Aguiar worked as a laborer for
Roberto's Used Cars, a car repair shop and dealership
located in Columbiana, Alabama. (Doc. 1 at ¶¶ 3,
13, 26). The Catanos own Roberto's Used Cars, and Perez
and Reynosa manage and operate the shop. (Id. at
¶¶ 14-17). Over the eleven years that Aguiar worked
for Roberto's Used Cars, he was required to work
approximately sixty-one hours per week, but was never paid
overtime; instead, Defendants paid him a flat weekly rate in
cash. (Id. at ¶¶ 23, 29-33, 37). Aguiar
alleges Defendants' actions violate the overtime
compensation provisions of the Fair Labor Standards Act
(“FLSA”). (Id. at 40-43).
deny Aguiar worked as many hours as he claims; instead, they
state Aguiar resided on the shop premises in a mobile home,
as he did not have a place to reside, and in any event was
compensated for all the hours he worked. (Doc. 7 at 2-3).
They also contend Roberto's Used Cars is a small business
exempt from the FLSA because its gross sales are less than
$500, 000 per year. (Id. at 3). In support of this
latter argument, they attach Alabama sales tax returns from
2017 and 2018. (Doc. 7-1). Aguiar points out that
Defendants' evidence is incomplete and, in any event,
outside the pleadings. (Doc. 11 at 1-2). In his motion to
strike, and continuing into his response to the motion to
dismiss, he requests the opportunity to conduct discovery
into Roberto's Used Cars' gross sales. (Id.;
doc. 12 at 5-6). Aguiar states his overtime claim is facially
plausible, and Defendants' arguments as to whether he
worked as many hours as he claimed or was compensated for
those hours are simply factual disputes not subject to
resolution on a Rule 12(b)(6) motion to dismiss. (Doc. 12 at
Sufficiency of Allegations of Overtime Work
do not directly challenge Aguiar's complaint facial
sufficiency. Instead, their attack on the complaint is that
an alternative explanation exists for Aguiar's presence
at the shop during the hours he says he worked. This does not
support dismissal under Rule 12(b)(6), because the court
takes the facts alleged in the complaint as true. Lanfear
v. Home Depot, Inc., 679 F.3d 1267, 1275 (11th Cir.
2012) (citation omitted). Defendants' arguments are not
well taken, and their motion is due to be denied on this
Enterprise Coverage Under the FLSA
employer can be subject to the overtime provisions of the
FLSA in one of two ways: individual coverage or enterprise
coverage. See 29 U.S.C. § 207(a)(1). Aguiar
alleges Defendants are subject to enterprise coverage. (Doc.
1 at ¶ 21). “Employers fall within the FLSA's
enterprise coverage section if they (1) have employees
engaged in commerce or in the production of goods for
commerce, or have employees handling, selling, or otherwise
working on goods or materials that have been moved in or
produced for commerce by any person and (2) have at least
$500, 000 of annual gross volume of sales made or business
done.” Hurst v. Youngelson, 354 F.Supp.3d
1362, 1382 (N.D.Ga. 2019) (quoting Polycarpe v. E & S
Landscaping Service, Inc., 616 F.3d 1217, 1220 (11th
Cir. 2010)) (internal alterations and quotation marks
omitted). See also 29 U.S.C. § 203(a)(1)(A).
evidentiary submissions consist of monthly state sales
returns. For 2018, Defendants attach the sales returns from
January, February, March, April, May, June, July, August,
September, and October, but omit the returns from November
and December. (Doc. 7-1 at 1-10). The total reported sales
are $474, 980. (Id.). For 2017, Defendants ...