New York Court Allows Companies to Amend Answer in Wage Dispute

Employee granted limited discovery on exemption defenses before summary judgment motions can be refiled

Published on Feb. 25, 2026

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A New York federal district court denied cross-motions for summary judgment in an FLSA case, allowing two companies to amend their answer to assert the administrative and executive exemptions as affirmative defenses, while also permitting the employee to conduct limited supplemental discovery on these specific exemptions to avoid any possible prejudice before the parties could refile their motions.

Why it matters

This case highlights the complexities around employee classification and wage and hour laws, as companies seek to assert exemptions while employees challenge their status. The court's decision to allow the amendments but also grant the employee additional discovery time reflects the nuanced balancing act judges must perform in these types of disputes.

The details

The case was brought by an employee against Silverstone Property Group, LLC and Madison Realty Capital, L.P. under the Fair Labor Standards Act (FLSA) and New York Labor Law. The companies initially did not assert any exemption defenses in their answer, but the court has now deemed their answer amended to include the administrative and executive exemptions. However, the employee will be permitted to conduct limited supplemental discovery on these specific exemptions before the parties can refile their summary judgment motions.

  • The case was filed in a New York federal district court.

The players

Silverstone Property Group, LLC

One of the companies named as a defendant in the FLSA case.

Madison Realty Capital, L.P.

The other company named as a defendant in the FLSA case.

Employee

The plaintiff who brought the FLSA case against the two companies.

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What’s next

The employee will be permitted to conduct limited supplemental discovery on the administrative and executive exemptions asserted by the companies, after which the parties can refile their summary judgment motions.

The takeaway

This case underscores the importance of proper employee classification and the need for companies to carefully assert any applicable exemptions, while also allowing employees the opportunity to challenge those exemptions through discovery before summary judgment.