Brathwaite v. Martini Collections Inc.

Background

Rudelle Brathwaite brought claims under the Fair Labor Standards Act and the New York Labor Law against Martini Collections Inc., Martini Collections #1 Inc., and Daoud Alchkifati a/k/a “David.” The complaint alleged that Brathwaite worked as a sales associate from about 2005 until March 2020, was paid a fixed daily rate, worked more than 40 hours in some weeks, and did not receive required minimum wages, overtime pay, payroll notices, or wage statements.

The defendants initially filed an answer, but the district court later struck it as a sanction for failing to comply with discovery obligations. The court entered default against the defendants. The district judge ordered judgment in Brathwaite’s favor and referred the damages issue to Judge Gorenstein for an inquest. The defendants did not respond to Brathwaite’s proposed findings and did not request an evidentiary hearing.

Wage damages

Because of the default, the properly pleaded factual allegations—other than allegations concerning the amount of damages—were accepted as true. Brathwaite still had to provide admissible evidence supporting the amount of damages. Judge Gorenstein concluded that her sworn submissions provided a sufficient basis to calculate damages without a hearing.

The recommendation applied the New York Labor Law because it provided the greater recovery, making it unnecessary to address the Fair Labor Standards Act’s provisions. For the period from November 2, 2014, through December 31, 2015, Brathwaite worked 61 hours per week and was paid $80 per day for six days per week. The recommendation calculated her regular hourly rate as $7.87 and awarded $2,864.65 for unpaid minimum wages and overtime.

For January 2016 through December 2019, Brathwaite worked 48 hours per week during 26 weeks each year and was paid $110 per day for six days per week. Her regular rate was calculated as $13.75 per hour. The recommendation found no unpaid minimum-wage damages for this period but awarded $5,724.16 in unpaid overtime. For January 1, 2020, through March 15, 2020, she worked 40 hours per week at a regular rate of $13.75, below the applicable $15 minimum wage, resulting in $550 in unpaid minimum wages.

The total unpaid-wage award was $14,607.27, consisting of $3,414.65 in unpaid minimum wages and $11,192.62 in unpaid overtime.

Payroll notices and wage statements

Brathwaite also sought statutory damages for the defendants’ alleged failure to provide hiring notices and wage statements required by New York Labor Law § 195. Judge Gorenstein concluded that Brathwaite lacked standing—meaning she had not shown the concrete injury required to invoke federal-court jurisdiction—for these claims.

The complaint did not allege a concrete harm resulting from the missing documents. Brathwaite later asserted that the omissions caused uncertainty about her compensation and hindered her ability to correct the wage violations, but the recommendation found those assertions insufficient. It concluded that no damages could be awarded on the notice and wage-statement claims because the court lacked subject-matter jurisdiction over them.

Liquidated damages and interest

The recommendation awarded liquidated damages equal to 100 percent of the unpaid wages, or $14,607.27. The defendants’ default meant they had provided no evidence of a good-faith basis for believing that their underpayment complied with the law.

The recommendation also awarded prejudgment interest on the unpaid wages, but not on the liquidated damages. Interest was set at nine percent per year, calculated from the midpoint of the wage-loss period: July 9, 2017. The recommended rate was $3.60 per day through the date judgment is entered.

Attorney’s fees and costs

Brathwaite requested $60,695 in attorney’s fees for work by Katz Melinger PLLC. The recommendation found that four attorneys reasonably spent 161.80 hours on the case because the defendants had been represented and the case had proceeded through discovery before default.

Judge Gorenstein reduced the requested hourly rates based on comparable rates in the district: $450 for Kenneth Katz, $450 for Nicole Grunfeld, $300 for Adam Sackowitz, and $225 for Eliseo Cabrera. Using those rates, the recommended attorney’s-fee award was $41,525.50. The recommendation also awarded $1,482 in costs, consisting of the filing fee, process-server fees, and deposition fees.

Recommended disposition

Judge Gorenstein recommended that Brathwaite’s motion for default judgment be granted and that judgment be entered against Martini Collections Inc., Martini Collections #1 Inc., and Daoud Alchkifati a/k/a “David” for $72,222.04, plus prejudgment interest at $3.60 per day from July 9, 2017, until judgment is entered. The recommendation consisted of $14,607.27 in unpaid wages, $14,607.27 in liquidated damages, $41,525.50 in attorney’s fees, and $1,482 in costs.

The parties had 14 days after service to file objections. The opinion states that untimely objections would prevent a party from raising those objections on appeal.