Zaragoza v. PAPPAS OG LLC

Background

Jose Ezdrian Alcocer Zaragoza brought this proposed class action against Pappas OG LLC and Stratis Morfogen, as an individual. The opinion states that the action was filed on November 14, 2024. Morfogen was served with the summons and complaint but failed to answer, move against the complaint, retain counsel, or otherwise appear. The Clerk entered default against him on September 4, 2025, and Morfogen did not attend a show-cause hearing on November 4, 2025.

The complaint alleged that Zaragoza worked approximately 63 hours per week from about March through July 2023 and approximately 45 hours per week from about August 2023 through March 2024. He alleged that he was paid $10 per hour, was not paid required overtime, was paid less frequently than weekly, and did not receive required wage notices or accurate wage statements.

Court’s analysis

The court stated that a default admits the well-pleaded factual allegations in the complaint, but does not automatically establish legal liability. The court must still determine whether the allegations establish a valid claim as a matter of law.

The court found that the complaint adequately alleged that Morfogen was an employer covered by the Fair Labor Standards Act. The complaint alleged that Morfogen owned Pappas OG LLC, operated the business, made personnel and payroll decisions, had authority to hire and fire employees, set wages and schedules, and maintained employment records. It also alleged that Pappas OG LLC engaged in interstate commerce and had annual sales of at least $500,000.

The court found adequate allegations supporting claims under the Fair Labor Standards Act and New York Labor Law for unpaid overtime and minimum wages. It also found adequate allegations supporting claims under New York law for improper payment frequency, failure to provide wage notices, and failure to provide required wage statements. The court noted that the complaint alleged concrete harm from the missing or inaccurate wage information.

Ruling and damages

The court granted Zaragoza’s motion for default judgment. Default judgment was granted on all claims. The judgment was entered against Stratis Morfogen, as an individual, and the matter was referred to Magistrate Judge Sarah Netburn for a damages inquest, which will determine the amount owed.

The order identifies the following wage-and-hour components: $11,800 in unpaid minimum wages; $8,500 in unpaid overtime wages; $20,300 in liquidated damages; $31.84 in lost interest from late payments; $4,339.29 in liquidated damages for late payments; and $10,000 for alleged willful violations of New York Labor Law § 195’s Wage Theft Protection Act. The order states that these components total $54,971.12 in wage-and-hour damages, subject to the damages inquest.

The order also provides for prejudgment interest at a daily rate of $3.04 from September 15, 2023, through the date of judgment; post-judgment interest at the rate provided by 28 U.S.C. § 1961; a 15% penalty if New York Labor Law damages are not paid within 90 days after judgment or the expiration of the appeal period; and statutory costs and reasonable attorneys’ fees incurred in entering and enforcing the judgment. The Clerk was directed to close the motion at Docket 45.