Lopez v. Emerald Staffing, Inc.

Background

Five plaintiffs—Herminio Javier Lopez, Javier De Jesus, Jorge Ramon, Carmelo Velazquez, and Hector Ramirez—brought claims under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL). They alleged that they worked at Blue Dog Kitchen as delivery workers, dishwashers, cleaners, stock workers, porters, and general helpers during periods between 2014 and 2018. They alleged that Emerald Staffing, Inc., Blue Dog Kitchen, Elizabeth Slavutsky, and Boris Slavutsky paid them less than the required minimum wage and improperly shared or withheld tips.

The defendants initially appeared and filed an answer, but later stopped participating. Their lawyers withdrew after communication problems, the defendants failed to appear at a required conference, and the Clerk entered a certificate of default against all defendants. The defendants did not respond to the plaintiffs’ motion for default judgment or to the written materials submitted for the damages proceeding.

Court’s Analysis

The court explained that a default judgment requires two steps: entry of a certificate of default and then a court decision on whether judgment should be entered. A default accepts well-supported allegations of liability as true, but the court must still determine whether those allegations state a valid claim and whether the requested damages are supported by evidence.

The court found that the defendants were the plaintiffs’ employers under both the FLSA and the NYLL. The allegations showed that Elizabeth Slavutsky and Boris Slavutsky controlled employment conditions, including hiring, firing, pay rates, schedules, supervision, and employment records. The court held that all defendants were jointly and individually responsible for any damages awarded.

The court also found that the plaintiffs satisfied the FLSA’s interstate-commerce requirement because their work involved handling food and cleaning products that had traveled across state lines. The plaintiffs were entitled to the full statutory minimum wage because the defendants failed to give the required notice for taking a tip credit. Although Javier De Jesus signed a document concerning the sharing of tips with kitchen employees, the document did not notify him that the defendants intended to use a tip credit and was dated after his employment began.

Because the NYLL’s six-year limitations period covered the plaintiffs’ employment periods and provided at least as much relief as the FLSA, the court awarded damages under the NYLL. The court awarded liquidated damages equal to the unpaid wages because the defaulting defendants did not show that they acted in good faith. It also awarded prejudgment interest on the compensatory wage damages, but not on the liquidated damages.

Damages and Disposition

The court determined damages from the plaintiffs’ affidavits and other written submissions, without holding a hearing. It awarded:

- Herminio Javier Lopez: $12,808.11, including $5,624.50 in unpaid wages, $5,624.50 in liquidated damages, and $1,559.11 in prejudgment interest. - Javier De Jesus: $34,195.36, including $14,561.75 in unpaid wages, $14,561.75 in liquidated damages, and $5,071.86 in prejudgment interest. - Jorge Ramon: $1,713.44, including $777.00 in unpaid wages, $777.00 in liquidated damages, and $159.44 in prejudgment interest. - Carmelo Velazquez: $3,745.79, including $1,683.50 in unpaid wages, $1,683.50 in liquidated damages, and $378.79 in prejudgment interest. - Hector Ramirez: $2,454.42, including $1,110.75 in unpaid wages, $1,110.75 in liquidated damages, and $232.92 in prejudgment interest.

The damages totaled $54,917.12. The court also awarded $23,975.00 in attorneys’ fees and $693.00 in costs. Judge Sarah L. Cave granted the plaintiffs’ motion for default judgment and directed the Clerk of Court to close the motion and the case.