Reyes v. 24 West Food Corp.

Background

Santiago Reyes sued 24 West Food Corp., doing business as Food Dynasty Supermarket, and Abdel K. Abuzahrieh, Mohammed Abuzahrieh, and Hikmat Abuzahrieh. He alleged violations of the Fair Labor Standards Act, a federal wage law, and the New York Labor Law. According to the complaint, defendants failed to pay minimum and overtime wages and failed to pay a spread-of-hours premium or provide required wage notices and wage statements.

Reyes alleged that he worked for defendants from approximately July 4, 2016 through August 13, 2018. He claimed that he worked about 60 hours per week until July 2018 and about 46 hours per week afterward. He also alleged that he was paid $600 per week during part of his employment and $13 per hour for all hours, including overtime hours, from approximately January 2018 through August 2018. He claimed that defendants paid him in cash and did not provide wage statements or other pay documentation.

Defendants’ Summary-Judgment Argument

Defendants moved for summary judgment, which asks the court to decide claims without a trial when there is no genuine dispute over a material fact. They argued that prior Department of Labor Wage and Hour Division investigations, documents, and payments barred or waived Reyes’s claims.

Defendants relied on a 2017 document titled “Summary of Unpaid Wages” and a 2019 document titled “Receipt for Payment of Back Wages, Liquidated Damages, Employment Benefits, or Other Compensation,” referred to in the opinion as the “2019 Waiver.” Defendants argued that the 2017 document concerned wages through August 13, 2016, and that the 2019 Waiver showed that Reyes had received payment and waived claims for wages allegedly owed between September 24, 2016 and August 11, 2018.

Court’s Analysis

The court reviewed Magistrate Judge Sarah L. Cave’s report and recommendation for clear error because no party filed objections. Judge Daniels found no clear error and adopted the report.

The court agreed that the 2017 Summary did not waive Reyes’s federal or New York claims for July 4, 2016 through August 13, 2016. The document contained no waiver language, and defendants did not provide evidence that Reyes agreed to a settlement amount or received unpaid wages. The court also noted that there was no evidence Reyes signed or otherwise executed the document.

The court concluded that the 2019 Waiver released Reyes’s Fair Labor Standards Act claims for the period from September 2016 through August 11, 2018. But the document did not mention New York Labor Law claims, so it released only the federal claims for that period. The court also concluded that genuine disputes of material fact remained concerning Reyes’s claims for July 4, 2016 through September 17, 2016. Defendants had not submitted time sheets or pay records to support their argument that Reyes had not proved that he worked during part of that period.

For August 12 and August 13, 2018, the court agreed that Reyes could not establish entitlement to overtime under the Fair Labor Standards Act based on the court’s calculation of the potential wages for those days. The court nevertheless stated that this did not necessarily prevent recovery under the New York Labor Law. The opinion’s final disposition specifically denies summary judgment on the New York Labor Law claims covering August 13, 2018.

Disposition

Judge Daniels adopted the report and recommendation. Defendants’ motion for summary judgment was granted as to the Fair Labor Standards Act claims covering September 18, 2016 through August 11, 2018, and August 12, 2018 through August 13, 2018.

The motion was denied as to: (1) the Fair Labor Standards Act and New York Labor Law claims covering July 4, 2016 through September 17, 2016; (2) the New York Labor Law claims covering September 18, 2016 through August 11, 2018; and (3) the New York Labor Law claims covering August 13, 2018. The clerk was directed to close the motion.