Asllani v. Hoti

Background

Zaim Asllani brought claims under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) against Samir Hoti and S.H. General Contracting, LLC, doing business as S_H General Contracting Corp. Asllani worked for the company as a construction worker and laborer from January 22, 2018, through May 11, 2018. The opinion states that Hoti was the company’s sole owner and was responsible for paying workers and setting their schedules.

The defendants did not answer the complaint or otherwise appear. The clerk entered defaults against both defendants, and the court later entered an Order of Default after the defendants failed to appear at a scheduled hearing. The court referred the question of damages to Magistrate Judge Robert Lehrburger, who issued a Report and Recommendation (R&R). Neither side objected to the R&R.

Damages for Unpaid Wages

The court reviewed the R&R for clear error because neither party had objected. Under the NYLL, which the court found provided the greater recovery here, Judge Lehrburger calculated Asllani’s regular hourly wage as $25 for the first two weeks and $27.50 for the remainder of his employment. The overtime rates were $37.50 and $41.25, respectively.

The court adopted the finding that the defendants failed to pay:

- $825 for 22 hours of overtime during the first two weeks; - $1,815 for 44 hours of overtime during the following 12 weeks; - $2,200 for 80 regular hours during the final two weeks; and - $1,237.50 for 30 overtime hours during the final two weeks.

The total unpaid-wage award was $6,077.50.

Other Damages

The court declined to award additional pay for New York’s “spread of hours” rule, which can require an extra hour of pay for a workday lasting more than ten hours. The court found that the record did not establish entitlement to that payment for the earlier periods and showed that Asllani worked ten hours per day, rather than more than ten hours per day, during the final two weeks.

The court awarded $6,077.50 in liquidated damages, an additional award equal to the unpaid wages. Because the defendants defaulted, the court found no evidence that they acted in good faith or had reasonable grounds to believe their conduct was lawful. The court did not award a second, duplicative liquidated-damages amount under both statutes.

The court also awarded $181.76 for construction materials Asllani bought for work and was not reimbursed for. It rejected liquidated damages based on those expenses because the court treated them as a separate category from unpaid wages.

The defendants never provided wage notices or wage statements. The court awarded the statutory maximum of $5,000 for the wage-notice violations and $5,000 for the wage-statement violations, for a combined $10,000.

Attorney Fees, Costs, and Interest

Asllani requested $51,960 in attorney fees for 60.85 hours of work. Judge Lehrburger recommended a 65 percent reduction, citing the $850 hourly billing rate, the lack of appropriate delegation of work to more junior personnel, and the straightforward nature of the case. The district court adopted that recommendation and awarded $18,186 in attorney fees.

The court also awarded $1,016.33 in costs, including the filing fee and process-server fees. It further awarded prejudgment interest under the NYLL at nine percent per year on $6,259.26—the unpaid wages and unreimbursed expenses—from March 2, 2018, through entry of final judgment. The court explained that the FLSA’s liquidated damages generally substitute for prejudgment interest, while NYLL liquidated damages can be awarded alongside such interest.

Disposition

The court adopted the R&R in its entirety. It awarded $22,336.76 in damages, consisting of $6,077.50 in unpaid wages, $6,077.50 in liquidated damages, $181.76 in unreimbursed expenses, and $10,000 for wage-notice and wage-statement violations. It also awarded $18,186 in attorney fees, $1,016.33 in costs, and the specified prejudgment interest. The clerk was directed to enter judgment and close the case.