Gomez v. Big Line Inc.
- Vernon Broderick
- 1:20-cv-01094
- U.S. District Court · Southern District of New York
- 21
In Gomez v. Big Line Inc., Judge Broderick’s magistrate judge recommended default damages for Jose Manuel Gomez’s wage claims.
Jose Manuel Gomez and Big Line Inc., doing business as Warehouse Furniture. The recommendation would provide Gomez damages and fees for alleged wage violations by the company.
What happened
In Gomez v. Big Line Inc., Jose Manuel Gomez sued Big Line Inc., doing business as Warehouse Furniture, under federal and New York wage laws. He alleged that the company paid him $10 per hour, failed to pay required minimum wages and overtime, and did not provide required wage notices or statements. The company did not defend the case, and the court had already entered default judgment on liability.
After reviewing Gomez’s sworn statements and damage calculations, the magistrate judge recommended awarding $12,750 in unpaid minimum wages, $1,275 in unpaid overtime, $14,025 in additional liquidated damages, $10,000 in wage-notice and wage-statement penalties, and $10,135 in attorneys’ fees. The recommendation also included interest on the unpaid wages from February 10, 2019, through the date of judgment, but no costs because Gomez did not provide proof of them.
Magistrate Judge Robert W. Lehrburger recommended this award to Judge Vernon S. Broderick, who had referred the damages issue for review after entering default judgment. The report said the parties had 14 days to object, so the recommendation itself was not stated as the final judgment.
The detailed version
- Gomez v. Big Line Inc. · No. 1:20-cv-01094
- Vernon Broderick
- Nov. 17, 2020
Background
Jose Manuel Gomez, a former mattress maker for Big Line Inc., doing business as Warehouse Furniture, brought claims under the Fair Labor Standards Act (FLSA) and New York Labor Law. The caption also named Tala “Doe?” [last name unknown], but the opinion states that Gomez voluntarily dismissed that defendant without prejudice, leaving Warehouse Furniture as the sole defendant.
Gomez alleged that he worked from about June 2018 through October 23, 2019, generally worked 42.5 hours per week, and received $10 per hour for all hours worked. He alleged that he was not paid the required minimum wage, was paid only his regular rate for overtime, and was not paid for work performed before 8:00 a.m. He also alleged that Warehouse Furniture did not provide a hiring wage notice or wage statements and did not track his hours.
The clerk entered default against Warehouse Furniture on May 8, 2020. After a July 2, 2020 show-cause hearing, Judge Vernon S. Broderick granted default judgment for Gomez and referred the case to Magistrate Judge Robert W. Lehrburger for an inquiry into damages. Warehouse Furniture did not participate in the damages proceeding. The court decided that no additional hearing was necessary.
Legal standards and findings
Because liability had already been decided by default, the court accepted the complaint’s liability-related factual allegations as true, while requiring evidence supporting the amount of damages. The court found that Gomez’s sworn statements and calculations provided a sufficient basis for estimating his hours and unpaid wages, particularly because Warehouse Furniture had not provided payroll records or other contrary evidence.
The court found that the FLSA and New York Labor Law applied. It concluded that Warehouse Furniture met the relevant FLSA employer requirements, including the requirement concerning an enterprise with at least $500,000 in annual gross sales. The court also concluded that Gomez’s claims were within the applicable limitations periods.
Recommended damages
The court used New York’s higher minimum-wage rates because they exceeded the federal rates during the relevant period. It recommended $12,750 for unpaid minimum wages: $3,825 for 2018 and $8,925 for 2019. It also recommended $1,275 for unpaid overtime based on 2.5 overtime hours per week, calculated using overtime rates of $19.50 for 2018 and $22.50 for 2019.
The court recommended $14,025 in liquidated damages, an additional amount equal to the unpaid minimum and overtime wages. It found no evidence that Warehouse Furniture acted in good faith and described the violations as indicating willfulness.
The court recommended $5,000 for failing to provide the required wage notice and another $5,000 for failing to provide required wage statements. It also recommended $10,135 in attorneys’ fees. The court recommended no award for costs or disbursements because Gomez submitted no proof of those expenses.
The recommended total was $48,185, plus prejudgment interest. The court recommended that the clerk calculate interest at 9% per year on $14,025 in unpaid wages, beginning February 10, 2019, and continuing through the date of judgment. The recommendation did not award interest on the liquidated damages.
Disposition and objections
Magistrate Judge Robert W. Lehrburger recommended that damages and fees be awarded against Warehouse Furniture in the amounts described above. The document is a report and recommendation to Judge Vernon S. Broderick, not a statement that the district judge had entered the final damages award. The parties were given 14 days to file written objections, and the report warned that failing to object on time would waive objections and prevent appellate review.
Read the full 21-page opinion on CourtListener, the free public archive maintained by the Free Law Project.