Agureyev v. H.K. Second Ave Restaurant Inc.

Background

Natalie Agureyev and Darya Igamberdiev brought claims under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). They alleged that they worked as waitresses at the defendants’ restaurant in Manhattan during 2015, were paid only in customer tips, and did not receive required minimum wages. They also alleged that they were not paid overtime or New York spread-of-hours pay, and did not receive required wage notices.

Agureyev alleged that she worked from April 10 through May 15, 2015, generally working 30 to 44 hours per week. Igamberdiev alleged that she worked from March through September 2015, generally working 24 to 50 hours per week. The plaintiffs alleged that Shaheen Khan controlled and managed H.K. Second Ave. Restaurant, Inc. and was their employer along with the company.

Default and liability

A default judgment is a judgment entered when a defendant fails to participate in the case. H.K. Second Ave. Restaurant, Inc. and Khan failed to respond after their attorney withdrew and after the court warned them that the plaintiffs could seek a default. The clerk issued a certificate of default as to those two defendants, and they did not respond to the motion for default judgment.

The court concluded that the well-pleaded allegations established liability under the FLSA and NYLL. It found that the defendants were the plaintiffs’ employers, that the FLSA’s interstate-commerce requirement was satisfied, and that the defendants’ conduct was willful for purposes of the FLSA’s three-year limitations period. The court also found that the defendants had not given the plaintiffs the notice required to claim a tip credit, so they could not subtract tips from the minimum wages owed.

The court determined that Agureyev worked 158.5 straight-time hours and 12.5 overtime hours, including one day exceeding ten hours. It determined that Igamberdiev worked 473.76 straight-time hours, no overtime hours, and four days exceeding ten hours. The court held that the defendants were jointly and severally liable under the FLSA and NYLL for the damages awarded to the plaintiffs.

Damages

The court awarded Agureyev $4,508.96, consisting of:

- $1,386.88 in unpaid minimum wages; - $164.06 in unpaid overtime wages; - $8.75 in spread-of-hours pay; - $1,559.69 in liquidated damages; - $1,050 in statutory damages for wage-notice violations; and - $339.58 in prejudgment interest.

The court awarded Igamberdiev $12,117.38, consisting of:

- $4,145.40 in unpaid minimum wages; - $35 in spread-of-hours pay; - $4,180.40 in liquidated damages; - $2,900 in statutory damages; and - $856.58 in prejudgment interest.

The court applied New York’s liquidated-damages provisions because they provided greater relief in this case and awarded liquidated damages equal to the unpaid wages. It also awarded prejudgment interest on the compensatory damages, excluding liquidated damages.

Attorneys’ fees

The plaintiffs requested $29,533.75 in attorneys’ fees. The court reduced several hourly rates, excluded entries for an unidentified staff member, and reduced the billed hours by 15% because the time claimed was excessive for a two-plaintiff default case and included vague or administrative entries. The court awarded $19,280 in attorneys’ fees.

Disposition

Judge Sarah L. Cave granted the plaintiffs’ motion for default judgment against H.K. Second Ave. Restaurant, Inc. and Shaheen Khan. The total judgment was $35,906.34, consisting of $4,508.96 for Agureyev, $12,117.38 for Igamberdiev, and $19,280 in attorneys’ fees. The court dismissed the plaintiffs’ claims against Maha Khondoker with prejudice under Federal Rule of Civil Procedure 41(b).