Perez v. Rossy's Bakery & Coffee Shop, Inc.

Background

Rafael Perez sued Rossy’s Bakery & Coffee Shop, Inc., doing business as Rossy’s Bakery, and Roselia Caba under the Fair Labor Standards Act (FLSA) and New York Labor Law. He alleged that he worked at Rossy’s for about ten months in 2017, was not paid legally required overtime, and did not receive the wage notices and wage statements required by New York’s Wage Theft Prevention Act (WTPA). The parties consented to trial before a magistrate judge, and the court held a one-day bench trial.

Trial Findings

The court found that Perez was an employee of Rossy’s and that both Rossy’s and Caba were his employers. It found that Perez worked for five days during one week in July 2017, not ten months. The court credited Caba’s testimony that Perez worked on a trial basis and was not formally placed on the payroll because he did not provide the requested paperwork.

The court found that Perez worked from 11:00 a.m. to 7:00 p.m. on each of those five days. It rejected his account that he worked 60 or 63 hours per week, noting inconsistencies between his trial testimony and damages submission and finding Caba’s testimony more credible on the hours worked. The court found that Perez was paid $475 for the week, although the evidence about his compensation was otherwise unclear.

The defendants did not keep complete and accurate records of Perez’s hours. They paid him in cash without providing a written statement showing his gross pay, hourly rate, or hours worked. Caba admitted that she did not give Perez the required wage notice before he began work, and the parties agreed that she did not provide a wage statement when she paid him.

FLSA Coverage and Employer Status

The court found that Rossy’s met the FLSA’s enterprise-coverage requirement because its annual sales exceeded $500,000 in 2017. Although the defendants introduced an unsigned tax return showing gross receipts of $312,532, the court credited Caba’s testimony that the bakery’s typical daily sales were about $1,800. The court therefore found that Rossy’s and Caba were jointly and severally liable for any judgment resulting from Perez’s claims.

Overtime Claim

The FLSA and New York Labor Law generally require overtime pay at one and one-half times the regular rate for work exceeding 40 hours in a workweek. The court found, however, that Perez worked only five days from 11:00 a.m. to 7:00 p.m. and therefore did not work overtime. It concluded that Perez was not entitled to overtime damages or other wage-related compensation. Because he did not establish unpaid wages, the court also denied liquidated damages and prejudgment interest.

Wage Notices and Statements

New York law required the defendants to give Perez a notice stating information such as his pay rate and pay frequency when he was hired, and a written wage statement with each payment. The court found violations of both requirements. Because Perez worked five days, it awarded $250 for the wage-notice violations, calculated at $50 per day, and $1,250 for the wage-statement violations, calculated at $250 per day. The total award was $1,500.

Attorneys’ Fees and Costs

The court awarded Perez $15,138.75 in attorneys’ fees. It approved an hourly rate of $400 for attorney Jacob Aronauer and $125 for paralegal work, finding the hours reasonably expended. It also awarded $1,685.14 in costs for deposition and trial transcripts, service, translator services, and the court filing fee.

Disposition

Judge Sarah L. Cave directed the Clerk to enter judgment for Perez against the defendants for $1,500 in damages, $15,138.75 in attorneys’ fees, and $1,685.14 in costs, and to close the case. The court stated that the defendants did not violate the FLSA or New York Labor Law with respect to Perez’s wages but did violate the WTPA’s wage-notice and wage-statement provisions.