Bautista v. ABC Corp.

Background

Mario Bautista moved for default judgment under Federal Rule of Civil Procedure 55(b)(2) on claims under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). The defendants did not formally appear or respond. The court stated that the well-pleaded factual allegations were therefore deemed admitted, and it relied on those allegations and uncontested documentary evidence.

Bautista alleged that he worked as a delivery worker for ABC Corp. from about October 24, 2014, through March 2016. He alleged working approximately 74 to 81 hours per week, receiving $300 per week and later $350 per week in cash, and receiving no overtime pay. He also alleged that ABC Corp. directed him to purchase an electric bicycle for deliveries, which cost $1,450, and that he spent about $100 per month on maintenance and repairs without reimbursement.

The complaint included claims on behalf of an FLSA collective, but Bautista’s motion sought relief only for his individual claims. Because no collective had been certified and no other workers had joined, the court treated the collective-action request as waived and limited its decision to Bautista.

Default judgment against ABC Corp.

The court applied the factors used to decide whether default judgment was appropriate: whether the default was willful, whether the defendant had a potentially valid defense, and whether denying judgment would prejudice the plaintiff. The court found that all three factors favored Bautista as to ABC Corp. ABC Corp. had been served, did not respond or appear, did not request more time, and did not oppose the motion.

The court then determined whether Bautista’s allegations and evidence established liability for each claim. It found that ABC Corp. was his employer under both the FLSA and NYLL. For the FLSA, the court found that ABC Corp. was an enterprise engaged in interstate commerce based on allegations about its restaurant business, sales, and purchases of food, supplies, and equipment from outside New York and internationally.

The court found liability for minimum-wage and overtime violations under both statutes. It awarded $1,180 for unpaid minimum wages and $45,465.96 for unpaid overtime. Because recovery under both statutes could not be duplicated, the court used the applicable recovery without awarding the same damages twice.

The court also found ABC Corp. liable under New York law for spread-of-hours pay, totaling $6,585.22. Spread-of-hours pay compensates an employee with an additional hour of minimum-wage pay when the interval between the beginning and end of a workday exceeds ten hours. The court further found violations of New York’s wage-notice and pay-statement requirements and awarded $10,000 in related damages.

For the electric bicycle, the court treated the bicycle as a tool of the trade because Bautista alleged that ABC Corp. directed him to obtain it for faster deliveries. It awarded $3,150 for the bicycle’s purchase, maintenance, and repairs.

Additional damages and fees

The court awarded $53,231.18 in liquidated damages under the NYLL, equal to the unpaid minimum wages, overtime, and spread-of-hours pay. It awarded $27,826.05 in prejudgment interest at 9 percent per year, calculated from June 12, 2015, through the date judgment was entered. It also awarded $6,845 in attorney’s fees and $610 in administrative costs.

The court stated that post-judgment interest was required on the total damages award at the rate provided by federal law, beginning when the Clerk entered judgment and continuing until payment.

Individual Doe defendants and disposition

The court did not enter default judgment against John Doe or “Lin” Doe. It held that unidentified or fictitious defendants had not been properly identified and served. The court therefore denied the motion as to those defendants and dismissed Bautista’s claims against them without prejudice.

Judge Laura Taylor Swain granted the motion for default judgment against ABC Corp. only. The total award was $154,814.67, consisting of minimum-wage compensation, overtime compensation, spread-of-hours compensation, bicycle expenses, liquidated damages, prejudgment interest, wage-notice damages, attorney’s fees, and costs. The court directed the Clerk to enter judgment accordingly and close the case.