De Jesus v. P&N Cuisine Inc.

Background

Francisco Ayala de Jesus and Fredy Salustio Flores sued P&N Cuisine Inc. and Nimnual Likituarin, their former employers, under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL). They filed the motion individually rather than seeking certification of a class or collective action. Neither defendant appeared or responded to the lawsuit, and the Clerk entered a certificate of default.

The complaint alleged that the plaintiffs worked as delivery workers and food preparers at Thai Select. Ayala allegedly worked about 52 hours per week from March 2016 through September 2019, while Salustio allegedly worked between about 54 and 62.5 hours per week during his employment from approximately November 2017 through September 2019. The plaintiffs alleged that they performed substantial non-tipped work, were paid below New York’s minimum wage for some or all of their employment, did not receive required wage notices or accurate wage statements, lost tips, incurred deductions, and had to buy items such as bicycles, delivery bags, and clothing needed for work.

Court’s analysis

A default judgment is a judgment entered when a defendant fails to respond. The court treated the well-pleaded allegations about liability as true, but required evidence supporting the amount of damages.

The court ruled on the nine asserted causes of action as follows:

- New York minimum wage: Default judgment was established under the NYLL. The court concluded that Ayala was paid below the applicable New York minimum wage throughout his employment and that Salustio was paid below it from January through December 2018. The complaint did not show that the employers could use the tip-credit rule, which can allow a lower cash wage when required notice is provided and wages plus tips reach the minimum wage. - Federal minimum wage: The court found no FLSA liability because the plaintiffs were paid more than the federal minimum wage of $7.25 per hour throughout their employment. - Spread of hours: The court found liability under the NYLL because both plaintiffs alleged that they regularly worked more than ten hours in a day without receiving the required additional hour of pay at the basic minimum hourly rate. - Wage notices and wage statements: The court found liability under NYLL sections 195(1) and 195(3) because the employers allegedly did not provide required written notices about pay rates and paydays or accurate wage statements. - Equipment costs: The court denied default judgment on this claim. The complaint did not state how much the plaintiffs spent on bicycles, uniforms, or other equipment, or whether those costs reduced their wages below the required minimum. - Tip deductions: The court found liability under NYLL section 196-d based on allegations that the defendants withheld $500 in tips from each plaintiff. - Wage deductions: The court found liability under NYLL section 193 as to Salustio because he alleged that the defendants deducted $3.60 per shift for meals he never ate. The opinion does not state a separate finding of liability on this claim as to Ayala. - Timely payment: The court denied liability under NYLL section 191 because the allegation that the defendants repeatedly paid wages late was conclusory and lacked facts about when or how often payments were made.

Ruling and disposition

Judge Abrams concluded that the plaintiffs’ motion for default judgment was granted in part and denied in part. The court directed that a separate order refer the case to Magistrate Judge Fox for an inquest into damages and attorneys’ fees. The opinion did not determine the amount of damages or attorneys’ fees. The Clerk was directed to terminate the motion at docket entry 26.