Kim v. Superior Cafe Corp.

Background

Chul Kyu Kim sued Superior Cafe Corp., 1490 Superior Foods Corp., Rasam Almontaser, and defendants identified in the caption as Mustaf “Doe,” Jammut “Doe,” and Laji “Doe.” He alleged violations of the Fair Labor Standards Act and the New York Labor Law based on unpaid overtime, liquidated damages, spread-of-hours pay, failures involving wage statements and wage notices, attorneys’ fees, and costs.

Kim alleged that he worked as a cook from about April 20, 2015, through June 2020. From April 20, 2015, through March 2020, he alleged that he worked 58 hours each week and received a weekly cash salary ranging from $1,200 to $1,500. From about March 2020 through June 2020, he alleged that he worked 39 hours each week and received $1,500 per week. He alleged that he received no overtime pay and no required notice in English or Korean about his pay rate, payday, or other required information. He also alleged that the defendants did not provide pay statements identifying his regular and overtime rates, hours, minimum-wage and overtime requirements, or deductions and credits.

Procedural History

The defendants did not answer, appear, or otherwise move in response to the complaint. On July 28, 2021, the court entered default judgment against them and referred the case to Magistrate Judge Robert W. Lehrburger for an inquest to determine damages. Kim submitted proposed findings, legal conclusions, and supporting documents. The defendants did not respond.

Magistrate Judge Lehrburger’s October 7, 2021 Report and Recommendation proposed awarding Kim $233,646.92 in unpaid overtime damages, the same amount in liquidated damages, $10,000 for wage-statement and wage-notice violations, prejudgment interest at 9%, $8,768.75 in attorneys’ fees, and $782 in costs. No party objected. Because there were no objections, Judge Daniels reviewed the report for clear error, meaning an obvious mistake, and found none.

Court’s Analysis

The court held that Kim was not entitled to spread-of-hours pay because he had not alleged that he worked more than 10 hours on any workday. The court also agreed that the recoverable employment period began on April 23, 2015, rather than April 20, 2015. It explained that the New York Labor Law’s six-year limitations period applied because it permitted recovery at least as great as the Fair Labor Standards Act for the relevant period and no damages were available only under the federal law.

Disposition

Judge Daniels adopted Magistrate Judge Lehrburger’s Report and Recommendation in full. The court awarded Kim $233,646.92 in unpaid overtime damages; $233,646.92 in liquidated damages; $10,000 for wage-statement and wage-notice violations; prejudgment interest at the statutory rate of 9%, calculated by the Clerk from September 26, 2017; $8,768.75 in reasonable attorneys’ fees; and $782 in costs. The Clerk was directed to close the motion identified as ECF No. 29. The opinion also states that the letter motion identified as ECF No. 34 was moot and should be closed.