Garcia v. Saigon Grill Inc.

Background

Isidro Garcia, Eliazar Valentin, and Fermin Quiche sued Saigon Grill Inc. and other defendants for unpaid minimum and overtime wages under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). In a prior order, the court granted the plaintiffs summary judgment on liability for the minimum-wage and overtime claims and on certain NYLL notice and wage-statement claims. It granted the defendants summary judgment on the spread-of-hours and equipment-cost claims and referred damages to Magistrate Judge Sarah L. Cave.

Judge Cave recommended awards of damages, attorney fees, and costs. The defendants objected only to the recommendation concerning Garcia, arguing that some of his damages arose more than two years before the action was filed.

Rulings on the Objections

The court overruled the defendants’ objection. It had previously found that the defendants’ FLSA violations were not willful, making the FLSA limitation period two years. But NYLL provides a six-year limitation period, and the plaintiffs sought recovery under both statutes. Because plaintiffs may not recover twice for the same injury and would recover under the statute providing the greater relief, the court held that the six-year NYLL period governed these wage claims. The court rejected the portions of the recommendation that stated or suggested otherwise.

The court also denied the plaintiffs’ request for an additional $280 in attorney fees for researching and responding to the objection. The plaintiffs had not supplied the contemporaneous time records or legal basis required to support that request.

Prejudgment Interest

Reviewing the unobjected portions of the recommendation for clear error, the court found that the prejudgment-interest calculations needed updating. It applied New York’s nine-percent annual interest rate, calculated interest from midpoint dates based on the longer NYLL period, and calculated interest through the date of the order rather than the date of the recommendation.

The court listed the following awards in its conclusion:

- Garcia: $39,684.97, including $9,105.06 in unpaid minimum wages, $3,702.33 in unpaid overtime wages, $12,807.39 in liquidated damages, $8,598.88 in prejudgment interest, and $7,500 in statutory damages. - Valentin: $6,933.82, including $2,112.00 in unpaid minimum wages, $204.45 in unpaid overtime wages, $2,316.45 in liquidated damages, $1,526.08 in prejudgment interest, and $1,000 in statutory damages. - Quiche: $17,314.73, including $5,933.04 in unpaid minimum wages, $111.57 in unpaid overtime wages, $6,044.61 in liquidated damages, $3,731.94 in prejudgment interest, and $2,500 in statutory damages. - The plaintiffs collectively: $19,531.75 in attorney fees and $465 in costs.

Disposition

The court adopted in part and modified in part Judge Cave’s report and recommendation. It directed the Clerk of Court to terminate open motions, enter judgment consistent with the order, calculate post-judgment interest under federal law, and close the case.