Zhang v. Hiro Sushi at Ollies Inc.

Background

Genxiang Zhang and Xinhui Zhang brought a collective action under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) against former employers. The claims alleged failures to pay minimum wages, overtime, and spread-of-hours pay, along with violations involving wage records, wage notices, and wage statements. Yu Zhen Zheng and Dan Dan Yuan later joined as plaintiffs.

Several defendants resolved or were dismissed from the case. The remaining defendants were Hiro Sushi at Ollie’s Inc., Tao Rong, and Yi Lu. Those defendants defaulted after their attorneys withdrew and they did not appear. Judge John G. Koeltl previously entered default judgment on liability against them. Judge Cronan’s order determined the damages, attorneys’ fees, costs, and interest owed.

Damages Rulings

Because the defendants defaulted, the court accepted the well-pleaded allegations relevant to liability as true, but it separately reviewed the evidence supporting damages. The plaintiffs submitted sworn affidavits describing their work schedules, pay, and missing records. The defendants submitted no competing records or evidence.

The court determined that:

- Genxiang Zhang was owed $7,173.34 in unpaid minimum wages. Because the defendants did not show that they gave him required notice of a tip credit, they could not use his tips to reduce their minimum-wage obligation. - Xinhui Zhang was not owed minimum-wage damages because the court calculated his salary as exceeding the applicable minimum wage, but he was owed $8,371.76 in unpaid overtime and $691.25 in spread-of-hours pay. - Yu Zhen Zheng was not owed minimum-wage damages because his regular hourly equivalent exceeded the applicable minimum wage, but he was owed $6,337.50 in unpaid overtime and $682.50 in spread-of-hours pay. - Dan Dan Yuan was owed $1,959.88 in unpaid minimum wages, $5,640.18 in unpaid overtime, and $431.10 in spread-of-hours pay.

The court awarded liquidated damages under the NYLL for the unpaid minimum-wage, overtime, and spread-of-hours claims, while avoiding duplicative liquidated damages for the same conduct. The liquidated-damages amounts were $7,173.34 for Genxiang Zhang, $9,063.01 for Xinhui Zhang, $7,020.00 for Yu Zhen Zheng, and $8,031.16 for Dan Dan Yuan.

The court also awarded statutory damages for failures to provide wage notices and wage statements. The awards were $5,000 for each category for Genxiang Zhang; $3,950 for wage notices and $5,000 for wage statements for Xinhui Zhang; $3,900 for wage notices and $5,000 for wage statements for Yu Zhen Zheng; and $750 for wage notices and $1,500 for wage statements for Dan Dan Yuan.

Interest and Total Awards

The court awarded nine-percent annual pre-judgment interest on specified unpaid-wage, overtime, and spread-of-hours amounts, calculated from midpoint dates during each plaintiff’s employment until judgment. The court also awarded post-judgment interest under 28 U.S.C. § 1961.

The resulting damages awards were:

- Genxiang Zhang: $24,346.68, plus pre-judgment interest on $7,173.34 from October 1, 2016, until judgment. - Xinhui Zhang: $27,076.02, plus pre-judgment interest on $9,063.01 from April 16, 2015, until judgment. - Yu Zhen Zheng: $22,940.00, plus pre-judgment interest on $7,020.00 from May 16, 2015, until judgment. - Dan Dan Yuan: $18,312.32, plus pre-judgment interest on $8,031.16 from December 18, 2014, until judgment.

Attorneys’ Fees and Costs

The court found the plaintiffs entitled to reasonable attorneys’ fees and costs because they prevailed against the defaulting defendants. It approved a total of $30,086.40 in attorneys’ fees and $820 in costs, for a combined award of $30,906.40.

Disposition

Judge John P. Cronan directed the Clerk to enter judgment for the four plaintiffs against Hiro Sushi at Ollie’s Inc., Tao Rong, and Yi Lu for the specified damages, pre-judgment interest, attorneys’ fees and costs, and post-judgment interest. The court directed the Clerk to close the pending fee motion at Docket Number 143 and close the case.