Kuan v. Notoriety Group LLC

Background

Megan Kuan asserted claims under the Fair Labor Standards Act and New York Labor Law against Notoriety Group LLC and its owners or managers, Anthony Shnayderman, Nathan Leong, and Niv Shaked. The court considered a magistrate judge’s Report and Recommendation recommending default judgment for Kuan.

Review of the Recommendation

Kuan served the Report and Recommendation on the defendants on May 22, 2023. The recommendation warned that objections had to be filed within 14 days and that failing to object would waive further review and could prevent appellate review. No party filed an objection.

Because there were no timely objections, the court reviewed the recommendation for clear error, meaning an obvious mistake in the record. The court found that the recommendation properly evaluated Kuan’s claims and requested relief, and that its reasoning and calculations were supported by the facts and law.

Ruling and Award

The court adopted the Report and Recommendation in its entirety and granted Kuan’s motion for default judgment. A default judgment is a judgment entered when a party has not defended the case. The Clerk was directed to enter judgment against the defendants and in Kuan’s favor for a total of $37,281.70, consisting of:

- $933.00 in unpaid wages; - $14,250 in tips; - $70.50 in spread-of-hours pay; - $15,253.50 in liquidated damages; - $6,260.50 in attorneys’ fees; and - $514.20 in costs.

The judgment also includes prejudgment interest on the unpaid wages and tips, which total $15,183, at nine percent per year. Post-judgment interest is to be calculated from the date the Clerk enters judgment until payment. The court stated that the lack of timely objections, after clear notice of the consequences, precludes appellate review of the decision. The Clerk was directed to close the case.