Zapoteco v. Saroop & Sons Inc.

Background

Alejandro Zapoteco brought claims under the Fair Labor Standards Act and the New York Labor Law for unpaid minimum and overtime wages, spread-of-hours pay, failure to provide required wage notices and wage statements, and expenses for items he allegedly had to purchase to perform his work. The defendants were Saroop & Sons Inc., Noor Live Poultry Corp., Prandit Saroop, and Salam Doe.

Salam Doe was not served, and Zapoteco’s claims against Doe were dismissed on consent. Saroop & Sons, Noor Live Poultry, and Prandit Saroop did not appear, answer, or file motions. After a default hearing at which no defendant appeared, the court entered an order of default against those three defendants and referred the case to Magistrate Judge Ona T. Wang to determine damages.

Magistrate Judge’s Recommendation

Judge Wang recommended awarding Zapoteco damages for unpaid minimum and overtime wages, liquidated damages under New York law, wage-notice and wage-statement violations, spread-of-hours pay, work-related expenses, attorney’s fees, and costs. She found that Zapoteco had adequately shown that he worked for the defendants, was improperly paid, and had provided sufficient evidence of the amount and extent of his work. Because the defendants defaulted, they did not provide contrary evidence or a good-faith explanation for the wage violations.

The recommendation calculated $68,973 in unpaid minimum and overtime wages and an equal amount in liquidated damages under the New York Labor Law. It also recommended $5,000 for missing wage notices, $5,000 for missing wage statements, $7,560 in spread-of-hours pay and liquidated damages, $1,320 for required work items, $4,875 in attorney’s fees, and $554 in costs. It recommended nine-percent annual pre-judgment interest from July 16, 2019, through the date of judgment, plus post-judgment interest under 28 U.S.C. § 1961.

District Court’s Review

No party objected to the recommendation. The court therefore reviewed it for clear error on the face of the record and conducted its own review. The court noted that the recommendation’s stated total of $162,155 was incorrect: the listed amounts added up to $162,255.

The court also addressed whether Prandit Saroop was jointly responsible with the two corporate defendants. Under the Fair Labor Standards Act and New York Labor Law, the court considered whether the alleged employer had control over the workers and their work. The complaint alleged that Saroop owned or managed the companies, controlled significant operations, determined employee wages, set schedules, maintained employee records, and had hiring and firing authority. The court concluded that Saroop, Saroop & Sons, and Noor Live Poultry were Zapoteco’s employers and were jointly and severally liable. This means each was responsible for the full judgment, subject to any right of contribution among them.

Disposition

The court adopted Judge Wang’s report and recommendation as modified. It entered judgment against Saroop & Sons, Noor Live Poultry, and Prandit Saroop, jointly and severally, for $162,255, consisting of $137,946 in wage damages; $10,000 in wage-notice and wage-statement damages; $7,560 in spread-of-hours pay; $1,320 for tools of the trade; $4,875 in attorney’s fees; and $554 in costs. The defendants were also held jointly and severally liable for pre-judgment interest at nine percent per year from July 16, 2019, through the date of judgment, and for post-judgment interest under 28 U.S.C. § 1961. The Clerk of Court was directed to enter judgment and close the case.