Rodriguez v. Franco Realty Associates, LLC

Background

Benjamin Rodriguez sued Franco Realty Associates, LLC and Paul Lulaj under the Fair Labor Standards Act and the New York Labor Law. The opinion states that Franco Realty owned and managed a building, and that Rodriguez worked there as superintendent from about 2005 until March 15, 2022. Lulaj was the property manager and Rodriguez’s direct supervisor.

Rodriguez alleged that he worked more than 40 hours per week, including at least 60 hours per week from March 15, 2016, through his termination, but was paid only $100 per week. He also alleged that he was not paid required spread-of-hours compensation, did not receive required wage notices or wage statements, and complained to Lulaj about unpaid minimum wages, overtime, and spread-of-hours pay.

The defendants appeared through counsel but did not answer, move, or otherwise respond to the complaint. The Clerk entered a certificate of default, and Rodriguez moved for default judgment.

Liability Rulings

A default judgment can establish liability based on well-pleaded factual allegations, but the plaintiff still must show that those facts establish legal liability and must support damages with sufficient evidence. The court concluded that Rodriguez’s allegations established that he was an employee covered by the Fair Labor Standards Act and that he was not properly paid minimum or overtime wages. The court also found liability under the New York Labor Law for minimum-wage and overtime violations.

The court further found that Rodriguez’s allegations supported his New York claims for spread-of-hours pay, failure to provide a wage notice, and failure to provide proper wage statements.

The court did not find the required causal connection for Rodriguez’s retaliation claim under New York Labor Law § 215. Although Rodriguez alleged that he made protected complaints about wage violations, he did not specify that complaints were made close in time to the building’s sale and his termination. The court therefore concluded that Rodriguez failed to establish the retaliation claim. The opinion states that default judgment had already been denied as to that claim.

Damages and Judgment

The court awarded or included the following amounts:

- $246,685.00 for unpaid minimum and overtime wages; - $19,852.50 for unpaid spread-of-hours compensation; - $266,537.50 in liquidated damages under the New York Labor Law; - $5,000.00 for failure to provide a wage notice; and - $5,000.00 for failure to provide wage statements.

These amounts total $543,075.00. The Clerk was directed to calculate nine-percent-per-year prejudgment interest on $266,537.50 from March 15, 2019, through the date of judgment. The court did not determine attorney’s fees because Rodriguez had not submitted the required time records. It allowed Rodriguez to file a supplemental post-judgment motion for attorney’s fees within 30 days, with records identifying each attorney’s dates, hours, and work performed.

Disposition

Judge Oetken granted Rodriguez’s motion for default judgment. The Clerk was directed to enter judgment against the defendants for $543,075.00 plus the specified prejudgment interest, and to close the case after entering judgment. The retaliation claim was not included in the judgment, and attorney’s fees remained subject to a later, properly documented motion.