The opinion
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NORTH CAROLINA
ASHEVILLE DIVISION
1:20-cv-33-MOC
SHAILESH JAHAGIRDAR, et al., )
)
Plaintiffs, )
)
Vs. ) ORDER
)
THE COMPUTER HAUS, INC., et al., )
)
Defendants. )
THIS MATTER comes before the Court on Plaintiffs’ post-trial brief in support of
liquidated damages, penalties, and interest to be awarded by the Court in its final order on this
matter. (Doc. No. 330). Defendants have responded in opposition to the awarding of liquidated
damages, penalties, and interest. (Doc. No. 331). This issue is ripe for review because Plaintiff’s
post-trial brief thoroughly articulates their position on the matter of liquidated damages,
penalties, and interest, and Defendants were given the opportunity to respond with their own
opposing position on these matters.
I. BACKGROUND
This matter came before the Court for trial on February 21, 2023. As part of the trial, a
jury of eight (8) persons were impaneled and sworn. Witnesses were sworn and examined. The
jury heard the evidence, the counsels’ arguments, and the Court’s instructions. The jury was
provided with a verdict form and answered the questions on the verdict form. (Doc. No. 327).
The jury determined that Defendant Troy Curran, as an employer, violated the FLSA, and
additionally found that Plaintiffs in North Carolina, South Carolina, Washington, and Oregon
who worked from February 1, 2020, to March 15, 2020, were not paid on time. (Id.). Lastly, the
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jury found that the Plaintiffs from Oregon were not compensated for meal breaks. (Id.). The jury
awarded Plaintiffs back pay totaling $409,803.35. Plaintiffs now request this Court to determine
the appropriate liquidated damages, penalties, and interest to be awarded to plaintiffs as a result
of the jury’s verdict.
II. DISCUSSION
The instant case is a class action lawsuit. Plaintiffs’ class members hailed from various
states with various laws governing liquidated damages, penalties, and interest. Plaintiffs have
been grouped into subclasses by state, and Plaintiffs have requested that liquidated damages,
penalties, and interest be awarded to each subclass in accordance with their state’s law. This
Court will assess the appropriate award for each subclass in turn.
a. North Carolina Class
North Carolina Class Plaintiffs seek liquidated damages for (1) unpaid wages and (2)
unpaid final wages for North Carolina Class Members working in March of 2020. (Doc. No. 330
at 1, 3). The relevant North Carolina statute covering liquidated damages for unpaid wages is the
North Carolina Wage and Hour Act (NCWHA). N.C. GEN. STAT. § 95-25.22. The NCWHA
stipulates:
(a) Any employer who violates the provisions of G.S. 95-25.3 (Minimum Wage), G.S.
95-25.4 (Overtime), or G.S. 95-25.6 through 95-25.12 (Wage Payment) shall be liable to
the employee or employees affected in the amount of their unpaid minimum wages, their
unpaid overtime compensation, or their unpaid amounts due under G.S. 95-25.6 through
95-25.12, as the case may be, plus interest at the legal rate set forth in G.S. 24-1, from the
date each amount first came due.
(a1) In addition to the amounts awarded pursuant to subsection (a) of this section, the
court shall award liquidated damages in an amount equal to the amount found to be due
as provided in subsection (a) of this section, provided that if the employer shows to the
satisfaction of the court that the act or omission constituting the violation was in good
faith and that the employer had reasonable grounds for believing that the act or omission
was not a violation of this Article, the court may, in its discretion, award no liquidated
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damages or may award any amount of liquidated damages not exceeding the amount
found due as provided in subsection (a) of this section.
Id. Accordingly, pursuant to the NCWHA, the court shall award liquidated damages unless the
employer meets its burden of showing that its violations were “in good faith” and that it had
“reasonable grounds for believing [that its actions were lawful].” N.C. GEN. STAT. § 95-25.22(a),
(a1); see, e.g., Morris v. Scenera Research, LLC, 368 N.C. 857, 864 (2016). If the employer cannot
meet its burden, the statute directs the court to grant damages in an amount equal to the unpaid
wages owed.
Here, Defendants have failed to meet their burden of showing their violations were in
good faith and reasonable. First, Defendants made no argument at trial that their violations of the
NCWHA were in good faith and reasonable. Instead, Defendants argued at trial that they
committed no violations at all. However, a jury determined that Defendants did commit these
violations. Based on the evidence and testimony presented at trial, this Court finds that
Defendants have failed to show their actions were in good faith and reasonable. Consequently,
The North Carolina Class is entitled to liquidated damages in the amount equal to the total
unpaid wages owed, $139,515.99, and when added with the jury award of $139,515.99, the total
damages for the North Carolina Class is $279,031.98.
Plaintiffs also seek unpaid final wages for North Carolina Class Members working in
March of 2020. The jury did not award the North Carolina Class any damages for unpaid final
wages. While the jury determined the North Carolina Class was paid late in violation of the
NCWHA, the jury awarded $0 in damages for these unpaid final wages, seemingly believing
Defendant Tory Curran’s testimony that he eventually paid employees in full. Because, pursuant
to the NCWHA, liquidated damages will be equal to the “amount found to be due as provided in
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subsection (a) of this section”, and the amount in subsection (a) for unpaid final wages was
determined to be $0, the North Carolina Class is entitled to $0 in liquidated damages for unpaid
final wages. N.C. GEN. STAT. § 95-25.22(a1).
Lastly, Plaintiffs seek interest on their liquidated damages. The NCWHA provides that
interest may be awarded on the amounts due – i.e., subsection (a). However, liquidated damages
are not part of the “amounts due” under subsection (a). Liquidated damages are instead covered
by subsection (a1), which does not provide for interest on liquidated damages. In other words,
“while the NCWHA states that interest may be recovered on the unpaid wages, it does not
provide that interest is payable on liquidated damages.” Hamilton v. Memorex Telex Corp., 118
N.C. App. 1, 16, 454 S.E.2d 278, 286 (1995). Therefore, liquidated damages are not to be subject
to interest.
b. South Carolina Class
South Carolina Class Plaintiffs similarly seek liquidated damages for (1) unpaid wages
and (2) unpaid final wages for South Carolina Class Members working in March of 2020. (Doc.
No. 330 at 5, 6). The pertinent statute, S.C. CODE ANN. § 41-10-80 provides:
(c) In case of any failure to pay wages due to an employee as required by Section 41-10-
40 or 41-10-50 the employee may recover in a civil action an amount equal to three times
the full amount of the unpaid wages, plus costs and reasonable attorney's fees as the court
may allow. Any civil action for the recovery of wages must be commenced within three
years after the wages become due.
South Carolina Class Plaintiffs request treble damages for unpaid wages. As noted by the
statute’s text, the treble damages provisions of S.C. CODE ANN. § 41-10-80(c) are not mandatory.
Instead, under South Carolina law, the award of treble damages, is a matter of discretion for the
trial court, and it is generally considered inappropriate in circumstances where there is a bona
fide wage dispute. See, e.g., Wall v. Fruehauf Trailer Servs., Inc., 123 F. App'x 572, 580 (4th
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Cir. 2005) (applying South Carolina law); O'Neal v. Intermedical Hosp. of South Carolina, 355
S.C. 499, 585 S.E.2d 526 (2003). A trial court may award treble damages, even absent any
specific finding of bad faith or willfulness, when the trial court addresses the question of whether
a good faith dispute existed over payment of the plaintiff’s wages and determines that no good
faith dispute existed. Wall, 123 F. App'x at 580 (“Although South Carolina law requires that
there be no good faith dispute concerning the wages due in order for treble damages to be
awarded under § 41–10–80(C), the decision is in the complete discretion of the trial court and no
specific finding of bad faith or willfulness is required.”) (citing Rice v. Multimedia, Inc., 318
S.C. 95, 456 S.E.2d 381 (S.C. 1995)).
Here, based on all the evidence presented, there was no good faith dispute concerning the
wages due to Plaintiffs. The Defendant willfully withheld wages due to Plaintiffs. Therefore,
exercising its discretion, this court determines that treble damages are appropriate. Because the
jury awarded $13,621.39 for unpaid wages and commissions, the South Carolina Class is entitled
to liquidated damages in the amount of $27,242.78. Total damages for the South Carolina Class
is $40,864.17 ($13,621.39 jury award + $27,242.78 in liquidated damages).
Plaintiffs once again seek liquidated damages for unpaid final wages for South Carolina
Class Members working in March of 2020. The jury did not award the South Carolina Class any
damages for unpaid final wages. Because the liquidated damages awarded under S.C. CODE ANN.
§ 41-10-80(c) are “equal to three times the full amount of the unpaid wages”, and the jury
determined the amount of unpaid final wages was $0, the South Carolina class is entitled to $0 in
liquidated damages for unpaid final wages.
Lastly, interest will be awarded on Plaintiff’s treble damages. “In South Carolina, the law
allows prejudgment interest on obligations to pay money from the time when, either by
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agreement of the parties or operation of law, payment is demandable, if the sum due is certain or
capable of being reduced to a certainty.” GTR Rental, LLC v. DalCanton, 547 F. Supp. 2d 510,
524 (D.S.C. 2008), judgment entered (Mar. 27, 2008). The fact that the sum due is disputed
“does not render the claim unliquidated for the purposes of an award of prejudgment interest.”
Id. Here the sum is certain or capable of being reduced to certainty based on a mathematical
calculation of the wages owed to the South Carolina Class and interest on treble damages is
appropriate.
c. Washington Class
Washington Class Plaintiffs seek liquidated damages for (1) unpaid wages and (2) unpaid
final wages for Washington Class Members working in March of 2020. (Doc. No. 330 at 7).
WASH. REV. CODE ANN. § 49.52.070 (West), which covers liquidated damages for unpaid wages,
provides:
Any employer and any officer, vice principal or agent of any employer who shall violate
any of the provisions of RCW 49.52.050 (1) and (2) shall be liable in a civil action by the
aggrieved employee or his or her assignee to judgment for twice the amount of the wages
unlawfully rebated or withheld by way of exemplary damages, together with costs of suit
and a reasonable sum for attorney's fees: PROVIDED, HOWEVER, That the benefits of
this section shall not be available to any employee who has knowingly submitted to such
violations.
In other words, that statute allows an employer to be held civilly liable for double damages when
the employer willfully fails to pay wages. See, e.g., Allstot v. Edwards, 114 Wash. App. 625,
633, 60 P.3d 601, 604 (2002). Here, the jury determined that willful deprivation of wages is
exactly what occurred. Furthermore, Plaintiffs’ evidence sufficiently established that Washington
Class Members did not knowingly submit to such violations. Therefore, the Washington Class is
entitled to liquidated damages for unpaid wages in an amount equal to the amount the jury found
to be due for both wages and commissions, which is $185,207.26 ($107,355.54 wages +
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$77,851.72 commissions). The liquidated damages are $185,207.26, and when added with the
jury award of $185,207.26, the total damages for the Washington Class is $370,414.52.
The Washington Class seeks liquidated damages for unpaid final wages under WASH.
REV. CODE ANN. § 49.48.010 (West). While that statute clearly states it is unlawful for an
employer to withhold or defer any portion of an employee's wages, the statute does not provide
for liquidated damages, or treble damages – as Washington Class Plaintiffs have requested.
Moreover, the jury awarded $0 in damages to the Washington Class for unpaid final wages.
Therefore, the Washington class is not entitled to liquidated or treble damages for unpaid final
wages.
Under WASH. REV. CODE ANN. § 19.52.020 (West), Plaintiffs are also entitled to pre- and
post-judgment interest at a rate that does not exceed:
“the higher of: (a) Twelve percent per annum; or (b) four percentage points above the
equivalent coupon issue yield (as published by the Board of Governors of the Federal
Reserve System) of the average bill rate for twenty-six week treasury bills as determined
at the first bill market auction conducted during the calendar month immediately
preceding the later of (i) the establishment of the interest rate by written agreement of the
parties to the contract, or (ii) any adjustment in the interest rate in the case of a written
agreement permitting an adjustment in the interest rate.”
Accordingly, this Court will award interest calculated at a rate of four (4) percentage points
above the equivalent coupon issue yield, as stipulated by the statute.
d. Colorado Class
Colorado Class Plaintiffs seek liquidated damages for unpaid wages. (Doc. No. 330 at 9).
The relevant statute is COLO. REV. STAT. ANN. § 8-4-109(3)(b). An amended version of Section §
8-4-109(3)(b) became effective on January 1, 2023. However, Defendants’ conduct relevant to
the Colorado store occurred before the amendment. Therefore, this Court applies the previous
version of Section § 8-4-109(3)(b) which states:
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If an employee's earned, vested, and determinable wages or compensation is not paid
within fourteen days after the written demand is sent in the manner set forth in paragraph
(d) of this subsection (3), the employer shall be liable to the employee for the wages or
compensation, and a penalty of the sum of the following amounts of wages or
compensation due or, if greater, the employee's average daily earnings for each day, not
to exceed ten days, until such payment or other settlement satisfactory to the employee is
made:
(I) One hundred twenty-five percent of that amount of such wages or
compensation up to and including seven thousand five hundred dollars;
and
(II) Fifty percent of that amount of such wages or compensation that exceed
seven thousand five hundred dollars
Here, the employer failed to pay wages or compensation within fourteen days after this civil
action for the wages or compensation was served on the employer. Therefore, Defendants are
liable to the Colorado Class for the amount of the earned, vested, determinable, and unpaid
wages or compensation plus an automatic penalty. COLO. REV. STAT. ANN. § 8-4-109(3)(d)(II)
(2015). Accordingly, the Colorado Class is entitled to liquidated damages in an amount equal to
one hundred twenty-five (125) percent of the amount the jury found to be due for both wages and
commissions, which is $8,735.68 (125% of $6988.55). Additionally, if Plaintiffs show, as they
have done here, that Defendants failure to pay was willful, the penalty “shall increase by fifty
percent.” COLO. REV. STAT. ANN. § 8-4-109(3)(c) (2015). Therefore, the liquidated damages are
$13,103.52 (150% of $8,735.68), and when added to the jury award of $6988.55, the total
damages for the Colorado Class is $20,092.07. Under COLO. REV. STAT. ANN. § 5-12-102(1)(b)
(West), Plaintiffs are also entitled to pre- and post-judgment interest at a rate of 8% per annum
from the date the wages first became due.
e. Oregon Class
Oregon Class Plaintiffs seek: (1) liquidated damages for unpaid wages; (2) penalties for
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failing to timely pay final wages to Oregon Class Plaintiffs upon termination; and (3) penalties
for failing to provide meal breaks. (Doc. No. 330 at 10–12).
Oregon employees with wage claims filed under the Fair Labor Standards Act (FLSA)
and Oregon statutes can collect liquidated damages under federal law. See, e.g., Mathis v. Hous.
Auth. of Umatilla Cnty., 242 F. Supp. 2d 777, 790 (D. Or. 2002). The FLSA provides for an
award of liquidated damages equal to the amount of compensation for unpaid wages. See 29
U.S.C. § 216(b); See also Calderon v. GEICO Gen. Ins. Co., 809 F.3d 111, 132 (4th Cir. 2015).
Therefore, the Oregon Class is entitled to liquidated damages in an amount equal to the amount
the jury found to be due for both wages and commissions, which is $64,470.16 ($41,783.20
wages + $22,686.96 commissions). Accordingly, the liquidated damages are $64,470.16, and
when added to the jury award of $64,470.16, the total damages for the Oregon Class is
$128,940.32.
The Oregon Class seeks, as well, penalties for failing to timely pay final wages and
failing to provide meal breaks. However, because the jury awarded $0 in damages for failing to
timely pay final wages to Oregon class members and $0 in damages for failing to provide
Oregon class members with meal breaks, this Court will not award penalties.
Lastly, pursuant to OR. REV. STAT. ANN. § 82.010 (West), Plaintiffs seek pre- and post-
judgment interest at a rate of 9% per annum from the date the wages first became due. Because
liquidated damages are awarded under the FLSA, “then prejudgment interest must be offset from
the liquidated damages to avoid a double recovery.” Mathis v. Hous. Auth. of Umatilla Cnty.,
242 F. Supp. 2d 777, 789 (D. Or. 2002). Therefore, interest will be granted, but prejudgment
interest will be offset from the liquidated damages.
III. CONCLUSION
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For the reasons stated herein, liquidated damages, penalties, and interest shall be
awarded, in accordance with this Order, by the Court in its final order on this matter.
IT IS, THEREFORE, ORDERED that:
Liquidated damages, penalties, and interest shall be awarded, in accordance with this
Order, by the Court in its final order on this matter.
July 14, 2023
Koren
Max O. Cogburn i
United States District Judge he
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