explaining that the “[MCA] exemption was adopted . . . to avoid any problems that might arise if two government agencies had overlapping jurisdiction”
How later courts described this case
- explaining that the “[MCA] exemption was adopted . . . to avoid any problems that might arise if two government agencies had overlapping jurisdiction”
- “A judgment entered against parties not subject to the personal jurisdiction of the rendering court is a nullity.”
- finding allegations that defendant was an “owner, partner, or manager” of plaintiff’s corporate employer was enough to qualify him as an FLSA and NYLL employer and to impose joint and several liability with corporate defendant
- listing foregoing reasons why subject-matter jurisdiction may not exist even where the complaint contains claims technically arising under federal law
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
-----------------------------------X
DEMITRUS COOPER, on behalf of
himself and others similarly
situated in the proposed FLSA
Collective Action,
Plaintiff,
MEMORANDUM & ORDER
- against – 23-CV-1675 (KAM)(TAM)
FIRE & ICE TRUCKING, CORP., and
CHERYL OWENS,
Defendants.
-----------------------------------X
KIYO A. MATSUMOTO, United States District Judge:
Plaintiff Demitrus Cooper (“Cooper” or “Plaintiff”) brought
this action against Defendants Fire & Ice Trucking, Corp., and
Cheryl Owens (together, “Defendants”) pursuant to the Fair Labor
Standards Act (“FLSA”), 29 U.S.C § 201 et seq. and the New York
State Labor Law (“NYLL”) § 190 et seq. Plaintiff seeks unpaid
wage and overtime pay, unpaid spread-of-hours pay, FLSA liquidated
damages, NYLL liquidated damages, damages for failure to provide
written notice of rate of pay or wage statements, attorneys’ fees
and costs, and pre- and post-judgment interest. (See generally
ECF No. 1, Complaint (“Compl.”).) Defendants failed to appear or
otherwise defend this action. After the Clerk of the Court entered
default against defendants pursuant to Rule 55(a) of the Federal
Rules of Civil Procedure, Plaintiff filed the instant motion for
entry of default judgment. For the reasons stated herein,
Plaintiff’s motion for entry of a default judgment is GRANTED in
part and DENIED in part pursuant to Rule 55(b)(2) of the Federal
Rules of Civil Procedure. Plaintiff is awarded $68,278.73 in
damages, $13,379.38 in pre-judgment interest, $6,279.38 in
attorneys’ fees, and $749.00 in costs, plus post-judgment interest
as prescribed in 28 U.S.C. § 1961.
BACKGROUND
The following facts are taken from Plaintiff’s Complaint,
Motion for Default Judgment, supporting memorandum, and supporting
declaration and affidavits. (See Compl.; ECF No. 26, Mem. in Supp.
of Mot. for Default J. (“Mem.”); ECF No. 27, Decl. of Jason Mizrahi
(“Mizrahi Decl.”); ECF No. 28, Aff. of Demitrus Cooper (“Cooper
Aff.”); ECF No. 33, Supplemental Aff. of Demitrus Cooper (“Cooper
Supp. Aff.”).) Given Defendants’ default, the Court accepts as
true all well-pleaded factual allegations in the Complaint, except
as to damages. See City of New York v. Mickalis Pawn Shop, LLC,
645 F.3d 114, 137 (2d Cir. 2011).
I. Factual Background
Plaintiff alleges that Defendant Fire & Ice Trucking, Corp.
(“Fire & Ice”) is a New York corporation with its principal place
of business in Brooklyn, New York. (Compl. at ¶¶ 9–10.) Fire &
Ice has employees engaged in commerce and an annual gross sales
volume of at least $500,000. (Id. at ¶ 11.) Plaintiff also
alleges that Defendant Cheryl Owens (“Owens”) has “operational
control over,” has an ownership interest in, and “control[s]
significant functions of” Fire & Ice. (Id. at ¶¶ 14-18, 25.)
Plaintiff Cooper worked as a driver and general worker at Fire &
Ice, which the Complaint describes as a courier company. (Id. at
¶ 6.) Cooper worked for Defendants from May 2017 to December 2018,
again from July 2021 to December 2021, and again from June 2022 to
January 4, 2023. (Id.; see also ECF 33-1, Cooper Supp. Aff.
Ex. A.)
According to Plaintiff’s complaint, Defendants had the power
to hire and fire Plaintiff, control the terms and conditions of
Plaintiff’s employment, and determine the rate and method of
Plaintiff’s compensation. (Compl. at ¶ 32.) Further, both Fire
& Ice and Owens “possessed substantial control over” Plaintiff’s
working conditions and the policies and practices regarding
Plaintiff’s employment and compensation. (Id. at ¶ 27.) Defendant
Owens set employees’ schedules and maintained employee records.
(Id. at ¶ 17.) Plaintiff was not required to keep track of his
time and is unaware of Defendants having used sign-in sheets, punch
cards, or any other time tracking methods that would have reflected
the actual number of hours he worked. (Id. at ¶ 44.)
From May 1, 2017, through December 31, 2018, Cooper worked at
Defendants’ courier company five days per week, eleven hours per
day, for approximately 55 hours per week, each week. (Compl. at
¶ 36; see also Cooper Supp. Aff. Ex. A.) Cooper worked the same
schedule, for 55 hours per week, each week, between July 1, 2021,
and Decembre 31, 2021. (Compl. at ¶ 37; see also Cooper Supp.
Aff. Ex. A.) Cooper also worked 55 hours per week, on the same
schedule, between June 1, 2022, through September 1, 2022. (Compl.
at ¶ 38; see also Cooper Supp. Aff. Ex. A.) Between October 1,
2022, and January 4, 2023, Cooper worked between six and seven
days per week, eleven hours per day, for approximately 71.5 hours
per week. (Compl. at ¶ 39; see also Cooper Supp. Aff. Ex. A.)
During all relevant periods that Cooper worked for Defendants, he
was “paid a flat salary of $750 per week.” (Compl. at ¶ 40.)
Defendants required Plaintiff to work in excess of 40 hours
per week, but never paid an overtime premium of one- and one-half-
times the regular rate of pay for those hours worked in excess of
40. (Id. at ¶ 41.) Defendants also did not provide Plaintiff
wage statements in accordance with Section 195(3) of the NYLL.
(Id. at ¶ 46.) Finally, Defendants did not give Plaintiff notice
of his rates of pay, Defendants’ courier company’s regular pay
day, or “such other information” required by Section 195(1) of the
NYLL. (Id. at ¶ 47.)
Plaintiff’s work for Fire & Ice consisted of loading a vehicle
at the company’s dispatch location, driving the vehicle within New
York City to deliver packages, and then returning the vehicle to
the dispatch location. (Cooper Supp. Aff. at ¶ 5.) Plaintiff’s
typical route was in Harlem, NY, and his duties and
responsibilities did not require him to travel outside the state
of New York. (Id. at ¶¶ 8-10.)
II. Procedural Background
Plaintiff commenced this action against Defendants Fire & Ice
and Owens, as well as a third defendant, Pedro J. Fortunato, on
March 5, 2023. (See generally Compl.) Plaintiff subsequently
withdrew the claims against Fortunato via a notice of voluntary
dismissal entered pursuant to Fed. R. Civ. P. 41(a)(1)(A)(i), which
was so ordered by the Court on May 5, 2023. (ECF No. 14.) The
first four counts of Plaintiff’s Complaint allege violations of
the FLSA’s and the NYLL’s minimum wage and overtime regulations.
(See Compl. at ¶¶ 53–72.) The next three counts allege violations
of the NYLL’s wage notice, wage statement, and spread-of-hours pay
regulations. (See id. at ¶¶ 73–83.) Plaintiff seeks certification
of this action as a FLSA collective action, declaratory relief,
unpaid wages, damages, pre-judgment and post-judgment interest,
attorneys’ fees, and costs. (See id. at pp. 13–14.)
On March 8, 2023, the Clerk of Court issued three summons for
each defendant at each of the following addresses: (1) 300 Maspeth
Ave., Brooklyn, NY 11211; (2) 540 Osborn St., #1D, Brooklyn, NY
11212; (3) 514 Crescent St., Brooklyn, NY 11208. (ECF No. 5.) On
March 21, 2023, Plaintiff filed an affidavit of service stating
that the summons and Complaint had been served on Fire & Ice
through the New York Secretary of State on March 20, 2023. (ECF
No. 9.) On March 22, 2023, Plaintiff filed an affidavit of service
stating that the summons and Complaint had been served on Owens
via personal service at 540 Osborn St., #1D, Brooklyn, NY 11212 on
March 17, 2023. (ECF No. 10.) Subsequently, on April 17, 2023,
Plaintiff filed a request for a certificate of default against
Defendants Owens and Fire & Ice, based on their failure to answer
or otherwise respond to the complaint. (ECF No. 11.) The Clerk
of Court entered a certificate of default against both defendants
on April 21, 2023. (ECF No. 12.)
As previously mentioned, on May 5, 2023, Plaintiff filed a
notice of voluntary dismissal without prejudice as to Defendant
Pedro J. Fortunato, which was accepted by the Court on the same
day. (ECF Nos. 13, 14.) Subsequently, Plaintiff filed requests
for several extensions of time to file a motion for default
judgment before ultimately filing the motion on October 2, 2023.
(ECF Nos. 15-22.) On December 19, 2023, the Court denied
Plaintiff’s motion without prejudice, noting that the attached
affidavit in support was from an individual, purporting to be the
plaintiff, who was not a party to the case, and referred to an
employer also not a party to the case. (Docket Order dated
December 19, 2023.) The Court Ordered Plaintiff to Show Cause as
to why Plaintiff’s counsel’s conduct in the matter did not violate
Fed. R. Civ. P. 11(b), and should not be subject to sanctions.
(Id.) Plaintiff’s counsel responded to the Order to Show Cause on
January 5, 2024, and the Court “reluctantly excuse[d] the errors
made in counsel’s filing, but caution[ed] counsel that future non-
compliance with Rule 11 is likely to result in sanctions.” (Docket
Order dated January 5, 2024.)
Plaintiff subsequently filed his renewed motion and corrected
supporting materials on January 11, 2024, and served the Defendants
with the motion papers. (See ECF No. 25, Mot. for Default J.;
Mem.; Mizrahi Decl.; Cooper Aff.) On May 22, 2024, the Court
ordered Plaintiff to submit a supplemental affidavit “providing
additional factual information to allow the Court to determine
whether Plaintiff falls within the Motor Carrier Act of 1935
(‘MCA’) Exemption to the FLSA and NYLL,” along with an alternate
damages spreadsheet calculating Plaintiff’s damages “based on the
method prescribed in 12 N.Y. Comp. Codes R. & Regs. § 142-2.16.”
(Docket Order dated May 22, 2024.) Plaintiff filed the
supplemental response on June 25, 2024, (Cooper Supp. Aff.), and
filed proof of service of the supplemental submission on the
Defendants on June 26, 2024, (ECF No. 34, Affidavit of Service).
LEGAL STANDARD
Pursuant to Rule 55, courts follow a two-step process to enter
default judgment. City of New York v. Mickalis Pawn Shop, LLC,
645 F.3d 114, 128 (2d Cir. 2011). First, when the defendant fails
to plead or otherwise defend and that failure is shown by affidavit
or otherwise, the clerk of court enters the defendant’s default.
See Fed. R. Civ. P. 55(a). A court considers an entry of default
against a party to be an admission of all the well-pleaded
allegations in the complaint regarding liability. Cement &
Concrete Workers Dist. Council Welfare Fund v. Metro Found.
Contractors Inc., 699 F.3d 230, 234 (2d Cir. 2012). Second, if
the defaulting party fails to appear or move to set aside the entry
of default under Rule 55(c), the opposing party may move the court
to enter a default judgment to establish liability and damages.
See Fed. R. Civ. P. 55(b)(2). Before entering a default judgment,
the court “must ensure that (1) jurisdictional requirements are
satisfied; (2) the plaintiff took all the required procedural steps
in moving for default judgment; and (3) the plaintiff's
allegations, when accepted as true, establish liability as a matter
of law.” Jian Hua Li v. Chang Lung Grp. Inc., No. 16-CV-6722 (PK),
2020 WL 1694356, at *4 (E.D.N.Y. Apr. 7, 2020) (citations omitted).
The court also must find a basis for the damages specified in the
default judgment. Jeremiah v. 5 Towns Jewish Times, Inc.,
No. 1:22-cv-5942 (NGG), 2023 WL 5703698, at *3 (E.D.N.Y. Sept. 5,
2023).
Although the court accepts as true all well-pleaded
allegations in the complaint, the court must still ensure the
allegations provide a basis for liability and relief, and the court
has discretion to require further proof of necessary facts. Finkel
v. Romanowicz, 577 F.3d 79, 84 (2d Cir. 2009). If the unchallenged
facts establish the defendant’s liability, the court determines
the amount of damages due. See Credit Lyonnais Sec. (USA), Inc.
v. Alcantara, 183 F.3d 151, 155 (2d Cir. 1999). The court may
determine damages without an in-person hearing based on the
plaintiff’s affidavits so long as it can ensure a basis for the
damages specified in the default judgment. Transatlantic Marine
Claims Agency, Inc. v. Ace Shipping Corp., Div. of Ace Young Inc.,
109 F.3d 105, 111 (2d Cir. 1997).
DISCUSSION
I. Jurisdiction
The Court may not enter a default judgment unless it has both
subject-matter jurisdiction over the action and personal
jurisdiction over each defendant. See Covington Indus., Inc. v.
Resintex A.G., 629 F.2d 730, 732 (2d Cir. 1980) (“A judgment
entered against parties not subject to the personal jurisdiction
of the rendering court is a nullity.”).
A. Subject-Matter Jurisdiction
Federal district courts have original subject-matter
jurisdiction over all civil actions “arising under” the laws of
the United States. 28 U.S.C. § 1331. The FLSA, a federal statute,
creates the cause of action for the first and second counts in
Plaintiff’s Complaint. (See Compl. at ¶¶ 53–62.) Nothing in the
record suggests that Plaintiff’s FLSA claims are immaterial, made
solely for the purpose of obtaining jurisdiction, or wholly
insubstantial or frivolous.1 See A&B Alt. Mktg. Inc. v. Int’l
Quality Fruit Inc., 35 F.4th 913, 915 n.2 (2d Cir. 2022) (listing
foregoing reasons why subject-matter jurisdiction may not exist
even where the complaint contains claims technically arising under
federal law). Plaintiff’s Complaint thus arises under the laws of
the United States, which gives the Court federal question subject-
matter jurisdiction over this action. See, e.g., Rocha v. Bakhter
Afghan Halal Kababs, Inc., 44 F. Supp. 3d 337, 345 (E.D.N.Y.
2014).
The Court has supplemental jurisdiction over Plaintiff’s NYLL
claims. Supplemental jurisdiction extends to state law claims
that so relate to the claims within the court’s original
jurisdiction that they form part of the same case or controversy.
28 U.S.C. § 1367(a). Here, supplemental jurisdiction clearly
extends to Plaintiff’s third and fourth claims, which seek to
recover for unpaid minimum wages and overtime premiums under the
NYLL, because they virtually overlap with Plaintiff’s first two
claims, which seek to recover for closely related violations under
1 The Court notes that a subset of Plaintiff’s FLSA claims are time-barred, as
“[t]he FLSA's limitations period for minimum wage and overtime claims is two
years, unless the employer's violation is willful, in which case the period is
three years.” Mendez v. MCSS Rest. Corp., 564 F. Supp. 3d 195, 208 (E.D.N.Y.
2021); see also 29 U.S.C. § 255(a). Plaintiff filed his claim on March 5, 2023,
so any claims prior to March 5, 2020, would be time-barred under the FLSA. (See
Compl.) Nonetheless, Plaintiff’s claims beginning in July 2021 through January
2023 are timely, and provide federal question jurisdiction for this action.
the FLSA. (See Compl. at ¶¶ 63-72.) Plaintiff’s fifth through
seventh claims, which allege violations of the NYLL’s wage notice,
wage statement, and spread-of-hours pay regulations under the
NYLL, (see id. at ¶¶ 73–83), lack precise analogues in the FLSA.
Still, those claims form part of the same case or controversy
because “[r]esolving all of these claims requires[s] considering
evidence of the hours Plaintiff worked, the rate and method by
which he was paid, the amounts he was paid, and the parties'
records (or lack thereof) on these subjects.” See Jenkins v.
Yellowstone Props., Inc., No. 17-CV-7764 (VEC), 2019 WL 4392955,
at *2 (S.D.N.Y. Sept. 12, 2019) (citing Lyndonville Sav. Bank &
Tr. Co. v. Lussier, 211 F.3d 697, 704 (2d Cir. 2000)).
The Court ultimately lacks subject-matter jurisdiction over,
and dismisses without prejudice, Plaintiff’s wage notice and wage
statement claims under the NYLL, (see Compl. at ¶¶ 73–79), however,
because Plaintiff failed to allege facts to establish his standing
to pursue those claims in federal court. Article III of the
federal Constitution restricts federal court power to hearing
“cases” and “controversies.” U.S. Const. art. III, § 2, cl. 1. A
“case” or “controversy” cannot exist if the plaintiff lacks a
personal stake, or “standing.” TransUnion LLC v. Ramirez, 594
U.S. 413, 423 (2021). To have Article III standing, the plaintiff
must have suffered an injury-in-fact likely caused by the
defendant’s allegedly unlawful conduct and redressable by a
favorable court decision. Id. The injury must be “concrete and
particularized,” id., which means some specific harm to the
plaintiff beyond the defendant’s technical violation of a
statutory mandate, id. at 440. Standing is not “dispensed in
gross.” Id. at 431. Rather, the plaintiff must show standing
separately for each claim he or she presses. Id.
Here, Plaintiff does not link any legally cognizable injury
that he personally experienced to Defendants’ failure to provide
wage statements and wage notices under the NYLL. The Complaint
merely alleges that Defendants failed to comply with these
statutory mandates. (See Compl. at ¶¶ 75, 78.) Plaintiff Cooper’s
supporting affidavit elaborates that “Defendants’ failure to
provide accurate wage notices and accurate wage statements denied
me of my statutory right to receive true and accurate information
about the nature of my employment and related compensation
policies,” however, he still fails to establish an injury-in-fact.
(See Cooper Aff. at ¶ 13.) Without some tangible downstream harm
flowing from the statutory violations Plaintiff cannot have
suffered a concrete injury resulting from Defendants’ violations
of the NYLL’s wage statement and wage notice requirements. Thus,
he lacks Article III standing to pursue those claims in this
Court.2 Multiple courts in this district have reached similar
2 The Court notes that it made the same finding in Proano v. Melrose Home
Improvement Corp., No. 22-CV-6050 (KAM), 2023 WL 8003303, at *4 (E.D.N.Y. Nov.
17, 2023), a case brought by the same counsel as the instant case, and with
results after the Supreme Court’s decision in TransUnion clarified
the requirements to establish standing, beyond bare allegations of
statutory violations. See, e.g., Quieju v. La Jugeria Inc.,
No. 23-CV-264 (BMC), 2023 WL 3073518, at *2 (E.D.N.Y. Apr. 25,
2023); Guthrie v. Rainbow Fencing Inc., No. 21-CV-5929 (KAM),
2023 WL 2206568, at *6 (E.D.N.Y. Feb. 24, 2023); Sevilla v. House
of Salads One LLC, 20-CV-6072 (PKC), 2022 WL 954740, at *7
(E.D.N.Y. Mar. 30, 2022). Thus, because Plaintiff lacks standing,
the Court lacks subject matter jurisdiction over his wage notice
and wage statement claims under the NYLL.
B. Personal Jurisdiction
The Court finds that it has personal jurisdiction over each
defendant. Personal jurisdiction must comport with both state law
and the Due Process Clause of the federal Constitution. Relevant
Sports, LLC v. U.S. Soccer Fed’n, Inc., 61 F.4th 299, 305 (2d Cir.
2023). New York law authorizes personal jurisdiction over domestic
corporations, N.Y. C.P.L.R. (“CPLR”) § 301, and over non-
domiciliary defendants who transact business within the state,
CPLR § 302(a)(1).
The Due Process Clause is satisfied if the court has general
or specific personal jurisdiction over the defendant. Ford Motor
Co. v. Montana Eighth Jud. Dist. Ct., 592 U.S. 351, 358 (2021);
identical language regarding the impact of the violation in the Plaintiff’s
affidavit.
see U.S. Const. amend. XIV, § 1. A court has “general” personal
jurisdiction over an individual defendant sued in his or her place
of domicile and over a corporate defendant sued in its state of
incorporation or principal place of business. Ford, 592 U.S. at
358-59. A court has “specific” personal jurisdiction over a
defendant that purposefully avails itself of the privilege of doing
business in the forum state where the plaintiff’s claim arises out
of the defendant’s contacts with the forum. Id. at 359.
Fire & Ice is a New York corporation with its principal place
of business in Brooklyn, New York. (See Compl. at ¶¶ 9-10.) Thus,
the Court may exercise general personal jurisdiction over Fire &
Ice in accordance with state law and the Due Process Clause. See
CPLR § 301; Ford, 592 U.S. at 359. Plaintiff does not allege
Defendant Owens’ citizenship; however, they allege that she
transacted business within New York as the owner and manager of
Fire & Ice, which is the conduct that gave rise to Plaintiff’s
claims against her. (See Compl. at ¶¶ 14–16, 24-25.) Thus, the
Court may exercise specific personal jurisdiction over her. See
CPLR § 302(a)(1); Ford, 592 U.S. at 359.
II. Procedural Requirements
Before the court will enter a default judgment, the plaintiff
must show that entry of default was appropriate, which itself
requires showing that the defendant was effectively served with
process. Sik Gaek, Inc. v. Yogi’s II, Inc., 682 F. App’x 52, 54
(2d Cir. 2017) (summary order). Local Rule 55.2 imposes the
additional requirements that the plaintiff attach certain
materials to the motion for default judgment and file proof that
all motion papers were mailed to the defendant.
A. Service of Process
The Court finds that Plaintiff properly served each defendant
with the summons and complaint. Federal Rule of Civil Procedure
4(e)(1) and 4(h)(1)(A) permit a party to effect service in
accordance with the rules of the state where the district is
located or where service is made.
As to Fire & Ice, state law permits a party to effect service
by delivering the summons and complaint to the New York Secretary
of State as an agent of the corporation. N.Y. Bus. Corp. Law
§ 306(b)(1). Here, Plaintiff served Fire & Ice with notice of
this action by his process server delivering the summons and
Complaint to Nancy Doughtery, an agent in the Office of the
Secretary of State authorized to accept service for Fire & Ice.
(See ECF No. 9.) Thus, Plaintiff properly served Fire & Ice.
As to Defendant Owens, state law permits a party to effect
service by delivering the summons within the state to the person
to be served. CPLR § 308(1). Here, Plaintiff served Defendant
Owens with notice of this action by his process server delivering
the summons and Complaint to Owens at 540 Osborn St., #1D,
Brooklyn, NY 11212, and leaving those documents with Defendant
Owens herself. (See ECF No. 10.) Thus, Plaintiff properly served
Defendant Owens.
B. Entry of Default
The Court next finds that the Clerk of Court properly entered
a certificate of default against each defendant. Because Fire &
Ice was served on March 20, 2023, (see ECF No. 9), it was required
to answer or otherwise respond to the Complaint by April 10, 2023.
See Fed. R. Civ. P. 12(a)(1)(A)(i). When it failed to do so,
Plaintiff filed a request for a certificate of default and the
other materials required by Local Rule 55.1 on April 17, 2023.
(See ECF No. 11.) The Clerk of Court entered a certificate of
default against Fire & Ice on April 21, 2023. (ECF No. 12.)
Because Defendant Owens was served on March 17, 2023, (see
ECF No. 10), she was required to answer or otherwise respond to
the Complaint by April 7, 2023. See Fed. R. Civ. P.
12(a)(1)(A)(i). When she failed to do so, Plaintiff filed a
request for a certificate of default and the other materials
required by Local Rule 55.1 on April 17, 2023. (See ECF No. 11.)
The Clerk of Court entered a certificate of default against
Defendant Owens on April 21, 2023. (ECF No. 12.)
C. Local Rule 55.2
Local Rule 55.2(b) requires that a plaintiff attach to a
motion for default the Clerk’s certificate of default, a copy of
the complaint, and a proposed form of default judgment. Local
Rule 55.2(c) requires that all papers submitted in connection with
a motion for a default judgment be mailed to the “last known
residence” of an individual defendant or “last known business
address” of a corporate defendant.
Plaintiff’s Motion for Default Judgment is supported by an
affirmation that declares Fire & Ice and Owens were served with
all required documents at their last known addresses3: (1) 300
Maspeth Ave., Brooklyn, NY 11211; (2) 540 Osborn St., #1D,
Brooklyn, NY 11212; (3) 514 Crescent St., Brooklyn, NY 11208. (See
Mizrahi Decl. Ex. G.) Accordingly, Plaintiff has met the
requirements of Local Rule 55.2(c).
III. Liability
Having assured itself that the jurisdictional and procedural
prerequisites to enter a default judgment are met, except as to
Plaintiff’s claims for NYLL wage statement and wage notice
violations, the Court now must assess whether Plaintiff’s well-
pleaded factual allegations establish Defendants’ liability as a
matter of law. As a threshold matter, Plaintiff must show an
employer-employee relationship between himself and Defendants to
prevail on his FLSA and NYLL claims. Chang v. Loui Amsterdam,
Inc., No. 19-CV-3056 (RER), 2022 WL 4586100, at *5 (E.D.N.Y.
3 The Court notes that the Osborn St. and Crescent St. addresses are consistent
with the addresses on record with the Secretary of State for Fire & Ice, see
https://apps.dos.ny.gov/publicInquiry/ (last visited May 17, 2024), and
Defendant Owens was served personally at Osborn St, (ECF No. 10).
Sept. 29, 2022). Because district courts in the Second Circuit
interpret “employer” under the NYLL coextensively with the
definition the FLSA uses, the Court analyzes this threshold issue
based on the FLSA’s definitions. See Sanchez v. Clipper Realty,
Inc., 638 F. Supp. 3d 357, 372 (S.D.N.Y. 2022).
The FLSA defines “employee” as “any individual employed by an
employer,” 29 U.S.C. § 203(e)(1), and “employer” as “any person
acting directly or indirectly in the interest of an employer in
relation to an employee,” 29 U.S.C. § 203(d). The Second Circuit
uses a four-factor test based on “economic reality” to determine
whether an employer-employee relationship exists. Irizarry v.
Catsimatidis, 722 F.3d 99, 104–05 (2d Cir. 2013). The test asks
whether the defendant (1) had the power to hire and fire the
plaintiff, (2) supervised and controlled the plaintiff’s work
schedules or conditions of employment, (3) determined the
plaintiff’s rate and method of payment, and (4) maintained
employment records. Id. at 105. The court must consider the
totality of the circumstances, and no single factor is dispositive.
Id. at 106.
Here, Plaintiff has shown that he had an employer-employee
relationship with Defendants. Plaintiff Cooper alleges that he
was employed as a driver and general worker at Defendants’ courier
company. (Compl. at ¶¶ 6–7.) Plaintiff alleges that Defendants
had the power to hire and fire employees. (Id. at ¶¶ 17, 24-28,
32.) Plaintiff further alleges that Defendant Owens, as the
courier business’s owner and manager, set Plaintiff’s work
schedule and that each of the Defendants controlled the conditions
of Plaintiff’s employment. (Id. at ¶¶ 15, 17, 27.) Plaintiff
also alleges that each defendant determined Plaintiff’s rate and
method of payment. (Id. at ¶ 32.) Finally, Plaintiff alleges
that Defendant Owens, as the courier business’s owner and manager,
maintained employment records. (Id. at ¶ 17.) Thus, all four
factors support a finding that as a matter of economic reality,
the plaintiff had an employer-employee relationship with each
defendant. By the same token, the Court finds that Defendants are
jointly and severally liable for the FLSA and NYLL violations
discussed below. See Pineda v. Masonry Constr., Inc.,
831 F. Supp. 2d 666, 685–66 (S.D.N.Y. 2011) (finding allegations
that defendant was an “owner, partner, or manager” of plaintiff’s
corporate employer was enough to qualify him as an FLSA and NYLL
employer and to impose joint and several liability with corporate
defendant).
Plaintiff has also shown that he is not exempt from the FLSA.
The FLSA does not extend minimum wage or overtime protections to
an employee in a “bona fide executive, administrative, or
professional capacity . . . or in the capacity of outside
salesman.” 29 U.S.C. § 213(a)(1). How the plaintiff spent his or
her time is a factual question, but whether the employee’s
activities trigger one of the FLSA’s exemptions is a legal one.
Isett v. Aetna Life Ins. Co., 947 F.3d 122, 129–30 (2d Cir. 2020).
Here, Plaintiff alleges that he worked at Defendants’ courier
company as a “driver and general worker.” (Compl. at ¶ 6.)
Although Plaintiff’s work as a driver would not fall under any of
the enumerated exemptions to the FLSA set forth in 29 U.S.C. §
213(a)(1), it does raise separate questions regarding whether
Plaintiff falls within the Motor Carrier Act of 1935 ("MCA")
Exemption to the FLSA and NYLL.
“The purpose of the motor carrier exemption is to avoid
subjecting employers to overlapping regulatory regimes.” Fox v.
Commonwealth Worldwide Chauffeured Transp. of NY, LLC, 865 F. Supp.
2d 257, 264 (E.D.N.Y. 2012) (citing Levinson v. Spector Motor
Serv., 330 U.S. 649, 661 (1947)); Khan v. IBI Armored Servs., Inc.,
474 F. Supp. 2d 448, 451 (E.D.N.Y. 2007) (explaining that the
“[MCA] exemption was adopted . . . to avoid any problems that might
arise if two government agencies had overlapping jurisdiction”).
The motor carrier exemption “provides that the FLSA's overtime
provision shall not apply to any employee with respect to whom the
Secretary of Transportation has power to establish qualifications
and maximum hours of service.” Chaohui Tang v. Wing Keung
Enterprises, Inc., 210 F. Supp. 3d 376, 390 (E.D.N.Y. 2016)
(citation omitted). “[A]n employee will fall within the MCA
exemption if (1) the employer qualifies as a ‘motor carrier’ or
‘motor private carrier’ as defined under the MCA; (2) the employee
is engaged in ‘safety-affecting activities’; and (3) is on a
vehicle involved in interstate commerce.” Id. at 400 (citing 29
C.F.R. § 782.2(a)).
Even assuming arguendo that Fire & Ice qualifies as a “motor
carrier” or “motor private carrier” as defined under the MCA, the
facts alleged in the Complaint and supplemental affidavits do not
establish that the goods being transported by Plaintiff “were part
of a practical continuity of interstate movement, so that
plaintiffs would fall under the MCA exemption regardless of the
activities performed.” Id. at 397. Because Plaintiff Cooper has
alleged in his supplemental affidavit that his ”duties and
responsibilities did not require [him] to travel out-of-state,”
the Court finds that his work does not fall under the MCA
exemption. (Cooper Supp. Aff. at ¶10.)
Having found that Plaintiff is not exempt from the FLSA or
NYLL, the Court next turns to the FLSA’s interstate commerce
requirement.4 The FLSA requires that the plaintiff be either
(1) engaged in commerce or the production of goods for commerce or
(2) employed in an enterprise engaged in commerce or in the
production of goods for commerce. 29 U.S.C. §§ 206, 207(a). An
employer is considered an “enterprise engaged in commerce” if it
4 The NYLL lacks this requirement. Gangadharan v. GNS Goods & Servs., No. 18-
CV-7342 (KAM), 2022 WL 824135, at *11 (E.D.N.Y. Mar. 18, 2022).
has an annual gross sales volume of at least $500,000 and employees
who handle, sell, or otherwise work on goods or materials that
have been moving in, or produced for commerce by any person.
29 U.S.C. § 203(s)(1)(A).
Here, Plaintiff alleges the statutory requirements without
providing any specific examples. (See Compl. ¶ 11.) Still, based
on Plaintiff’s allegations that Defendants’ courier company has an
annual gross sales volume of at least $500,000 and has employees
“engaged in commerce or in the production of goods and services
for commerce and handling, selling, or otherwise working on goods
or materials that have been moved in or produced for commerce by
any person,” the Court can reasonably infer that at least some of
the equipment, goods, materials, and supplies used by Defendants
have moved or engaged in interstate or international commerce.
See Kilmchak v. Cardona, Inc., No. 09-CV-4311 (MKB), 2014 WL
3778964, at *5 (E.D.N.Y. July 31, 2014) (noting that several courts
in this district have inferred FLSA enterprise coverage based on
the nature of the defendant’s business notwithstanding such
pleading deficiencies).
Finding these threshold requirements satisfied, the Court
proceeds to consider whether Defendants’ alleged conduct violated
the FLSA and NYLL.
A. Minimum Wage
The FLSA and NYLL each require an employer to pay an employee
at least a minimum hourly rate for each hour the employee works.
For the entire relevant period, the federal minimum wage was $7.25
per hour. 29 U.S.C. § 206(a)(1)(C). The New York City minimum
wage varied during the relevant period but was $10.50 per hour for
small employers5 in 2017, $12.00 per hour for small employers in
2018, and $15 per hour in 2020 and thereafter. NYLL § 652(a).
The plaintiff has the burden to prove that he or she was
improperly compensated for the work he or she performed. Kuebel
v. Black & Decker Inc., 643 F.3d 352, 361 (2d Cir. 2011). If the
defendant has defaulted, however, the court may presume that the
plaintiff’s recollection and estimates of the hours he or she
worked are accurate. Cabrera v. Canela, 412 F. Supp. 3d 167, 181
(E.D.N.Y. 2019). An employer has a non-delegable duty to maintain
accurate records of its employees’ hours. Kuebel, 643 F.3d at
363. Thus, it would be unfair to require more substantial proof
when the defendant is not participating in the case and the
plaintiff lacks the ability to obtain the defendant’s employment
records through discovery. See Cabrera, 412 F. Supp. 3d at 181.
5 Because Plaintiff does not allege any facts showing that Defendants employed
more than ten employees, the Court assumes for purposes of its analysis that
Defendants constitute a small employer for purposes of the New York Labor Law.
See Campos Marin v. J&B 693 Corp., No. 19-CV-569 (JGK)(KHP), 2022 WL 377974, at
*7 (S.D.N.Y. Jan. 21, 2022) (applying lower, small employer rate where plaintiff
failed to allege that employer had eleven or more employees).
Moreover, Plaintiff here states that he was not required to keep
track of his time and that he is unaware of Defendants having used
any time tracking device that would have reflected his actual hours
worked, so more precise evidence may not even exist in this case.
(Compl. at ¶ 44.)
“For purposes of determining whether Plaintiff was paid the
prevailing minimum wage, the Court must determine his regular
hourly rate of pay.” Sanchez v. Ms. Wine Shop Inc., 643 F. Supp.
3d 355, 371 (E.D.N.Y. 2022) (internal quotation marks and citation
omitted). “Because Plaintiff is not covered by the New York
Hospitality Industry Wage Order . . . the regular hourly rate of
pay equals the Plaintiff’s total weekly pay divided by the total
number of hours worked in a given week.” Id. Here, Defendants
appear to have complied with the FLSA and NYLL minimum wage
mandates when they paid Plaintiff Cooper $750 weekly for 55 hours
per week, working out to approximately $13.64 per hour, for the
time he worked prior to December 31, 2018. (See Cooper Supp. Aff.
at ¶¶ 11–13.)
Defendants fell out of compliance, however, when they
continued to pay Plaintiff the same weekly rate of pay for his
similar work in July 2021 and thereafter, despite the increase in
minimum wage in New York City6 to $15 per hour and Plaintiff
6 “When a state's minimum wage is higher than the federal minimum wage, the
employer must pay the state minimum wage to satisfy the FLSA's minimum wage
requirement.” Sevilla v. House of Salads One LLC, No. 20-CV-6072 (PKC), 2022
Cooper’s increased hours from October 2022 forward. (See Cooper
Supp. Aff. at ¶¶ 11–13.) Therefore, the Court finds Defendants
liable for violating the FLSA’s and NYLL’s minimum wage provisions.
B. Overtime
The FLSA and the NYLL’s implementing regulations require an
employer to pay an employee an overtime premium of one and one-
half times the employee’s regular rate for each hour the employee
works above forty each week. 29 U.S.C. § 207(a); 12 N.Y.C.R.R. §§
142-2.2, 146-1.4. Like with the FLSA’s and NYLL’s minimum wage
mandates, the Court may presume the accuracy of Plaintiff’s
recollections and estimates of the hours they worked because
Defendants have defaulted. Cabrera, 412 F. Supp. 3d at 181.
Here, Plaintiff alleges that Defendants him $750 weekly,
regardless of how many hours he worked. (Cooper Supp. Aff. at ¶
13.) Plaintiff typically worked 55 hours per week during the
relevant period prior to October 2022, and 71.5 hours per week
during the relevant period from October 2022 forward. (Id. at
¶¶11-13.) Plaintiff states in his Complaint that he “never
received an overtime premium of one and one-half times his regular
rate of pay” for the hours he worked in excess of 40 hours per
week. (Compl. at ¶ 41.) Thus, the Court finds Defendants liable
for violating the FLSA’s and NYLL’s overtime provisions.
WL 954740, at *5 (E.D.N.Y. Mar. 30, 2022) (citing 29 C.F.R. § 778.5); see also
29 U.S.C. § 218(a).
C. Spread-of-Hours Pay
The NYLL’s implementing regulations require an employer to
pay an employee a “spread-of-hours” premium of one additional
hour’s pay at the basic minimum hourly rate for each workday that
lasts longer than ten hours. 12 N.Y.C.R.R. § 142-2.4. Here,
Plaintiff alleges that he worked at least eleven hours per day for
each day that he was employed by Defendants’ courier company.
(Compl. at ¶¶ 36-39.) As mentioned previously, Plaintiff was paid
a fixed weekly wage, and he explicitly claims that Defendants never
paid him the required spread-of-hours premium. (Id. at ¶ 81.)
Thus, the Court finds Defendants liable for violating the NYLL’s
spread-of-hours provision.
IV. Relief
Because Plaintiff has established Defendants’ liability as to
Plaintiff’s minimum wage, overtime, and spread-of-hours claims,
the Court must determine whether Plaintiff is entitled to the
relief he requests.
A. Collective Action Certification
Plaintiff’s Complaint states that he seeks to prosecute this
action as an FLSA “collective action.” (See Compl. at ¶¶ 49–52,
p. 13.) The FLSA authorizes an employee to sue on behalf of him
or herself and all other similarly situated employees. 29 U.S.C.
§ 216(b). To join in the action, other employees must “opt in” by
written consent. Id. If the plaintiff makes a factual showing
that he or she and the potential opt-in plaintiffs were victims of
a common unlawful policy or plan, the court conditionally certifies
the action as a FLSA collective action and authorizes the plaintiff
to send notice to potential plaintiffs who may be similarly
situated. Myers v. Hertz Corp., 624 F.3d 537, 555 (2d Cir. 2010).
After those plaintiffs have opted in, the court determines whether
they are in fact similarly situated to the named plaintiff. Id.
Because Plaintiff did not reiterate his collective action
certification request in his Motion for Default Judgment, the Court
considers the collective action abandoned. See, e.g., Galicia v.
63-68 Diner Corp., No. 13-CV-3689 (PKC), 2015 WL 1469279, at *1
(E.D.N.Y. Mar. 30, 2015). Additionally, in situations where the
plaintiff seeks to certify a FLSA collective action and the
defendant defaults, other courts in this circuit have entered
default judgments in favor of only the named plaintiffs and have
left the defendants the opportunity to defend themselves against
claims by future plaintiffs. See, e.g., Lopic v. Mookyodong
Yoojung Nakjie, Inc., No. 16-CV-4179 (KAM), 2017 WL 10845064, at
*2 (E.D.N.Y. Sept. 30, 2017); Charvac v. M & T Project Managers of
N.Y., Inc., No. 12-CV-5637 (CBA), 2013 WL 6711485, at *3 (E.D.N.Y.
Dec. 18, 2013). The Court’s decision applies only to Plaintiff
Cooper and not to any of Defendants’ other employees.
B. Damages
The measure of damages in a FLSA or NYLL case is the amount
the plaintiff should have been paid minus the amount the plaintiff
was actually paid. Ramos v. Guaba Deli Grocery Corp., No. 20-CV-
4904 (PAE), 2021 WL 5563714, at *9 (S.D.N.Y. Nov. 29, 2021). The
plaintiff may not recover double damages for the same injury under
both the FLSA and NYLL, though the plaintiff is entitled to relief
under whichever statute provides the greater measure of damages.
Ventura v. Putnam Gardens Parking Corp., No. 20-CV-119 (JKG)(VF),
2023 WL 3603589, at *3 (S.D.N.Y. Mar. 20, 2023), report and
recommendation adopted, 2023 WL 3601649 (S.D.N.Y. May 23, 2023).
Plaintiff Cooper worked the following hours while employed by
the Defendants:
•
“From May 2017 to, through and including December 2018, Cooper
regularly worked five (5) days per week, from approximately
9:00 a.m. to 8:00 p.m. (i.e., for a total of approximately 11
hours each day), and for a total period of approximately 55
hours during each of the weeks, respectively.” (Compl. at ¶
36; Cooper Supp. Aff. at ¶ 11.)
•
“From July 2021 to, through and including December 2021,
Cooper regularly worked five (5) days per week, from
approximately 9:00 a.m. to 8:00 p.m. (i.e., for a total of
approximately 11 hours each day), and for a total period of
approximately 55 hours during each of the weeks,
respectively.” (Compl. at ¶ 37; Cooper Supp. Aff. at ¶ 11.)
•
“From June 2022 to, through and including September 2022,
Cooper regularly worked five (5) days per week, from
approximately 9:00 a.m. to 8:00 p.m. (i.e., for a total of
approximately 11 hours each day), and for a total period of
approximately 55 hours during each of the weeks,
respectively.” (Compl. at ¶ 38; Cooper Supp. Aff. at ¶ 11.)
•
“From October 2022 to, through and including January 4, 2023,
Cooper regularly worked six (6) or seven (7) days per week,
from approximately 9:00 a.m. to 8:00 p.m. (i.e., for a total
of approximately 11 hours each day), and for a total period
of approximately 66 to 77 hours during each of the weeks,
respectively.” (Compl. at ¶ 39; Cooper Supp. Aff. at ¶ 12.)
1. Minimum Wage, Overtime, and Spread of Hours
The amount of unpaid minimum and overtime wages is calculated
by subtracting the amount Plaintiff was actually paid from the
amount that he should have been paid under the FLSA and NYLL. The
greater of Plaintiff’s regular rate of pay7 or the applicable
lawful minimum wage for each period—$10.50 per hour in 2017, $12.00
per hour in 2018, and $15 per hour in 2021 and thereafter—is
7 Because the Court does not find Plaintiff to fall under New York’s Hospitality
Industry Wage Order, it calculates his regular rate of pay “by dividing the
total hours worked during the week into the employee's total earnings,”
resulting in $13.64 prior to October 2022, and $10.50 thereafter. 12
N.Y.C.C.R.R. § 142-2.16
multiplied by 40 to account for the appropriate weekly pay for
Plaintiff’s regular, full-time work hours. Next, any weekly hours
worked in excess of 40 are multiplied by the applicable overtime
wage rate—1.5 times the applicable wage8—and added to the amount
of regular wages. Spread-of-hours pay is calculated by multiplying
the legal minimum wage rate by the number of days that Plaintiff
worked in excess of 10 hours per day in each period, and is added
to the amount of wages Plaintiff should have been paid.
Subtracted from the above combined amounts is the pay that
Plaintiff actually received, which is calculated by multiplying
the $750-per-week rate by the total number of weeks Plaintiff
Cooper worked. This resulting dollar value is the total unpaid
minimum wages, overtime wages, and spread-of-hours pay owed to
Plaintiff. (See Cooper Supp. Aff. Ex. A, Plaintiff’s Damages
Chart.)
The Court’s calculations of the amount Plaintiff should have
been paid for his regular hours (up to 40 each week) is as follows:
8 “The FLSA provides that overtime pay should be calculated based on the
employee's regular rate of pay or the minimum wage, whichever is greater.”
Martinez v. Alimentos Saludables Corp., No. 16-CV-1997 (DLI)(CLP), 2017 WL
5033650, at *16 (E.D.N.Y. Sept. 22, 2017) (citing 29 U.S.C. § 207; 29 C.F.R. §
778.107). “New York law also requires that employees be compensated at “one
and one-half times the employee's regular rate of pay” and provides that the
regular rate should be calculated “in the manner and methods provided in” the
FLSA.” Id. (citing 12 N.Y.C.C.R.R. § 142-2.2.).
Time Period Regular Regular Regular Weeks Pay Owed for
Rate of Hours Pay Owed Worked Regular Hours
Pay or Per Week in
Minimum Period
Wage
May 2017 $13.64 40.0 $545.45 34.9 $19,012.99
through
December 2017
January 2018 $13.64 40.0 $545.45 52.0 $28,363.64
through
December 2018
July 2021 $15.00 40.0 $600.00 26.1 $15,685.71
through
December 2021
June 2022 $15.00 40.0 $600.00 17.3 $10,371.43
through
September 2022
October 2022 $15.00 40.0 $600.00 13.6 $8,142.86
through
January 4,
2 023
Total: $81,576.62
The Court’s calculations of the amount Plaintiff should have
been paid for his overtime hours in excess of 40 each week is as
follows:
Time Period Lawful Over- Overtime Weeks Lawful Pay
Overtime time Pay Owed Worked for Overtime
Wage Hours Per Week in Hours
Period
May 2017 $20.45 15.0 $306.82 34.9 $ 10,694.81
through
December 2017
January 2018 $20.45 15.0 $306.82 52.0 $ 15,954.55
through
December 2018
July 2021 $22.50 15.0 $337.50 26.1 $ 8,823.21
through
December 2021
June 2022 $22.50 15.0 $337.50 17.3 $ 5,833.93
through
September 2022
October 2022 $22.50 31.5 $708.75 13.6 $ 9,618.75
through
January 4,
2 023
Total: $ 50,925.24
The Court’s calculations of the amount Plaintiff should have
been paid for spread-of-hours pay is as follows:
Time Period Lawful Days Weekly Weeks Lawful
Minimum Worked Spread of Worked Spread-of-
Wage per Hours Pay in Hours Pay
Week Period
May 2017 $10.50 5 $ 52.50 34.9 $ 1,830.00
through
December 2017
January 2018 $12.00 5 $ 60.00 52.0 $ 3,120.00
through
December 2018
July 2021 $15.00 5 $ 75.00 26.1 $ 1,960.71
through
December 2021
June 2022 $15.00 5 $ 75.00 17.3 $ 1,296.43
through
September 2022
October 2022 $15.00 6.5 $ 97.50 13.6 $ 1,323.21
through
January 4,
2 023
Total: $ 9,530.36
Combined together, the Court calculates the amount that
Plaintiff Cooper should have been paid during the relevant period
as $142,032.22. Next, the Court calculates the amount that
Plaintiff Cooper was actually paid during the relevant period:
Time Period Weeks Weekly Pay Actual Pay for Period
Worked
May 2017 through 34.9 $750.00 $ 26,142.86
December 2017
January 2018 52.0 $750.00 $ 39,000.00
through December
2018
July 2021 26.1 $750.00 $ 19,607.14
through December
2021
June 2022 17.3 $750.00 $ 12,964.29
through
September 2022
October 2022 13.6 $750.00 $ 10,178.57
through January
4 , 2023
Total: $107,892.86
Subtracting the amount that Plaintiff Cooper was paid
($107,892.86) from the amount that he should have been paid during
the relevant period ($142,032.22), the Court calculates his unpaid
wages as $34,139.37, and awards to Plaintiff Cooper damages in the
amount of $34,139.379.
2. Liquidated Damages
Both the FLSA and NYLL generally provide for double (or
“liquidated”) damages unless the defendant proves a good faith
basis to have believed it was complying with the law. See
29 U.S.C. § 260; NYLL § 663(1). Here, Plaintiff repeatedly
alleges that Defendants’ misconduct was willful, and that
Defendants were not acting in good faith. (See Compl. ¶¶ 54-55,
61-62, 64-65, 71-72, 81-83.) Moreover, Defendants have not
9 The Court notes that this calculation differs from the wage table proffered
by Plaintiff’s counsel. Plaintiff’s table erroneously states the lawful minimum
wage for 2018 as $15.00 and fails to include spread-of-hours pay for 2017.
(Cooper Supp. Aff. Ex. A.) New York City’s minimum wage did not reach $15 per
hour until on and after December 31, 2018, for large employers, and on and after
December 31, 2019, for small employers. NYLL § 652(a).
answered or otherwise appeared in this action, so they have
forfeited their opportunity to prove good faith. Chen v. Oceanica
Chinese Rest., No. 13-CV-4623 (NGG), 2023 WL 2583856, at *16
(E.D.N.Y. Mar. 21, 2023). Thus, the Court finds Plaintiff is
entitled to liquidated damages for Defendants’ violations of the
FLSA and NYLL.
The Second Circuit has interpreted the NYLL to preclude the
duplicate award of liquidated damages under both the NYLL and FLSA.
Rana v. Islam, 887 F.3d 118, 123 (2d Cir. 2018). Because “the law
providing the greatest recovery will govern,” Plaintiff is awarded
liquidated damages under the NYLL, calculated at 100% of total
wages owed under the minimum wage and overtime claims, available
under both the FLSA and NYLL, and spread-of-hours claims, available
only under the NYLL. Charvac v. M & T Project Mgrs. of N.Y., Inc.,
No. 12-CV-5637 (CBA)(RER), 2015 WL 5475531, at *4 (E.D.N.Y. June
17, 2015), report and recommendation adopted as modified, 2015 WL
5518348 (E.D.N.Y. Sept. 17, 2015). The Court therefore awards
liquidated damages to Plaintiff Cooper in the amount of $34,139.37.
3. Pre- and Post-Judgment Interest
Though the FLSA does not permit awarding pre-judgment
interest in addition to liquidated damages, the NYLL does. Fermin
v. Las Delicias Peruanas Rest., Inc., 93 F. Supp. 3d 19, 48–49
(E.D.N.Y. 2015). To avoid giving the plaintiff a windfall,
however, courts award pre-judgment interest only on compensatory
damages and not on any liquidated damages award. Id. at 49.
Courts calculate pre-judgment interest on a NYLL award at a rate
of 9% per year. CPLR § 5004. For cases where damages were incurred
at various times, the court may compute interest either upon each
item from the date it was incurred or upon all the damages from a
single reasonable intermediate date. CPLR § 5001(b). Courts have
discretion to determine a reasonable intermediate date from which
to award pre-judgment interest, and the median date between the
earliest and latest that the plaintiff’s NYLL claim accrued is
considered a reasonable single intermediate date. Elghourab v.
Vista JFK, LLC, No. 17-CV-911 (ARR), 2019 WL 2431905, at *12
(E.D.N.Y. June 11, 2019).
Here, for ease of calculation and transparency, the Court
sets March 3, 2020, as the intermediate date for Plaintiff Cooper
because that date marks the halfway point in his employment with
Defendants during the relevant period. Defendants owe Plaintiff
Cooper daily pre-judgment interest in the amount of $8.42
(($34,139.37 x 0.09 annual rate) / 365 days), starting from the
March 3, 2020, midpoint through the date the Clerk of Court enters
judgment in this case. The number of days between March 3, 2020,
and the date of entry of judgment, July 9, 2024, is 1,589.
Accordingly, the prejudgment interest owed to Plaintiff Cooper is
$13,379.38 (1,589 days x $8.42).
4. Attorneys’ Fees and Costs
The FLSA and NYLL each authorize an award of “reasonable”
attorneys’ fees. 29 U.S.C. § 216(b); NYLL § 663(1). The standard
method for determining reasonable attorneys’ fees is “the number
of hours reasonably expended on the litigation multiplied by a
reasonable hourly rate,” or a “presumptively reasonable fee.”
Hensley v. Eckerhart, 461 U.S. 424, 433 (1983); Arbor Hill
Concerned Citizens Neighborhood Ass'n v. Cty. Of Albany and Albany
Cty. Bd. Of Elections, 522 F.3d 182, 188-90 (2d Cir. 2007). “The
party seeking reimbursement of attorney's fees bears the burden of
proving the reasonableness and the necessity of the hours spent
and rates charged.” Fermin v. Las Delicias Peruanas Rest., Inc.,
93 F. Supp. 3d 19, 51 (E.D.N.Y. 2015). The applicant also must
provide contemporaneous records indicating “for each attorney, the
date, the hours expended, and the nature of the work done.” New
York State Ass'n for Retarded Child., Inc. v. Carey, 711 F.2d 1136,
1148 (2d Cir. 1983). The court may look to fees awarded in recent
FLSA and NYLL cases in the Eastern District of New York to
determine the reasonableness of a fee request. Fermin,
93 F. Supp. 3d at 52.
Here, Plaintiff has provided a spreadsheet showing the number
of hours that each attorney and staff member expended litigating
this case along with each person’s hourly rate. (See Mizrahi Decl.
Ex. B.) This spreadsheet shows that associate Jason Mizrahi
completed 29.15 hours of work on this case and that paralegal
Alexis Abrego completed 1.7 hours. The Court omits the two one-
hour entries for process servers and filing fees, which are listed
under Ms. Abrego’s name but appear to reflect costs to the firm
and not hours of work she billed at her hourly rate. Plaintiff
requests hourly rates of $350 for Mr. Mizrahi and $50 for
Ms. Abrego. (Mem. at 20.) Plaintiff also requests an hourly rate
of $500 for partner Joshua Levin-Epstein, (id.), but the
spreadsheet does not reflect that he did any work on this case and
he is not entitled to fees, (see Mizrahi Decl. Ex. B).
The Court calculates Plaintiff’s total fee request at
$10,287.50, which represents ($350 hourly rate * 29.15 hours) +
($50 hourly rate x 1.7 hours). Puzzlingly, Plaintiff’s motion
requests $10,287.50 “[a]pplying the percentage method,” despite
having spent two pages discussing fees under the “lodestar” method
and attaching a spreadsheet to support the lodestar calculation.
(Mem. at 19-20.) As the Court has previously noted on several
other occasions involving Plaintiff’s counsel, this reference to
the percentage method appears to have been made in error by
counsel. See, e.g., Proano v. Melrose Home Improvement Corp., No.
22-CV-6050 (KAM), 2023 WL 8003303, at *11 (E.D.N.Y. Nov. 17, 2023);
Zabrodin v. Silk 222, Inc., No. 22-CV-7064 (KAM), 2023 WL 8009319,
at *13 (E.D.N.Y. Nov. 20, 2023). The Court encourages Plaintiff’s
counsel to rectify this erroneous reference to the “percentage
method” in future filings.
Similar to Zabrodin v. Silk 222, Inc., a case involving the
same counsel as the instant case, the Court finds the 30.85 hours
for which Plaintiff’s counsel seeks compensation to be
unreasonable, “especially given [Plaintiff’s] counsel's repeated
errors.” 2023 WL 8009319, at *13. A close review of Plaintiff’s
counsel’s billing records reveals inflated billing.
Plaintiff’s counsel billed 1.25 hours each for two half-page
letters requesting an extension of time to file the motion for
default judgment, and 1 hour for the third similar letter
requesting an extension. (Mizrahi Decl. Ex. B. at 2-3.)
Plaintiff’s counsel billed 2.25 hours for the drafting of his
declaration in support of the motion for default judgment despite
the fact that the declaration appears nearly identical to the
declaration filed in Proano v. Melrose Home Improvement Corp., No.
22-CV-6050 (KAM), as ECF No. 21. As mentioned in this Court’s
Memorandum and Order in Zabrodin v. Silk 222, Inc., “[g]iven the
striking similarities between the papers [Plaintiff’s] counsel
filed in these . . . relatively straightforward cases, it was
unreasonable that [Plaintiff’s] counsel could not litigate this
case more efficiently.” 2023 WL 8009319, at *14.
The Court exercises its discretion to deduct a reasonable
percentage of the inflated 30.85 hours for which Plaintiff’s
counsel seek compensation “as a practical means of trimming the
fat” from the fee request. See Gagasoules v. MBF Leasing LLC, 296
F.R.D. 107, 111–12 (E.D.N.Y. 2013) (quoting Kirsch v. Fleet Street,
Ltd., 148 F.3d 149, 173 (2d Cir. 1998)). Thus, the Court deducts
fifteen percent of the hours Mizrahi billed and awards fees for
approximately 24.8 hours of work by Mizrahi and 1.7 hours of work
by Abrego.
The Court also finds Mizrahi's requested hourly rate of $350
excessive because it is at the high end of what courts in this
district generally award for work by senior associates in FLSA and
NYLL cases. See Jones v. Pawar Bros. Corp., No. 17-CV-3018 (PKC),
2023 WL 6214213, at *8 (E.D.N.Y. Sept. 25, 2023) (describing the
hourly rates of senior associates in this District as ranging from
$200-$325). The Court observes that other courts in this district
recently have approved Mr. Mizrahi’s and Ms. Abrego’s hourly
rates, but Mr. Mizrahi’s rate generally has been approved at $325
rather than the $350 that Plaintiff seeks in this case. See, e.g.,
Sims v. Crown Waste Corp., No. 22-CV-6047 (BMC), 2023 WL 363070,
at *2 (E.D.N.Y. Jan. 23, 2023). Moreover, Plaintiff’s counsel
made several errors that needlessly complicated the Court’s
resolution of an otherwise routine default judgment motion.10 See
10 Errors included (1) initially filing the motion for default judgment with an
erroneous affidavit, which required the Court to issue an Order to Show Cause
why Fed. R. Civ. P. 11 sanctions should not be ordered, (Docket Order dated
December 19, 2023); (2) attaching a damages spreadsheet that incorrectly states
the applicable minimum wage, see supra n.9; and (3) making an unsupported
Gesualdi v. Stallone Testing Labs., Inc., No. 10-CV-646 (ENV),
2011 WL 2940606, at *1 (E.D.N.Y. July 19, 2011) (explaining that
filing, drafting, and calculation errors that waste judicial
resources may warrant a fee reduction). Thus, the Court reduces
Mr. Mizrahi’s hourly rate to $250 per hour and awards $6,279.38 in
attorney’s fees, which represents Plaintiff’s lodestar calculation
with a reduced hourly rate.
The Court awards $749.00 in costs, which include process
server charges of $324.00 plus $425.00 in filing fees. See
29 U.S.C. § 216(b); NYLL § 198(4). Plaintiff’s request for this
amount in costs, (Mem. at 20), is supported by documentation
attached to the motion, (see Mizrahi Decl. Ex. C).
5. Post-Judgment Interest
Plaintiff is entitled to post-judgment interest as of right.
28 U.S.C. § 1961. Thus, post-judgment interest shall accrue from
entry of judgment at the federal statutory rate until the judgment
is paid in full.
CONCLUSION
For the reasons stated above, Plaintiff’s Motion for Default
Judgment is granted in part and denied in part.
Plaintiff Cooper is entitled to the principal balance of
$68,278.73 and pre-judgment interest at the daily rate of $8.42
request for attorney’s fees based on the percentage method, see supra p. 37.
Attorney errors pose special problems in the default judgment context, where
courts cannot rely on the adversarial process to reveal them.
from March 3, 2020, to the date of entry of judgment, July 9, 2024,
totaling $13,379.38, as well as post-judgment interest at the rate
set forth in 28 U.S. § 1961(a), from the date of the entry of
judgment until the date of payment in full.
Plaintiff is entitled to attorneys’ fees in the amount of
$6,279.38 and costs in the amount of $749.00.
The Court denies Plaintiff’s request to certify this action
as a FLSA collective action.
The Court dismisses without prejudice Plaintiff’s NYLL claims
for wage notice and wage statement violations.
The Clerk of Court is respectfully directed to enter judgment
awarding Plaintiff $88,686.49, along with statutory post-judgment
interest, in accordance with this Memorandum and Order. Plaintiff
is ordered to serve a copy of this Memorandum and Order and the
Judgment on all defendants and file declarations of service for
each defendant within two days after the Clerk of Court enters the
Judgment.
SO ORDERED. b “4 YY, _—_—
Dated: July 3, 2024 “Vy sip
Brooklyn, New York
KIYO A. MATSUMOTO
United States District Judge
Eastern District of New York
4l