Acosta v. World Marble and Granite Corp.
1:19-cv-11211
D. Mass.Jun 17, 2021Background:
- Secretary of Labor sued World Marble and its owner Joao Martins Neto alleging FLSA violations (overtime and recordkeeping).
- DOL Wage and Hour Division investigated twice: June 2, 2012–May 31, 2014 (first) and May 18, 2015–May 13, 2018 (second); first investigation resulted in a settlement and instruction to record start/stop times.
- During the second period employees averaged ~44.25 hours/week but were paid a fixed weekly amount regardless of weekly overtime; employer records of hours were incomplete, inconsistent, and often discarded.
- Parties executed a Tolling Agreement deeming claims filed as of August 14, 2018; DOL calculated $20,433.53 in back wages for seven employees for the second investigatory period but did not submit all underlying payroll records with its motion.
- Secretary moved for partial summary judgment on overtime liability, recordkeeping violations, amount of back wages, liquidated damages (good-faith defense), willfulness, and injunctive relief; court granted summary judgment on liability (overtime and recordkeeping), liquidated damages, willfulness for overtime, and enjoined future violations, but denied summary judgment on the precise back wages amount and willfulness of recordkeeping violations.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Overtime liability (§207) | DOL: employees worked >40 hrs/wk on average and were paid a fixed weekly sum not tied to actual overtime hours, so overtime premium was unpaid | World Marble/Neto: believed they attempted to comply; any flaws were technical; followed DOL instruction on scheduling | Granted — Defendants violated FLSA overtime rules |
| Recordkeeping (29 U.S.C. §211(c)) | DOL: employer failed to keep/preserve daily and weekly hours records; destroyed handwritten daily notes; provided incomplete timecards | Defendants: methods may have been "technically flawed" but they attempted compliance and followed DOL official's instructions | Granted — Recordkeeping violation established |
| Amount of back wages owed | DOL: calculated $20,433.53 using 44.25 avg hrs/wk and wage transcription sheets | Defendants: did not contest calculations but dispute date range/statute of limitations; DOL did not produce underlying pay records with motion | Denied — Summary judgment denied on amount because underlying payroll records were not provided to test reasonableness |
| Liquidated damages / good-faith defense | DOL: liquidated damages appropriate; Defendants did not investigate compliance after first investigation | Defendants: acted in good faith, followed DOL official instruction, settled earlier for financial reasons | Granted — No good-faith defense; liquidated damages available (court did not fix amount) |
| Willfulness (statute of limitations) | DOL: failure to investigate after first investigation shows willfulness for overtime violations (three-year SOL) | Defendants: believed they complied and followed DOL instruction | Mixed: Granted as to willful violation of overtime (willful); Denied as to willfulness of recordkeeping (fact issue remains) |
| Injunctive relief | DOL: ongoing risk; prior violations and no plan to prevent recurrence justify injunction | Defendants: did not oppose request or show plan to prevent recurrence | Granted — Court enjoined future violations of overtime and recordkeeping provisions |
Key Cases Cited
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946) (burden-shifting when employer records are inadequate)
- McLaughlin v. Richland Shoe Co., 486 U.S. 128 (1988) (willfulness standard under FLSA)
- Chao v. Hotel Oasis, Inc., 493 F.3d 26 (1st Cir. 2007) (liquidated damages and employer burden to show good faith)
- Lalli v. Gen. Nutrition Ctrs., Inc., 814 F.3d 1 (1st Cir. 2016) (FLSA overtime statutory requirement)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (summary judgment standard)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment burden-shifting)
- Reich v. Newspapers of New Eng., Inc., 44 F.3d 1060 (1st Cir. 1995) (statute of limitations under FLSA)
- Summers v. City of Fitchburg, 940 F.3d 133 (1st Cir. 2019) (district court discretion to deem Local Rule 56.1 facts admitted)