CABREJA v. MARCO & FAMILY TIRES AUTO MECHANIC LLC
2:23-cv-00231
D.N.J.Jun 17, 2025Background
- Plaintiff Sebastian Cabreja worked as an auto mechanic for Marco & Family Tires Auto Mechanic LLC (MFTAM) in Jersey City, NJ from February 2021 to August 2022, working approximately 66 hours per week and receiving a fixed salary of $850 per week.
- Plaintiff alleged he was denied overtime pay and part of his wages were paid in cash, resulting in the filing of fraudulent W-2s by defendants.
- Plaintiff brought claims under the Fair Labor Standards Act (FLSA), New Jersey Wage and Hour Law (NJWHL), New Jersey Wage Payment Law (NJWPL), and for fraudulent tax filings.
- Defendants initially answered the complaint but ceased participating after counsel withdrew, failed to secure new counsel or respond to Court orders, and default was entered against them after multiple opportunities to defend the case.
- The Court addressed jurisdiction, adequacy of service, sufficiency of the causes of action, and assessed damages, ultimately granting Plaintiff's motion for default judgment.
- Plaintiff sought damages for unpaid overtime, liquidated damages, statutory penalties, attorney’s fees, and costs, totaling $175,700.46 as awarded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction & Service | Court had subject matter and personal jurisdiction; proper service was effected. | Defendants waived objections, failed to appear further. | Jurisdiction and service proper. |
| Overtime & Minimum Wage Violations | Worked 66 hours/week for fixed salary; owed overtime under FLSA and NJWHL. | Denials in answer, no substantive defense presented. | Plaintiff entitled to unpaid overtime. |
| Fraudulent Tax Filings | Defendants filed false W-2s omitting cash payments, violating 26 U.S.C. § 7434. | No substantive response. | Statutory damages awarded. |
| Damages and Relief | Sought unpaid wages, liquidated/statutory damages, attorney’s fees, costs. | No challenge. | Plaintiff awarded full relief sought. |
Key Cases Cited
- Chanel, Inc. v. Gordashevsky, 558 F. Supp. 2d 532 (D.N.J. 2008) (establishes standards for default judgment and sufficiency of the pleadings)
- Hritz v. Woma Corp., 732 F.2d 1178 (3d Cir. 1984) (discusses discretion and factors for default judgments)
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946) (employee must demonstrate work performed for which he was not compensated under the FLSA)
- Daimler AG v. Bauman, 571 U.S. 117 (2014) (personal jurisdiction principles for corporations)