704 F.Supp.3d 337
E.D.N.Y2023Background
- Plaintiff Gokhan Erdemir worked for Allstate Marble & Granite, Kitchens and Baths Inc. (d/b/a Bellagio) in two periods: mid‑Nov 2012–Sep 23, 2013 and Apr 1, 2015–May 31, 2018, performing stonecutting, fabrication, polishing and occasional installations.
- He routinely worked well over 40 hours/week (e.g., 60–90 hours/wk in 2012–2013); compensation was a daily rate (2012–2013) and a mix of daily + hourly pay (2015–2018). Defendants never paid overtime.
- Several payroll checks bounced and the employer withheld the cash portion of wages in the final weeks/days; Plaintiff was terminated after complaining about unpaid wages and bounced checks.
- Serhat and Deniz Soykan (owners) exercised operational control (hiring/firing, payroll, scheduling); parties stipulated Allstate met FLSA enterprise and $500,000 threshold. Defendants admitted recordkeeping/notice violations.
- This is the district court’s post‑trial Findings of Fact and Conclusions of Law (E.D.N.Y., Judge LaShann DeArcy Hall, Nov. 30, 2023): court found Plaintiff proved FLSA and NYLL violations, denied executive‑exemption defense, and found individual liability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1) FLSA overtime liability | Erdemir worked >40 hrs/wk and was never paid 1.5× regular rate; employer records inadequate so Plaintiff’s testimony controls | Plaintiff was an exempt shop manager not entitled to overtime | Court found Plaintiff an employee, proved hours, employer failed to rebut; overtime owed. |
| 2) NYLL overtime and regular‑wage claims | Same factual basis under NYLL; NYLL limitations longer and recordkeeping stricter | Same exemption defense; challenge to damage calculations | Court awarded NYLL overtime and unpaid regular wages; NYLL recordkeeping/notice violations sustained. |
| 3) Executive (managerial) exemption | N/A — Plaintiff was non‑managerial manual worker | Defendants claimed executive exemption (salary + managerial duties) | Exemption rejected: no guaranteed salary, no primary managerial duties, no supervision/hiring authority. |
| 4) Individual liability, liquidated damages, and other remedies | Individual owners exercised operational control so jointly and severally liable; willfulness supports NYLL liquidated damages, statutory wage‑notice/paystub penalties, pre/post judgment interest, attorneys’ fees | Denied or disputed by defendants | Court held Serhat and Deniz personally liable; awarded (or proposed award) unpaid overtime and wages, NYLL liquidated damages (100%), wage notice/stub penalties, pre‑judgment interest, post‑judgment interest, 15% statutory increase if unpaid, and attorneys’ fees to be determined. |
Key Cases Cited
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946) (when employer fails to keep records, plaintiff may prove hours by reasonable inference and employer bears burden to rebut)
- Zheng v. Liberty Apparel Co., 355 F.3d 61 (2d Cir. 2003) (broad definitions of "employee" and use of federal standards when interpreting NY labor law exemptions)
- Herman v. RSR Sec. Servs. Ltd., 172 F.3d 132 (2d Cir. 1999) (economic‑reality test for employee/employer status)
- Corning Glass Works v. Brennan, 417 U.S. 188 (1974) (employer bears burden of proving exemption under FLSA)
- Ramos v. Baldor Specialty Foods, Inc., 687 F.3d 554 (2d Cir. 2012) (standards for FLSA exemptions and mixed‑duty analyses)