Gunawan v. Sake Sushi Restaurant
2012 U.S. Dist. LEXIS 136506
E.D.N.Y2012Background
- Gunawan sued Sake Sushi Restaurant, Inc. for unpaid federal and New York wages and tip-related deductions; default was entered after the Restaurant ceased participating in proceedings.
- Court granted default judgment after finding the Restaurant failed to participate in discovery and pretrial submissions; damages were calculated based on Gunawan’s recollections in light of the default.
- Restaurant employed Gunawan as a waitress in Queens from May 2006 to June 2007, working about 67 hours per week, paid a flat $500/month, and required tip sharing with kitchen staff.
- Allegations included unpaid minimum wage, unpaid overtime, unlawful tip deductions, and spread-of-hours violations under FLSA and NYLL; following earlier summary judgment proceedings, issues remained regarding coverage, limitations, and tolling.
- Court noted Gunawan’s wage claims accrued at successive paydays and addressed willfulness, tolling, and the interaction of FLSA and NYLL remedies, including liquidated damages and prejudgment interest.
- The case culminated in an award totaling $68,431.84, including unpaid wages, tip deductions, overtime, spread-of-hours, liquidated damages, prejudgment interest, and litigation costs/fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FLSA coverage for enterprise engagement | Gunawan asserted Restaurant was an exempt enterprise engaged in commerce. | Restaurant contested enterprise coverage; argued insufficient factual basis. | Court found FLSA coverage applicable given defaults and record, but noted the pleading required non-conclusory facts; Restaurant forfeited its challenge by not opposing later motions. |
| Willfulness and FLSA statute of limitations | Gunawan argued willfulness extended the period to three years. | Restaurant did not plead willfulness; defense objection insufficient after default. | Court held willfulness proven; applied three-year limit to federal claims; Restaurant forfeited limitations defenses due to default. |
| Timeliness of NYLL claims | NYLL claims timely under six-year period. | Not contested separately; focus on FLSA. | All NYLL claims timely under six-year limitations. |
| Damages computation including tips and spread-of-hours | Gunawan awarded unpaid wages, tip deductions, overtime, spread-of-hours, with NYLL and FLSA calculations. | Not contesting amounts as related to damages beyond liability. | Damages awarded: $19,711.08 unpaid min. wage; $3,679.00 unlawful tips; $5,288.97 overtime; $1,956.06 spread-of-hours. |
| Liquidated damages, prejudgment interest, fees and costs | Seek cumulative liquidated damages under FLSA and NYLL; prejudgment interest on pre-FLSA and pre-liquidated amounts; fees/costs reasonable. | Default precludes good-faith defense; not argued substantively. | Court awarded $15,571.00 total liquidated damages; prejudgment interest $9,053.73; attorney’s fees $12,252.50; costs $919.50; total judgment $68,431.84. |
Key Cases Cited
- Mt. Clemens Pottery Co., 328 U.S. 686 (U.S. 1946) (shifts burden to employee when records are missing; inference-based proof allowed)
- McLaughlin v. Richland Shoe Co., 486 U.S. 128 (U.S. 1988) (two-tiered limitations for willful violations under FLSA)
- Trans World Airlines, Inc. v. Hughes, 449 F.2d 51 (2d Cir. 1971) (default-based liability requires well-pleaded, non-conclusory facts)
- Rivera v. Ndola Pharmacy Corp., 497 F. Supp. 2d 381 (E.D.N.Y. 2007) (employee may prove unpaid wages with recollection when records absent)
- Finkel v. Romanowicz, 578 F.3d 79 (2d Cir. 2009) (default judgment framework for liability and damages)