Hinson v. Tammys Nail Utopia LLC
1:23-cv-02395
E.D.N.YJul 31, 2024Background
- Plaintiff Celia Hinson worked for Tammys Nail Utopia LLC and its owner, Tamara Ollivierre, from September to December 2022, often exceeding 100 hours per week, but received only $400/week and no overtime.
- Hinson alleged violations of the Federal Labor Standards Act (FLSA) and New York Labor Law (NYLL) regarding unpaid minimum wage, unpaid overtime, lack of wage notices, and improper wage statements.
- Hinson was paid via checks to cash or Zelle, received no paystubs, and was not compensated at all for work at a related business, Hidden Gem.
- Defendants failed to appear or respond, leading to an entry of default and a motion for default judgment by Hinson.
- The court reviewed procedural compliance with local rules, service requirements, and standing, and held an inquest hearing with Hinson as the sole witness.
- The court ultimately recommended granting default judgment in part (on wage claims) and dismissing certain claims (wage notice, wage statement, and spread-of-hours) for lack of standing or abandonment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Unpaid minimum wage & overtime | Hinson was underpaid and denied OT. | No response/appear. | Liability for minimum/OT wage violations. |
| Wage notice & statement violations (NYLL) | Lack of notices/statements harmed her | No response/appear. | Dismissed; no concrete injury = no standing |
| Spread-of-hours under NYLL | Claim originally sought | No response/appear. | Dismissed; Plaintiff abandoned claim |
| Attorneys’ fees/reasonableness | Sought higher fee rate/total amount | No response/appear. | Fees awarded at reduced hourly rate |
Key Cases Cited
- Finkel v. Romanowicz, 577 F.3d 79 (2d Cir. 2009) (all well-pleaded factual allegations in complaint deemed admitted upon default)
- Enron Oil Corp. v. Diakuhara, 10 F.3d 90 (2d Cir. 1993) (factors and preference for resolving disputes on merits rather than by default)
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (default does not admit damages; plaintiff must prove damages)
- Flaks v. Koegel, 504 F.2d 702 (2d Cir. 1974) (burden on plaintiff to establish damages with reasonable certainty)
- TransUnion LLC v. Ramirez, 594 U.S. 413 (2021) (Article III standing requires a concrete, particularized injury)
- Daimler AG v. Bauman, 134 S. Ct. 746 (2014) (requirements for general jurisdiction over entities)