1:23-cv-07878
E.D.N.YApr 28, 2025Background
- Larry Nicholas sued several corporate deli defendants and an individual, Obayah (variously known as Jabbar Mazab/Shaiboob Ahmed Obayah/Charlie Obayah), alleging violations of the FLSA and NYLL related to unpaid minimum wage, overtime, and spread of hours pay.
- Defendants failed to appear, leading to a default being entered against them.
- Plaintiff moved for default judgment and to amend the case caption to reflect Obayah's legal name(s).
- The Magistrate Judge recommended granting default judgment (in part) against the corporate defendants, amending the caption, awarding damages, but denying default judgment against Obayah due to initial non-compliance with the SCRA.
- Plaintiff supplemented his submission with evidence regarding Obayah’s non-military status, addressing the SCRA deficiency.
- The District Court reviewed the objections, found procedural compliance, and determined Obayah was jointly and severally liable, entering default judgment against all defendants, but dismissing wage notice and statement claims for lack of standing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment can be entered for FLSA/NYLL claims | Nicholas is entitled due to defendants’ default, wage law violations proven | No response; defendants defaulted | Default judgment granted; legal requirements met |
| Amending caption to reflect Obayah's true identity | Caption should reflect Obayah's legal names | No response | Amendment granted |
| SCRA compliance before entering default against Obayah | Provided supplemental declaration showing non-military status | No response | SCRA compliance satisfied; no bar to default against Obayah |
| Whether Obayah is individually liable as an "employer" | Obayah had authority to hire/fire, control pay and schedules | No response | Obayah is an employer under FLSA/NYLL; joint/several liability |
| NYLL wage notice/statement claims require standing | Claimed violations, but suffered no concrete injury | No response | Claims dismissed without prejudice for lack of standing |
Key Cases Cited
- Bricklayers & Allied Craftworkers Loc. 2 v. Moulton Masonry & Constr., 779 F.3d 182 (default judgment may be granted if allegations suffice for liability)
- Herman v. RSR Sec. Servs. Ltd., 172 F.3d 132 (broad definition of employer under the FLSA)
- Irizarry v. Catsimatidis, 722 F.3d 99 (economic reality test for FLSA employer status)
- Fermin v. Las Delicias Peruanas Rest., Inc., 93 F. Supp. 3d 19 (individual and corporate defendants can be jointly and severally liable)