Perry v. Krieger Beard Services LLC
3:17-cv-00161
S.D. OhioAug 24, 2020Background
- Henderson, an Indiana resident, worked for Krieger Beard Services, LLC (KBS) installing satellite TV in Indiana and Illinois from ~June 2016 to May 2017 and alleges he was treated as an employee despite signing an "independent contractor" agreement.
- He claims KBS exerted control (assigning jobs, setting hours, uniforms, required check-ins/trainings) and that he routinely worked ~50 hours/week (≈10 unpaid overtime hours/week).
- Henderson also alleges KBS made unauthorized payroll deductions (damage claims, uniform, etc.), reducing his net pay by roughly $600/week.
- KBS failed to appear or defend; the Clerk entered default. Henderson moved for default judgment supported by affidavits and documents after an earlier motion was denied for insufficient evidence of damages.
- Magistrate Judge Newman recommended granting default judgment: $11,280 in FLSA unpaid overtime + liquidated damages, $28,200 for unlawful state-law wage deductions (total damages $39,280), plus $56,507.05 in attorney’s fees and $1,745.85 in costs; and directed the Clerk to clarify Henderson’s consolidated claims are resolved.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entry of default judgment against KBS | Henderson sought default judgment after KBS failed to appear or defend. | KBS did not respond or defend; no opposition submitted. | Default judgment recommended granted given KBS's failure to defend and Clerk's prior entry of default. |
| FLSA unpaid overtime and liquidated damages | Henderson claims ~10 unpaid overtime hrs/week at an implied $24/hr (gross $1,200/50 hrs), seeking single and liquidated damages. | KBS offered no proof to contest hours, rate, or good-faith defense. | Court awarded $5,460 in unpaid overtime and $5,460 in liquidated damages (total $11,280). |
| State-law deductions (Illinois IWPCA and Indiana WPA) | Henderson alleges routine improper deductions averaging $600/week, totaling $28,200 for 47 weeks. | KBS did not establish any lawful exception or employee consent. | Court awarded $28,200 for unlawful wage deductions under Illinois and Indiana law. |
| Attorneys' fees and costs | Counsel documented 143.6 hours and sought $56,507.05 fees and $1,745.85 costs; argued lodestar reasonable. | No opposition; KBS did not contest reasonableness or hours/rates. | Court found requested fees and costs reasonable and awarded $56,507.05 in fees and $1,745.85 in costs. |
Key Cases Cited
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946) (employee bears initial burden to show uncompensated work and may satisfy it by just and reasonable inference)
- Antoine v. Atlas Turner, Inc., 66 F.3d 105 (6th Cir. 1995) (default admits liability but does not establish damages)
- Elwell v. Univ. Hosps. Home Care Servs., 276 F.3d 832 (6th Cir. 2002) (liquidated damages under FLSA and employer’s burden to show good faith)
- McClanahan v. Mathews, 440 F.2d 320 (6th Cir. 1971) (employer must prove good faith and reasonable grounds to avoid liquidated damages)
- Reed v. Rhodes, 179 F.3d 453 (6th Cir. 1999) (burden to document entitlement to attorneys’ fees)
- Adcock-Ladd v. Secretary of Treasury, 227 F.3d 343 (6th Cir. 2000) (lodestar presumption and rarity of significant adjustments)
- Fegley v. Higgins, 19 F.3d 1126 (6th Cir. 1994) (attorney’s fees mandatory for prevailing FLSA plaintiff; amount within court’s discretion)
- Costello v. BeavEx, Inc., 810 F.3d 1045 (7th Cir. 2016) (IWPCA prohibits unauthorized wage deductions)
