198 F. Supp. 3d 285
S.D.N.Y.2016Background
- Santana worked as a server at Latino Express in the Bronx from April 3, 2015 to May 10, 2015; Pimental was co-owner/manager and her supervisor.
- Santana alleges she worked 200 regular hours and 110 overtime hours over five weeks and received only tip-pool shares; employer kept no accurate time records and gave no notice of tip credit or wage rate.
- Santana alleges repeated unwelcome sexual comments and requests from Pimental, directives to dress "sexier," and that after she complained to Pimental’s co-owner (his wife) he began singling her out, assigning undesirable tasks, yelling at her, and creating intolerable conditions; she resigned.
- Santana sued under the FLSA, NYLL (Articles 6 & 19), the Wage Theft Prevention Act, and the NYCHRL for wage violations, notice violations, discrimination and retaliation; defendants defaulted and did not timely appear.
- The Clerk entered default, Santana moved for default judgment, and the district court granted liability on all claims, awarded wage-related damages and WTPA damages, awarded liquidated damages and prejudgment interest (under NYLL), and referred NYCHRL damages (back pay, emotional distress) to a magistrate for inquest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of default/judgment | Defendants failed to appear/respond; default judgment appropriate | No responsive defense or appearance (default) | Default was willful; factors favor default judgment |
| FLSA/NYLL unpaid wages & overtime | Santana provided unrebutted estimates of hours and alleged no wage payments; tip credit not permitted (no notice) | No records or rebuttal (did not appear) | Liability established; unpaid wages awarded $3,193.75 |
| Liquidated damages & prejudgment interest | Seeks liquidated damages and prejudgment interest | No opposition | Awarded liquidated damages equal to unpaid wages ($3,193.75) and 9% prejudgment interest from April 22, 2015 under NYLL (court refused double recovery under both statutes) |
| WTPA statutory notice damages | Employer failed to provide wage/tip credit notice and other WTPA notices | No opposition | Awarded $50 per workday for 31 days = $1,550 (statutory cap applies) |
| NYCHRL hostile work environment, retaliation, constructive discharge | Complained to co-owner; harassment continued; adverse actions followed and conditions forced resignation | No opposition | Liability established for discrimination and retaliation; employer (and Pimental) liable; referred to magistrate for damages inquest (back pay, emotional distress) |
Key Cases Cited
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (U.S. 1946) (employee’s burden and proof method when employer records are inadequate)
- Herman v. RSR Sec. Servs. Ltd., 172 F.3d 132 (2d Cir. 1999) (standards for who qualifies as an "employer" under FLSA)
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (default admits well-pleaded factual allegations)
- Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105 (2d Cir. 1997) (district court must establish damages with reasonable certainty on default)
- Meritor Savings Bank, FSB v. Vinson, 477 U.S. 57 (U.S. 1986) (hostile work environment sexual harassment standard)
- Harris v. Forklift Systems, Inc., 510 U.S. 17 (U.S. 1993) (objective/subjective hostile-work-environment standard)
- Brock v. Superior Care, Inc., 840 F.2d 1054 (2d Cir. 1988) (prejudgment interest may not be awarded in addition to FLSA liquidated damages)
- Reilly v. Natwest Markets Group Inc., 181 F.3d 253 (2d Cir. 1999) (NYLL permits prejudgment interest and liquidated damages under state law)
- Zann Kwan v. Andalex Group LLC, 737 F.3d 834 (2d Cir. 2013) (temporal proximity can support causal inference for retaliation)