Serrano v. Chicken-Out Inc.
209 F. Supp. 3d 179
| D.D.C. | 2016Background
- Maria Serrano worked for defendants Chicken-Out, Inc. and Chicken Out the Door, Inc. at D.C., Rockville (MD), and McLean (VA) locations as an hourly worker earning $9.00/hour from 2010 through May 2014.
- Serrano alleges she regularly worked overtime (≈42 hrs/wk in D.C.; ≈46 hrs/wk in Rockville), was not paid overtime, and was unpaid for her final ~2.5 weeks (Apr 28–May 15, 2014).
- Defendants Chicken-Out and Chicken Out the Door were served but did not answer; the Clerk entered default against both defendants and Serrano moved for default judgment.
- The magistrate judge recommended granting default judgment in part: liability established for willful violations of the FLSA, DCMWA, MWHL, and MWPCL; damages set for unpaid wages/overtime, liquidated/treble damages, attorney’s fees, costs, and post-judgment interest; pre-judgment interest denied.
- The district court reviewed the R&R, received no objections, adopted it in full, and entered judgment for Serrano (monetary award plus fees, costs, and post-judgment interest) and dismissed collective claims without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Liability via default | Serrano: Defs failed to pay overtime and final wages in violation of FLSA, DCMWA, MWHL, MWPCL | Defs: (no response; default) | Default admitted well‑pleaded allegations; liability established for willful wage-law violations |
| 2. Quantum of unpaid wages/overtime | Serrano: Calculate unpaid overtime and wages from Feb 24, 2012–May 15, 2014 using affidavits and available paystubs under Andersen burden-shifting | Defs: (no records or defenses) | Court used Andersen inference from Serrano’s sworn statements and paystubs; awarded specified unpaid wages/overtime totaling $5,628 (including liquidated/enhanced amounts) |
| 3. Liquidated/treble damages and limitations | Serrano: Seek FLSA liquidated damages and MWPCL treble damages where appropriate; seeks 3‑year limitations for willful violations | Defs: (no good‑faith or bona‑fide dispute shown) | Willfulness found; FLSA/DCMWA liquidated damages awarded; MWPCL treble damages awarded for Maryland claims; three‑year limitations applied due to willfulness |
| 4. Fees, costs, and interest | Serrano: Recover reasonable attorney’s fees and costs; request LSI Laffey rates; seek pre‑judgment interest if liquidated damages denied; request post‑judgment interest | Defs: (no opposition) | Fees $1,609.30 and costs $574.50 awarded; LSI Laffey rates applied (supported by D.C. statute and precedent); pre‑judgment interest denied because liquidated damages awarded; post‑judgment interest allowed |
Key Cases Cited
- Andersen v. Mt. Clemens Pottery Co., 328 U.S. 680 (explains employee burden-shifting when employer fails to keep records)
- McLaughlin v. Richard Shoe Co., 486 U.S. 128 (defines willfulness under FLSA)
- Hensley v. Eckerhart, 461 U.S. 424 (framework for calculating reasonable attorney’s fees)
- Laffey v. Nw. Airlines, Inc., 572 F. Supp. 354 (origin and use of the Laffey matrix for prevailing market rates)
- Eley v. Dist. of Columbia, 793 F.3d 97 (requirements for proving prevailing market rates and use of fee matrices)
- Salazar ex rel. Salazar v. Dist. of Columbia, 809 F.3d 58 (discusses Laffey matrices and submarket burden; supports LSI update)
- Peters v. Early Healthcare Giver Inc., 97 A.3d 621 (Maryland law on MWPCL remedies and bona fide dispute standard)
- John R. Sand & Gravel Co. v. United States, 552 U.S. 130 (limitations as an affirmative defense subject to forfeiture)