938 F. Supp. 2d 380
E.D.N.Y2013Background
- SCA Restaurant Corp. (Luigi Q Italian Restaurant) owned by Quarta; 2006–2012 operations in Hicksville, NY under FLSA; employees paid fixed weekly salary rather than hourly overtime; no, or incomplete, contemporaneous wage/hour records.
- Court found Quarta in control of hiring, firing, compensation decisions, and restaurant operations; the restaurant’s employees regularly worked over 40 hours per week.
- Defendants admitted absence of daily time records and mixed wage payments (cash and check); DOL provided corroborating employee testimony and defective records.
- DOL investigated and later added retaliation claim; trial occurred in 2012 with a second session in October 2012; court awarded back wages, liquidated damages, and a prospective injunction.
- Court concluded the FLSA violations were willful, applying a 3-year statute of limitations and awarding damages and injunctive relief.
- Final judgment totaled $277,734.24 in unpaid wages, liquidated damages, and compensatory damages with a prospective injunction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Overtime/minimum wage violations? | Solis asserts employees were paid a fixed salary for hours >40. | Quarta contends salary basis complies with exemptions for some roles. | Yes; violations proven; back wages and liquidated damages awarded. |
| Record-keeping violations? | Defendants failed to keep accurate wage/hour records. | Records existed but were inaccurate or falsified. | Yes; §11(c) violations established; per Mt. Clemens standard. |
| Anti-retaliation claim viability? | Defendants retaliated to deter testimony; credible evidence of threats. | Quarta denies intent to retaliate; explanations not credible. | Yes; retaliation proven; damages awarded. |
| Past executive exemption for Santos Pastor Alfaro? | Pastor Alfaro not exempt; not primary duty of management. | Defendant argued exempt status. | Not exempt; overtime damages recoverable for Alfaro. |
Key Cases Cited
- Mt. Clemens Pottery Co. v. National Labor Relations Board, 328 U.S. 680 (U.S. 1946) (burden-shifting framework for back pay when records are absent or inaccurate)
- Reich v. S. New England Telecomm. Corp., 121 F.3d 58 (2d Cir. 1997) (secretary may prove damages by inference when records are incomplete)
- Chao v. Vidtape, Inc., 196 F. Supp. 2d 281 (E.D.N.Y. 2002) (willful violation evidence supports three-year SOL and penalties)
- Moon v. Kwon, 248 F. Supp. 2d 201 (S.D.N.Y. 2002) (willful violations and recordkeeping issues support damages)