Zhang v. Asian Moon Restaurant Corp., 2:20-cv-02776

Plaintiff Chengcheng Zhang worked as a waiter at Asian Moon (Garden City, NY) from ~August 1, 2017 to June 30, 2019, typically six days/week, ~9.5 hours/day (≈57 hours/week).
He was paid fixed daily amounts ($25/day → $30/day → $64/day) regardless of hours; time records were incomplete or inaccurate and tips were subject to a 7% daily deduction.
Defendants are Asian Moon Restaurant Corp. and co-owners/operators Vickie S. Li and Sherry Li; Plaintiff alleged they controlled hiring, schedules, and pay.
Plaintiff sued under the FLSA and NYLL for unpaid minimum and overtime wages, spread-of-hours pay, and WTPA (notice and wage-statement) violations; defendants did not answer and defaults were entered.
Magistrate Judge Shields recommended granting default judgment and awarding wages, liquidated damages, WTPA statutory penalties, pre- and post-judgment interest, and attorney’s fees and costs.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Liability under FLSA/NYLL (employer/enterprise status)	Zhang: Asian Moon is an enterprise and Vickie and Sherry are employers who supervised, hired/fired, set pay and schedules.	No response; default.	Court: Allegations deemed admitted on default; enterprise and individual employer liability established.
Unpaid minimum and overtime wages; calculation of damages	Zhang: Worked ~57 hrs/wk; daily pay resulted in underpayment of minimum and overtime; seeks back pay for statutory periods.	No response; default.	Court: Findings supported by affidavit/complaint; awards $63,030 unpaid minimum/overtime.
Spread-of-hours and WTPA violations (wage notice/statements)	Zhang: Worked >10-hour spreads; received inadequate wage notices and inaccurate paystubs; seeks statutory remedies.	No response; default.	Court: Awards $7,848 for spread-of-hours and statutory maximum $5,000 each for wage-notice and wage-statement violations (total $10,000).
Liquidated damages, prejudgment/postjudgment interest, attorneys’ fees & costs	Zhang: Requests 100% liquidated damages, pre-judgment interest on NYLL damages, post-judgment interest, and $12,930 fees + $733.50 costs.	No response; default.	Court: Awards 100% liquidated damages ($70,878), prejudgment interest $17,287.72 (through R&R) plus accrual, post-judgment interest per 28 U.S.C. § 1961, attorney’s fees $12,930, costs $733.50.

Greyhound Exhibitgroup v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (well-pleaded factual allegations treated as admitted on default for liability)
Reich v. S. New England Telecomm. Corp., 121 F.3d 58 (2d Cir. 1997) (employer burden to avoid liquidated damages under FLSA)
Perdue v. Kenny A. ex rel. Winn., 559 U.S. 542 (U.S. 2010) (lodestar as presumptively reasonable fee measure)
Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (plausibility standard for pleadings)
Lundy v. Catholic Health Sys. of Long Island Inc., 711 F.3d 106 (2d Cir. 2013) (pleading requirements for overtime claims)
Dejesus v. HF Mgmt. Servs., LLC, 726 F.3d 85 (2d Cir. 2013) (plaintiff must plead sufficient factual detail to infer >40 hours/week)
Nakahata v. New York–Presbyterian Healthcare Sys., Inc., 723 F.3d 192 (2d Cir. 2013) (overtime pleading standards)
Walling v. Helmerich & Payne, Inc., 323 U.S. 37 (U.S. 1944) (employer must pay time-and-a-half for hours over 40)
Carter v. Dutchess Cmty. Coll., 735 F.2d 8 (2d Cir. 1984) (multi-factor test for individual employer status)