Bianca Chancy, on behalf of herself and others similarly situated v. Moods Cafe I, Inc., Karlyle Moolenaar, and Joanne Fitzgerald

CourtDistrict Court, E.D. New York
DecidedMay 26, 2026
Docket2:25-cv-04733
StatusUnknown

This text of Bianca Chancy, on behalf of herself and others similarly situated v. Moods Cafe I, Inc., Karlyle Moolenaar, and Joanne Fitzgerald (Bianca Chancy, on behalf of herself and others similarly situated v. Moods Cafe I, Inc., Karlyle Moolenaar, and Joanne Fitzgerald) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bianca Chancy, on behalf of herself and others similarly situated v. Moods Cafe I, Inc., Karlyle Moolenaar, and Joanne Fitzgerald, (E.D.N.Y. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -----------------------------------------------------------X

BIANCA CHANCY, on behalf of herself and others similarly situated, REPORT AND Plaintiff, RECOMMENDATION

v. 25-CV-4733 (AMD) (LGD)

MOODS CAFE I, INC., KARLYLE MOOLENAAR, and JOANNE FITZGERALD,

Defendants.

-----------------------------------------------------------X

LEE G. DUNST, Magistrate Judge: Plaintiff Bianca Chancy (“Plaintiff” or “Chancy”), individually and on behalf of others similarly situated, commenced this action on August 26, 2025, pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and New York Labor Law (“NYLL”) §§ 650 et seq., alleging that her former employers—Moods Cafe I, Inc. (“Moods Cafe”), and its owners and operators, Karlyle Moolenaar (“Moolenaar”) and Joanne Fitzgerald (“Fitzgerald”) (collectively, “Defendants”) — failed to pay her minimum and overtime wages, failed to pay her spread-of-hours compensation, failed to timely remit her wages, unlawfully retained the tips she earned, and failed to provide her with wage notices and statements. See generally Electronic Case Filing (“ECF”) No. 1.1 Defendants never responded to the Complaint. Plaintiff thereafter obtained a certificate

1 This case was originally filed as a class action suit, but Plaintiff’s default judgment motion (ECF No. 21) seeks relief only on her own behalf. The undersigned thus considers Plaintiff’s request for class action certification waived. See e.g., Gomez Cruz v. Ding Feng Lin Constr. LLC, No. 24-CV-2657, 2025 WL 2933201, at *5 (E.D.N.Y. Aug. 15, 2025), report and recommendation adopted, 2025 WL 2602265 (E.D.N.Y. Sept. 9, 2025); Cortez v. Brand Name 99 Cents & Up Corp., No. 24-CV-5262, 2025 WL 1251297, at *1 n.2 (S.D.N.Y. Apr. 30, 2025). of default against them and, on January 9, 2026, moved for default judgment (the “Motion”). See ECF No. 21. On January 12, 2026, District Judge Ann M. Donnelly referred the Motion to the undersigned for a Report and Recommendation. See Electronic Order dated January 12, 2026. For the reasons below, the undersigned recommends that the Court grant in part and deny in part Plaintiff’s Motion.

I. BACKGROUND2 A. Factual Background Plaintiff is a former bartender at Moods Cafe, a New York corporation that operated as a restaurant at 269 West Merrick Road in Valley Stream. See ECF No. 1 ¶¶ 6, 8, 10, 18–19. At all relevant times, Moods Cafe “had an annual gross volume of sales made or business done of not less than $500,000,” and was an “enterprise engaged in commerce or in the production of goods for commerce.” Id. ¶ 4. Individual Defendants Moolenaar and Fitzgerald were the co-owners and operators of Moods Cafe. See id. ¶¶ 11–12. Fitzgerald, the co-owner of Moods Cafe who held the

business’s liquor license, had the power to “hire and fire” Plaintiff. See id. ¶ 13. Moolenaar managed Plaintiff’s work schedule, calculated her wages, and distributed her tips via payment applications like Zelle and Cash App. According to Plaintiff, “Moolenaar and Fitzgerald exercised operational control over Moods Cafe and possessed the power to affect the terms and conditions of [Chancy’s] employment,” such that they were employers withing the meaning of the FLSA and NYLL. See id. ¶¶ 13, 17. Plaintiff worked at Moods Cafe from January 2023 to March 2025, completing tasks such

2 The following facts are taken from Plaintiff’s Complaint (ECF No. 1), the Motion (ECF No. 21), and documents filed in support of the Motion (ECF Nos. 22–27). These facts are assumed to be true for the purposes of this Motion. See, e.g., Jimenez v. Green Olive Inc., 744 F. Supp. 3d 221, 234–35 (E.D.N.Y. 2024) (collecting cases). as “lifting and carrying cases of liquor, beer, and other stock; stocking refrigerators and cleaning shelves; and cleaning the bar area.” Id. ¶ 28. Plaintiff’s shifts regularly lasted thirteen hours. Id. ¶¶ 27, 30, 33. From January to August 2023, Plaintiff worked an average of four shifts (or fifty- two hours) per week, whereafter she worked an average of two shifts (or twenty-six hours) per week. See id. ¶¶ 27, 30, 33–34; see also ECF No. 24 (“Chancy Decl.”) ¶¶ 7, 9.

Plaintiff’s pay varied while working at Moods Cafe. From January 2023 to December 11, 2024, Plaintiff was paid $50.00 per shift. See ECF No. 1 ¶ 21. After December 11, 2024, Plaintiff was paid $100.00 per shift. See id. ¶ 23. Plaintiff was paid these flat rates, regardless of the hours she worked, and all payments were made in cash. See id. ¶¶ 21, 23. According to Plaintiff, Defendants consistently failed to properly pay her. Plaintiff’s regular hourly rate—when compared to the number of hours that she worked—fell “substantially below the applicable federal and New York State minimum wage[s].” ECF No. 1 ¶ 32. Despite working fifty-two hours per week for the first eight months of her employment, Defendants did not pay Plaintiff an overtime premium. See id. Additionally, because Plaintiff’s shifts

“exceeded ten hours, [she] was entitled to an extra ‘spread of hours’ pay, which [she] never received.” Chancy Decl. ¶ 8; see also ECF No. 1 ¶ 29. Similarly, Defendants never provided Plaintiff with a wage notice when she was hired, nor wage statements with each payment of her wages. See ECF No. 1 ¶¶ 20, 25.3 Finally, Plaintiff alleges that Defendants failed to remit most of the tips that she earned during her shifts. See id. ¶ 36. Moolenaar—who regularly communicated with Plaintiff via text messages—occasionally sent her tips through Cash App and Zelle, acknowledging and

3 Plaintiff’s Complaint also asserts a claim for failure to pay timely wages under the NYLL. See ECF No. 1 ¶¶ 106-108; see also N.Y. Lab. L. § 191. As explained below, the undersigned finds that Plaintiff has abandoned this claim. See infra Section III.C.10. promising to repay the outstanding amounts. See id. ¶¶ 35, 37–41. On July 23, 2024, Moolenaar sent Plaintiff a text message acknowledging that Moods Cafe owed her $14,157.80 in tips. See id. ¶ 38. Defendants never remitted the outstanding tips. See id. ¶ 35; Chancy Decl. ¶ 13. On March 24, 2025, Moolenaar offered Plaintiff $300.00 to partially satisfy the outstanding tip balance. See Chancy Decl. ¶ 14; ECF No. 24-1 at 17 (exhibit including text

messages). Plaintiff refused, responding that she was “not taking 300,” and “if [she did not] get” all outstanding tips by “tomorrow [she was not] coming in.” ECF No. 24-1 at 17; see also Chancy Decl. ¶ 14. Plaintiff ended her employment on March 25, 2025. ECF No. 1 ¶ 42. B. Procedural Background Plaintiff commenced this action on August 26, 2025. See ECF No. 1. Defendants failed to respond, and the Clerk of the Court entered default against them on December 3, 2025. See ECF No. 17. On January 9, 2025, Plaintiff filed her Motion (ECF No. 21), which Judge Donnelly thereafter referred to the undersigned for a Report and Recommendation. See Electronic Order dated January 12, 2026. Plaintiff has served the Motion and supporting

documents (ECF No. 27), as well as multiple Court orders on Defendants (ECF Nos. 18, 20, 28, 30, 32, 33), but they have neither appeared nor responded. Defendants also failed to appear for two telephonic Status Conferences on March 11 and March 31, 2026.4 See ECF Nos. 29, 31. Plaintiff Motion seeks default judgment to be entered jointly and severally for $51,972.28 in unpaid minimum wages, overtime wages, and spread-of-hours pay; $14,157.80 in unpaid tips; $66,130.08 in liquidated damages; $10,000.00 in statutory penalties pursuant to NYLL §§ 195(1), 195(3); $10,025.00 in attorneys’ fees and $1448.00 costs; and pre- and post-judgment

4 Plaintiff’s counsel also failed to appear for the March 11, 2026 Status Conference. See ECF No 29.

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Bianca Chancy, on behalf of herself and others similarly situated v. Moods Cafe I, Inc., Karlyle Moolenaar, and Joanne Fitzgerald, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bianca-chancy-on-behalf-of-herself-and-others-similarly-situated-v-moods-nyed-2026.