Cerros Melendez v. Poy Loung Dc Group, LLC

CourtDistrict Court, District of Columbia
DecidedSeptember 27, 2018
DocketCivil Action No. 2017-0370
StatusPublished

This text of Cerros Melendez v. Poy Loung Dc Group, LLC (Cerros Melendez v. Poy Loung Dc Group, LLC) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cerros Melendez v. Poy Loung Dc Group, LLC, (D.D.C. 2018).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SANTIAGO CERROS MELENDEZ, et al., Plaintiffs, v. Civil Action No. 17-cv-370 (CKK) POY LOUNG DC GROUP, LLC, et al., Defendants.

MEMORANDUM OPINION (September 27, 2018)

Plaintiff Santiago Cerros Melendez was formerly employed simultaneously at three

restaurants referred to as Kruba, Teakwood, and Regent Thai Cuisine, as a kitchen hand, from

November 2014 to December 2015. Plaintiff Luis Eduardo Diaz Argueta was formerly employed

at Teakwood, first as a dishwasher and later, a cook and sushi preparer, from February 2013

through December 2016. Plaintiffs allege that the Defendants — the corporate entities affiliated

with the three restaurants and an individual who has an ownership interest in all three restaurants

— failed to pay them minimum and overtime wages as required by D.C. and federal law. The

federal statute relied upon by Plaintiffs is the Fair Labor Standards Act (“FLSA”), which

mandates time-and-a-half wages for hours worked over forty each week and a base minimum

wage of $7.25 per hour, which may be adjusted upward by the state. See 29 U.S.C. § 207(a)(1),

206(a)(1), 218. Plaintiffs rely further on the District of Columbia Minimum Wage Act Revision

Act (“DCMWA”), which requires time-and-a half for hours worked over forty, and a mandatory

minimum wage ranging between $8.25 per hour and $11.50 per hour during the time frame at

1 issue in this case. D.C. Code §§ 32-1003(c), 32-1003 (a). Plaintiffs claim damages pursuant to

the District of Columbia Wage Payment and Collection Law (“DCWPCL”), D.C. Code § 32-

1301, et seq. Furthermore, in response to a Counterclaim by Defendants/Counter-Plaintiffs, Mr.

Melendez alleges retaliation pursuant to the DCWPCL. D.C. Code §§32-1311(a)(3), 32-1311(b).

After reviewing the parties’ submissions, 1 relevant case law and applicable statutory

authority, the Court GRANTS IN PART AND DENIES IN PART Plaintiffs’ Motion for Partial

Summary Judgment. A separate Order accompanies this Memorandum Opinion.

I. BACKGROUND

Many of the underlying facts in this case are undisputed and will be set out along with the

procedural history of this case. The disputed facts will be addressed later in this Memorandum

Opinion. Defendant Poy Loung DC Group, LLC owns and operates the restaurant known as

Kruba; Defendant Galae Thai, Inc. owns and operates the restaurant known as Teakwood; and

Defendant Poy Loung, Inc. owns and operates the restaurant known as Regent Thai Cuisine. Pls.’

SOF ¶ 1; Defs.’ SOF ¶ 1. Defendants admit that Plaintiffs are covered by the FLSA because the

three restaurants are covered enterprises. Pls.’ SOF ¶ 3, Defs.’ SOF ¶ 3. The business records

and employment records for all three restaurants are maintained in one location by the same

accountant. Pls.’ SOF ¶ 4, Defs.’ SOF ¶ 4.

1 The Court’s consideration focused on the following documents: • Pls.’ Mot. For Partial Sum. Judg. and Mem. of Points & Auth. (“Pls.’ Mot.”), ECF No. 20, and Pls.’ Stmt. of Material Facts (“Pls.’ SOF.”), ECF No. 20-1. • Defs.’ Opp’n to Pls.’ Mot. For Partial Sum. Judg. (“Defs.’ Opp’n”), ECF No. 21, and Defs.’ Resp. to Pls.’ Stmt. of Material Facts (“Defs.’ SOF ”), ECF No. 21-1. • Pls.’ Reply to Defs.’ Opp’n to Pls.’ Mot. For Partial Sum. Judg. (“Pls.’ Reply”), ECF No. 22.

2 Plaintiffs have also named as a Defendant Mr. Chuchart Kampirapang, who has a 90%

ownership interest in Teakwood and a 100% ownership interest in Kruba and Regent Thai

Cuisine. Pls.’ SOF ¶ 2, Defs.’ SOF ¶ 2. Defendant Kampirapang determined Plaintiffs’ pay,

signed and tendered their paychecks, fired Plaintiff Melendez, promoted Plaintiff Argueta, and

decided how much in “tips” to pay Plaintiff Argueta. Pls.’ SOF ¶¶ 2, 25; Defs.’ SOF ¶¶ 2, 25.

Defendants acknowledge that they did not file any quarterly reports with the Department of

Employment Services regarding any “tips” provided to Plaintiff Argueta. Pls.’ SOF ¶ 31, Defs.’

SOF ¶ 31.

Plaintiff Melendez was allocated between Defendants’ three restaurants — Kruba,

Teakwood, and Regent Thai Cuisine — and he worked for Defendants from approximately June

1, 2014 to approximately December 24, 2015. Pls.’ SOF ¶¶ 5-7; Defs.’ SOF ¶¶ 5-7. Mr.

Melendez worked as a kitchen hand whose job duties included washing dishes, cutting vegetables

and meat, and cleaning. Pls.’ SOF ¶ 8; Defs.’ SOF ¶ 8. Mr. Melendez was paid a fixed, semi-

monthly salary, which varied with how much time he worked, and ranged from $750.00 to

$800.00, but Defendants did not retain precise records of the hours Mr. Melendez worked. Pls.’

SOF ¶¶ 13, 12; Defs.’ SOF ¶¶ 13, 12. Mr. Melendez was paid with one check, issued by

Defendant Poy Loung, Inc., for his work at all three restaurants. Pls.’ SOF ¶ 16; Defs.’ SOF ¶

16. Mr. Melendez was fired from all three restaurants at the same time. Pls.’ SOF ¶ 17; Defs.’

SOF ¶ 16.

Plaintiff Argueta worked at Teakwood from approximately February 1, 2013 to

approximately December 16, 2016, first as a dishwasher and later as a cook and sushi preparer.

Pls.’ SOF ¶¶ 18 -20; Defs.’ SOF ¶¶ 18-20. Plaintiff Argueta was paid a fixed, semi-monthly

salary, which varied with time worked, and increased over the years. Pls.’ SOF ¶ 24; Defs.’ SOF

3 ¶ 24. Defendants did not itemize any deductions or credits on Plaintiffs’ paychecks. Pls.’ SOF

¶31; Defs’ SOF ¶ 31.

Plaintiffs filed their initial Complaint, ECF No. 1, on March 1, 2017, asserting that

Defendants failed to pay the Plaintiffs minimum and overtime wages. Defendants/Counter-

Plaintiffs answered the Complaint and filed a Counterclaim on April 6, 2017, asserting that: (1)

Mr. Melendez conspired with a plaintiff from another wage and hour lawsuit (the “Third-Party

Defendant”) that was filed against these Defendants/Counter-Plaintiffs to publicize or share

information about that case, which violated the Settlement Agreement entered into in that case

(Count II), and (2) Mr. Melendez tortiously interfered with Defendants/Counter-Plaintiffs’

contractual rights when he and the Third-Party Defendant violated the Settlement Agreement

and/or solicited former co-workers to file suit (Count III). See generally Counterclaim, ECF No.

11.

On April 17, 2017, Plaintiffs’ filed their First Amended Complaint. Plaintiffs allege

therein that it was typical that both Plaintiffs worked more than forty hours per week without

receiving overtime pay, and when their semi-monthly salaries are divided by the number of hours

worked, neither Plaintiff received the applicable minimum wage. See generally First Amended

Complaint, ECF No. 14 (Counts I and II). Plaintiffs allege further that Defendants failed to pay

wages that were due to them after they left employment (Count III). They also assert a retaliation

claim relevant to Plaintiff Melendez (Count IV), in response to Defendants’ allegations in its

Counterclaim.

After the close of discovery, Plaintiffs filed the instant Motion for Partial Summary

4 Judgment, Defendants filed their Opposition, and Plaintiffs filed a Reply. 2 In their Motion,

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