Li v. SMJ Construction Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 26, 2022
Docket1:19-cv-05309-PGG-JW
StatusUnknown

This text of Li v. SMJ Construction Inc. (Li v. SMJ Construction Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Li v. SMJ Construction Inc., (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

ZHI LI and LUXIU SUN, individually and on behalf of all others similarly situated, ORDER Plaintiffs, 19 Civ. 5309 (PGG) (JW) - against -

SMJ CONSTRUCTION INC., STEVE KANG, JANE DOE and JOHN DOE #1-10,

Defendants.

PAUL G. GARDEPHE, U.S.D.J.: Plaintiffs Zhi Li and Luxiu Sun bring this Fair Labor Standards Act (“FLSA”), New York Labor Law (“NYLL”), and New Jersey Wage and Hour Law (“NJWHL”) action against Defendants SMJ Construction Inc. (“SMJ”) and Steve Kang. (Cmplt. (Dkt. No 5)) Plaintiffs seek to recover: (1) unpaid overtime compensation under the FLSA, the NYLL and the NJWHL; (2) spread-of-hours compensation under the NYLL; (3) unlawful deductions under the NYLL; (4) statutory damages for violations of the wage notice requirement under the NYLL; and (5) statutory damages for violations of the wage statement requirement under the NYLL. On December 10, 2020, this Court entered an Order of Default against Defendants (Dkt. No. 28) and referred this case to Magistrate Judge Kevin Nathaniel Fox for an inquest on damages. (Dkt. No. 29) Judge Fox issued a Report and Recommendation (“R&R”) in which he recommends that Plaintiff Li be awarded $48,630 in damages, Plaintiff Sun be awarded $1,212.84 in damages, and Plaintiffs be awarded $3,900 in attorney’s fees. (R&R (Dkt. No. 36) at 13) For the reasons stated below, the R&R will be adopted in part and modified in part. BACKGROUND I. FACTS1 SMJ is a New Jersey construction company that performs work in both New Jersey and New York. (See Cmplt. (Dkt. No. 5) ¶ 20) From on or about January 1, 2017 to

December 19, 2018, Plaintiff Li worked for SMJ as a construction worker, seven days per week. (Id. ¶¶ 23, 24) During that period, Li worked at SMJ for approximately ten hours per day, not including a one-hour lunch break. (See Li Aff. (Dkt. No. 31-3) ¶¶ 10, 15, 16) Li was paid a flat rate during the time he worked for SMJ, regardless of how many hours he worked in a given day. SMJ compensated him $130 per day from January 1, 2017 to July 5, 2017, $150 per day from July 6, 2017 to January 15, 2018, and $180 per day from January 16, 2018 to December 19, 2018. (Id. ¶¶ 11-13) In March 2018 and November 2018, SMJ provided paychecks to Li that were returned for insufficient funds. He was never compensated for those pay periods. (Id. ¶ 23) Plaintiff Sun worked for SMJ five days per week from on or about August 27, 2018 to October 28, 2018. (See Sun Aff. (Dkt No. 31-8) ¶ 9) During that period, Sun worked

approximately nine-and-one-half hours per day, not including a one-hour lunch break. (Id. ¶¶ 12-13) Sun was paid a flat rate of $170 per day during the time he worked for SMJ, regardless of how many hours he worked. (Id. ¶ 10) The check SMJ provided to Sun for the pay period

1 The parties have not objected to Judge Fox’s factual recitation. Accordingly, this Court adopts his factual account. See Silverman v. 3D Total Solutions, Inc., No. 18 CIV. 10231 (AT), 2020 WL 1285049 (S.D.N.Y. Mar. 18, 2020) (“Because the parties have not objected to the R&R’s characterization of the background facts . . . , the Court adopts the R&R’s ‘Background’ section . . . .”). Given Defendants’ default, these facts are assumed to be true. See City of N.Y. v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 137 (2d Cir. 2011) (“It is an ‘ancient common law axiom’ that a defendant who defaults thereby admits all ‘well-pleaded’ factual allegations contained in the complaint.”) (quoting Vt. Teddy Bear Co., Inc. v. 1-800 Beargram Co., 373 F.3d 241, 246 (2d Cir. 2004)); Finkel v. Romanowicz, 577 F.3d 79, 84 (2d Cir. 2009) (“In light of [defendant’s] default, a court is required to accept all . . . factual allegations as true and draw all reasonable inferences in [plaintiff’s] favor.” (citation omitted)). between October 8 and October 14, 2018, was returned for insufficient funds. Sun requested another check from Defendant Kang for this pay period, but Sun was never compensated for that workweek. (Id. ¶¶ 16-17) Plaintiff Li seeks unpaid overtime wages under the FLSA and NYLL in the

amount of $60,787.50; unpaid spread-of-hours compensation under the NYLL in the amount of $7,161; liquidated damages under the FLSA and NYLL in the amounts of $60,787.50 and $67,948.50, respectively; statutory damages under the NYLL in the amount of $10,000; and $1,670 for the bounced checks described above. (Proposed Findings of Fact and Conclusions of Law (“Proposed Findings”), Ex. 12 (Dkt. No. 31-12)) Plaintiff Sun seeks unpaid overtime wages under the FLSA in the amount of $1,338.75; unpaid spread-of-hours compensation under the NYLL in the amount of $468; liquidated damages under the FLSA and NYLL in the amount of $1,806.75; statutory damages under the NYLL in the amount of $8,150; and $1,298 for the bounced check. (Id., Ex. 13 (Dkt. No. 31-13))

Finally, Plaintiffs seek pre-judgment interest at a rate of “nine percent per annum simple interest” (Proposed Findings (Dkt. No. 31) at 9), and $6,937.50 in attorney’s fees. (Id., Ex. 14 (Dkt. No. 31-14)) II. PROCEDURAL HISTORY The Complaint was filed on June 4, 2019. (Dkt. Nos. 1, 5) Defendants were served, but did not respond to the Complaint. Plaintiffs obtained Clerk’s certificates of default (Dkt. Nos. 12, 19), and on October 23, 2020, this Court issued an order requiring Defendants to show cause why a default judgment should not be entered against them. (See Order to Show Cause (Dkt. No. 25)) Although Defendants were served with the October 23, 2020 order (See Dkt. Nos. 26, 27), Defendants did not respond or appear, and this Court issued an Order of Default on December 10, 2020. (Dkt. No. 28) On December 10, 2020, this case was referred to Judge Fox for an inquest on damages (see Am. Order of Reference (Dkt. No. 29)), and on December 11, 2020, Plaintiffs were

directed to file Proposed Findings of Fact and Conclusions of Law. (See Dkt. No. 30) On January 11, 2021, Plaintiffs submitted Proposed Findings of Fact and Conclusions of Law. (See Dkt. No. 31) Plaintiffs also filed affidavits of service indicating that the proposed findings had been served on Defendants. (See Affs. of Service (Dkt. Nos. 34-35) On August 25, 2021, Judge Fox issued a 14-page R&R, in which he recommends that Plaintiff Li be awarded $48,630 in damages, Plaintiff Sun be awarded $1,212.84 in damages, and Plaintiffs be awarded $3,900 in attorney’s fees. (R&R (Dkt. No. 36) at 13) The R&R notifies the parties that they have fourteen days to file any objections pursuant to 28 U.S.C. § 636(b)(1) and Fed. R. Civ. P. 72(b). (Id.) The R&R further states: “Failure to file objections within fourteen (14) days will result in a waiver of objections and will preclude appellate

review.” (Id. at 14 (emphasis in original)) Neither side has filed objections to the R&R. DISCUSSION I. LEGAL STANDARDS A. Review of a Magistrate Judge’s Report & Recommendation In reviewing a report and recommendation, a district court “may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge.” 28 U.S.C. § 636(b)(1)(C).

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