Lopez v. MNAF Pizzeria, Inc.

District Court, S.D. New York·Decided October 13, 2023·No. 1:18-cv-06033·Unknown

Opinion

Lobe Olea DOCUMENT ELECTRONICALLY FILED UNITED STATES DISTRICT COURT DOC#: SOUTHERN DISTRICT OF NEW YORK DATE FILED: 10/13/23 ------------ +--+ +--+ +--+ +--+ +--+ +--+ +--+ +--+ - ------ 2X IVAN LOPEZ and KEVIN CAMPOS, : Plaintiffs, : : 18-cv-06033 (ALC) -against- : : ORDER AND JUDGMENT MNAF PIZZERIA, INC., and MUSA : NESHEIWAT, : Defendants. : □□□□□□□□□□□□□□□□□□□□□□□□ +--+ +--+ +--+ -- +--+ -------------------- X ANDREW L. CARTER, JR., District Judge: Plaintiffs Ivan Lopez (“Mr. Lopez”) and Kevin Campos (“Mr. Campos) (collectively, “Plaintiffs”) bring this action against MNAF Pizzeria, Inc. (““MNAF”) and Musa Nesheiwat (““Mr. Nesheiwat”) (collectively, “Defendants”) asserting claims pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seg., the New York Labor Law (““NYLL”), N.Y. Lab. Law §§ 190, 650 et seq., and the New York Wage Theft Prevention Act, N.Y. Lab. Law § 195. Plaintiffs bring the following claims: (1) minimum wage claim under the FLSA (“Count I’); (2) minimum wage claim under the NYLL (“Count II’); (3) overtime claim under the FLSA (“Count IIT”); (4) overtime claim under the NYLL (“Count IV”); (5) spread of hours claim under the NYLL (“Count V”); (6) illegal tip retention under the NYLL (“Count VI’); (7) unlawful deduction claim under the NYLL (“Count VII’); (8) failure to pay wages claim under the NYLL (“Count VIII’); and a (9)New York Wage Theft Protection Act claim (“Count IX”). Pending before the Court is Plaintiffs’ request for damages, ECF No. 142, and motion for attorney’s fees, ECF No. 143. BACKGROUND The Court assumes the readers’ familiarity with the factual background of this matter as explained in this Court’s opinion resolving the Plaintiff's motion for partial summary judgment,

ECF No. 98, and the Court’s findings of facts and conclusions of law issued pursuant to Fed. R. Civ. P. 52(a), ECF No. 140. Plaintiff Lopez filed the initial complaint on July 6, 2018. ECF No. 1. On May 1, 2019, Plaintiffs filed an amended complaint, adding Plaintiff Campos. ECF No. 33. On May 18, 2020,

Plaintiffs moved for partial summary judgement as to liability. ECF No. 82. On March 25, 2021, the Court entered its opinion and order granting in part and denying in part Plaintiffs’ motion for partial summary judgment. See Summary Judgment Opinion, ECF No. 98. In its Summary Judgment Opinion, the Court found that Plaintiffs qualify as covered employees under the FLSA and the NYLL and that Defendant Nesheiwat is personally liable for the Plaintiffs’ claimed violations of the FLSA and the NYLL. Id. at 8-10. The Court also found that Defendants cannot claim a tip credit and that that they were liable as to Plaintiffs’ minimum wage claims (Counts I and II). Id. at 15-19. The Court also held that Defendants failed to pay Plaintiffs the proper overtime rate (Counts III and IV). Id. at 20. The Court additionally granted Plaintiffs’ partial summary judgment motion as to liability on the unlawful deduction claim (Count

VII), and as to liability on Plaintiffs’ Wage Theft Prevention Act claim (Count IX). Id. at 21-22. Finally, the Court granted Plaintiffs’ motion for partial summary judgment as to liability on their liquidated damages claims pursuant to either the FLSA or the NYLL, whichever is greater, id. at 25, and held that Plaintiffs were entitled to prejudgment interest. Id. at 25-26. A bench trial was held on July 11 and July 13, 2022 to resolve factual issues related to damages as to Count I, Count II, Count III, Count IV, Count VII, and Count IX, including liquidated damages. The bench trial also addressed Plaintiffs’ spread of hours claim under the NYLL (Count V), illegal tip retention claim under the NYLL (Count VI), and failure to pay wages claim under the NYLL (Count VIII). On March 30, 2023, Court issued an Opinion and Order pursuant to Fed. R. Civ. P. 52(a) finding Defendants liable as to Plaintiff’s spread of hours claim under the NYLL (Count V), illegal tip retention claim under the NYLL (Count VI), and failure to pay wages claim under the NYLL (Count VIII). See Bench Trial Opinion, ECF No. 140 at 6-7. Therefore, as explained in the Bench Trial Opinion, Defendants were found liable as to all of

Plaintiffs’ claims. Id. at 8. Because the Plaintiffs failed to submit a damages calculation, the Court also ordered Plaintiffs to submit a damages calculation on or by April 20, 2023. Id. The Court directed the Plaintiffs to follow this deadline if they wished to move for attorney’s fees. Id. The parties were instructed that the damages calculation could rely only on the Court’s factual and legal findings and that they could not introduce any new facts or legal arguments not raised before or during trial. Id. Following Plaintiffs’ failure to comply with this deadline, the Court sua sponte extended Plaintiff’s deadline until May 1, 2023, and directed Defendants to respond on or by May 22, 2023, noting any differences they may have. ECF No. 141. On May 1, 2023, Plaintiffs filed a letter and

exhibits reflecting Plaintiffs’ damages calculations. See Damages Statement, ECF No. 142. On that same day, Plaintiffs moved for an award of attorneys’ fees and costs in accordance with Fed. R. Civ. P. 54(d) and pursuant to the Fair Labor Standards Act, 29 U.S.C. § 216(b) and New York Labor Law § 198. Defendants failed to comply with the Court’s deadline. Accordingly, on October 5, 2023, the Court ordered Defendants to show cause why Plaintiffs’ motion and damages calculation should not be deemed unopposed. To date Defendants have not responded. Therefore, Plaintiff’s request for damages and their motion for attorney’s fees are deemed unopposed. STANDARD I. Damages Calculation To calculate overtime wages owed under the FLSA and NYLL, the court must first determine the “regular rate” the plaintiff received. See 29 U.S.C. § 207(a)(1); 12 N.Y.C.R.R. § 142-2.16. The

“regular rate” is important for calculating damages, including overtime pay, which is one and a half times the “regular rate.” See Caltenco v. G.H. Food Inc., 824 F. App’x 88, 89 (2d Cir. 2020) (summary order) (citing 29 U.S.C. § 207(a)(1); 12 N.Y.C.R.R. §§ 142-2.2, 146-1.4). Under the FLSA, the regular rate is “the hourly rate actually paid the employee for the normal nonovertime workweek for which he is employed.” 29 C.F.R. § 778.108. “If the employee is paid a flat sum for a day’s work or for doing a particular job, without regard to the number of hours worked in the day or at the job, and if [the employee] receives no other form of compensation for services, [the employee’s] regular rate is determined by totaling all the sums received at such day rates or job rates in the workweek and dividing by the total hours actually worked.” Id. § 778.112. The employee “is then entitled to extra half-time pay at this rate for all hours worked in excess of

40 in the workweek.” Id.

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