Martinez Perez v. Cheng

CourtDistrict Court, D. Maryland
DecidedDecember 23, 2019
Docket8:18-cv-03348
StatusUnknown

This text of Martinez Perez v. Cheng (Martinez Perez v. Cheng) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martinez Perez v. Cheng, (D. Md. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND Southern Division

BYRON MARTINEZ PEREZ AND * NESTOR SANCHEZ GUEVARRA, * Plaintiffs, v. * Case No.: GJH-18-3348

CRYSTAL HNI CHENG, *

Defendant. *

* * * * * * * * * * * * *

MEMORANDUM OPINION

Plaintiffs Byron Martinez Perez (“Martinez Perez”) and Nestor Sanchez Guevarra (“Sanchez Guevarra”) allege that Defendant Crystal Hni Cheng (“Defendant”) violated the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., the Maryland Wage and Hour Law (MWHL), Md. Code Ann., Lab & Empl. § 3-401 et seq., and the Maryland Wage Payment and Collection Law (MWPCL), Md. Code Ann., Lab & Empl. §§ 3-501 et seq., by underpaying Plaintiffs when they worked at her restaurant, House of Fortune. ECF No. 1. Pending before the Court is Plaintiffs’ Motion for Default Judgment. ECF No. 8. No hearing is necessary. See Loc. R. 105.6 (D. Md.). For the following reasons, Plaintiffs’ motion will be granted in part and denied in part. I. BACKGROUND1 Plaintiffs are residents of Montgomery County, Maryland. ECF No. 1 ¶¶ 5–6. Defendant is a resident of Maryland who exercises exclusive control over the operations of the

1 Unless otherwise stated, these background facts are taken from Plaintiff’s Complaint, ECF No. 1, and are presumed to be true. Germantown, Maryland restaurant House of Fortune, which she operates without use of a corporate form. Id. ¶¶ 7–8. Plaintiff Sanchez Guevarra worked at House of Fortune as a “kitchen hand” from May 1, 2015 to July 31, 2016. Id. ¶¶ 10–11. Plaintiff Martinez Perez worked in the same role from February 20, 2017 to August 16, 2018. Id. Plaintiffs’ duties consisted of preparing food, packing food orders, handling deliveries, washing dishes, and cleaning. Id. ¶ 12.

Plaintiffs typically worked 6 days per week, which entailed 67.0 hours per week for Plaintiff Sanchez Guevarra and 66.0 hours per week for Plaintiff Martinez Perez. Id. ¶¶ 13–15. Throughout their employment by Defendant, Defendant paid Plaintiffs on a semimonthly basis. Id. ¶ 15. Defendant paid Plaintiff Sanchez Guevarra a semimonthly salary of $900.00 from October 1, 2015 to March 31, 2016 and $1,000.00 from April 1, 2016 to July 1, 2016. Id. ¶ 18.2 Plaintiff Martinez Perez’s semimonthly salary was $1,000 from February 20, 2017 to July 31, 2017; $1,100 from August 1, 2017 to January 31, 2018; $1,125 from February 1, 2018 to July 31, 2018; and $1,150 from August 1, 2018 to August 16, 2018. Id. ¶ 17. Defendant paid Plaintiffs exclusively in cash. Id. ¶ 19. Defendant did not pay Plaintiffs overtime wages. Id. ¶ 22.

In her role as the operator of House of Fortune, Defendant personally hired Plaintiffs, set their schedules and rates of compensation, and tendered their pay. Id. ¶¶ 26–29. Defendant held the power to hire and fire Plaintiffs, to control their work schedules, to supervise and control their work, and to set their rate and manner of pay. Id. ¶¶ 30–33. Though Defendant was aware that she was legally required to pay Plaintiffs one and one-half times their regular rate for hours worked in excess of 40 hours in any one workweek, she did not pay Plaintiffs overtime wages. Id. ¶ 22, 34. Defendant also was aware that she was legally required to pay Plaintiffs the applicable minimum wage, but nonetheless failed to do so. Id. ¶¶ 23, 35.

2 Though Plaintiff Sanchez Guevarra was employed beginning in May 2015, he only seeks damages for the three years preceding the filing of his complaint on October 30, 2018. ECF No. 1 ¶ 25. From October 1, 2015 to June 30, 2016, the Montgomery County, Maryland minimum wage was $9.55 per hour; it increased to $10.75 per hour on July 1, 2016, to $11.50 per hour on July 1, 2017, and $12.00 per hour on July 1, 2018. Id. ¶ 37.3 However, Defendant paid Plaintiff Sanchez Guevarra effective hourly rates of $6.20 from October 1, 2015 until March 31, 2016 and $6.89 from April 1, 2016 until July 1, 2016. Id. ¶ 18. Defendant paid Plaintiff Martinez Perez

effective hourly rates of $6.99 from February 20, 2017 until July 31, 2017, $7.69 from August 1, 2017 until January 31, 2018, $7.87 from February 1, 2018 until July 31, 2018, and $8.14 from August 1, 2016 until August 16, 2018. Id. ¶ 17. Plaintiffs filed this action against Defendant on October 30, 2018 to recover damages under the FLSA, the MWHL, and the MWPCL. ECF No. 1. On October 31, 2018, Plaintiff served Defendant with process. ECF No. 3. Defendant failed to file an answer or responsive pleading to Plaintiffs’ Complaint. On November 27, 2018, pursuant to Federal Rule of Civil Procedure 55(a), Plaintiffs filed a motion for entry of default by the Clerk of the Court. ECF No. 4. The Clerk entered an Order of Default on January 2, 2019. ECF No. 5. Plaintiff then filed the

pending Motion for Default Judgment on May 3, 2019. ECF No. 8. II. DISCUSSION In considering a motion for default judgment, the Court accepts as true the well-pleaded factual allegations in the Complaint as to liability, but nevertheless “must determine ‘whether

3 Plaintiffs cited to Section 27-68 of the Montgomery County Code for these minimum wage figures. The current version of that provision does not contain the minimum wages for years before 2018. Montgomery County Code § 27-68 (2019). Acts enacted by the Montgomery County Council, however, confirm the rates for the years at issue here. See Montgomery County, Md., Bill No. 59-14 (Mar. 3, 2015), https://www.montgomerycountymd.gov/COUNCIL/Resources/Files/bill/2014/20150303_59-14A.pdf; Montgomery County, Md., Bill No. 28-17 (Nov. 7, 2017), https://www.montgomerycountymd.gov/council/resources/files/lims/bill/2017/Signed/pdf/3359_1454_Signed_1115 2017.pdf. Department of Labor regulations provide that where state or local law requires payment of a minimum wage higher than the federal minimum wage, the FLSA should not “be taken to override or nullify the provisions of these laws.” 29 C.F.R. ¶ 778.5. [those] allegations . . . support the relief sought in th[e] action.’” Int’l Painters & Allied Trades Indus. Pension Fund v. Capital Restoration & Painting Co., 919 F. Supp. 2d 680, 685 (D. Md. 2013) (quoting Ryan v. Homecomings Fin. Network, 253 F.3d 778, 780 (4th Cir. 2001)). “A defendant’s default does not automatically entitle the plaintiff to entry of a default judgment; rather, that decision is left to the discretion of the court.” Educ. Credit Mgmt. Corp. v. Optimum

Welding, 285 F.R.D. 371, 373 (D. Md. 2012). Although “[t]he Fourth Circuit has a ‘strong policy’ that ‘cases be decided on their merits,’” Choice Hotels Int’l, Inc. v. Savannah Shakti Corp., No. DKC-11-0438, 2011 WL 5118328, at *2 (D. Md. Oct. 25, 2011) (citing United States v. Shaffer Equip. Co., 11 F.3d 450, 453 (4th Cir. 1993)), “default judgment may be appropriate when the adversary process has been halted because of an essentially unresponsive party[.]” Id. (citing S.E.C. v. Lawbaugh, 359 F. Supp. 2d 418, 421 (D. Md. 2005)). “Upon default, the well-pled allegations in a complaint as to liability are taken as true, although the allegations as to damages are not.” Lawbaugh, 359 F. Supp. 2d at 422; see also Ryan, 253 F.3d at 780 (noting that “[t]he defendant, by [its] default, admits the plaintiff’s well-

pleaded allegations of fact,” which provide the basis for judgment). Upon a finding of liability, “[t]he court must make an independent determination regarding damages . . .

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