Seo v. Oh

District Court, District of Columbia·Decided January 10, 2023·No. Civil Action No. 2018-0785·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

KANG KYU SEO, et al., Plaintiffs,

v. Civil Action No. 18-cv-785 (RDM)

CHARLES MOON SUK OH, et al., Defendants.

MEMORANDUM OPINION AND ORDER On October 6, 2022, a jury returned a verdict in favor of all four Plaintiffs, finding that Charles Moon Suk Oh and Wade Road, Inc. failed to pay Plaintiffs overtime wages as required by the Fair Labor Standards Act (“FLSA”), the D.C. Wage Payment and Collection Law (“DCWPCL”), and the D.C. Minimum Wage Act (“DCMWA”). Following trial, Plaintiffs requested that the Court enter final judgment awarding them compensatory damages based on the jury’s findings regarding the number of uncompensated overtime hours each Plaintiff worked, additional liquidated damages pursuant to D.C. Code § 32-1012(b)(1), and interest commencing in October 2022 pursuant to D.C. Code § 28-3302(c). Dkt. 61. For the reasons explained below, the Court will award compensatory and liquidated damages, albeit in amounts slightly different than those proposed by Plaintiffs, and will defer ruling on the availability of interest pending further briefing.

A.

For the most part, Defendants did not (at least at first) take issue with Plaintiffs’ request for the entry of final judgment. They did not dispute Plaintiffs’ calculation of compensatory damages, and they raised only one argument respecting the award of liquidated damages—that

is, the Court should not award liquidated damages because Plaintiffs failed to prove that Defendants “willfully” violated the FLSA. Dkt. 62. There are two problems with that argument. First, it misstates the standard for disallowing or reducing the award of liquidated damages under the FLSA. Second, and more importantly, it ignores the fact that Plaintiffs’ request for liquidated damages is premised not on the FLSA but, rather, on D.C. law.

Under the FLSA, an employer who fails to pay an employee the required “overtime compensation” is “liable to the employee” for the “amount of their unpaid . . . overtime compensation” and for “an additional equal amount as liquidated damages.” 29 U.S.C. §§ 207, 216(b). “[T]he Court has discretion,” however, “to disallow or [to] reduce liquidated damages ‘if the employer shows to the satisfaction of the [C]ourt that the act or omission giving rise to such action was in good faith and that [the employer] had reasonable grounds for believing that [its] act or omission was not a violation of [the FLSA].’” Gainor v. Optical Soc’y of Am., Inc., 206 F. Supp. 3d 290, 306 (D.D.C. 2016) (some alterations in original) (quoting 29 U.S.C. § 260). “This good faith defense to liquidated damages requires ‘an affirmative showing of a genuine attempt to ascertain what the law requires,’ not simply the absence of bad faith.” Thompson v. Linda And. A., Inc., 779 F. Supp. 2d 139, 153 (D.D.C. 2011) (quoting Danesh v. Rite Aid Corp., 39 F. Supp. 2d 7, 13 (D.D.C. 1999)). The good-faith defense, moreover, requires both “a subjective inquiry” into the employer’s beliefs and application of “an objective standard.” Laffey v. Nw. Airlines, Inc., 567 F.2d 429, 464 (D.C. Cir. 1976), overruled in part on other grounds, McLaughlin v. Richland Shoe Co., 486 U.S. 128, 134 (1988); see also 29 U.S.C. § 260. Notably, the employer bears the burden of proving that it acted in good faith and that liquidated damages are unwarranted. See Orellana v. NBSB Inc., 332 F. Supp. 3d 252, 262 (D.D.C. 2018).

Here, Defendants would flip (and increase) this burden of proof, requiring the employee to prove that her employer’s “violation was ‘willful’ under the FLSA.” Dkt. 62 at 2. In their view, Plaintiffs have failed to satisfy that demanding burden because Plaintiffs presented “no evidence . . . to show that Defendants possessed the level of recklessness required to warrant [the award of] liquidated damages.” Id. at 4. For the reasons just explained, that argument grossly misstates the law.

Defendants premise their argument to the contrary on a single case, Souryavong v.

Lackawanna, 872 F.3d 122 (3d Cir. 2017). That case, however, has nothing to do with the standard for awarding liquidated damages under the FLSA. Instead, the Third Circuit merely addressed whether the district court had correctly applied a different provision of the FLSA, 29 U.S.C. § 255(a), which extends the FLSA statute of limitations from two to three years when the employee’s “cause of action aris[es] out of a willful violation” of the statute. Far from embracing Defendants’ view of the separate liquidated damages rule, the Third Circuit cautioned that, “[a] lack of evidence going to good faith,” which relates to the award of liquidated damages, is not the same as evidence in support of “intentionality,” which is required to extend the statute of limitations. Souryavong, 872 F.3d at 127.

In any event, Defendants’ focus on the FLSA’s good-faith affirmative defense to the award of liquidated damages is beside the point, because Plaintiffs have requested that the Court award liquidated damages pursuant to the DCMWA. Dkt. 61 at 1. Because the standards of liability under the DCMWA and the FLSA “parallel” one another, the Court—with the parties’ agreement—submitted the questions of liability under both statutes to the jury concurrently. See Dkt. 56 at 21 (explaining that “[t]he relevant provisions of the D.C. Minimum Wage Act mirror the relevant provisions of the FLSA” and that, as a result, the Court’s instructions on the FLSA

apply to both statutes). That symmetry, however, does not extend to awards of liquidated damages. Awards of liquidated damages under the FLSA and DCMWA are not cumulative and, because D.C. law “is more generous to employees,” this Court typically “first assesses whether liquidated damages should be awarded under District of Columbia law” and, if so, does not separately consider whether liquidated damages are also available under the FLSA. Sanchez v. Devashish Hosp., LLC, 322 F.R.D. 32, 38 (D.D.C. 2017) (cleaned up); see also Portillo v. Smith Commons DC, LLC, 2022 WL 3354730, at *7 (D.D.C. Aug. 13, 2022) (“Because the Plaintiffs seek recovery under both the FLSA and the DCMWA, the Court will assess liquidated damages under District of Columbia law, given that it provides for more generous liquidated damages.”); Denson v. DC Rest. Holdings, Inc., 2021 WL 4988994, at *3 (D.D.C. Oct. 27, 2021) (“These provisions are not cumulative; ‘[s]ince D.C. law is more generous to employees on the relevant points, the Court will . . . assess damages under D.C. law and will not award a duplicative amount pursuant to federal law.’” (alterations in original) (quoting Ventura v. L.A. Howard Constr. Co., 134 F. Supp. 3d 99, 104 (D.D.C. 2015)).

The DCMWA, like the FLSA, provides for liquidated damages, but the penalties under D.C. law are higher:

Except as provided in paragraph (2) of this subsection, any employer who pays any employee less than the wage to which that employee is entitled under this subchapter shall be liable to that employee in the amount of the unpaid wages, statutory penalties, and an additional amount as liquidated damages equal to treble the amount of unpaid wages.

D.C. Code § 32-1012(b)(1) (emphasis added). More importantly for present purposes, the Court’s authority to decline to award liquidated damages under the DCMWA is more narrowly drawn than under the FLSA. Under D.C. Code § 32-1012(b)(2),

The court may award an additional amount of liquidated damages less than treble the amount of unpaid wages, but not less than the amount of unpaid wages, only if the employer demonstrates to the satisfaction of the court that:

(A) The act or omission that gave rise to the action was in good faith;

(B) That the employer had reasonable grounds for the belief that the act or omission was not in violation of this subchapter; and

(C) That the employer promptly paid the full amount of wages claimed to be owed to the employee.

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