Shi v. TL & CG Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 8, 2023
Docket1:19-cv-08502
StatusUnknown

This text of Shi v. TL & CG Inc. (Shi v. TL & CG 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
Shi v. TL & CG Inc., (S.D.N.Y. 2023).

Opinion

[esses SY UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK | Doc #: _. □□ eee eee neneneneneen K DATE FILED: _9/ 8/2023 | YUEFENG SHI,

Plaintiff, 19-CV-08502 (SN) -against- OPINION & ORDER TL & CGINC.,, et al., Defendants.

panne eX SARAH NETBURN, United States Magistrate Judge: This matter proceeded to a trial by jury on May 17, 2023. On May 19, 2023, the jury retured findings consistent with liability as to Defendants TL & CG Inc., Guoyong Chen, and Guoqing Chen. See ECF 125 (Verdict Form). Following trial, the Court instructed the parties to submit a proposed judgment and damages calculation, and on July 7, 2023, the Court directed the parties to file a status letter regarding that submission. See ECF No. 147. In response—save for a minor area of dispute which is addressed below—the parties stipulated to the computation of damages Plaintiff had previously submitted in connection with his motion for default judgment as to Defendant Jian Xiang Yang. See ECF Nos. 149, 132-4. Separately, Plaintiff filed a motion for attorneys’ fees, which Defendants opposed. See ECF Nos. 143, 152, 156. This Opinion and Order addresses the amount of Plaintiff's damages as well as his entitlement to attorneys’ fees. DISCUSSION I. Plaintiff's Entitlement to Damages for October and November 2018 Under New York Labor Law (the “NYLL”), a plaintiff can recover for unpaid time at the agreed-upon rate, even if it exceeds the minimum wage. See Kemes v. Global Structures, LLC, No. 15-cv-659 (CM)(DF), 2016 WL 880199, at *3 (S.D.N.Y. Mar. 1, 2016). Section 191 of the

NYLL mandates that workers “be paid . . . in accordance with the agreed terms of employment.” N.Y. Lab. Law §§ 191(1)(a)(i), 191(1)(d). NYLL makes it unlawful for an employer to require “a return, donation or contribution of any part or all of said employee’s wages, salary, supplements, or other thing of value, upon the statement, representation, or understanding that

failure to comply with such request or demand will prevent such employee from procuring or retaining employment.” N.Y. Lab. Law § 198-b(2). Before trial, the parties stipulated that Plaintiff was given a check for $1,500 per month, but disputed whether he was required to return some portion of that amount depending on how much he worked. At trial, Plaintiff testified that while he was given a $1,500.00 check each month, he was in fact paid at a rate of $45 per day. He also testified that he returned the entirety of his check in October 2018, but was credited for the few days he worked that month by having to “kick back” less of the check he received in November 2018. It is undisputed that Plaintiff did not work from October 5, 2018, through November 20, 2018. The jury found that Plaintiff worked 3 days in early October 2018 and 9 days in late

November 2018. The jury credited Plaintiff’s testimony regarding having to “kick back” any portion of the $1,500 per month that exceeded $45 per day worked, and found that in October 2018 Plaintiff returned all $1,500, and in November 2018 he returned $960 (thus retaining $540 to “cover” all 12 days worked over both months at a rate of $45 per day). Plaintiff argues that because “the parties stipulated that Plaintiff was employed at a salary of $1,500.00 per month,” he is owed that amount for both months, regardless of how much he actually worked. See ECF No. 149 at 1. Plaintiff misrepresents the nature of the parties’ stipulation, which states that he “was given checks for $1,500.00 per month.” ECF No. 114 at 5. Plaintiff’s testimony and the jury’s findings established that his rate of pay was in fact $45 per day, not $1,500 per month. While this “kickback” scheme could be seen as fitting within § 198-b(2)’s “thing of

value” language, Plaintiff provides no authority or argument to that effect. Moreover, it is unclear how Plaintiff’s damages could be calculated to include pay for periods in which he did not work. The issue of whether Plaintiff was truly “paid” the entirety of the $1,500 check he received each month is a question of fact that was answered by the jury in the negative. The jury found that Plaintiff was paid $45 per day, and so his damages are calculated based on the prevailing minimum wage assuming a $45 per day offset. Accordingly, Plaintiff is not entitled to any damages for the period from October 5, 2018, through November 20, 2018, during which he did not work. This represents a downward departure from the total damages number calculated by Plaintiff of $4,743.09, inclusive of liquidated damages and prejudgment interest.

II. Plaintiff’s Standing to Seek Wage Theft Prevention Act (“WTPA”) Penalties1 The Wage Theft Prevention Act requires employers to provide annual wage notices to employees hired after April 9, 2011, and to provide each employee with accurate wage statements each time wages are paid. See N.Y. Lab. Law §§ 195(1)(a), 195(3). Section 195(1) requires an employer to provide employees a notice at the time of hiring, containing, among other things, “the rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or other; [and] allowances, if any, claimed as part of the minimum wage, including tip, meal, or lodging allowances . . . .” N.Y. Lab. Law § 195(1)(a).

1 The Court addressed this issue previously in its order denying Plaintiff’s motion for summary judgment. See ECF No. 92 at 15-17. Section 195(3) requires that employers provide employees with certain wage statement information “with every payment of wages.” N.Y. Lab. Law § 195(3). An employer’s failure to comply with either section of the law makes them liable for damages for each instance that the violations occurred or continued to occur. See N.Y. Lab. Law § 198(1-b) (stating that damages

for wage notice violations under § 195(1) accumulate at a rate of $50 per day, not to exceed $5,000); § 198(1-d) (stating that damages for wage statement violations under § 195(3) accumulate at a rate of $50 per day, not to exceed $5,000). Before trial, the parties stipulated that Plaintiff was paid $1,500 by check each month, see ECF No. 114 at 5, and the jury found that he was then required to return a portion of the check to Defendants, depending on how many days he worked that month. The parties also stipulated that Plaintiff was not provided with either type of notice required under sections 195(1)(a) and 195(3). See id., ECF No. 139 at 272:4-8. Accordingly, it is undisputed that Defendants failed to comply with NYLL § 195(1)(a) and § 195(3). Plaintiff nevertheless lacks standing to maintain these claims.

“Article III standing requires plaintiffs to show (1) an ‘injury in fact,’ (2) a ‘causal connection’ between that injury and the conduct at issue, and (3) a likelihood ‘that the injury will be redressed by a favorable decision.’” Maddox v. Bank of N.Y. Mellon Tr. Co., N.A., 19 F.4th 58, 62 (2d Cir. 2021) (quoting Lujan v. Defs. of Wildlife, 504 U.S. 555, 560-61 (1992)). To demonstrate an injury in fact, a plaintiff “must show the invasion of a [1] legally protected interest that is [2] concrete and [3] particularized and [4] actual or imminent, not conjectural or hypothetical.” Id. (quoting Strubel v. Comenity Bank, 842 F.3d 181

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Bluebook (online)
Shi v. TL & CG Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/shi-v-tl-cg-inc-nysd-2023.