Sierra v. Rhino Containers LLC

District Court, S.D. Florida·Decided December 14, 2023·No. 1:22-cv-21732·Unknown

Opinion

United States District Court for the Southern District of Florida

Fernando Sierra, Plaintiff, ) ) v. ) Civil Action No. 22-21732-Civ-Scola ) Rhino Containers, LLC and ) Wilfredo Tejeda, Sr., Defendants. ) Verdict and Order Following Non-Jury Trial In this Fair Labor Standards Act (“FLSA”) case, the Plaintiff Fernando Sierra (“Sierra”) alleges that the Defendants Rhino Containers, LLC (“Rhino”) and Rhino’s owner, Wilfredo Tejeda, Sr. (“Tejeda”), owe him unpaid minimum wages and overtime wages from his time as their employee. Specifically, in his amended statement of claim, Sierra asserts that the Defendants owe him $25,462.00 in lost wages and unpaid overtime, including liquidated damages. (ECF No. 24.) Previously, Sierra filed a motion for partial summary judgment, which was granted in part and denied in part. (ECF Nos. 57, 59.) Because the Defendants conceded that Rhino is an enterprise under the FLSA and that Tejeda is an employer under the FLSA, the Court granted summary judgment in favor of Sierra on these two elements. However, because there were material facts in disputes, the Court denied Sierra’s request for summary judgment on the issue of whether Sierra was an employee or independent contractor. Finally, because Sierra was not entitled to summary judgment on the issue of liability, the Court denied his request for summary judgment on the issue of good faith. On May 11, 2023, the Court granted the Defendants’ counsels’ motion to withdraw. (ECF No. 62.) Because a business entity is not permitted to proceed without counsel, and the Defendants did not obtain new counsel within the Court’s stated deadline, default final judgment was entered against the Defendant Rhino Containers, LLC. (See ECF No. 71.) The Court held a one-day, non-jury trial, on December 13, 2023. Prior to the trial, Sierra submitted proposed findings of fact and conclusions of law. Because Tejeda was appearing pro se, the Court did not require him or the parties to file any additional materials. The Court has carefully reviewed the parties’ submissions, in addition to the trial testimony and evidence. After considering the credible testimony and evidence, and the applicable law, the Court finds that Sierra was an employee of the Defendants to whom the protections of the FLSA applied and that the Defendants are liable to Sierra for $2,000 in unpaid minimum and overtime wages, $2,000 in liquidated damages, $25,000 in attorney’s fees, and $2,369.50 in costs. 1. Summary of the Testimony

A. Fernando Sierra Sierra performed work for the benefit of Rhino Containers starting approximately 2 years ago and continuing working for approximately one year. Sierra was introduced to the Defendant Tejeda through one of Sierra’s friends, Johnnie. Johnnie had heard through a Rhino employee, Eduard Sanchez, that there was an opening at the company. The Defendant Wilfredo Tejeda was the owner and boss of the company. Rhino constructs and repairs trash containers. Sierra spoke with Tejeda about the job opening and Tejeda later called Sierra and offered him a position as a welder’s assistant to be paid $13.00 per hour. Sierra had no prior experience in welding, which is why he started as an assistant welder. Sierra filled out paperwork with Tejeda’s wife, who worked as a secretary at the company. They kept the paperwork and did not give him a copy. Sierra worked five days per week and sometimes six days per week. He worked seven to fifteen hours per day. In the winter he worked shorter days, and in the summer, he worked longer days. He sometimes worked overtime but only one or two hours. He generally worked 40 hours per week but sometimes worked 41 – 42 hours per week. Sierra did not choose his schedule. Tejeda chose Sierra’s schedule. Tejeda also set all the other employees’ schedules. If Sierra or any other employees worked overtime, it was at the direction of Tejeda. In addition to giving instructions, Tejeda also performed some of the work tasks. Sierra learned how to perform tasks at work through other co-workers, including Sanchez. He learned how to weld and eventually became a welder for the final four or five months of his employment. Sierra always worked inside the Rhino warehouse. Sierra’s pay never increased; he was told it would be increased to $15.00 per hour, but the pay remained $13.00 his entire employment. Any equipment that was used by Sierra was owned by Rhino and provided to him by Rhino. Other employees punched in when they started and ended work but because Sierra was undocumented, he did not punch in. Sierra was first paid in cash. Rhino would write a check to Sanchez’s company and then Sanchez would pay Sierra in cash. Sierra was also given a piece of paper with his hours for the pay period written on it. After approximately three months, Tejeda told Sierra to establish his corporation, and Tejeda referred Sierra to someone to help open the corporation. Once the corporation was opened, he started receiving his pay by check from Rhino to his corporation, FMS Eagle. FMS Eagle did not have a website or advertise or employ anyone else. FMS Eagle did not perform work for any other company until after Sierra left Rhino. Even after opening the corporation, Sierra continued to work as an assistant welder. From the beginning of his employment, Sierra was always having problems getting paid in full. The pay he received did not match the hours that he worked. When Sierra complained to Tejeda, he would always say he would make up for it in the next pay period. Sierra believes the entire amount he is owed for time he worked but was not paid is a little over $2,000.00. At one point, Sierra testified that he was only underpaid while he was paid in cash. Later in his testimony, he said he was also underpaid during the time he was paid through his corporation by check. But Sierra could not estimate the total amount he believed he was underpaid during his entire employment. Sierra introduced six checks in the amounts of $1,049.75 (9/23/21), $507 (10/20/21), $936 (11/16,21), $468 (12/1/21), $1,000 (12/22/21), and $1,000 (1/3/22) that were paid to his corporation. Although Sierra claims that he was underpaid even when he was paid by check, he could not provide even a ballpark estimate of how much he was underpaid. B. Wilfredo Tejeda Tejeda is the owner and manager of Rhino Containers. Tejeda claims that he does not know a Johnnie, but that Sanchez did work for Rhino. Tejeda admits that Rhino wrote a check to Sanchez’s company, but he denies that it was to later be paid to Sierra in cash. Tejeda denies ever paying Sierra or any other employee in cash. He claims he used a payroll company and paid all his employees by check, and they were provided with W-2 forms. Tejeda claims that Sierra only worked for him for the four months encompassed by the six checks that Sierra received through his corporation. Tejeda claims he hired Sierra as a favor to Sanchez since Sierra and Sanchez came from the same country. Tejeda knew Sierra was undocumented. Tejeda asked Sanchez, “what can Sierra do?”, and Sanchez told him he couldn’t do anything. Tejeda said that when there were small jobs like cleaning a spill or sweeping, Tejeda would call him in to do those odd jobs. Tejeda told Sanchez to teach Sierra a skill because Tejeda did not want to spend time training him. Tejeda admitted that Sierra used the equipment of Rhino during the time he worked there. Sanchez was a W-2 employee during 2020 and 2021 according to the records of Rhino. 2. Findings of Fact Resolution of the critical factual disputes in this trial necessarily required the Court to evaluate the credibility of Sierra and Tejeda. The main factual disputes are whether: a. Sierra worked for the Defendants as an employee, to whom the protections of the FLSA applied; b. the Defendants owe Sierra unpaid minimum wages; c. the Defendants owe Sierra overtime wages; d. the Defendants acted in good faith; and e.

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