In the case of Cortes v. Calderon, Federico Cortes filed a lawsuit against Armando Calderon Vazques and Jose Calderon who were conducting business as Tactical Builders and Design, LLC (Tactical B&D). Cortes claimed that he worked for Tactical B&D’s construction sites to remodel homes. The lawsuit alleged that Tactical B&D violated the Fair Labor Standards Act (FLSA) and the Oregon state laws that governed minimum wage and overtime pay.
According to Cortes, he was promised a daily wage of $100 for 8 hours of work but was only paid partially sometimes or not at all. Cortes also claimed that he was not paid for any overtime hours worked. Tactical B&D had not responded to this lawsuit, which made Cortes motion for a default judgment in his favor.
In moving for a default judgment, Cortes had requested a settlement of $13,138 for his back wages and civil penalties for Tactical B&D’s failure to provide minimum and overtime wages.
After taking into consideration certain factors, the court recommends that a default judgment be granted against Tactical B&D. Cortes was awarded the amount he had requested as it aligned with FLSA which included unpaid wages and liquidated damages.
Key lessons from this case:
- Not responding to a lawsuit could end up with a default judgment in favor of the party who filed the lawsuit.
- If an employee wins a lawsuit about overtime back wages, the calculation for the settlement amount will consist of the back wages owed and liquidated damages.
- The court may accept well-pleaded allegations in a lawsuit as true when granting a default judgment, except for the amount for damages, which must be proven.
If you want to know more about overtime regulations, read our guide on Oregon Overtime Laws.
