In the case of Guarcas v. Gourmet Heaven, LLC., employees of Gourmet Heaven filed a lawsuit against Chung Cho, the owner and operator of Gourmet Heaven. The employees alleged violations of the Fair Labor Standards Act (FLSA) and the Rhode Island Minimum Wage Act (RIMWA).
The employees worked as hourly employees at Gourmet Heaven and performed tasks such as stocking shelves and preparing food. They were paid through a combination of payroll checks and cash. The employees claimed that Cho violated the FLSA and RIMWA by failing to pay them the required minimum wage and overtime compensation. They sought damages for unpaid wages, liquidated damages, and reasonable attorneys’ fees.
The defendant did not file an opposition to the motion. Because of that, the court determined the employees’ factual allegations were “admitted” because Cho did not contest or deny them. After reviewing the evidence, the court found that the employees worked more than forty hours per week and were paid amounts in cash that did not comply with the requirements of the FLSA and RIMWA. Therefore, judgment was entered in favor of the employees. However, the court noted that the employees can only recover damages under either the FLSA or the RIMWA, not both.
The employees were entitled to damages for unpaid wages and liquidated damages under the FLSA. They are also entitled to reasonable attorneys’ fees. However, the employees needed to provide additional information regarding their fee requests. The court granted the employees’ motion for summary judgment.
Key lessons from this case:
- Employers who pay less than minimum wage or fail to pay overtime compensation are liable for compensatory damages and liquidated damages.
- If an employer fails to dispute or deny factual allegations made by the employees in an overtime lawsuit, those facts are deemed admitted by the court. This means that the facts are considered to be “true.”
- Additional fee requests made by an employee in a lawsuit need to be backed with documentary evidence.
If you want to know more about overtime regulations, read our guide on Rhode Island Overtime Laws.
