Shi Ming Chen v. Hunan Manor Enter.

• Docket Number: 17 Civ. 802 (GBD) (GWG)
• Decision Date: 29 August 2023
• Parties: SHI MING CHEN, LIANHE ZHOU, YONG KANG LIU, JIXIANG WANG, WEI MIN ZHU, BAOJUN TIAN, XINLONG LIU, QIFANG CHEN, and PINGJIN FAN, Plaintiffs, v. HUNAN MANOR ENTERPRISE, INC., D/B/A HUNAN MANOR, HUNAN MANOR LLC, D/B/A HUNAN MANOR, HUNAN HOUSE MANOR INC. D/B/A HUNAN MANOR, HUNAN HOUSE RESTAURANT, INC. D/B/A HUNAN MANOR, HUNAN HOUSE RESTAURANT NY LLC D/B/A HUNAN MANOR, HUNAN HOUSE, INC. D/B/A HUNAN MANOR, A TASTE OF MAO, INC. D/B/A CHINA XIANG, JINGCHAO LI A/K/A JING CHAO LI A/K/A DIANA LI, ZHIDA LI A/K/A ZHI DA LI A/K/A ALAN LI, and ZHENQI XIAO A/K/A NANCY XIAO, Defendants. Overtime Wages Spread of Hours Wage Notice Liquidated Damages Total (excl. all applicable interest) $33,601.60 $6,937.50
• Court: U.S. District Court — Southern District of New York

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SHI MING CHEN, LIANHE ZHOU, YONG KANG LIU, JIXIANG WANG, WEI MIN ZHU, BAOJUN TIAN, XINLONG LIU, QIFANG CHEN, and PINGJIN FAN, Plaintiffs,
v.
HUNAN MANOR ENTERPRISE, INC., D/B/A HUNAN MANOR, HUNAN MANOR LLC, D/B/A HUNAN MANOR, HUNAN HOUSE MANOR INC. D/B/A HUNAN MANOR, HUNAN HOUSE RESTAURANT, INC. D/B/A HUNAN MANOR, HUNAN HOUSE RESTAURANT NY LLC D/B/A HUNAN MANOR, HUNAN HOUSE, INC. D/B/A HUNAN MANOR, A TASTE OF MAO, INC. D/B/A CHINA XIANG, JINGCHAO LI A/K/A JING CHAO LI A/K/A DIANA LI, ZHIDA LI A/K/A ZHI DA LI A/K/A ALAN LI, and ZHENQI XIAO A/K/A NANCY XIAO, Defendants.

No. 17 Civ. 802 (GBD) (GWG)

United States District Court, S.D. New York

August 29, 2023

MEMORANDUM DECISION AND ORDER

GEORGE B. DANIELS UNITED STATES DISTRICT JUDGE

Plaintiffs Shi Ming Chen, Lianhe Zhou, Yong Kang Liu, Jixiang Wang, Wei Min Zhu, Baojun Tian, Xinlong Liu, Qifang Chen, and Pingjin Fan (collectively, “Plaintiffs”) bring this action against Defendants, Hunan Manor Enterprise, Inc., Hunan Manor LLC, Hunan House Manor Inc., Hunan House Restaurant, Inc., Hunan House Restaurant NY LLC, Hunan House, Inc., A Taste of Mao, Inc., Jingchao Li, Zhida Li, and Zhenqi Xiao (collectively, “Defendants”), alleging that Defendants violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and the New York State Labor Law (“NYLL”), N.Y. Lab. L. §§ 650 et seq. (First Am. Compl. (“FAC”), ECF No. 182, ¶ 1.) Plaintiffs allege that during their employment at Defendants' restaurants, Defendants failed to pay Plaintiffs minimum wages, overtime wages, and spread of

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hours pay, under the FLSA and NYLL, and failed to provide wage statements, wage notice and pay stubs under the NYLL. (Id. ¶¶ 1-5.)

From February 13 to March 13, 2023, this Court held a bench trial to adjudicate Plaintiffs' claims against Defendants. (See Transcript of Bench Trial (“Tr.”), ECF Nos. 320, 322, 324, 326, 328, 330, 332.) This Opinion constitutes the Court's Findings of Fact and Conclusions of Law pursuant to Fed.R.Civ.P. 52 on whether Defendants are liable for violating the FLSA and the NYLL, including whether Defendants' restaurants qualify as a single integrated enterprise under the labor laws.

This Court finds as follows:

i. Plaintiffs Yong Kang Liu and Jixiang Wang's claims are dismissed with prejudice under Fed.R.Civ.P. 41(b) due to Liu and Wang's failure to appear at trial

ii. Defendants' restaurants were a single integrated enterprise and Defendants are therefore jointly and severally liable to Plaintiffs

iii. Defendants are liable to certain Plaintiffs for violating the overtime and minimum wage provisions of the FLSA and NYLL

iv. Defendants are not liable to Plaintiffs for spread of hours pay.

v. Plaintiffs do not have standing to recover damages against Defendants for Defendants' violations of the NYLL's wage notice and wage statement provisions.

vi. Plaintiffs Shi Ming Chen, Lianhe Zhou, Wei Min Zhu, Baojun Tian, Xinlong Liu, Qifang Chen, and Pingjin Fan are awarded a total of $616,386.40, plus all applicable interest.

I. BACKGROUND

Plaintiffs commenced this instant action on February 2, 2017. (ECF No. 1.) On April 23, 2017, Defendants answered Plaintiffs' Complaint. (ECF No. 28.) Over the next nearly six years between April 2017 and February 2023, Plaintiffs and Defendants conducted discovery and filed numerous pre-trial motions. During that time, multiple Defendant restaurants filed bankruptcy petitions. (See ECF Nos. 57, 90.)

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On February 13-15, March 2, March 7, and March 13, 2023, this Court held a bench trial to adjudicate Plaintiffs' claims against Defendants, Plaintiffs appeared and testified at trial, except for Yong Kang Liu and Jixiang Wang, who failed to appear. All three individual Defendants appeared and testified at trial. Plaintiffs and Defendants subsequently filed proposed findings of fact and conclusions of law. (Pls.' Mem., ECF Nos. 336; Taste of Mao Defs.' Mem., ECF No. 343; Hunan Manor Defs.' Mem., ECF No. 344, Pls.' Reply, ECF No. 345; Defs.' Sur-Replies, ECF Nos. 349 and 350.)^[1]

II. STANDARD OF REVIEW

Fed. R. Civ. P. 52(a) provides, in relevant part, that a court conducting a bench trial “must find the facts specially and state its conclusions of law separately,” and that “[j]udgment must be entered under Rule 58.” Fed.R.Civ.P. 52(a)(1). Rule 52(a) further provides that such “[f]indings of fact, whether based on oral or other evidence, must not be set aside unless clearly erroneous, and the reviewing court must give due regard to the trial court's opportunity to judge the witnesses' credibility.” Fed.R.Civ.P. 52(a)(6).

III. FINDINGS OF FACT

The following section constitutes this Court's Findings of Fact pursuant to Fed.R.Civ.P. 52(a)(1).^[2] These Findings of Fact are drawn from the testimony at trial and the parties' trial exhibits.

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A. Defendants

i. Defendant Jingchao Li

Defendant Jingchao Li is the older sister of Defendant Zhida Li, and the older cousin of Defendant Zhenqi Xiao. Jingchao Li owned and operated Hunan House, which opened in June 2014 and was located at 40 W. 56th Street in Manhattan. Hunan House was operated by Hunan House, Inc., which Jingchao Li owned and operated as its President, with Zhenqi Xiao serving as Vice President. From June 2014 until on or about around October 2014, Jingchao Li and Zhenqi Xiao jointly operated Hunan House. At Hunan House, Jingchao Li determined employees' wage rates, distributed pay, determined work schedules, and directed employees to record their working time In her testimony, Jingchao Li also stated that she was aware of overtime requirements if an employee worked over 40 hours in a week.^[3]

In 2013, Jingchao Li also worked at Hunan House Manor, which was owned by Zhenqi Xiao. There, Jingchao Li had the authority to hire employees, exercised authority over employees' working hours, distributed employees' pay when Zhenqi Xiao was not available, and provided the restaurant with supplies.

Beginning in 2011, Jingchao Li also periodically helped her brother, Zhida Li, with operating Hunan House Restaurant. There, Jingchao Li had the power to hire and promote employees and distributed employees' pay.

ii. Defendant Zhida Li

Defendant Zhida Li is the younger brother of Defendant Jingchao Li. Zhida Li owned and operated Hunan House Restaurant, located at 137-40 Northern Boulevard in Flushing, New York. At Hunan House Restaurant, Zhida Li hired employees and distributed employees' pay.

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From August 2015 to November 2017, Hunan House Restaurant was operated by Hunan House Restaurant NY LLC, in which Zhida Li had an ownership stake. From time to time, Zhida Li was involved in operating Hunan House, which was owned by his sister Jingchao Li. At Hunan House, Zhida Li directed the work of employees. Zhida Li was also the President of Hunan Manor, LLC, which operated Hunan House Manor after 2015.

iii. Defendant Zhenqi Xiao

Defendant Zhenqi Xiao is the younger cousin of Defendant Jingchao Li.^[4] Xiao helped to operate Hunan House, which was owned by Jingchao Li. At Hunan House, Xiao directed, interviewed, and fired employees, managed their schedules and wage rates, and distributed employees' pay. Xiao also directed at least one Plaintiff to sign a wage notice. Xiao retained that wage notice after it had been signed. When asked about a document that listed her as the “Vice President” of Hunan House, Xiao stated that she has “always been the manager” there. Documents admitted into evidence also list Xiao as the “vice president” of Hunan House Inc. Xiao was also the owner and operator of Hunan House Manor, which was operated by Hunan House Manor, Inc. Xiao was the sole owner of Hunan House Manor, Inc.

Xiao was also the owner of restaurant China Xiang, located at 360 W 42nd Street in New York. China Xiang was operated by A Taste of Mao, Inc., which was partially owned by Defendant Zhenqi Xiao from 2013 to 2016, and wholly owned by Xiao after about January 2016. At China Xiang, Defendant Zhenqi Xiao had the power to hire employees, determined employees' work schedules and pay, and had at least one Plaintiff sign a wage notice that Xiao then retained.

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B. Plaintiffs

Plaintiffs all worked at Defendants' restaurants from 2011 to 2017. Plaintiffs worked at multiple restaurant locations owned by Defendants because they were moved from restaurant to restaurant at the direction of Defendants.

i. Plaintiff Shi Ming Chen

Plaintiff Shi Ming Chen worked at multiple Defendant restaurants as an ingredient sorter and later as a cook from on or about February 2, 2011 through on or about September 8, 2016. Throughout the course of his employment, Chen worked six days per week and approximately 60 hours per week. He was paid on a salaried basis ranging from $3,000 to $4,000 per month.^[5] Chen . was not paid overtime, although Defendants' own records stated that he was entitled to receive overtime pay.^[6] Like all Plaintiffs, Chen was paid via a combination of cash and check.^[7]

ii. Plaintiff Lianhe Zhou

Plaintiff Lianhe Zhou worked for Defendants as a saute cook from on or about June 15, 2014 to on or about June 12, 2016. Throughout the course of his employment, Zhou worked six

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days per week and approximately 60 hours per week. He was paid on a salaried basis ranging from $3,400 to $3,500 per month.^[8] Zhou was not paid overtime.

iii. Plaintiff Wei Min Zhu

Plaintiff Wei Min Zhu worked for Defendants as a vegetable chopper and food preparer from on or about March 1, 2015 to on or about July 31, 2016. Throughout the course of his employment, Zhu worked six days per week and approximately 55 hours per week. Zhu was paid on a salaried basis ranging from $2,290 to $2,400 per month and was not paid overtime.^[9]

iv. Plaintiff Baojun Tian

Plaintiff Baojun Tian worked for Defendants as a deliveryman from on or about May 16, 2015 to on or about August 30,...