Jin Gang Huang v. Long Hing Kitchen, Inc.

Summary

The Appellate Division, Second Department reversed portions of an order and amended judgment in a putative wage-and-hour class action. The court held that the plaintiff was entitled to liquidated damages equal to the unpaid wage award and that defendant Jin Bao Lin could be subjected to a default judgment based on evidence of formal control over the plaintiff. The matter was remitted for a new inquest concerning the remaining individual defendants and entry of an appropriate second amended judgment.

Holdings

1. Under Labor Law §§ 198(1-a) and 663(1), an employee who prevails on a wage claim is entitled to liquidated damages equal to 100 percent of the unpaid wages unless the employer proves a good-faith basis for believing that the underpayment complied with the law. Because the defendants defaulted and the record contained no evidence of good faith, the plaintiff was entitled to $21,259.19 in liquidated damages.
2. The plaintiff established the requirements for default judgment against Jin Bao Lin and demonstrated that Jin Bao Lin had formal control over him and was his employer under the Labor Law. Jin Bao Lin was therefore jointly and severally liable for the damages awarded to the plaintiff.
3. The claims against the individual defendants other than Jin Bao Lin were improperly dismissed because the Supreme Court failed to hear the plaintiff's additional testimony concerning whether those defendants were his employers. A new inquest was required.

Questions Presented

1. Whether the plaintiff was entitled to liquidated damages equal to the unpaid wages where the defendants defaulted and presented no evidence of a good-faith basis for believing that the wage underpayment complied with the law.
2. Whether the verified complaint and inquest testimony established a viable Labor Law claim and Jin Bao Lin's status as the plaintiff's employer for purposes of entering a default judgment.
3. Whether the Supreme Court erred by refusing to hear further evidence concerning the remaining individual defendants' status as employers and by dismissing the claims against them.

Disposition

reversed_and_remanded