Sanchez v. Ultimo, LLC

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ADAN SANCHEZ SANCHEZ, Plaintiff, v. ULTIMO, LLC d/b/a MALBEC RESTAURANT, et al., Defendants.

No. 1:19-cv-03188-RMM

United States District Court, District of Columbia

August 2, 2024

FINDINGS OF FACT AND CONCLUSIONS OF LAW

ROBIN M. MERIWEATHER UNITED STATES MAGISTRATE JUDGE.

Plaintiff Adan Sanchez Sanchez (“Mr. Sanchez” or “Plaintiff”) has sued his former employer Ultimo, LLC d/b/a Malbec Restaurant (“Malbec”) and owner Felix Nelson Ayala, Sr. (“Mr. Ayala”) (collectively “Defendants”), for unpaid overtime alleging violations of the Fair Labor Standards Act (“FLSA”), the D.C. Minimum Wage Act (“DCMWA”) and the D.C. Wage Payment and Collection Law (“DCWPCL”). See generally Compl., ECF No. 1. Mr. Sanchez contends that Defendants failed to pay him overtime wages during his tenure at Malbec. The Court granted-in-part and denied-in-part Mr Sanchez's Motion for Summary Judgment and Defendants' Cross-Motion for Summary Judgment. See Mem. Op., ECF No. 25. On October 23 and 24, 2023, this Court held a bench trial. Following the bench trial, and as instructed by the Court, the parties submitted their proposed Findings of Fact and Conclusions of Law. This Court now makes its Findings of Fact and Conclusions of Law pursuant to Federal Rule of Civil Procedure 52(a)(1). Upon consideration of the parties' submissions, witness testimony, evidence presented at trial and relevant law, the Court finds that Mr. Sanchez did not qualify as an exempted executive employee and that he is entitled to unpaid overtime wages because he worked more than forty hours per week. The Court enters judgment in favor of Mr. Sanchez.

BACKGROUND

Mr. Sanchez worked at Malbec, an Argentinian steakhouse^[1]located in Washington, D.C., from December 15, 2015 through August 30, 2019. See Jt. Pretrial Statement (“JPS”), ECF No. 45 at 2, 4; Mem. Op. at 2. Throughout this time, Mr. Sanchez was the restaurant's “kitchen manager” or “chef.” JPS at 4, 4; Mem. Op. at 2. Mr. Ayala was the owner and operator of Malbec. See Mem. Op. at 2; Trial Tr. 1, 97:20-23. Carlos Di Laudo (“Mr. Di Laudo”) was Malbec's general manager during the relevant time period. See JPS at 4; Mem. Op. at 2; Trial Tr. 1, 104:20-22.

Both parties agree that Mr. Sanchez was the principal cook at Malbec during the relevant time period. See JPS at 2; Mem. Op. at 2. Although the parties disagree about specific duties Mr. Sanchez performed at Malbec, at the summary judgment stage this Court found that Mr. Sanchez performed the following duties: “identifying and listing items the kitchen required for daily and weekly operations, including inventorying the produce, meats, vegetable, and cleaning products needed; food preparation; directing and supervising the work activities of the kitchen staff; keeping the kitchen clean; and overseeing the cleaning staff.” Mem. Op. at 3. Mr. Sanchez was usually the only cook in the kitchen during the lunch service, but during evenings and weekends often one or more individuals were in the kitchen to help him cook and do dishes. See Mem. Op. at 3; Trial Tr. 1, 97:3-9.

On October 24, 2019, Mr. Sanchez brought suit in this Court against Defendants Malbec and Mr. Ayala, alleging that, during the course of his employment at Malbec, Defendants denied him overtime compensation in violation of the FLSA, DCMWA, and DCWPCL. See Compl. Specifically, Mr. Sanchez alleged that he worked approximately 70.5 hours per week as a cook at Malbec and received a weekly salary between $700 and $1,100.00. See id. ¶¶ 11-12. He noted that his job duties did not qualify him for any exemption under the relevant statutes. See id. ¶ 15. Therefore, because Mr. Sanchez worked more than 40 hours per week, he alleged that Defendants failed to pay him one-and-one-half times his rate for hours he worked over forty. See id. ¶¶ 14, 16. He thus argues that he is entitled to overtime wages of $112,102.50, and liquidated damages of $336,307.50, for total damages of $448,410 (excluding attorneys' fees and costs). Pl.'s Proposed Findings of Fact and Conclusions of Law (“Pl. Mem.”) at 46, ECF No. 49.

Defendants deny Mr. Sanchez's assertions and argue that Mr. Sanchez qualified for the executive exemption under both the FLSA and DCMWA by virtue of his role as kitchen manager at Malbec. They argue that Mr. Sanchez exercised responsibilities of an executive, such as supervising the kitchen staff and managing the inventory. JPS at 4-5. They admit that Mr. Sanchez was not paid an overtime rate but contend that he is not entitled to the overtime wages he seeks. Id.

At summary judgment, the Court concluded that (1) Defendants are covered by the FLSA-by virtue of enterprise coverage-from January 1, 2018 through August, 202019, because Malbec's gross volume of sales exceeded $500,000 in both years, but neither enterprise nor individual coverage exists for 2016 and 2017; (2) Mr. Sanchez was not paid an overtime premium of one and one-half times his normal salary; and (3) Mr. Ayala is liable as an individual “employer” under the FLSA and DCMWA. See Mem. Op. at 7-15, 21-23. Having found genuine and material factual disputes for the following issues, the Court did not grant summary judgment on (1) whether Mr. Sanchez qualified as an exempt executive under the FLSA and DCMWA, (2) whether he was therefore entitled to overtime compensation and/or liquidated damages under the FLSA and/or DCMWA. See id. at 15-21, 23.

This Court conducted a two-day bench trial on October 23 and October 24, 2023. Plaintiff testified and also called former coworkers Mr. Di Laudo, Wilfredo Delcid, Ariel Anzora, and Mr. Ayala to testify. Defendants also called Mr. Ayala to testify, in addition to Rafael Gutierrez, and Francisco Castillo Mendez. At the conclusion of the trial, Mr. Sanchez orally moved for judgment, which this Court denied. See Dec. 21, 2023 Min. Order.

After considering witness testimony, the evidence presented, and the parties' proposed Findings of Fact and Conclusions of Law, the Court finds that Defendants have not met their burden of proof to establish that Mr. Sanchez qualified as an exempt executive employee and further finds that Mr. Sanchez is entitled to overtime wages in the amount of $112,102.50 plus treble damages and attorney's fees.

FINDINGS OF FACT

1. Mr. Sanchez previously worked for Mr. Di Laudo at another restaurant, Chimichurri, where he was “in charge of the kitchen.” Tr. 1, 143:19-23, 92:15-17 (Sanchez). Mr. Di Laudo then offered Mr. Sanchez employment at Malbec to “be in charge of the kitchen.” Tr. 1, 147:14-18 (Sanchez).

2. Mr. Sanchez worked at Malbec from December 15, 2015 to August 30, 2019. The relevant period of employment begins October 24, 2016 and amounts to 150 weeks. Joint Pretrial Statement at 14-15, ECF No. 45; Tr. 2, 112:18-20 (Anzora).

3. Mr. Sanchez was paid a weekly salary of $1,000 between October 24, 2016 and July 5, 2017, and a weekly salary of $1,100 from July 6, 2017 to August 30, 2019. Joint Pretrial Statement Ex. A, ECF No. 45-2.

4. Mr. Sanchez did not clock in or clock out, nor were there any other records of Mr. Sanchez's hours from the relevant period. Tr. 1, 68:4-6 (Ayala), 160:17-19 (Sanchez).

5. Mr. Ayala, the owner of Malbec, was responsible for hiring, firing, salary decisions, discipline, and the terms of each employee's employment. See Mem. Op. at 2. However, Mr. Di Laudo oversaw daily operations and supervised all employees as Malbec's General Manager. See Tr. 1, 43:10-11, 50:13-16 (Ayala); Tr. 2, 9:2-8 (Di Laudo), 62:10-24 (Di Laudo), 91:17-24 (Del Cid). Mr. Di Laudo supervised Mr. Sanchez in the kitchen and monitored all dishes coming from the kitchen. Tr. 2, 9:05-08; Tr. 1, 108:2109:9. Mr. Di Laudo and Mr. Ayala together set employee schedules, reviewed payroll, interviewed job candidates, and made salary, hiring, and firing decisions. Tr. 2, 16:13-20 (Di Laudo); Tr. 1, 44:6-10 (Ayala); Tr. 1, 107:13-108:1 (Sanchez).

HOURS

6. Malbec was open 55.5 hours a week. Malbec opened for lunch from 11:30 am to 2:30 pm on Tuesday - Saturday and from 11:00 am to 2:30 pm on Sunday. Malbec opened for dinner from 5:00 pm to 10:00 pm Sunday - Thursday and from 5:00 pm to 11:00 pm on Friday and Saturday. See Def. Tr. Ex. 1.

7. Mr. Sanchez worked the lunch and dinner shifts Tuesday - Sunday (six days per week) from October 2016 to around April 2019, and thereafter the lunch and dinner shifts Tuesday - Saturday (five days per week). Tr. 2, 23:10-19 (Di Laudo); Tr. 1, 111:21- 112:10 (Sanchez).

8. Mr. Sanchez typically arrived between 10:30 and 11:00 AM for lunch service. Tr. 1, 111: 3- 4 (Sanchez); Tr. 2, 73:14-74:4 (Di Laudo). Mr. Sanchez would take a break between lunch service and dinner service. On average, Mr. Sanchez took an hour and fifteen minute long break. See Tr. 1, 113:6-11 (Sanchez) (testifying his breaks lasted 30 to 45 minutes); Tr. 2, 76:1-4 (Di Laudo) (testifying his breaks lasted up to two hours). On Tuesdays through Thursdays, Mr. Sanchez typically left the restaurant around 10:30 PM. See Tr. 1, 111: 3-6 (Sanchez). On Fridays and Saturdays, he left around 11:30 PM. See Tr.1, 111:7-10 (Sanchez). On Sundays, Mr. Sanchez left around 9:30 PM. See Tr.1, 111:13-14 (Sanchez). Mr. Sanchez would work until customers left, sometimes after the restaurant closed. Tr. 90:09-23 (Del Cid).

9. In consideration of the testimony provided from both sides, Mr. Sanchez worked, on average, over 10 and a half hours a day, six days a week-or 64 hours a week-until April 2019. Between April and August 2019, Mr. Sanchez worked, on average, approximately 11 hours a day, five days a week-or 54.5 hours a week.

DUTIES

10. Mr Sanchez was responsible for cooking, identifying and listing items needed in inventory, and cleaning the kitchen. Tr. 2 56:21-24, 57:1-6 (Di Laudo); ...