Tapia v. Blch 3rd Ave LLC, No. 17-2718 (2d Cir. 2018)Annotate this Case
Plaintiffs, former employees of a Manhattan restaurant, filed suit against BLCH, the restaurant owner and operator, alleging violations of the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL). Although the district court found in favor of plaintiffs, the court held that they were not entitled to a double recovery of liquidated damages and that a shareholder of the employer was not personally liable.
The Second Circuit affirmed, holding that the district court properly declined to award cumulative liquidated damages. In this case, plaintiff's argument for double recovery was foreclosed by the court's recent decision in Rana v. Islam, 887 F.3d 118, 123 (2d Cir. 2018), which vacated a judgment under the FLSA in favor of a larger judgment under the NYLL on the ground that the FLSA did not allow duplicative liquidated damages. The court applied the Carter factors and held that the shareholder was not personally liable where only the fourth Carter factor -- maintaining of employment records -- was partially satisfied.