Ornelas v. Los Arrieros, LLC
Ornelas v. Los Arrieros, LLC
Opinion of the Court
ORDER
Introduction
Before me,
Facts
The necessary, undisputed facts will be briefly stated here, with relevant facts being discussed further in the analysis.
A. Los Arrieros Restaurant
Los Arrieros Restaurant is owned by Los Arrieros, LLC and was previously owned by Chen Loss Arrieros, LLC.
B. Employees of Los Arrieros Restaurant
Mario Ornelas, Rito Cruz, Jesus Martinez, and Victor Vergara were employees of Los Arrieros Restaurant. Ornelas was employed as a waitress from July 2012 to July 2014.
1.Procedural History
The plaintiffs filed a collective action complaint with this court on July 8, 2015.
1. Violation of Article II, section 34a of the Ohio Constitution: Failure to Pay Tipped Minimum wages;
2. Violation of the Fair Labor Standards Act: Failure to Pay Tipped Minimum Wages;
3. Violation of Article II, Section 34a of the Ohio Constitution: Violation of Tip Provision;
4. Violation of Article II, section 34a of the Ohio Constitution: Failure to Pay Minimum Wages;
5. Violation of the Fair Labor Standards Act: Failure to Pay Minimum Wages;
6. Violation of Ohio Minimum Wage Fair Standards Act: Failure to Pay Overtime Wages;
7. Violation of the Fair Labor Standards Act: Failure to Pay Overtime Wages;
*966 8. Violation of the Fair Labor Standards Act: Failure to Inform Employees of Tip Credit;
9. Violation of O.R.C. § 4113.15 requiring tendering of pay by regular payday; and
10. Violation of Article II, Section 34a of the Ohio Constitution: Failure to Maintain Wage and Hour Records.12
The parties consented to my jurisdiction on September 11, 2015.
Analysis
A. Standard of Review
1. Summary Judgment
Summary judgment is appropriate where the court is satisfied “that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”
[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of ‘the pleadings, depositions answers to interrogatories, and admissions on file, together with affidavits, if any,’ which it believes demonstrates the absence of a genuine issue of material fact.18
A fact is “material” only if its resolution will affect the outcome of the lawsuit.
Summary judgment should be granted if a party who bears the burden of proof at trial does not establish an essential element of his case.
Once the moving party has satisfied its burden of proof, the burden then shifts to the nonmover.
When a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial.
“In other words, the movant can challenge the opposing party to ‘put up or shut up’ on a critical issue.”
' [7,8] Though parties must produce evidence in support of and in opposition to a motion for summary judgment, not all types of evidence are permissible. The Sixth Circuit has concurred that “ ‘it is well settled that only admissible evidence may be considered by the trial court in ruling on a motion for summary judgment.’ ”
[it] requires that affidavits used for summary judgment purposes be made on the basis of personal knowledge, set forth admissible evidence, and show that the affiant is competent to testify. Rule 56(e) further requires the party to attach sworn or certified copies to all documents referred to in the affidavit. Furthermore, hearsay evidence cannot be considered on a motion for summary judgment.31
However, the district court may consider evidence not meeting this standard unless the opposing party affirmatively raises the issue of the defect. The burden is on the opposing party to object to the improper evidence; failure to object constitutes a waiver.
If a party fails to object before the district court to the affidavits or eviden-tiary materials submitted by the other party in support of its position on summary judgment, any objections to the district court’s consideration of such materials are deemed to have been waived, and [the Sixth Circuit] will review such objections only to avoid a gross miscarriage of justice.32
As a general matter, the judge considering a motion for summary judg
In sum, proper summary judgment analysis entails:
the threshold inquiry of determining whether there is the need for a trial-whether, in other words, there are any genuine factual issues that properly can be resolved only by a finder of fact because they may reasonably be resolved in favor of either party.36
B. Application of Standard
1. Federal FLSA Claims
a. Defendants’ Motion for Summary Judgment on Federal Claims
For the reasons that follow the defendants’ motion for summary judgment on claims two, five, seven, and eight will be denied because of disputed material facts.
The defendants claim that Los Arrieros is not subject to the regulation of the Fair Labor Standards Act because they are not covered by the enterprise provision.
The defendants’ motion fails because there is a dispute as to the total yearly income of the defendants’ restaurant.
Accordingly, the motion for summary judgment on claims two, five, seven, and eight is denied because of disputed material facts.
As part of the motion for summary judgment on the federal claims, the defendants have moved to dismiss the plaintiffs’ state law claims under 28 U.S.C. § 1367(C).
b. Plaintiffs Motion for Summary Judgment on Federal Claims
The plaintiffs’ motion for summary judgment on claims two, five, seven, and eight is denied because of disputed material facts. Los Arrieros concedes that they meet the first prong of the enterprise provision, but in order for a business to be subject to FLSA, it must meet both prongs.
The plaintiffs also claim that Cruz, the cook, does not fall into a category exempt from the FLSA overtime pay requirement.
Accordingly, the motion for summary judgment on claims two, five seven, and eight is denied because of disputed material facts.
2. State Law Claims
a. Plaintiff's ’ Motion for Summary Judgment on State Law Claims
Plaintiffs’ motion for summary judgment on claims one, three, four, six, nine, and ten are granted. There is no dispute that the defendants meet the income requirements to be subject to state of Ohio claims.
i. Minimum Wage and Overtime Payments
Claims one, four, and six directly involve the failure to pay minimum wages and overtime wages. The plaintiffs established in their affidavits that they were employed for over 40 hours a week, yet they did not receive overtime wages.
Accordingly, because the defendants fail to show a dispute as to the material facts, even when viewed in the light most favorable to the nonmoving party, summary judgment on claims one, four, and six is granted to the plaintiffs.
ii. Tip Provision
Claim three is an alleged violation of Ohio Constitution, Article II, Section 34a regarding tip provisions. Tipped employees may receive wages of not less than half of the minimum wage rate if the wages and tips combined equal or surpass the minimum wage rate.
Accordingly, the plaintiffs’ motion for summary judgment on claim three is granted.
Hi. Failure to Tender Pay by Regular Payday .
O.R.C. § 4113.15 requires that employers pay their employees within 30 days of when payments are due.
Accordingly, summary judgment on claim nine is granted to the plaintiffs.
iv. Failure to Maintain Wage and Hour Records
Article II, Section 34a of the Ohio Constitution requires employers to maintain wage and hour records. The plaintiffs provided estimated work schedules in their affidavits.
Accordingly, the plaintiffs motion for summary judgment on claim ten is granted.
b. Defendants’ Motion for Summary Judgment on State Law Claims
As analyzed above, defendants’ motion for summary judgment on claims one, three, four, six, nine, and ten is denied.
Conclusion
The defendants motion for summary judgment
IT IS SO ORDERED.
. The parties have consented to my jurisdiction, ECF #12 and the matter has been transferred to me. ECF #13.
. ECF # 1 (complaint).
. ECF # 23 (defendants’ motion for summary judgment); ECF # 24 (plaintiffs’ motion for summary judgment).
. ECF # 26 (plaintiffs' opposition to motion for partial summary judgment); ECF # 27 (defendants' opposition to motion for summary judgment).
. ECF # 24, Attachment # 9 (articles of incorporation for Chen Los Arrieros), Attachment #11 (articles of incorporation for Los Arrie-ros LLC).
. ECF # 24, Attachment # 3 (Yong Xiu Chen interrogatories) at 8.
. ECF # 24, Attachment #5 at 2.
. ECF # 24, Attachment # 8 at 7.
. ECF # 24, Attachment # 6 at 8.
. ECF # 24, Attachment # 7 at 8.
.ECF # 1.
. Id. at 13-17.
. ECF #12.
. ECF # 23 (defendants' motion for summary judgment); ECF # 24 (plaintiffs’ motion for summary judgment).
. ECF # 26 (plaintiffs’ opposition brief); ECF # 27 (defendants’ response brief).
. ECF # 28 (plaintiffs’ reply brief).
. Fed. R. Civ. P. 56(c).
. Celotex v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (citing Fed. R. Civ. P. 56(c)).
. Anderson v. Liberty Lobby, 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).
. Id. at 252.
. U.S. v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962).
. McDonald v. Petree, 409 F.3d 724, 727 (6th Cir. 2005) (citing Celotex, 477 U.S. at 322, 106 S.Ct. 2548).
. Leadbetter v. Gilley, 385 F.3d 683, 689 (6th Cir. 2004) (quoting Anderson, 477 U.S. at 248-49, 106 S.Ct. 2505).
. Anderson, 477 U.S. at 249-50, 106 S.Ct. 2505 (citation omitted).
. Id. at 252.
. March v. Levine, 249 F.3d 462, 471 (6th Cir. 2001).
. Anderson, 477 U.S. at 256, 106 S.Ct. 2505.
. Cox v. Kentucky Department of Transportation, 53 F.3d 146, 149 (6th Cir. 1995).
. BDT Products, Inc. v. Lexmark Int’l Inc., 124 Fed.Appx. 329, 331 (6th Cir. 2005).
. Wiley v. United States, 20 F.3d 222 (6th Cir. 1994) (quoting Beyene v. Coleman Sec. Servs., Inc., 854 F.2d 1179, 1181 (9th Cir. 1988)).
. Id. at 225-26 (citations omitted).
. Id. at 226 (citations omitted).
. Anderson, 477 U.S. at 248, 106 S.Ct. 2505.
. Id. at 249.
. Id.
. Id. at 250.
. 29 U.S.C. § 206(a).
. 29 U.S.C. § 203(s)(l)(A).
. See Rocha v. Bakhter Afghan Halal Kababs, Inc., 44 F.Supp.3d 337 (E.D.N.Y. 2014)(case with similar application of law to FLSA contested business income).
. ECF # 27, Attachment # 4 (tax filings for 2009-2014).
. Fed. R. Civ. Pro. 56(c)(2).
. ECF # 24, Attachment # 5 (Ornelas affidavit) at 3, Attachment # 6 (Vergara affidavit) at 10, Attachment # 7 (Martinez affidavit) at 10.
. ECF # 26, Attachment # 7 (photos of daily receipts).
. ECF # 24, Attachment #15 (manual filing of audio recording).
. See Rocha, 44 F.Supp.3d at 337 (federal court denied summary judgment because of material facts in dispute regarding business income despite unsigned tax return being used as evidence).
. ECF #23, at 11.
. 28 U.S.C. § 1367(C)(3).
. 29 U.S.C. § 203(s)(l)(A)
. See 29 U.S.C. § 201; also Coming Glass Works v. Brennan, 417 U.S. 188, 196-97, 94 S.Ct. 2223, 41 L.Ed.2d 1 (1974) (employers duty to prove that it's employees fall within an exempt category).
. ECF # 24, Attachment # 8.
. O.R.C. § 4111.03(D)(2) (Ohio Minimum Fair Wage Standards Act applies to all business who make over $150,000 in revenue); Ohio Constitution has no revenue requirements.
. ECF # 24, Attachment # 3 at 8, Attachment # 4 (Xiu Yang Dong interrogatory) at 7.
. United States DOL v. Cole Enters., 62 F.3d 775, 778 (6th. Cir. 1995) (corporate officer who has operational control of the corporations enterprise is also an employer); see also Ellington v. City of East Cleveland, 689 F.3d 549 (6th Cir. 2012) (corporate officers are several and jointly liable for corporations actions when they exercise operational control); ECF # 24, Attachments 9, 11 (corporate filings indicating owners of corporation).
. In addition to Cheng Los Arrieros and Los Arrieros, LLC.
. ECF # 24, Attachment #5 at 4, Attachment # 6 at 10, Attachment # 7 at 10, Attachment # 8 (Cruz affidavit) at 9.
. ECF # 24, Attachment #5 at 5, Attachment # 6 at 11, Attachment # 7 at 11.
. ECF # 24, Attachment # 8 at 9.
. ECF # 27, Attachment # 5 (employment records of plaintiffs).
. The only W-2’s provided were submitted by the plaintiffs, which were inaccurate according to the plaintiffs’ affidavits.
. ECF # 27, Attachment # 5.
. Ohio Const. Article II Section 34a.
. Id.
. "Every.. .corporation.. .shall, on or before the first day of each month, pay all its employees the wages earned by them during the first half of the preceding month ending with the fifteenth day thereof, and shall, on or
. ECF # 24, Attachment #5 at 4, Attachment # 6 at 10, Attachment # 7 at 10, Attachment # 8 at 9.
. ECF # 27, Attachment # 5 (time cards for a small fraction of the time plaintiffs were employed).
. ECF # 24, Attachment #5 at 5, Attachment # 6 at 11, Attachment # 7 at 11, Attachment # 8 at 9.
. ECF #24, Attachment #15.
. ECF #23.
. ECF # 24.
Reference
- Full Case Name
- Maria ORNELAS v. LOS ARRIEROS, LLC
- Cited By
- 3 cases
- Status
- Published