UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CIVIL ACTION NO. 20-12217-RGS
MARTIN J. WALSH, SECRETARY OF LABOR,
UNITED STATES DEPARTMENT OF LABOR
v.
SWEET LEMON, INC. d/b/a SWEET LEMONS THAI RESTAURANT,
and PORNTHIP NEAMPONG
MEMORANDUM AND ORDER ON
PLAINTIFF’S MOTION FOR
SUMMARY JUDGMENT
January 4, 2022
STEARNS, D.J.
Before the court is the motion filed on behalf of Martin J. Walsh, the
U.S. Secretary of Labor (the Secretary), seeking summary judgment against
defendants Sweet Lemon, Inc., and Pornthip Neampong. The Secretary
armed with a detailed and well-supported statement of material facts
alleges that defendants violated the overtime, tip-keeping, recordkeeping,
and anti-retaliation provisions of the Fair Labor Standards Act (FLSA), 29
U.S.C. § 201 et seq. After careful consideration of the Secretary’s brief and
statement of material facts, the court will grant the Secretary’s motion.
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Local Rule 56.1 states that “[m]aterial facts of record set forth in the
statement required to be served by the moving party will be deemed for
purposes of the motion to be admitted by opposing parties unless
controverted by the statement required to be served by opposing parties.
Despite the court’s order giving defendants to December 31, 2021, to file their
opposition to the Secretary’s dispositive motions, see Dkt # 13, neither has.
Accordingly, the factual assertions presented by the Secretary in his
statement of material facts will be considered admitted for the purposes of
this motion.
“Summary judgment is warranted if the record, construed in the light
most flattering to the nonmovant, ‘presents no genuine issue as to any
material fact and reflects the movant’s entitlement to judgment as a matter
of law.’” Lawless v. Steward Health Care Sys., LLC, 894 F.3d 9, 21 (1st Cir.
2018), quoting McKenney v. Mangino, 873 F.3d 75, 80 (1st Cir. 2017). On
the present record, given the absence of any genuine dispute of material fact,
the Secretary is entitled to compensatory damages, liquidated damages, and
injunctive relief. The court will briefly discuss the Secretary’s request for
punitive damages, an unsettled issue in the First Circuit regarding retaliation
claims under the FLSA.
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Section 16(b) of the FLSA provides that any employer who unlawfully
retaliates against an employee in violation of 29 U.S.C § 215(a)(3) (section
15(a)(3)) “shall be liable for such legal or equitable relief as may be
appropriate to effectuate the purposes of” the anti-retaliation provision. 29
U.S.C. § 216(b). As the Secretary points out, several courts including this
one have concluded that punitive damages are available in cases involving
egregious violations of section 15(a)(3). See, e.g., Travis v. Gary Cmty.
Mental Health Ctr., Inc., 921 F.2d 108, 111-112 (7th Cir. 1990) (“‘[L]egal’
relief [is] a term commonly understood to include compensatory and
punitive damages.”); Scalia v. JKA Constr., Inc., No. 20-cv-11944-RGS, Dkt
# 44 (D. Mass. June 29, 2021) (awarding punitive damages in section
15(a)(3) claim against defaulted defendants). This result is consistent with
the First Circuit’s allowance of punitive damages in cases involving the willful
or wanton violation of a plaintiff’s statutory or constitutional rights. See
McDonough v. City of Quincy, 452 F.3d 8, 24 (1st Cir. 2008) (punitive
damages may be appropriately awarded in employment discrimination cases
in which the employer is shown to have been acting in knowing violation of
federal law); Che v. Mass Bay Transp. Auth., 342 F.3d 31, 41 (1st Cir. 2004)
(“[A]cts of intentional discrimination are just the sort of conduct that
punitive damages are aimed to deter.”). Cf. CEH, Inc. v. F/V Seafarer, 70
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F.3d 694, 699 (1st Cir. 1995) (“[P]unitive damages have long been recognized
as an available remedy in general maritime actions where defendant’s
intentional or wanton and reckless conduct amounted to a conscious
disregard of the rights of others.”).
The court agrees with the Secretary that the First Circuit’s Title VII
jurisprudence is instructive for the purposes of determining the availability
of punitive damages awards in the FLSA context. See Serapion v. Martinez,
119 F.3d 982, 985 (1st Cir. 1997) (“We regard Title VII, ADEA, ERISA, and
FLSA as standing in pari passu and endorse the practice of treating judicial
precedents interpreting one such statute as instructive in decisions involving
another.”). Punitive damages are available under Title VII where an
employer engages in intentional discrimination “with malice or reckless
indifference to the plaintiff’s federally protected rights.” Che, 342 F.3d at
41, quoting Kolstad v. Am. Dental Ass’n, 527 U.S. 526, 534 (1999) (emphasis
in original). “[W]hen an employer retaliates against an employee because
the employee engages in conduct that is protected by well-established federal
civil rights statutes, a [factfinder] could . . . fairly infer that the employer
harbored malice or indifference towards those civil rights.” Id. at 41-42.
Here, there is no dispute that defendants retaliated against their
employees by instructing certain servers to sign false statements about their
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wages and tips, see Pl.’s Statement of Material Facts (SMF) (Dkt # 21) ¶¶ 72-
74, and asking employees if they had spoken to a Department of Labor
investigator, see id. ¶ 71, in the belief that these employees were involved in
an ongoing federal investigation into defendants’ employment practices, id.
¶ 70. Because defendants were acting with (at least) reckless indifference”
to their employees’ federally protected rights under the FLSA, Che, 342 F.3d
at 41, punitive damages are appropriately awarded.
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ORDER
For the foregoing reasons, the court ALLOWS the Secretary’s motion
for summary judgment. The Secretary is entitled to an award of $130,018.33
in back wages owed because of overtime pay violations, $29,880.98 in
withheld employee tips, and $25,000 in punitive damages. Defendants are
permanently ENJOINED from committing any future violations of the
overtime, recordkeeping, and anti-retaliation provisions of the FLSA.
SO ORDERED.
/s/ Richard G. Stearns__________
UNITED STATES DISTRICT JUDGE
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The court further concludes that the $25,000 punitive award sought
by the Secretary less than 8% of the damages sought in back taxes, tips,
and liquidated damages is reasonable and appropriately calibrated under
the guideposts erected by the Supreme Court in BMW of North America v.
Gore, 517 U.S. 559, 575 (1996).
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