Thomas E Perez v. Leo s Recycling, Inc., et al

Filing 10

CONSENT JUDGMENT AND ORDER AGAINST DEFENDANTS BRIGIDA RIOS AND GLORIA CORDOVA as MANAGING AGENTS OF LEO'S RECYCLING 9 by Judge Dale S. Fischer. JUDGMENT IS HEREBY ENTERED, pursuant to Section 16(c) of the FLSA, 29 U.S.C. § 216, in favo r of the Secretary and against Defendants Brigida Rios and Gloria Cordova, jointly and severally, in the total amount of $90,000, which includes the unpaid overtime compensation of $45,000 referenced in paragraph 5 to the present and for mer Leo's Recycling employees who are identified by name, periods of employment, and amounts owed in Exhibit A, filed concurrently and made a part hereof (Backwage Calculation), plus an additional equal amount of $45,000 as statutorily auth orized liquidated damages ("Liquidated Damages"), for a total of $90,000. Defendants shall make payments to the Wage Hour Division of the United States Department of Labor totaling $90,000. (See attached document for details.) ( MD JS-6. Case Terminated ) (lom)

1
2
3
4
5
6
7

JANET M. HEROLD
Regional Solicitor
SUSAN SELETSKY
Counsel for FLSA
NATALIE NARDECCHIA (SBN 246486)
Trial Attorney
United States Department of Labor
Office of the Solicitor
350 South Figueroa Street, Suite 370
Los Angeles, CA 90071
Email: [e-mail]

JS 6

8
9

Attorneys for Plaintiff, Thomas E. Perez, Secretary
United States Department of Labor

10
11

UNITED STATES DISTRICT COURT FOR THE

12

CENTRAL DISTRICT OF CALIFORNIA

13
14
15
16
17
18
19
20
21
22

THOMAS E. PEREZ, Secretary of
Labor, United States Department of
Labor,

)
)
)
)
Plaintiff,
)
v.
)
)
LEO’S RECYCLING, INC. dba
)
LEO’S RECYCLING, a California
)
corporation; BRIGIDA RIOS,
individually and as a managing agent of )
Leo’s Recycling, Inc.; and, GLORIA )
CORDOVA, individually and as a
)
managing agent of Leo’s Recycling,
)
Inc.,
)
Defendants.
)

Case No.: 2:15-cv-7628
CONSENT JUDGMENT & ORDER
AGAINST DEFENDANTS BRIGIDA
RIOS AND GLORIA CORDOVA as
MANAGING AGENTS OF LEO’S
RECYCLING

23
24
25
[Proposed] Consent Judgment and Order

1

2:15-cv-7628

Plaintiff, THOMAS E. PEREZ, Secretary of Labor, United States

1
2

Department of Labor (“Plaintiff” or the “Secretary”), and Defendants BRIGIDA

3

RIOS, individually and as a managing agent of Leo’s Recycling, Inc. (“Leo’s

4

Recycling”)1; and GLORIA CORDOVA, individually and as a managing agent of

5

Leo’s Recycling (collectively, “Defendants”) have agreed to resolve the matters in

6
7

controversy in this civil action and consent to the entry of this consent judgment
(“Consent Judgment” or “Judgment”) in accordance herewith.
I. STATEMENT BY THE PARTIES:

8

A. The Secretary has filed a Complaint alleging that Defendants violated

9

provisions of Sections 7, 11 and 15 of the Fair Labor Standards Act of
10

1938, as amended (“FLSA” or the “Act”), 29 U.S.C. §§ 207, 211 and

11

215.

12

B. Defendants acknowledge receipt of a copy of the Secretary’s Complaint

13

and waive answer. Defendants have had the opportunity to obtain legal

14

counsel.

15

C. Defendants waive issuance and service of process and waive answer and

16

any defenses to the Secretary’s Complaint.

17

D. Defendants agree that this Court has jurisdiction over the parties and

18

subject matter of this civil action and venue lies in the district court for

19

the Central District of California.

20

E. The Secretary and Defendants waive Findings of Fact and Conclusions of

21

Law, and agree to the entry of this Consent Judgment in settlement of this

22

action, without further contest.
F. The Secretary and Defendants agree to dismiss Defendant Leo’s

23

Recycling, Inc. from this action upon receipt of the monetary amounts

24
25

1

Defendant Leo’s Recycling, Inc. will be dismissed.

[Proposed] Consent Judgment and Order

2

2:15-cv-7628

1
2

due under this Consent Judgment.
G. Defendants acknowledge that they and any individual, agent, or entity

3

acting on their behalf or at their direction have notice of, and understand,

4

the provisions of this Consent Judgment.

5
6
7
8
9

H. Since at February of 2012, Defendants have employed workers to
perform tasks for their recycling business, at five locations in Los
Angeles County. The workers are employees within the meaning of the
FLSA and entitled to all of the provisions and safeguards guaranteed
under the FLSA to employees, including the wage provisions and
protections from retaliation and discrimination.

10
11
12
13
14

I. Since at least December of 2003, Defendant Leo’s Recycling has been
and is an enterprise engaged in commerce or in the production of goods
for commerce within the meaning of Section 3(s)(1)(A) of the FLSA, 29
U.S.C. 203(s)(1)(A).
J. Defendants’ employees are employed in an enterprise engaged in

15

commerce or in handling or otherwise working on goods or materials that

16

have been moved in or produced for commerce, within the meaning of

17

FLSA Section 3(s)(1), 29 U.S.C. § 203(s)(1).

18

K. Defendants are employers within the meaning of FLSA Section 3(d), 29

19

U.S.C. § 203(d) in that they act directly or indirectly in the interests of

20

Leo’s Recycling in relation to their employees.

21

L. Defendants understand and expressly acknowledge that demanding or

22

accepting any of the monies due to any employees under the terms of this

23

Consent Judgment, threatening any employee for accepting monies due

24
25

under this Consent Judgment, or threatening any employee for exercising
any of his or her rights under the FLSA is specifically prohibited and may
subject Defendants to equitable and legal damages, including punitive
[Proposed] Consent Judgment and Order

3

2:15-cv-7628

damages and civil contempt.

1
2

M. Defendants understand and expressly acknowledge that it is “unlawful

3

for any person…to discharge or in any other manner discriminate against

4

any employee because such employee has filed any complaint or

5

instituted or caused to be instituted any proceeding under [the FLSA], or
has testified or is about to testify in any such proceeding…” See 29

6

U.S.C. § 215(a)(3). Defendants understand and expressly acknowledge

7

that it is illegal to retaliate in any manner against any employee because

8

he or she has participated in the instant proceedings by inter alia talking

9

to or providing information to the Secretary’s representatives or in any
10

way pursuing his or her rights under the FLSA. Defendants further

11

understand and expressly acknowledge that taking any retaliatory actions

12

against any employee or person in violation of the FLSA and the express

13

terms of this Consent Judgment may subject Defendants to equitable and

14
15
16

legal damages, including punitive damages and civil contempt.
Therefore, upon motion of the attorneys for the Secretary, and for cause
shown,

17

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that

18

pursuant to Section 17 of the FLSA, 29 U.S.C. § 217, Defendants, and their

19

officers, agents, servants, employees, successor companies, parties in interest, and

20

all persons in active concert or participation with them, are hereby permanently

21

enjoined and restrained from violating the provisions of the FLSA, in any of the

22
23
24
25

following manners:
1. Defendants shall not, contrary to Sections 7 and 15(a)(2) of the FLSA,
pay any of their employees who are employed in an enterprise engaged in
commerce or in the production of goods for commerce, within the

[Proposed] Consent Judgment and Order

4

2:15-cv-7628

1

meaning of the FLSA, less than one and one-half times the employees’

2

regular rates for hours worked in excess of 40 hours in a workweek.

3

2. Defendants shall not, contrary to Sections 11(c) and 15(a)(5) of the FLSA

4

fail to make, keep and preserve records of their employees and of the

5

wages, hours, and other conditions and practices of employment

6
7
8
9

maintained by them as prescribed by the regulations issued, and from
time to time amended, pursuant to Section 11(c) of the FLSA and found
in 29 C.F.R. Part 516.
3. Defendants shall not, contrary to Section 11(a) and 15(a)(3) of the FLSA
interfere with the Secretary’s ability to investigate violations of the

10
11
12
13

FLSA. Among other things, subject to legal and any other appropriate
objections, Defendants shall promptly supply records requested by the
Secretary for purposes of an investigation, shall not destroy any records
relevant to an investigation and shall not intimidate or discourage any

14

employee from cooperating with the Secretary’s investigation or

15

providing truthful information or records.

16

4. Defendants shall not, contrary to Section 15(a)(3) of the FLSA discharge,

17

threaten to discharge, lay off, reduce the work schedule or wages,

18

intimidate, or in any other manner discriminate against any employee as a

19

result of this litigation or because such employee has filed any complaint

20

under or related to the FLSA or has spoken or provided information to

21

the Secretary’s representatives in connection with this litigation.

22

5. Defendants Brigida Rios and Gloria Cordova jointly and severally, shall

23

not withhold payment of $45,000, which constitutes the unpaid overtime

24
25

compensation agreed to be due to the present and former employees of
Leo’s Recycling who are identified by name, periods of employment, and

[Proposed] Consent Judgment and Order

5

2:15-cv-7628

1

amounts owed in an Exhibit A, filed concurrently (“Backwage

2

Calculation”).

3

FURTHER, PURSUANT TO THE PARTIES’ AGREEMENT,

4

JUDGMENT IS HEREBY ENTERED, pursuant to Section 16(c) of the FLSA,

5

29 U.S.C. § 216, in favor of the Secretary and against Defendants Brigida Rios and

6

Gloria Cordova, jointly and severally, in the total amount of $90,000, which

7
8
9

includes the unpaid overtime compensation of $45,000 referenced in paragraph 5
to the present and former Leo’s Recycling employees who are identified by name,
periods of employment, and amounts owed in Exhibit A, filed concurrently and
made a part hereof (“Backwage Calculation”), plus an additional equal amount of

10
11
12
13

$45,000 as statutorily authorized liquidated damages (“Liquidated Damages”), for
a total of $90,000. Defendants shall make payments to the Wage Hour Division of
the United States Department of Labor totaling $90,000, by delivering to Wage and
Hour Division, United States Department of Labor, Attn: District Director

14

Francisco Ocampo, Assistant District Director, 915 Wilshire Blvd., Suite 960, Los

15

Angeles, CA 90017-3446, the following:

16

a.

By no later than ninety (90) calendar days from entry of this

17

Consent Judgment and Order, Defendants shall deliver a cashier’s check

18

or money order with the firm name and “Net Back Wages” written on it,

19

payable to the order of the “Wage & Hour Div., Labor,” in the total net

20

back wages amount due. The check described in this subparagraph shall

21

contain no expiration date other than that which may be pre-printed on

22

the cashier’s check or money order by the issuing bank.

23
24
25

b.

By no later than ninety (90) calendar days from entry of this

Consent Judgment and Order, Defendants shall deliver a schedule in
duplicate bearing the firm name, employer identification number(s),
address(es), and phone number(s) of Defendants and showing the name,
[Proposed] Consent Judgment and Order

6

2:15-cv-7628

1

last known address, social security number, gross back wage amount (as

2

listed in the attached Exhibit A), the amounts of legal deductions for

3

social security and withholding taxes thereon (which Defendants shall

4

pay directly to the federal and state agencies entitled thereto, when due,

5

but in no event later than one year after submitting to Plaintiff the last of

6
7
8
9
10
11
12
13
14

the net back wage amounts), and the resulting net back wage amount for
each person listed in the attached Exhibit A.
c.

By no later than ninety (90) calendar days from entry of this

Consent Judgment and Order, Defendants shall deliver a certified or
cashier’s check or money order in the total amount of $45,000 with the
firm name and “Liquidated Damages” written on it, payable to the order
of the “Wage & Hour Div., Labor.” The check or money order shall
contain no expiration date other than that which may be pre-printed on
the cashier’s check or money order by the issuing bank.
d. Upon receipt of the monetary amounts due under this Judgment, the

15

Secretary shall file a notice dismissing Defendant Leo’s Recycling, Inc.

16

from this action with prejudice.

17

6. In the event of a default in the timely making of the payments specified

18

in this Consent Judgment, the full amount outstanding due under this

19

Consent Judgment, plus post-judgment interest at the rate of 10% per

20

year from the date of this Consent Judgment until the amount of this

21

Consent Judgment is paid in full, shall become immediately due and

22

payable directly to the U.S. Department of Labor by certified check to the

23

Wage and Hour Division (“Wage and Hour”). For the purposes of this

24
25

paragraph, a “default” is deemed to occur if payment is not received by
Wage and Hour within five (5) calendar days of the due date.

[Proposed] Consent Judgment and Order

7

2:15-cv-7628

1

Further, the Secretary shall notify the Court of the default and request to

2

put this matter back on calendar as open, contested litigation against all

3

Defendants named in the Complaint, i.e., Leo’s Recycling, Inc., Brigida

4

Rios and Gloria Cordova. The Secretary notes that in the event of a

5

default, the Secretary will seek all amounts due in this matter, and any

6
7
8
9

agreement to a lesser amount for settlement purposes will be null and
void.
7. Upon receipt of the payments detailed supra, the Secretary shall
distribute said payments to the persons named in Exhibit A, or to their
estates if that be necessary, in his sole discretion, and any monies not so

10
11
12
13
14

paid within a period of three (3) years from the date of its receipt,
because of an inability to locate the proper persons or because of their
refusal to accept it, shall be then deposited in the Treasury of the United
States, as miscellaneous receipts, pursuant to 29 U.S.C. § 216(c).
8. Within ten (10) days of the date of entry of this Consent Judgment,

15

Defendants shall provide each of their current employees with a copy of

16

the notice of rights, attached hereto as Exhibit B, which summarizes in

17

English and Spanish the terms of this Consent Judgment and provides

18

direct guidance from the U.S. Department of Labor regarding employees’

19
20

rights, including protection from retaliation, under the FLSA (“Notice of
Rights”). Defendants shall redistribute this Notice of Rights to each
employee annually, for a period of three (3) years from the date of entry

21
22

of this Consent Judgment.
a.

Defendants shall provide a copy of the Notice of Rights to all

23

newly hired employees before or by the date said employee begins

24

performing work for them.

25
[Proposed] Consent Judgment and Order

8

2:15-cv-7628

1

b.

Within ten (10) days of entry of this Consent Judgment,

2

Defendants shall post a copy of Exhibit B in a prominent location at all of

3

their facilities and locations in Los Angeles County, and shall do the same

4

at any future facility within ten (10) days of it beginning operations. This

5

provision shall remain in effect for three (3) years from entry of this

6
7
8
9

Consent Judgment.
9. Within ten (10) days of the date of entry of this Consent Judgment,
Defendants shall post U.S. Department of Labor-approved posters
regarding the minimum wage and overtime provisions of the FLSA, in a
prominent location at all of their facilities or locations in Los Angeles

10
11
12
13
14

County, and Defendants shall do the same at any future facility within ten
(10) business days of it beginning operations. Copies of said posters are
available for download and printing at:
http://www.dol.gov/whd/regs/compliance/posters/flsa.htm.
10. Within ten (10) days of the date of entry of this Consent Judgment,

15

Defendants shall implement a recordkeeping, retention, and inspection

16

program as detailed below:

17

a.

The employer shall record the employees’ work time in an

18

accurate and timely manner, whether such recording be made through the

19

use of a time clock, handwritten time records, or by other means (“Time

20

Records”). Work time shall include, but is not necessarily limited to,

21

time spent by individuals: making deliveries or pick-ups on behalf of

22

Defendants, waiting time at Defendants’ customers’ locations, and

23

waiting for dispatches.

24
25

b.

For each work week, Defendants shall sum each employee’s

Time Records to identify the time worked each day and each workweek
per individual. Each pay period, Defendants shall prepare a statement of
[Proposed] Consent Judgment and Order

9

2:15-cv-7628

1

hours worked by each individual for each day, week and pay period

2

(“Work Hours Summary”). Defendants shall have each individual review

3

his or her Work Hours Summary, write in corrections if necessary, and

4

sign the Work Hours Summary. Each Work Hours Summary shall

5

contain a statement indicating that:

6
7
8
9
10
11
12
13
14

“Your Employer must pay you for all hours worked,
which includes all time that you are required to be on
the Employer’s premises and are not free from duties.
If you think your Employer has not paid you for all
hours you worked, you can call the U.S. Department
of Labor to make a confidential complaint at 1-8664US-WAGE.”
Immediately upon issuance and for three (3) years thereafter, Defendants
shall maintain copies of all Work Hours Summaries for inspection by the
Secretary or any of Defendants’ employees at any time.

15

11. Within four (4) months of the date that Defendants sign this Consent

16

Judgment, or as soon as thereafter practicable given Wage and Hour

17

representatives’ availability, Defendants shall permit representatives from

18

Wage and Hour to conduct training sessions for all employees, to be

19

conducted at Defendants’ facilities. Defendants’ employees from all

20

locations and facilities shall be required to attend the training, which shall

21

be compensable time for which employees shall receive pay. Topics to

22

be covered by Wage and Hour during said training shall include, but are

23

not limited to: minimum wage, overtime, and recordkeeping provisions

24
25

of the FLSA; specific considerations relating to the recycling industry;
and anti-retaliation provisions of the FLSA. Upon a determination by
Wage and Hour representatives, said training may be followed by a
[Proposed] Consent Judgment and Order

10

2:15-cv-7628

1

confidential question and answer session between Wage and Hour

2

representatives and Defendant’s employees (“Q&A Session”). The Q&A

3

Session shall also be compensable time for which employees shall

4

receive pay.
12. The filing, pursuit, and/or resolution of this proceeding with the filing of

5

this Consent Judgment shall not act as, or be asserted as, a bar to any

6

action under Section 16(b) of the FLSA, 29 U.S.C. § 216(b), as to any

7

employee not named on the forthcoming Exhibit A, nor as to any

8

employee named on the forthcoming Exhibit A for any period not

9

specified herein for the back wage recovery provisions.
10

13. Each party shall bear all fees and other expenses (including court costs

11

and attorney’s fees) incurred by such party in connection with any stage

12

of this proceeding including but not limited to attorneys’ fees and costs

13

that may be available under the Equal Access to Justice Act.

14
15
16
17
18
19
20

///
///
///
///
///

21

///

22

///

23

///

24

///

25

///
[Proposed] Consent Judgment and Order

11

2:15-cv-7628

1

14. IT IS FURTHER ORDERED that this Court shall retain jurisdiction of

2

this action for purposes of enforcing compliance with the terms of this

3

Consent Judgment for five years.

4

IT IS SO ORDERED.

5
6

12/18/15
Dated: ______________________

______________________________
Honorable Dale S. Fischer
United States District Judge

7
8
9
10
11
12
13
14

_____________________________
Brigida Rios
Individually and as managing agent for
Defendant Leo’s Recycling

M. PATRICIA SMITH
Solicitor of Labor
JANET M. HEROLD
Regional Solicitor

Dated: __________

15
SUSAN SELETSKY
Counsel for FLSA

16
17
18
19
20
21

______________________________

__________________________
NATALIE NARDECCHIA
Trial Attorneys
Attorneys for Plaintiff

Gloria Cordova
Individually and as managing agent for
Defendant Leo’s Reycling
Dated: __________

Dated: __________

22
23
24
25
[Proposed] Consent Judgment and Order

12

2:15-cv-7628

1

EXHIBIT A TO CONSENT JUDGMENT

2
3

Name

BW Start and End Dates

Gross BW Due

LD Due

Gumercindo

Chama

4/6/2012

2/15/2014

$2,650.96

$2,650.96

Tomas

Chavez

4/27/2012

2/6/2015

$4,037.05

$4,037.05

Bayron

Garcia Pascual

8/10/2012

2/6/2015

$4,461.66

$4,461.66

7

Ruben

Garcia

10/10/2014

2/6/2015

$536.16

$536.16

8

Enrique

Hernandez

2/17/2012

7/13/2013

$810.82

$810.82

9

Carlos

Huante

2/17/2012

2/6/2015

$6,496.64

$6,496.64

10

Damian

Licona

7/19/2013

7/19/2013

$31.86

$31.86

11

Artemio

Lopez

5/31/2013

7/26/2014

$466.53

$466.53

12

Clemente

Lopez

4/27/2012

2/15/2014

$2,744.02

$2,744.02

13

Juan Carlos

Lopez

5/17/2013

7/26/2014

$935.13

$935.13

14

Anselmo

Martinez

4/26/2013

6/28/2013

$230.43

$230.43

15

Manuel

Martinez

8/31/2012

2/22/2013

$58.32

$58.32

16

Florindo

Mendez

8/16/2013

10/11/2013

$88.69

$88.69

17

Misael

Mendez

7/20/2012

7/13/2013

$485.29

$485.29

18

Alejandro

Molina

2/17/2012

2/6/2015

$3,888.72

$3,888.72

19

Maximiliano

Pascual

2/24/2012

2/6/2015

$5,098.25

$5,098.25

20

Walter

Pascual

11/2/2012

2/15/2014

$462.83

$462.83

Hector

Quintanilla

2/17/2012

4/20/2012

$667.32

$667.32

Mario

Romero

2/17/2012

2/6/2015

$7,506.24

$7,506.24

Ricardo

Salazar

2/17/2012

2/6/2015

$2,098.35

$2,098.35

Jose

Vasquez

2/8/2013

5/24/2013

$330.87

$330.87

4
5
6

21
22
23
24
25

[Proposed] Consent Judgment and Order

13

2:15-cv-7628

1

Martin

Villanueva

2/17/2012

6/29/2012

$913.87

$913.87

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
[Proposed] Consent Judgment and Order

14

2:15-cv-7628

1

EXHIBIT B TO CONSENT JUDGMENT

2

LEGAL NOTICE TO ALL EMPLOYEES

3
4
5
6
7

In a settlement with the United States Department of Labor, Leo’s Recycling
has agreed to pay the agreed-upon back wages and liquidated damages owed to
you, and to take other steps to ensure that all employees are paid properly under
the Fair Labor Standards Act (“FLSA”).
The FLSA requires that all employees must be paid minimum wage for all
hours worked, as well as overtime wages for hours worked over 40 in a workweek.

8

The FLSA also provides that all employees are protected from retaliation or

9

discrimination. This means that no one from Leo’s Recycling can terminate you,

10

threaten to terminate you, reduce your work or your pay, or in any way retaliate or

11

discriminate against you because you have spoken to anyone at the Department of

12

Labor, testified in this case, or in any way tried to enforce your rights under the

13

FLSA.

14
15
16

The United States Department of Labor wants to remind you that you
may contact the Department if you have any question about your employment
situation and your rights to lawful wages and to be free from retaliation.
If you think you are not being paid in accordance with the law, you can

17

call the United States Department of Labor, Wage and Hour Division, at (415)

18

625-7720 or 1-866-4-USWAGE (1-866-487-9243), and your name will be kept

19

confidential.

20
21
22
23

The Department also reminds you that you have employment rights under
California state law and you may contact the California Division of Labor
Standards Enforcement, at [phone], for any questions you may have about
those rights.

24
25
[Proposed] Consent Judgment and Order

15

2:15-cv-7628