Sigui et al v. M+M Communications Inc. et al

Filing 176

ORDER regarding damages and penalties. So Ordered by District Judge Mary S. McElroy on 10/14/2022. (Potter, Carrie)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF RHODE ISLAND
)
JUAN SIGUI, JOSE SIGUI, JOSE
)
CIPRIANO, JOSEPH MENDEZ,
)
JOSE L. SANTOS, JEROME
)
JOHNSON, NELKIN RAMIREZ, and` )
ADALBERTO MOLINA,
)
)
Plaintiffs,
)
)
v.
) C.A. No. 1:14-CV-00442-MSM-LDA
)
M + M COMMUNICATIONS, INC.
)
alias, M & M CORPORATION LA
)
INC.,
)
)
Defendants.
)
ORDER
Mary S. McElroy, United States District Judge.
A jury rendered a verdict in this matter finding the defendants, M + M
Communications, Inc. and M & M Corporation LA, Inc., had violated the Fair Labor
Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and/or the Rhode Island Minimum
Wage Act (“RIMWA”), R.I.G.L. § 28-12-1 et seq., and/or the Rhode Island Payment of
Wages Act (“RIPWA”), R.I.G.L. § 28-14 et. seq., and that they made those violations
willfully. (ECF No. 172.) For each plaintiff, the jury determined the precise number
of unpaid hours for each category at issue, i.e., unpaid regular hours, unpaid overtime
hours, and minimum shift unpaid hours. Id.
The Court invited the parties to provide post-trial memoranda on the
calculation of damages. The plaintiffs have provided a comprehensive memorandum
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detailing their calculations of damages. The defendants have not provided such a
memorandum and have not opposed the plaintiffs’ calculations in any way.
The Court finds as follows.
I.

Compensatory Damages
The plaintiffs have calculated the amounts owed to each plaintiff in

compensatory unpaid wages damages based on the hours determined by the jury on
the Verdict Form. The totals for each wage category are calculated by multiplying
the number of hours awarded per the jury verdict by the stipulated regular hourly
rate of $23.98. In the case of overtime hours, the parties agreed that only the halftime premium is at issue, and the amount is arrived at by multiplying the number of
overtime hours awarded per the jury verdict by half of the stipulated regular rate, or
$11.99.

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II.

Prejudgment Interest
In cases such as this one, where Rhode Island state-law claims and federal

claims are symmetrical, the Rhode Island prejudgment interest rate applies. Conetta

v. Nat’l Hair Care Centers, Inc., 236 F.3d 67, 78 (1st Cir. 2001). The Rhode Island
prejudgment interest statute, R.I.G.L. § 9-21-10, provides that “[i]n any civil action
in which a verdict is rendered or a decision made for pecuniary damages, there shall
be added by the clerk of the court to the amount of damages interest at the rate of
twelve percent (12%) per annum thereon from the date the cause of action accrued,
which shall be included in the judgment entered therein.”
The Court agrees with the plaintiffs’ unopposed calculation of prejudgment
interest. The plaintiffs determined the interest owed on a weekly basis by calculating
the number of weeks for which unpaid wages were found between the final day of
each week through June 27, 2022 and multiplying the number of weeks by .23076923
(which is the per annum 12% divided into 52-week segments) to determine the total
interest owed on that week’s wages. This yielded the following totals:
Plaintiff

Prejudgment Interest on Compensatory
Damages
$53,768.54
$55,678.48
$56,608.31
$43,473.52
$57,701.31
$15,983.96
$40,303.42
$323,517.55

Juan Sigui
Jose Sigui
Jose Cipriano
Joseph Mendez
Jose Santos
Jerome Johnson
Adalberto Molina
Total

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III.

Liquidated Damages

The Rhode Island Payment of Wages Act (“RIPWA”) provides that provides
that “[a]n aggrieved party shall be entitled to recover any unpaid wages and/or
benefits, compensatory damages, and liquidated damages in an amount up to two (2)
times the amount of unpaid wages and/or benefits owed…” R.I.G.L. § 28-14-19.2(a).
“In determining the amount of any penalty imposed under this section, consideration
shall be given to the size of the employer’s business, the good faith of the employer,
the gravity of the violation, the history of previous violations, and whether or not the
violation was an innocent mistake or willful.” Id.
The Court agrees that the plaintiffs should be awarded liquidated damages in
the amount of twice the unpaid wages. The jury found that the defendants’ violations
were willful, the defendants are a large multi-state operation, and it was
demonstrated at trial that they have previously been investigated and sanctioned by
the United States Department of Labor and were instructed on the proper recording
and calculation of wages to field service technicians such as the plaintiffs. The
liquidated damages totals are as follows.
Plaintiff
Juan Sigui
Jose Sigui
Jose Cipriano
Joseph Mendez
Jose Santos
Jerome Johnson
Adalberto Molina
Total

Liquidated Damages
$93,929.66
$98,102.18
$100,380.28
$75,393.12
$101,747.14
$29,471.42
$69,014.44
$568,038.24

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IV.

Misclassification Penalties
The RIPWA provides a civil penalty in an amount between $1,500 and $3,000

“for each misclassified employee for a first offense.” R.I.G.L. § 28-14-19.1(b). The
penalty for each misclassified employee for any subsequent offense is up to $5,000.

Id. Penalties are classified by the statute as ‘equitable relief,’ and thus would be
determined by the Court. R.I.G.L. § 28-14-19.2(a). Such a penalty shall be shared
equally between the plaintiffs and Rhode Island Department of Labor and Training.
R.I.G.L. § 28-14-19.1(b).
R.I.G.L. § 28-14-19.1(c) outlines the factors to be considered in assessing the
penalties for misclassification:
In determining the amount of any penalty imposed under this section, the
director or his or her designee shall consider the size of the employer’s
business; the good faith of the employer; the gravity of the violation; the history
of previous violations; and whether or not the violation was an innocent
mistake or willful.
These factors weigh against the defendants and therefore the Court imposes a
maximum penalty of $5,000 per plaintiff.

Specifically, it was demonstrated by

evidence at trial that the defendants are substantial corporations with millions of
dollars in annual revenue; there is a history of previous violations investigated and
sanctioned by the United States Department of Labor; and the jury found the
defendants’ actions willful.

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CONCLUSION
The Clerk of Court is directed to enter Judgment for the plaintiffs, inclusive
of interest, as follows:
•
•
•
•
•
•
•

Juan Sigui:
Jose Sigui:
Jose Cipriano:
Joseph Mendez:
Jose Santos:
Jerome Johnson:
Adalberto Molina:

$194,663.03
$202,831.75
$207,178.73
$156,563.20
$210,322.02
$60,191.09
$143,825.08

Further, the Court assesses a total of $35,000 in penalties against the
defendants pursuant to R.I.G.L. § 28-14-19.1, half of which is to be provided to the
Rhode Island Department of Labor and Training and the other half to be divided
equally among the plaintiffs.
IT IS SO ORDERED.
_________________________________
Mary S. McElroy
United States District Judge
October 14, 2022

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