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Hilda L. Solis, Secretary of Labor v. Terra Universal

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA


May 5, 2011

HILDA L. SOLIS, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, PLAINTIFF,
v.
TERRA UNIVERSAL, INC. A CALIFORNIA CORPORATIONAND GEORGE SADAGHIANI A.K.A. GHOLAM SADAGHIANI, INDIVIDUALLY AND AS MANAGING AGENT OF THE CORPORATE DEFENDANT DEFENDANTS.

JS-6

Lawrence Brewster Regional Solicitor Daniel J. Chasek Associate Regional Solicitor Boris Orlov, Attorney (CSBN #223532) Office of the Solicitor (Sol#1119411) United States Department of Labor 350 So. Figueroa St., Suite 370 Los Angeles, California 90071-1202 Telephone: (213) 894-5410 Facsimile: (213) 894-2064 orlov.boris@dol.gov Attorneys for the Plaintiff

CONSENT JUDGMENT

Plaintiff Hilda L. Solis, Secretary of Labor, United States Department of Labor ("Secretary") and Defendants TERRA UNIVERSAL, INC., a California corporation, and GEORGE SADAGHIANI, individually and as managing agent of the corporate defendants (collectively, "Defendants"), have agreed to resolve the matters in controversy in this civil action and consent to the entry of this Consent Judgment in accordance herewith:

A. The Secretary has filed a Complaint alleging that Defendants violated provisions of Sections 15(a)(2) and 15(a)(5) of the Fair Labor Standards Act of 1938, as amended ("FLSA"), 29 U.S.C. §§ 215(a)(2) and 215(a)(5).

B. Defendants have appeared and having retained defense counsel acknowledge receipt of a copy of the Secretary's Complaint.

C. Defendants waive issuance and service of process and waive answer and any defenses to the Secretary's Complaint.

D. The Secretary and Defendants waive Findings of Fact and Conclusions of Law, and agree to the entry of this Consent Judgment in settlement of this action, without further contest.

E. Defendants acknowledge that pursuant to FLSA § 7(e), 29 U.S.C. § 207 and 29 C.F.R. §778.208 certain bonus payments must be totaled in with other earnings to determine the regular rate on which overtime pay must be based.

F. Defendants agree that all work performed by a single employee during a pay period will be recorded on one time sheet and not split up on multiple timesheets regardless of the number of duties or tasks performed by that employee.

G. Defendants admit that the Court has jurisdiction over the parties and subject matter of this civil action and that venue lies in the Central District of California.

It is therefore, upon motion of the attorneys for the Secretary, and for cause shown,

ORDERED, ADJUDGED, AND DECREED that the Defendants, their officers, agents, servants, and employees and those persons in active concert or participation with them who receive actual notice of this order (by personal service or otherwise) be, and they hereby are, permanently enjoined and restrained from violating the provisions of Sections 15(a)(2) and 15(a)(5) of the FLSA, 29 U.S.C. §§215(a)(2) and 215(a)(5), in any of the following manners:

1. Defendants shall not, contrary to FLSA § 7, 29 U.S.C. § 207, employ any employee who in any workweek is engaged in commerce, within the meaning of the FLSA, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of FLSA § 3(s), for any workweek longer than 40 hours unless such employee receives compensation for his or her employment in excess of 40 hours in such workweek at a rate not less than one and one-half times the regular rate at which he or she is employed.

2. Defendants shall not fail to make, keep, make available to authorized agents of the Secretary for inspection, transcription, and/or copying, upon their demand for such access, and preserve records of employees and of the wages, hours, and other conditions and practices of employment maintained, as prescribed by regulations issued, and from time to time amended, pursuant to FLSA §§ 11(c) and 15(a)(5), 29 U.S.C. §§ 211(c) and 215(a)(5) and the implementing regulations found in Title 29, Code of Federal Regulations, Part 516.

3. Defendants, jointly and severally, shall not continue to withhold the payment of $373,738.50 in overtime pay hereby found to be due under the FLSA to 224 employees, as a result of their employment by Defendants during the period of August 5, 2007 through August 4, 2010 as set forth in the attached Exhibit 1, showing the name of each employee and listing on the same line the gross backwage amount due the employee and the period covered by the Consent Judgment.

4. The Defendants, jointly and severally, shall not continue to withhold payment of $98,560.00 in unpaid civil money penalties assessed against the Defendants and finally determined, pursuant to authority granted in FLSA § 16(e), for violations of the overtime pay provisions of the FLSA during the aforementioned backwage accrual period.

5. To accomplish the requirements of Paragraphs 3 and 4, Defendants shall deliver to the Wage and Hour Division, United States Department of Labor, 770 The City Drive South, Suite 5710, Orange CA 92868, the following:

a. On or before May 16, 2011, a schedule in duplicate bearing the firm name, employer identification number(s), address, and phone number of the De- fendants and showing the name, last known (home) address, social security number, and gross backwage amount for each person listed in the attached Exhibit 1;

b. On or before June 8, 2011 a certified or cashier's check or money order in the amount of $373,738.50 with the firm name and "BWs" written thereon, payable to the order of the "Wage & Hour Div., Labor," in payment of the overtime backwages.

c. In the event of a default in the timely making of any of the payments specified herein, the full amount under the backwage provisions of this Judgment which then remains unpaid, plus interest at the rate of ten percent (10%) per year, from the date of this Judgment until the full amount of this Judgment is paid in full, shall become due and payable upon the Secretary's sending by ordinary mail a written demand to the last business address of the Defendants then known to the Secretary;

d. On or before September 30, 2011, a certified or cashier's check or money order with the firm name and "OT/CMP" written thereon payable to the order of "Wage & Hour Div., Labor," in the amount of $98,560.00 in payment of the civil money penalty assessed against the defendants for overtime pay violations plus interest.

6. The Secretary shall allocate and distribute the funds described in paragraph 3 less deductions for employees' share of social security and withholding taxes to the persons named in the attached Exhibit 1, or to their estates if that be necessary, in her sole discretion, and any money not so paid within a period of three 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).

7. The Secretary shall be responsible for deducting from the amounts paid to employees named in Exhibit 1 the employees' share of F.I.C.A. and federal income taxes, and for remitting said deductions to the appropriate federal agencies.

8. Defendants shall remit any amounts required by law for the employer's share of F.I.C.A. and any other taxes associated with the backwages due under paragraph 3 to the appropriate state and federal agencies.

ORDERED that the filing, pursuit, and/or resolution of this proceeding with the entry of this Judgment shall not act as or be asserted as a bar to any action under FLSA § 16(b), 29 U.S.C. § 216(b), as to any employee not named on the attached Exhibit 1 nor as to any employee named on the attached Exhibit 1 for any period not specified therein; and, it is further

ORDERED that each party shall bear its own fees and other expenses incurred by such party in connection with any stage of this proceeding, including but not limited to attorneys' fees, which may be available under the Equal Access to Justice Act, as amended; and, it is further

ORDERED that this Court shall retain jurisdiction of this action for purposes of enforcing compliance with the terms of this Consent Judgment.

U.S. DISTRICT COURT JUDGE

For the Defendants:

Each defendant hereby appears, waives any defense herein, consents to the entry of this Judgment, and waives notice by the Clerk of Court:

Exhibit 1

First Name Last Name Period Covered Amount Due

JOSE ACEVEDO 1/18/2009 9/27/2009 $1,243.46 RICARDO ACEVEDO 1/8/2009 8/1/2010 $3,653.08 RAMON ACEVES 9/16/2007 4/13/2008 $570.49 KEVIN ADAMS 8/5/2007 9/2/2007 $76.64 ALBARCA AGUILAR 8/5/2007 12/23/2007 $212.41 LUIS AGUILAR 1/22/2009 5/9/2010 $4,667.02 SALGADO FELIPE AGUILAR 8/5/2007 6/24/2010 $3,197.19 HUGO ALCANTAR 9/16/2007 5/27/2010 $5,591.44 JOSE ALVAREZ 8/5/2007 6/20/2010 $523.58 RODRIGO ALVAREZ 10/26/2008 12/21/2008 $152.09 KYLE ANDERSON 6/22/2008 8/3/2008 $71.95 OSFEL ANDRADE 8/5/2007 10/25/2009 $2,851.58 JOSE ANTUNA 8/5/2007 8/1/2010 $2,090.52 MANUEL ARENAS 9/28/2008 4/11/2010 $662.17 JOEL ARMAS 4/27/2008 12/21/2008 $686.92 JESUS AVILA 8/5/2007 4/25/2010 $17,146.41 LUIS AVILA 8/5/2007 6/20/2010 $5,156.26 HENRY JR. AVILES 4/13/2008 12/21/2008 $74.13 CARLOS BADILLO 4/11/2010 8/1/2010 $37.80 BARBARA BARGER 8/19/2007 5/24/2009 $731.46 BOGART BASTIDA 12/27/2007 4/27/2008 $209.43 TIM BECKMAN 1/20/2008 8/3/2008 $323.79 BEHRAD BEHNIA 8/5/2007 12/7/2008 $1,100.60 ULISES BENITEZ 2/3/2008 4/26/2009 $273.96 JESUS BLAS 8/5/2007 5/23/2010 $2,379.03 LAVELL BROWN 2/3/2008 8/6/2009 $846.45 NICOLE BUI 5/11/2008 7/19/2009 $479.04 GALINDO CALDERON 12/7/2008 1/22/2009 $288.80 MARK CALDERON 1/1/2009 8/4/2010 $23.40 ARTURO CAMACHO 8/5/2007 6/20/2010 $5,444.07 MARIO CAMARENA 11/8/2009 6/20/2010 $43.33 JOSE CAMARILLO 9/30/2007 10/28/2007 $86.99 JAMES CARRETE 6/22/2008 3/15/2009 $78.84 JAH CASTANEDA 8/19/2007 10/28/2007 $46.28 ANDRES CATALAN 8/19/2007 12/24/2009 $1,805.27 JUAN CARLOS CEDILLO 6/22/2008 7/5/2009 $447.00 RICARDO CEJA 8/5/2007 6/6/2010 $851.58 CESAR CERNA 4/13/2008 12/21/2008 $520.93 RAYMUNDO CERVANTES 9/2/2007 9/14/2008 $7,423.08 SAMUEL CERVANTES 8/5/2007 5/23/2010 $2,685.78 JULISSA CHAVEZ 6/22/2008 8/3/2008 $52.62 MANUEL CHAVEZ 7/6/2008 8/17/2008 $194.31 OSCAR CHAVEZ 3/14/2010 6/20/2010 $33.00 NOE CHOPIN 2/28/2010 5/9/2010 $102.96 DUSTIN CHRISTENSEN 11/9/2008 5/24/2009 $1,531.62 NICOLE CLINKENBEARD 2/3/2008 6/25/2009 $57.73 JOSE LUIS CONRIQUE 4/13/2008 5/11/2008 $237.05 JORGE CONTRERAS 8/19/2007 6/6/2010 $1,110.50 ADA CORNEJO 6/8/2008 7/20/2008 $32.15 ROXANA CORNEJO 4/13/2008 6/21/2009 $134.20 BARBARA COTA 8/5/2007 9/30/2007 $117.30 JESUS CRUZ 8/5/2007 6/20/2010 $3,668.57 VICTOR CRUZ 8/5/2007 5/9/2010 $4,210.30 FRANKLYN CUBIAS 2/19/2009 7/19/2009 $68.52 LUIS DE ARCOS 9/30/2007 12/21/2008 $7,030.56 MATIAS DENES 10/28/2007 9/27/2009 $3,424.09 DONEMIC DEVITO 8/5/2007 2/17/2008 $2,402.87 JOSE DIAZ 8/5/2007 8/1/2010 $8,007.69 REFUJIO DIAZ 8/5/2007 5/27/2010 $6,610.33 RICARDO DIAZ 2/3/2008 2/17/2008 $50.18 JOSE DIMAJO 8/5/2007 8/1/2010 $3,053.08 ANGEL DOMINGUEZ 8/5/2007 7/19/2009 $272.80 JOSE DUARTE 8/5/2007 6/20/2010 $3,393.64 RICARDO ESCOBEDO 10/25/2009 6/20/2010 $87.00 JORGE ESTRADA 11/9/2008 4/25/2010 $609.14 JUAN EUSEBIO 10/27/2007 6/21/2009 $3,124.37 IGNACIO FLORES 8/5/2007 12/21/2008 $5,108.30 NICOLAS FLORES 6/22/2008 10/26/2008 $202.81 W GALLARDO 11/9/2008 1/22/2009 $97.99 ALBERTO GARCIA 8/5/2007 3/28/2010 $3,732.06 FELIPE GARCIA 9/30/2007 9/13/2009 $3,755.14 LEONARDO GARCIA 8/5/2007 6/20/2010 $1,203.07 LUCERO GARCIA 8/5/2007 6/20/2010 $2,610.57 SALVADOR GARCIA 6/25/2009 12/24/2009 $242.81 JUAN CARLOS GARIBAY 8/5/2007 7/23/2009 $3,759.61 DEMETRIOS GIOKAS 10/26/2008 12/21/2008 $449.22 ANA GOMEZ 9/2/2007 5/10/2009 $256.21 ARMANDO GOMEZ 6/22/2008 9/28/2008 $34.73 CHRISTAL GOMEZ 8/17/2008 12/7/2008 $165.68 JHONNATAN GOMEZ 8/5/2007 6/20/2010 $3,189.86 LUIS GOMEZ 8/5/2007 10/28/2007 $129.17 EFREN GONZALEZ 8/5/2007 7/9/2009 $338.70 OSCAR GONZALEZ 2/19/2009 9/3/2009 $191.57 RAUL GONZALEZ 8/5/2007 5/27/2010 $5,798.96 RENE GONZALEZ 8/5/2007 12/21/2008 $2,281.59 SALVADOR GONZALEZ 8/5/2007 9/16/2007 $99.64 TOM GONZALEZ 8/5/2007 5/10/2009 $911.89 VICENTE GONZALEZ 8/5/2007 8/1/2010 $3,072.52 CHRISTOPHER GOSMAN 5/11/2008 12/21/2008 $84.76 GABINO SILVA GUTIERREZ 8/5/2007 5/27/2010 $3,412.40 MILTON GUTIERREZ 3/19/2009 5/28/2009 $33.43 EMMANUEL GUZMAN 4/13/2008 7/5/2009 $238.52 MARK, A HARDY 2/17/2008 6/6/2010 $487.00 ARACELI HERNANDEZ 2/3/2008 5/23/2010 $3,653.40 FEDERICO HERNANDEZ 8/5/2007 3/16/2008 $453.75 FERNANDO HERNANDEZ 8/5/2007 12/21/2008 $3,787.24 JUAN HERNANDEZ 10/28/2007 2/17/2008 $1,359.90 SANTIAGO HERNANDEZ 8/5/2007 7/4/2010 $2,975.95 HUGO HERRERA 8/19/2007 5/27/2010 $239.61 MIGUEL HERRERA 5/23/2010 8/1/2010 $67.30 JULIO HUERTA 12/23/2007 12/21/2008 $748.71 MARCOS HUERTA 8/5/2007 7/5/2009 $286.74 NICHOLAS JACQUES 8/5/2007 12/20/2009 $1,071.81 RAFAEL JIMENEZ 8/5/2007 11/11/2007 $97.54 SEYED SIAMAK KASHANCHI 4/13/2008 3/29/2009 $1,744.83 LOIS KELLY 10/14/2007 11/11/2007 $84.26 SHEAN KENNEDY 10/14/2007 11/23/2008 $7,438.06 KRAIG KISTLER 3/2/2008 12/21/2008 $90.56 ADRIANA LARA 9/27/2009 9/27/2009 $288.67 GRISSEL LARA 8/3/2008 8/3/2008 $367.68 GRACE LE 5/25/2008 7/19/2009 $275.04 GERARDO LEANA 8/5/2007 12/20/2009 $2,938.02 LINDA LEE 8/5/2007 5/24/2009 $284.41 MARIANO LOBATON 8/5/2007 6/20/2010 $3,947.04 CARLOS ALBERTO LOMELI ARANDA 8/5/2007 4/1/2010 $2,791.58 LORETO LOPEZ 1/22/2009 5/28/2009 $54.76 MIGUEL LOPEZ 8/5/2007 6/20/2010 $3,027.59 OSCAR LOPEZ 11/25/2007 12/21/2008 $892.08 CANDIDA LOUCEL 8/5/2007 8/1/2010 $3,522.79 SAMSON LOURIA 8/5/2007 5/13/2010 $631.40 JOSE EDER LOZA 8/19/2007 9/14/2008 $2,101.71 JOSE ELIOT LOZA 9/30/2007 8/1/2010 $2,297.90 FRANK LOZOYA 12/23/2007 9/28/2008 $1,617.15 DANIEL LUGO 12/23/2007 4/12/2009 $1,643.09 JOSE JR MADRIGAL 5/25/2008 5/25/2008 $21.87 MARIO MARTINEZ 8/5/2007 7/5/2009 $822.68 MIGUEL MARTINEZ 8/5/2007 7/20/2008 $556.57 RITA MARTINEZ 8/5/2007 10/12/2008 $738.12 STEVE MATSUMOTO 8/5/2007 11/9/2008 $6,283.24 ERIC MEDEL 9/2/2007 8/1/2010 $4,080.00 JOEL MEDOZA 8/19/2007 9/30/2007 $209.61 CESAR MENDOZA 11/9/2008 4/11/2010 $80.61 VIRGILIO MERIDA 9/30/2007 2/15/2009 $2,358.62 EVAN MESSENGER 10/26/2008 12/21/2008 $769.89 MARABIN METH 2/19/2009 5/28/2009 $54.17 ERNEST MIRANDA 3/16/2008 7/23/2009 $1,138.54 ANDRES MORALES 9/2/2007 8/1/2010 $4,458.41 ARIAS F MORALES 3/2/2008 6/8/2008 $82.32 JOSEPHINA NAREZ 1/1/2008 12/31/2008 $205.75 EDDIE NAVA 2/17/2008 9/14/2008 $175.99 ERINEO NAVA 2/3/2008 9/14/2008 $495.12 BRENDA NICOLS 8/5/2007 10/26/2008 $1,927.42 HECTOR NOYOLA 8/5/2007 5/27/2010 $4,694.13 ARTURO OCHOA 4/16/2009 11/25/2009 $61.52 CARLOS OLIMON 1/17/2010 8/1/2010 $35.62 JORGE OLIVAS 8/5/2007 12/20/2009 $2,575.29 MARIA, M OROZCO 8/5/2007 6/6/2010 $2,283.31 JUAN ORTIZ 4/27/2008 8/1/2010 $398.48 SALVADOR PACHECO 10/28/2007 5/23/2010 $1,282.53 VICTOR PACHECO 5/11/2008 9/14/2008 $440.19 JONATHAN PALOMARES 8/5/2007 12/9/2007 $272.41 SANTIAGO PATINO 2/3/2008 5/25/2008 $2,196.08 FARLITO PEREZ 8/5/2007 11/11/2007 $333.38 FRANCISCO PEREZ 9/30/2007 8/31/2008 $48.34 MONICA PEREZ 9/30/2007 2/19/2009 $1,192.43 CARLOS JOSE PONCE 9/2/2007 12/21/2008 $1,337.00 RANDY POPOCA 1/1/2009 8/4/2010 $20.26 RICHARD QUINTERO 2/17/2008 12/7/2008 $891.89 ALMA RAMIREZ 2/15/2009 7/5/2009 $35.62 HERMOLY RAMIREZ 8/5/2007 1/4/2009 $6,731.22 ISRAEL RAMIREZ 4/16/2009 5/28/2009 $52.19 JAIME RAMIREZ 8/19/2007 7/18/2010 $8,417.40 JHONN RAMIREZ 8/5/2007 12/21/2008 $4,137.58 LEONEL RAMIREZ 4/25/2010 8/1/2010 $32.77 SERGIO RAMIREZ 8/5/2007 10/28/2007 $334.29 ERICA RANGEL 12/9/2007 12/9/2007 $41.39 GARCILAZO JESUS RANGEL 8/19/2007 6/22/2008 $1,478.83 RUBEN RANGEL 10/28/2007 12/21/2008 $518.43 JUAN MIGUEL REAL 8/5/2007 7/4/2010 $19,461.03 SALVADOR REVELES 12/7/2008 6/25/2009 $80.72 JOSE REY 4/13/2008 6/1/2010 $2,217.77 VICTOR RINCON 7/20/2008 6/25/2009 $186.20 ALFREDO RIOS 8/5/2007 7/20/2008 $2,422.47 MARIO RODRIGUEZ 8/5/2007 6/25/2009 $2,579.33 OMAR RODRIGUEZ 8/5/2007 12/9/2007 $132.48 ROGELIO RODRIGUEZ 8/5/2007 1/20/2008 $943.62 RUBEN RODRIGUEZ 5/9/2010 7/4/2010 $866.45 YOVANI RODRIGUEZ 3/1/2009 8/6/2009 $57.04 JOSE ROGEL 8/19/2007 7/18/2010 $19,459.14 ERNESTO ROJAS 9/2/2007 4/25/2010 $2,329.53 ERIC ROMANS 2/19/2009 7/9/2009 $236.48 EVA ROMERO 12/21/2008 6/7/2009 $36.00 BECERRA FRANCISCO ROSALES 2/17/2008 12/7/2008 $192.45 MARIANELA ROSALES 2/3/2008 5/11/2008 $127.50 ANNETTE ROSE 8/5/2007 5/25/2008 $58.26 ARTURO RUBIO 11/9/2008 12/24/2009 $181.55 ENRIQUE RUIZ 3/2/2008 5/9/2010 $2,178.23 KAMRAN SADAGHIANI 1/1/2010 8/4/2010 $45.58 KAYVON SADAGHIANI 1/1/2010 8/4/2010 $23.68 JOHN SAINZ 11/11/2007 5/28/2009 $2,400.91 RICARDO SALAS 1/1/2009 8/1/2010 $91.78 ROCHELLE SALAZAR 8/5/2007 2/3/2008 $77.34 RAYMOND SAN FILIPPO 3/2/2008 4/16/2009 $1,246.27 PHILIP SANCHEZ 1/20/2008 4/13/2008 $45.86 EDUBIJES SANDOVAL 2/19/2009 5/27/2010 $101.76 JOSE SANDOVAL 6/8/2008 6/22/2008 $143.71 DOMINGO SANTIAGO 5/28/2009 5/13/2010 $108.68 FELIX SANTILLAN 7/20/2008 7/20/2008 $103.19 TRICIA SEAMAN 11/11/2007 12/7/2008 $2,129.73 JOSE SERVIN 12/23/2008 2/3/2009 $124.36 BONNIE SHEGOG 8/5/2007 12/21/2008 $190.31 JUAN CARLOS SILVA 8/5/2007 6/24/2010 $4,358.78 SAUL SOLARES 8/5/2007 6/25/2009 $122.79 JOSE SORIANO 8/5/2007 5/27/2010 $4,321.40 ENIKO SZARNVASI 9/30/2007 9/30/2007 $50.49 LORENZO TERAN 8/5/2007 3/2/2008 $195.58 ROCCIO TERAN 10/14/2007 2/17/2008 $39.57 VO TIEN 8/5/2007 7/19/2009 $10,070.51 MARJORIE TILLEY 8/5/2007 1/22/2009 $3,214.58 SELINA TORRES 8/5/2007 12/21/2008 $574.74 SALVADOR TOVAR 11/25/2007 10/12/2008 $114.90 HUNG TRAN 3/16/2008 6/22/2008 $287.55 TOM TRUONG 5/11/2008 12/21/2008 $295.66 DAVID TUCKER 8/5/2007 12/9/2007 $1,319.62 JAMES UZZI 11/23/2008 12/20/2009 $44.07 KYLE VALLE 8/3/2008 9/28/2008 $218.54 SALVADOR VAZQUEZ 8/5/2007 11/25/2007 $1,193.65 MALDONADO G VEGA 7/6/2008 8/17/2008 $89.55 SERGIO VEGA 11/11/2007 9/14/2008 $2,579.65 JOSE MANUEL VELASQUEZ 8/5/2007 6/10/2010 $800.05 MARCOS VELENZUELA 2/3/2008 9/14/2008 $1,113.86 JOSE VIZCARRA 5/9/2010 6/6/2010 $20.40 JOHN YACKLE 8/5/2007 12/23/2007 $754.18 JESSICA YOGUEZ 4/12/2009 6/7/2009 $37.85

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