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Hugler v. Authentic Brothers Towing, Inc.

United States District Court, C.D. California

July 12, 2017

EDWARD C. HUGLER, [1] Acting Secretary of Labor, United States Department of Labor, Plaintiff,
v.
AUTHENTIC BROTHERS TOWING, INC., a corporation; FRANCISCO VASQUEZ, an individual; JUDITH VASQUEZ, an individual, Defendants.

          CONSENT JUDGMENT

         Plaintiff, Edward Hugler, Acting Secretary of Labor, United States Department of Labor (the “Secretary”), Defendant AUTHENTIC BROTHERS TOWING, INC., a corporation; FRANCISCO VASQUEZ, an individual; JUDITH VASQUEZ, an individual (collectively “Defendants”), have agreed to resolve the matters in controversy in this civil action and consent to the entry of this consent judgment (“Consent Judgment” or “Judgment”) in accordance herewith:

         I. LIABILITY

         A. Concurrently with the instant Consent Judgment, the Secretary filed a Complaint alleging that Defendants violated §§ 6, 7, 11, 15(a)(2) and 15(a)(5) of the Fair Labor Standards Act of 1938, as amended (“FLSA” or the “Act”), 29 U.S.C. §§207, 211, 215(a)(2), and 215(a)(5).

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

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

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

         E. Defendants and the Secretary agree to the entry of this Consent Judgment without contest.

         F. Defendants acknowledge that, to the best of their knowledge, Defendants and any individual or entity acting on their behalf or at their direction have notice of, and understand, the provisions of this Consent Judgment.

         G. Defendants admit to violating Sections 11(c) and 15(a)(5) of the FLSA, 29 U.S.C. §§ 211(c) and 215(a)(5), during the Subject Period, by failing to make, keep and preserve records of their employees and of the wages, hours, and other conditions and practices of employment maintained by them as prescribed by the regulations found in 29 C.F.R. Part 516 that are issued, and from time to time amended, pursuant to section 11(c) of the Act.

         H. Defendants admit to violating Sections 6 and 15(a)(2) of the FLSA, 29 U.S.C. §§ 206 and 215(a)(2), by paying their employees' wages at rates less than the effective minimum wage in workweeks when said employees were engaged in commerce or in the production of goods for commerce, or were employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of the FLSA.

         I. Defendants admit to violating Sections 7 and 15(a)(2) of the FLSA, 29 U.S.C. §§ 207 and 215(a)(2), during the Subject Period, by employing employees who were employed in an enterprise engaged in commerce or in the production of goods for commerce within the meaning of the Act, for workweeks longer than forty hours, and failing to pay such employees compensation for their employment in excess of forty hours at a rate not less than one and one-half times the regular rate at which they were employed.

         J. Defendants understand and expressly acknowledge that demanding or accepting any of the monies due to any current or former employees under this Consent Judgment, threatening any employee for accepting monies due under this Consent Judgment, or threatening any employee for exercising any of his or her rights under or related to the FLSA is specifically prohibited by this Consent Judgment and the FLSA and may subject Defendants to equitable and legal damages, including punitive damages and civil contempt.

         It is therefore, upon motion of the attorneys for the Secretary, and for cause shown, hereby ORDERED, ADJUDGED, AND DECREED that pursuant to Section 17 of the FLSA (29 U.S.C. §217), Defendants and their officers, agents, servants, employees, and all persons in active concert or participation with them be, and they hereby are, permanently enjoined and restrained from violating the provisions of the FLSA, in any of the following manners:

1. Defendants shall not, contrary to Sections 6 and 15(a)(2) of the FLSA, 29 U.S.C. §§206 and 215(a)(2), pay any of their employees who in any workweek are engaged in commerce or in the production of goods for commerce or who are employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of the FLSA, wages at a rate less than $7.25 per hour (or at a rate less than such other applicable minimum rate as may hereinafter be established by amendment to the FLSA).
2. Defendants shall not, contrary to Sections 7 and 15(a)(2) of the FLSA, 29 U.S.C. §§207 and 215(a)(2), employ any of their employees who in any workweek are engaged in commerce or the production of goods for commerce, or who are employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of the FLSA, for workweeks longer than forty (40) hours, unless such employee receives compensation for his or her employment in excess of forty (40) hours at a rate not less than one and one-half times the regular rates (at least $10.87 if the regular wage rate is the current federal minimum age) at which he or she is employed.
3. 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. §§ ...

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