Texas Jeans, Inc., 94-FLS-20 (ALJ Oct. 22, 1996)

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USDOL/OALJ Reporter
Texas Jeans, Inc., 94-FLS-20 (ALJ Oct. 22, 1996)

UNITED STATES DEPARTMENT OF LABOR
OFFICE OF ADMINISTRATIVE LAW JUDGES
800 K STREET, N.W., SUITE 400N
WASHINGTON, D.C. 20001-8002

Date: October 22, 1996

Case No.: 94-FLS-20

In the Matter of:

TEXAS JEANS, INC. and
JOEL TORRES, Individually and as Corporate Officer,
Respondents.

ORDER GRANTING MOTION FOR RECONSIDERATION
AND GRANTING MOTION FOR SUMMARY JUDGMENT

The above-captioned matter arises under the Fair Labor Standards Act, 29 U.S.C. §201, et seq. (Act), and the regulations promulgated thereunder at 29 C.F.R. Part 580. On May 13, 1996, the U.S. Department of Labor filed a motion for summary decision, asserting that no material fact exists concerning Respondents' untimely filing of an exception to the determination of a penalty or concerning Respondents' willful and repeated violations of the Act. Respondents did not submit a response to that motion. On July 29, 1996, I issued an Order Denying Motion for Summary Decision. I found that Respondents' exception to the notice of civil money penalty could be considered timely or that the issue at least presented a question of fact. I also determined that the U.S. District Court judgment, involving the Fair Labor Standards Act, presented by the Department did not name Texas Jeans, Inc. and that it could not, thus, apply to Texas Jeans, Inc. through the doctrine of res judicata. The Department filed a motion for reconsideration on August 19, 1996. Respondents did not file a response to this motion.¹

The Department asserts that it is only seeking summary judgment against Joel Torres and not Texas Jeans, Inc., as the state records show that the company is now defunct (Exhibit O). The Department further asserts that res judicata is applicable against Joel Torres, as he was a party in the U.S. District Court case, which involved the same issues as this case.

A default judgment was entered against Joel Torres on March 12, 1992. Martin, Secretary of Labor, v. Joel Torres & Rogelio Tinajero d/b/a T&T Apparel, Case No.

[Page 2]

EP-91-CA-381-B (W.D. Tex. 1992). This judgment enjoined and restrained Respondent Torres from violating sections 6, 7, 11(c), 15(a)(2), and 15(a)(5) of the Act. Respondent Torres was ordered to pay the Department of Labor $8,561.60, representing minimum wage and overtime compensation that he had failed to pay his employees under the Act. A second judgment was entered against Joel Torres by the same court on February 25, 1994, holding him in contempt for the failure to pay the previous judgment and for continuing violations of the Act. Joel Torres was order to pay to the Department another $8,749.39, for a total of $17,710.63. The court also prohibited him from continuing his business until these debts had been honored.

On June 7, 1994, the Department referred this matter to the Office of Administrative Law Judges with an Order of Reference, seeking $50,000 in civil money penalties pursuant to 29 C.F.R. Part 578 for Respondents' continued violations of the Act after the March 16, 1992 judgment. As the trial and the February 25, 1994 judgment clearly establish, Joel Torres admitted to these violations. Because the district court addressed the identical issues as necessary for a determination of the matter before me, the doctrine of res judicata applies. First, Joel Torres has had a judgment entered against him for violating the minimum wage and overtime provisions of the Act. Second, the United States District Court held him in comtempt for not complying with that judgment and for repeated violations. Joel Torres admitted that he knew of the laws and regulations, but that he did not comply with them. These facts establish that Joel Torres has committed repeated and willful violations of the Act.

Because there are no material facts in issue, the Department's motion for summary judgment is GRANTED, and Joel Torres is ORDERED to pay a civil money penalty in the amount of $50,000. This amount is due and payable by certified check or money order within thirty days to Wage and Hour Division, U.S. Department of Labor at 505 Marquette, NW, Suite 840, Albuquerque, N.M 87102-2160.

JOHN M. VITTONE
Chief Administrative Law Judge

JMV/cy

[ENDNOTES]

¹Respondents have demonstrated no intent to participate in this matter. They have not responded to any of the Department's motions or to my Prehearing Order.