Coronado v. S&J Carpeting, LLC et al

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
FRANCISCO ALEJANDRO ZUNIGA
CORONADO,
Plaintiff,
v.
S&J CARPETING, LLC, et al.,
Defendants.
___________________________________/
Case No. 1:25-cv-783
Hon. Hala Y. Jarbou
OPINION
Plaintiff Francisco Alejandro Zuniga Coronado brings this employment lawsuit against
Defendants S&J Carpeting, LLC, and Jonathan Sanchez Cervantes under the Fair Labor Standards
Act (FLSA), 29 U.S.C. §§ 201–219, and Michigan’s Improved Workforce Opportunity Wage Act
(IWOWA), Mich. Comp. Laws §§ 408.931–408.945. Coronado alleges that Defendants failed to
pay him overtime, paid him late on several occasions, failed to pay him on one occasion, and
terminated him in retaliation for bringing these issues to their attention. Neither defendant has
responded to Coronado’s complaint, and the Clerk of Court entered a default as to both defendants
on November 6, 2025 (ECF No. 11). Coronado now moves for a default judgment (ECF No. 12).
For the reasons explained below, the Court will deny the motion without prejudice.
I. BACKGROUND
Coronado was employed by Defendants to assist with flooring installation from March to
June of 2024. (Compl. ¶¶ 22–23, ECF No. 1.) Coronado worked primarily in Grand Rapids,
Michigan, with two weeks spent in Indiana. (Id. ¶ 24.) He generally worked Monday through
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Saturday from 8:00 a.m. to 8:00 p.m., and “averag[ed] 50 to 60 hours per week.” (Id. ¶ 26.)1
Defendants paid him a flat rate of $170 per day, and did not pay him overtime. (See id. ¶¶ 28, 36.)
Overall, Coronado “generally earned $800.00 per week.” (Pl.’s Aff. ¶ 4, ECF No. 12-3.) “On at
least 5 occasions, [Coronado] received paychecks from Defendants that were returned” for
insufficient funds. (Compl. ¶ 29.) The convenience store at which Coronado cashed the checks
initially paid him the funds, but later sought to recover the money when the checks bounced. (Pl.’s
Aff. ¶ 13.) When Coronado raised the issue with Defendants, “they provided replacement checks,
but those checks were also returned for insufficient funds.” (Id. ¶ 12.) Defendants eventually
repaid the funds for four of those paychecks, but Coronado never received the funds for the fifth.
(Id. ¶ 23.) Coronado “was terminated after raising concerns about several checks issued to [him]
that had insufficient funds and request[ing] . . . payment for the work [he] performed.” (Id. ¶ 14.)
Although he obtained subsequent employment, he earned less money than he had been making
with Defendants. (See id. ¶¶ 15–17.)
II. LEGAL STANDARD
Federal Rule of Civil Procedure 55 governs the entry of default judgments. See Fed. R.
Civ. P. 55. Before requesting a default judgment, the plaintiff must seek an entry of default from
the clerk. See Fed. R. Civ. P. 55(a). Once a default has been entered, there are two mechanisms
for the entry of a default judgment: by the clerk or by the Court. The clerk must enter default
judgment upon the plaintiff’s request if the claim “is for a sum certain or a sum that can be made
certain by computation” and the defendant is a legally competent adult who has failed to appear.
Fed. R. Civ. P. 55(b)(1). Otherwise, the plaintiff must request default judgment from the Court,
1 As discussed below, Coronado states elsewhere that he only worked Monday through Friday. (See Pl.’s Aff. ¶ 8,
ECF No. 12-3.)
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which makes a discretionary determination as to whether such judgment is warranted. See Fed. R.
Civ. P. 55(b)(2); AF Holdings LLC v. Bossard, 976 F. Supp. 2d 927, 929 (W.D. Mich. 2013).
In ruling on a motion for default judgment under Rule 55(b)(2), the Court considers the
following factors: “1) possible prejudice to the plaintiff; 2) the merits of the claims; 3) the
sufficiency of the complaint; 4) the amount of money at stake; 5) possible disputed material facts;
6) whether the default was due to excusable neglect; and 7) the preference for decisions on the
merits.” Russell v. City of Farmington Hills, 34 F. App’x 196, 198 (6th Cir. 2002). “Default
judgment on a particular claim can stand only if there was a sufficient basis in the pleadings for
the judgment entered.” New London Tobacco Mkt., Inc. v. Ky. Fuel Corp., 44 F.4th 393, 410 (6th
Cir. 2022) (internal quotation marks omitted). In determining whether default judgment is
warranted, the Court accepts the factual allegations in the complaint as true, except as it relates to
damages. Id. at 403. “Where damages are unliquidated a default admits only the defaulting party’s
liability and the amount of damages must be proved.” Vesligaj v. Peterson, 331 F. App’x 351, 355
(6th Cir. 2009) (quoting Antoine v. Atlas Turner, Inc., 66 F.3d 105, 110 (6th Cir. 1995)). “The
district court must . . . conduct an inquiry in order to ascertain the amount of damages with
reasonable certainty.” Id.
III. ANALYSIS
Coronado brings claims for (1) unpaid overtime under the FLSA and IWOWA, (2) failure
to pay minimum wage under the FLSA and IWOWA, and (3) retaliation under the FLSA. Before
granting default judgment, the Court must determine whether Coronado has sufficiently alleged
facts to state a claim. The Court will address each claim in turn.
A. Unpaid Overtime
The FLSA provides that any employee “who in any workweek is engaged in [interstate]
commerce or in the production of goods for [interstate] commerce, or is employed in an enterprise
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engaged in [interstate] commerce or in the production of goods for [interstate] commerce, for a
workweek longer than forty hours” must be paid for any hours worked in excess of forty “at a rate
not less than one and one-half times the regular rate at which he is employed.” 29 U.S.C.
§ 207(a)(1). “To succeed on an unpaid overtime claim under the FLSA, a plaintiff must establish:
(1) an employer-employee relationship; (2) that the employer or its employees [we]re engaged in
interstate commerce; (3) that the employee worked more than forty hours; and (4) that overtime
was not paid.” Stansbury v. Faulkner, 443 F. Supp. 3d 918, 925 (W.D. Tenn. 2020). Here,
Coronado’s allegations establish that (1) Defendants employed him (Compl. ¶¶ 18–22);
(2) Defendants were engaged in interstate commerce, insofar as Coronado’s work took him across
state lines (id. ¶¶ 24); (3) Coronado worked more than forty hours a week (id. ¶ 26); and
(4) Defendants did not pay Coronado overtime (see id. ¶ 36.) Thus, Coronado has sufficiently
alleged an FLSA claim for unpaid overtime.
IWOWA similarly entitles employees to time-and-a-half pay for overtime. See Mich.
Comp. Laws § 408.934. But IWOWA “does not apply to an employer that is subject to the
minimum wage provisions of the fair labor standards act . . . unless those federal minimum wage
provisions would result in a lower minimum hourly wage than provided in this act.” Mich. Comp.
Laws § 408.940(1) (2019). And while here the FLSA minimum wage is lower than IWOWA’s
minimum wage, that means only that the minimum wage provisions of IWOWA apply, not the
overtime provisions. When “an employer is subject to this act only by application of this”
exception to the exception—i.e., when the state minimum wage is higher than the federal—the
statute provides that “Section 4a,” which governs overtime pay, “does not apply.” Id.
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§ 408.940(1)(a).2 Thus, because Coronado’s employer was covered by the FLSA, he cannot bring
an IWOWA claim for overtime.
In addition, although Coronado has stated an FLSA overtime claim, he has not satisfied his
burden of proving damages with reasonable certainty. The damages to which Coronado is entitled
are a function of (1) his weekly hours and (2) his regular hourly rate.3 As to the first, Coronado
states in an affidavit that he “typically worked 55 hours per week.” (Pl.’s Aff. ¶ 19.) As to the
second, Coronado calculates his hourly rate by dividing his weekly pay by his weekly hours. But
here the numbers become murky. Coronado alleges in his complaint that he “typically worked
Monday through Saturday [from] 8 a.m. to 8 p.m. averaging 50 to 60 hours per week.” (Compl.
¶ 26.) By contrast, in his affidavit he states that he “typically worked from 8 am to 8 pm Monday
through Friday, averaging about 55 hours per week.” (Pl.’s Aff. ¶ 8.) Coronado offers no
explanation for this discrepancy. 4
Furthermore, Coronado states in both his complaint and affidavit that he was paid $170 per
day. (Id. ¶ 3; Compl. ¶ 28.) And according to his affidavit, his average earnings were “$750-$800
per week.” (Pl.’s Aff. ¶ 19.) But these two numbers do not align: if he worked five days a week
2 The quoted language appears in a previous version of IWOWA, enacted in 2018. See An Initiation of Legislation,
2018 Mich. Legis. Serv. P.A. 337 (West). That version has since been superseded by a 2025 amendment that alters
the language regarding the FLSA exemption. See An Act to Amend 2018 PA 337, 2025 Mich. Legis. Serv. P.A. 1
(S.B. 8) (West). But the 2018 version applies here because Coronado’s claims accrued in 2024, before the amendment.
See Frank W. Lynch & Co. v. Flex Techs., Inc., 624 N.W.2d 180, 182 (Mich. 2001) (“[S]tatutes are presumed to
operate prospectively unless the contrary intent is clearly manifested.”). It is thus unnecessary to determine whether
the amended language entails the same result.
3 The formula used by Coronado to determine a regular hourly rate for a worker who is paid by the day—i.e., dividing
weekly pay by the number of hours—accords with Department of Labor regulations. See 29 C.F.R. § 778.112.
Although these regulations are an interpretation of the FLSA’s language and are thus not binding, see Dufrene v.
Browning-Ferris, Inc., 207 F.3d 264, 267 (5th Cir. 2000); Loper Bright Enters. v. Raimondo, 603 U.S. 369 (2024),
the Court finds their calculation method to be reasonable.
4 Coronado also states that for the two weeks when he was in Indiana, he started the day at 8:00 a.m. but ended
somewhere between “6 p.m. to 8 p.m.” (Pl.’s Aff. ¶ 8.) In other words, he apparently worked slightly fewer hours
while in Indiana, which should affect the regular pay rate and the ultimate calculation of overtime owed. It is not clear
that Coronado adjusts for that effect in his calculations.
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(as stated in his affidavit) he should have made $850 a week; if he worked six days a week (as
alleged in his complaint) he should have made $1,020 a week. Moreover, if Coronado was paid
on a daily rate and generally worked the same number of days each week, it is not clear why his
weekly pay would have varied at all. And when it comes to calculating his regular pay rate,
Coronado simply uses the $800 per week rate instead of $750 (or perhaps some average of the
two). Although one might assume that rounding the weekly pay rate up would benefit
Defendants—the more Defendants compensated Coronado, the less they should be liable for—in
this case the rounding actually slightly helps Coronado because it results in a higher regular rate
and thus a higher overtime rate.5
In sum, there are too many discrepancies and unwarranted assumptions within Coronado’s
overtime damages calculation. The Court therefore declines to enter default judgment unless and
until Coronado can establish with reasonable certainty the damages to which he is entitled.
B. Failure to Pay Minimum Wage
The FLSA provides that “[e]very employer shall pay to each of his employees who in any
workweek is engaged in commerce or in the production of goods for commerce, or is employed in
an enterprise engaged in commerce or in the production of goods for commerce, wages” of at least
“$7.25 an hour.” 29 U.S.C. § 206(a)(1)(C). Similarly, in 2024 IWOWA provided for a minimum
wage of $10.56 an hour. See Mich. Comp. Laws § 408.934 (2019). Here, IWOWA’s exemption
5 To illustrate: Coronado calculates that his regular pay rate was $14.55 per hour ($800 divided by 55), for an overtime
rate of $21.82 and a weekly pay of $909.09. Thus, Coronado argues he is entitled to $109.09 per week ($909.09
minus the $800 he was actually paid). (Pl.’s Aff. ¶¶ 19–22.) But if Coronado was paid $750 a week, his regular rate
would be $13.64 per hour ($750 divided by 55), for an overtime rate of $20.46 and a weekly pay of $852.50. Thus,
Coronado would only be entitled to $102.50 per week ($852.50 minus the $750 he was actually paid).
Coronado’s rounding up of his weekly pay figure also increases his potential recovery on his retaliation claim, which
is derived from the difference between what Defendants paid him and what he made elsewhere. If Coronado chooses
to re-plead his retaliation claim (see infra Part III.C), he will have to clarify his weekly pay in order to be entitled to
damages.
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for FLSA-covered employers is inapplicable because the state minimum wage is higher than the
federal. See id. § 408.940(1) (2019).
Coronado’s minimum wage claim is based on the allegation that Defendants paid him late
for four weeks and did not pay him at all for one week. The Court finds that Coronado has stated
a claim as to the one week of unpaid wages, but not as to the late wages. “Courts have long
interpreted the FLSA as requiring that” payments of wages to which employees are entitled “be
timely made.” Herman v. Fabri-Centers of Am., Inc., 308 F.3d 580, 590–91 (6th Cir. 2002); see
Athan v. U.S. Steel, 364 F. Supp. 3d 748, 753 (E.D. Mich. 2019) (“[T]he right to payment of
minimum wage under FLSA is the right to ‘on-time’ payment.” (citing Brooklyn Savs. Bank v.
O’Neil, 324 U.S. 697, 707 (1945))). Thus, “[a]n employer violates § 206 when it fails to pay a
minimum-wage worker for the full number of hours she worked in a timely manner.” Athan, 364
F. Supp. 3d at 753. Here, Coronado alleges that Defendants’ checks initially bounced and had to
be re-issued, but he provides no details about the timeline, so the Court cannot determine whether
the ultimate payments made by Defendants were timely. Thus, Coronado has not stated a claim
as to the delayed wages.6
Coronado has stated a claim as to the unpaid week under both the FLSA and IWOWA, as
an unpaid wage is certainly less than $7.25 or $10.56. But Coronado has not sufficiently
established the damages to which he is entitled for these claims. In particular, he does not specify
how many hours he worked during the week that he was not paid; he appears to simply apply the
55-hours-per-week figure that, as discussed above, is called into question by other evidence he
provides. Moreover, Coronado incorrectly asserts that his damages would be based on the actual
6 Coronado provides no argument or case law regarding whether IWOWA similarly allows recovery for late-paid
minimum wages. Because the Court finds Coronado has not stated a claim for the above reasons, it does not resolve
this legal question.
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wages he earned that week, i.e. $800. The FLSA allows recovery of “the amount of [the
employee’s] unpaid minimum wages, or their unpaid overtime compensation, as the case may be,
and in an additional equal amount as liquidated damages.” 29 U.S.C. § 216(b). Thus, if an
employee is not paid at all for hours worked, the FLSA only entitles them to recover the amount
the employer was required to pay them based on the minimum wage and any overtime—not the
amount the employer promised to pay based on the regular hourly rate. See Young v. Fam. Matters
Learning Ctr., LLC, No. 1:25-CV-262, 2026 WL 89560, at *4 (S.D. Ohio Jan. 13, 2026) (“[A]n
employee’s recovery is limited to the federal minimum wage; the FLSA does not cover the
difference between the federal minimum wage and the employee’s regular wage, called ‘gap
time.’”). While Coronado could perhaps bring a contractual claim for the difference between the
minimum wage and his promised wage, such a claim does not fall under the FLSA.
Similarly, IWOWA provides that an employee may recover “the difference between the
amount paid and the amount that, but for the violation, would have been paid the employee under
this act and an equal additional amount as liquidated damages.” Mich. Comp. Laws § 408.939.
The similarity between this provision and the FLSA recovery provision suggests that the same
logic applies: Coronado can only recover the amount the employer was required to pay him by the
minimum wage and overtime provisions, not the amount the employer promised to pay him.
In sum, Coronado has not stated a claim as to the four weeks of delayed wages and has not
established damages for the one week of unpaid wages.
C. Retaliation
The FLSA provides that “[n]o employer shall discharge or in any manner discriminate
against any employee . . . because the employee . . . has” “objected to, or refused to participate in,
any activity, policy, practice, or assigned task that the employee (or other such person) reasonably
believed to be in violation of any provision of” the FLSA. 29 U.S.C. § 218c(a)(5). Coronado
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alleges that Defendants terminated him after he objected to their failure to pay him properly. “[A]
complaint alleging discrimination and retaliation claims [must] . . . allege factual content sufficient
to allow a court to ‘draw the reasonable inference’ that the employer discriminated
or retaliated against the plaintiff.” Lee v. Vanderbilt Univ., No. 22-5607, 2023 WL 4188341, at
*3 (6th Cir. June 22, 2023) (quoting Keys v. Humana, 684 F.3d 605, 610 (6th Cir. 2012)).
Coronado has not met this burden.
The causation element of Coronado’s retaliation claim is based entirely on the fact that his
termination occurred after he complained to Defendants about his unpaid wages. Mere temporal
proximity between the employee’s protected conduct and the employer’s adverse action is usually
not sufficient to support an inference of retaliatory motive, though it may suffice if the two events
occur closely enough in time. See Mickey v. Zeidler Tool & Die Co., 516 F.3d 516, 523–25 (6th
Cir. 2008). Here, however, Coronado does not clarify how much time passed between his
complaint about unpaid wages and his termination, so the Court has no information about the
temporal proximity and thus no basis on which to infer that the complaint caused the termination.
Thus, Coronado has not stated a claim for retaliation under the FLSA.7
IV. CONCLUSION
As discussed above, Coronado has not sufficiently alleged that Defendants paid his wages
late and retaliated against him for opposing FLSA violations. He has sufficiently alleged that
Defendants did not pay him for one week of work and did not pay him overtime, but he has not
7 Although the Court does not reach the issue of damages because Coronado fails to state a retaliation claim, it notes
that Coronado seeks damages for emotional distress but provides no evidence other than the statement that he “felt
angry and distressed” when he was terminated. (Pl.’s Aff. ¶ 18.) This bare assertion is insufficient to recover damages.
See Turic v. Holland Hosp., Inc., 85 F.3d 1211, 1215 (6th Cir. 1996) (“[D]amages for mental and emotional distress
will not be presumed, and must be proven by ‘competent evidence.’”).
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sufficiently established his damages as to those claims. Thus, the Court will deny the motion for
default judgment without prejudice.
Dated: March 16, 2026 /s/ Hala Y. Jarbou
HALA Y. JARBOU
CHIEF UNITED STATES DISTRICT JUDGE
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