JUDGMENT OF THE COURT – Page 1 of 5 Office of the Solicitor 

U.S. Department of Labor 

1111 Third Avenue, Suite 945 

Seattle, Washington 98101 

(206) 553-0940

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

UNITED STATES DISTRICT COURT 

WESTERN DISTRICT OF WASHINGTON 

HILDA L. SOLIS,* Secretary of Labor, 

United States Department of Labor, 

 Plaintiff, 

v. 

PAUL MATHESON, an individual dba BABY 

ZACK’S SMOKE SHOP; and NICK 

MATHESON, an individual. 

 Defendants. 

No. 3:06-CV-05361-RBL 

(Revised to comply with COA order) 

JUDGMENT OF THE COURT 

* Pursuant to Rule 25(d) of the Federal Rules of Civil Procedure the caption has been changed to reflect the 

confirmation of Secretary Solis.

I 

Plaintiff filed a Complaint on June 28, 2006 alleging that Defendants Paul Matheson, an 

individual doing business as Baby Zack’s Smoke Shop, Cathy Matheson, Felicia Matheson, and 

Nick Matheson violated the provisions of the Fair Labor Standards Act of 1938, as amended (29 

U.S.C. § 201 et seq.) (“the Act”). Defendants filed an Answer1

 alleging, inter alia, that the Act 

 

1

 Docket number (“DN”) 20. 
JUDGMENT OF THE COURT – Page 2 of 5 Office of the Solicitor 

U.S. Department of Labor 

1111 Third Avenue, Suite 945 

Seattle, Washington 98101 

(206) 553-0940

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

did not apply to their business because the business is located on property owned by the Puyallup 

Tribe and the owners are enrolled tribal members. 

The Parties subsequently stipulated to facts that, if the Act applies, establish that 

Defendants Paul Matheson and Nick Matheson are employers within the meaning of the Act and 

that they violated the overtime and record keeping provisions of the Act.2 See DN 27 and 30. 

Plaintiff then filed a motion for summary judgment on the issue of the applicability of the Act. 

DN 31. Defendants timely filed a response to the motion. DN 34. 

On June 25, 2007 this Court granted the Plaintiff’s motion for summary judgment and 

ruled that the Act’s provisions are applicable to Defendants and their business. DN 35. Based on 

this ruling, the Court hereby adopts the facts set out in the stipulations of the parties as the 

factual findings of the Court, and enters the following Conclusions of Law: 

(1) At all relevant times Defendant Paul Matheson was an employer within the 

meaning of the Fair Labor Standards Act as set forth at 29 U.S.C. § 203(d); 

(2) At all relevant times Defendant Nick Matheson was an employer within the 

meaning of the Fair Labor Standards Act as set forth at 29 U.S.C. § 203(d); 

(3) The requirements of the Fair Labor Standards Act apply to Defendants and their 

business as set forth in the Courts order granting Plaintiff’s motion for summary judgment; and 

(4) Defendants’ failure to compensate employees at the proper overtime rates for 

work in excess of 40 hours in a work week violated the terms of the Act. 

 

2

 The stipulations do not establish that Defendants Cathy Matheson and Felicia Matheson are employers within the 

meaning of the Act. As part of her Motion for Summary Judgment, Plaintiff stated that she would dismiss the 

Complaint against Cathy and Felicia Matheson. The Court hereby grants the motion to dismiss these two defendants. 
JUDGMENT OF THE COURT – Page 3 of 5 Office of the Solicitor 

U.S. Department of Labor 

1111 Third Avenue, Suite 945 

Seattle, Washington 98101 

(206) 553-0940

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

II 

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that Defendants, 

their officers, agents, servants, employees, and all persons acting or claiming to act in their 

behalf and interest be, and they hereby are, permanently enjoined and restrained from violating 

the provisions of Sections 15(a)(2) and 15(a)(5) of the Fair Labor Standards Act of 1938, as 

amended (29 U.S.C. 201 et. seq.), hereinafter referred to as the Act, in any of the following 

manners: 

(1) Defendants shall not, contrary to Section 7 of the Act, employ any of their 

employees engaged in commerce, or in the production of goods for commerce, or in an 

enterprise engaged in commerce or in the production of goods for commerce, for a workweek 

longer than forty (40) hours unless the employee receives compensation for his employment in 

excess of forty (40) hours at a rate not less than one and one-half times his regular rate at which 

he is employed. 

(2) Defendants shall not fail to make, keep and preserve records of their employees 

and of the wages, hours and other conditions and practices of employment maintained by them, 

and to provide those records to a duly authorized representative of the Administrator as 

prescribed by the regulations of the Administrator of the Wage and Hour Division, United States 

Department of Labor, issued and from time to time amended, pursuant to Section 11(c) of the 

Act and found in 29 C.F.R 516. 

IT IS FURTHER ORDERED that the Plaintiff recover from Defendants the sum of 

$31,339.27 in overtime back wages for its employees as listed and allocated in the attached 

Exhibit A. Defendants are jointly and severally liable for this amount. Payment shall be by 
JUDGMENT OF THE COURT – Page 4 of 5 Office of the Solicitor 

U.S. Department of Labor 

1111 Third Avenue, Suite 945 

Seattle, Washington 98101 

(206) 553-0940

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

regular payroll check made payable in the alternative to the individual employee or the U.S. 

Department of Labor, and shall be mailed to: 

U.S. Department of Labor/ESA 

Wage Hour Division 

1111 Third Avenue, Suite 755 

Seattle, WA 98101-3212 

All checks shall be accompanied by a letter identifying the case name as Chao v. Matheson et al, 

and include the employer’s tax identification number. The check shall be in the net amount 

accompanied by a list of the employees for whom the check represents back wage payment, their 

Social Security Numbers, the legal deductions made from the gross amounts due, and the last 

known address of the employee. Defendants will be responsible for computing and paying all 

relevant employer payroll taxes, including any applicable federal, state or local taxes. Payment 

shall be made in full within 30 days of the entry of this Judgment.

Plaintiff shall distribute the monies paid by Defendants under this Judgment to the 

employees identified in Exhibit "A" attached hereto or their estates if that is necessary. Any 

money not so paid within three (3) years because of inability to locate said employees or because 

or their refusal to accept said proceeds shall be deposited forthwith with the Treasurer of the 

United States pursuant to 28. U.S.C. § 2041. 

IT IS FURTHER ORDERED that the rights, if any, of Defendants’ employees or exemployees not specifically mentioned in Exhibit A to this Judgment to back wages under the Act 

are neither affected nor extinguished by this Judgment; and 
JUDGMENT OF THE COURT – Page 5 of 5 Office of the Solicitor 

U.S. Department of Labor 

1111 Third Avenue, Suite 945 

Seattle, Washington 98101 

(206) 553-0940

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

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, and shall waive all rights 

to relief in this case under the Equal Access to Justice Act. 

 Dated this 7th day of July, 2009. 

 A

RONALD B. LEIGHTON 

 UNITED STATES DISTRICT JUDGE

 

PRESENTED BY: 

CAROL DE DEO 

Deputy Solicitor for National Operations 

LAWRENCE BREWSTER 

Regional Solicitor 

BRUCE L. BROWN 

Associate Regional Solicitor 

By: ____/Bruce L. Brown_____________ 

 Bruce L. Brown, 

 Associate Regional Solicitor 

 U.S. Dept. of Labor 

 1111 Third Ave., Suite 945 

 Seattle, WA 98101 

 Ph. 206-553-0940 x-8056 

Dated:_____6/23/09_______________ 

U.S. DEPARTMENT OF LABOR