BROOKLYN, NY – A Brooklyn federal judge has entered a default judgment against A & G Iron Works Corp. and its owner, Ali Elgerushi, after the company failed to respond to a lawsuit accusing them of wage theft, retaliation, and recordkeeping violations under state and federal labor laws.
U.S. District Judge Margo K. Brodie of the Eastern District of New York granted the motion by plaintiff Luis Avila Rueda on October 9, 2025, after months of nonresponse from the defendants. Rueda, a former employee of the ironworks firm, alleged that A & G and Elgerushi failed to pay him proper wages, denied overtime pay for hours worked beyond 40 per week, and fired him for complaining about the violations.
According to court filings, Rueda claimed the company never provided required wage notices, pay stubs, or accurate time records, and consistently underpaid him in violation of both the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). The court found that the defendants were properly served through the New York Secretary of State and at Elgerushi’s residence in Staten Island but never appeared or filed a defense.
Rueda’s attorneys moved for default judgment under Rule 55(b)(2) of the Federal Rules of Civil Procedure after the clerk entered certificates of default in August. The motion included declarations, wage calculations, and records of attorney fees supporting the damages claim.
Judge Brodie accepted the plaintiff’s allegations as true for purposes of liability, finding the company and its owner jointly responsible for unpaid wages and retaliatory termination. The court is expected to issue a separate order detailing the amount of damages, which could include unpaid wages, liquidated damages, penalties, and attorney’s fees.
- Judge Margo Brodie grants default judgment in wage theft case
- A & G Iron Works and owner failed to respond to federal lawsuit
- Damages under FLSA and New York Labor Law to be determined in subsequent order
