OPINION AND ORDER
WILLIAM T. HART, District Judge.
Plaintiffs Javier Yapan and Carmelo Martinez allege that defendants Marvin Holding Company d/b/a Marvin Envelopes and Marvin Envelope & Paper; Lists & Letters Holding Company; Lists and Letters, Inc.; and Jose Garza violated the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., by dividing plaintiffs' hours among the various related entities in order to evade paying overtime. It is also alleged that defendants failed to credit plaintiffs for all hours worked.
Initially, defendants were represented by counsel. After substantial discovery and the issuance of an opt-in notice that did not result in any additional plaintiffs joining the FLSA claims, the parties engaged in substantial settlement discussions but were unable to reach a resolution. With defendants consent, their counsel withdrew from the case. Individual defendant Garza then proceeded pro se. While he could not represent the other defendants, any successful arguments that he made that would have appropriately applied to the other defendants as well would have been so applied. In August 2013, plaintiffs moved for summary judgment. As required by Seventh Circuit precedent and Local Rule 56.2, pro se Garza was provided notice as to how to respond to a summary judgment motion. Garza represented that he would either retain new counsel or respond to the motion on his own. After extensions of time were granted, new counsel was retained for all defendants and a further extension was granted. Less than a month later, counsel discovered the existence of a conflict of interest and counsel's motion to withdraw was granted without any opposition from defendants. On the same date that the motion to withdraw was presented, plaintiffs presented a motion to grant the summary judgment motion based on defendants continued failure to file any response. Garza did not appear at the hearing. The motion to withdraw was granted and plaintiffs' motions were taken under advisement.
It is inappropriate to grant summary judgment solely based on a nonmovant's failure to respond. Therefore, plaintiffs' recent motion for the entry of judgment will be denied without prejudice. Instead, the merits of the summary judgment motion will be addressed. The facts stated in plaintiffs' Local Rule 56.1 statement will be deemed to be admitted, but it still must be determined whether those facts support judgment as a matter of law. See Raymond v. Ameritech Corp., 442 F.3d 600, 608 (7th Cir. 2006); Warren-Gall v. Adventist Health Sys. , 2011 WL 5299301 *1 (N.D. Ill. Oct. 31, 2011); Molina v. First Line Solutions LLC , 566 F.Supp.2d 770, 784 (N.D. Ill. 2007).
The facts taken as true for purposes of ruling on plaintiffs' motion for summary judgment are as follows. Defendant Garza is the owner of Marvin Holding Company ("Marvin Holding") which is in the printing and paper business. Marvin Holding held itself out to the public and did business as Marvin Envelopes; Marvin Envelope & Paper; Lists & Letters Holding Company; and Lists and Letters, Inc. All of these entities operated out of the same location.
From 2007 to June 2010 plaintiff, Yapan worked for defendants as a press operator. His wages were $19.00 per hour. Yapan generally worked for Marvin Holding. However, during weeks in which he worked more than 40 hours, some of his time would be designated as work for "Lists & Letters." He did the same work for both companies, was supervised by Garza regardless of which company he worked for, and Garza determined which company the work would be performed. Yapan would only be paid regular time based on not working more than 40 hours for either Marvin Holding or Lists & Letters regardless of whether the combined time exceeded 40 hours. Treating work as being for a single entity, a reasonable estimate of the number of hours for which Yapan was not paid overtime during the pertinent time period is 344 hours. Yapan has also made reasonable estimates of the amount of hours that were unrecorded for either company and has also made a reasonable estimate of the number of hours he worked through his lunch period and was uncompensated. The estimated amount of unpaid overtime is $25, 572.10.
From 2008 through 2010, plaintiff Martinez worked for defendants as a press operator. His wages were $14.00 per hour. However, during weeks in which he worked more than 40 hours, some of his time would be designated as work for "Lists & Letters." He did the same work for both companies, was supervised by Garza regardless of which company he worked for, and Garza determined which company the work would be performed. Martinez would only be paid regular time based on not working more than 40 hours for either Marvin Holding or Lists & Letters even when the combined time exceeded 40 hours. Treating work as being for a single entity, a reasonable estimate of the number of hours for which Martinez was not paid overtime during the pertinent time period is 1505 hours. Martinez has also made a reasonable estimate of the number of hours he worked through his lunch period and was uncompensated. The estimated amount of unpaid overtime is $10, 535.00.
Regarding joint employment, applicable regulations provide:
(a) A single individual may stand in the relation of an employee to two or more employers at the same time under the Fair Labor Standards Act of 1938, since there is nothing in the act which prevents an individual employed by one employer from also entering into an employment relationship with a different employer. A determination of whether the employment by the employers is to be considered joint employment or separate and distinct employment for purposes of the act depends upon all the facts in the particular case. If all the relevant facts establish that two or more employers are acting entirely independently of each other and are completely disassociated with respect to the employment of a particular employee, who during the same workweek performs work for more than one employer, each employer may disregard all work performed by the employee for the other employer (or employers) in determining his own responsibilities under the Act. On the other hand, if the facts establish that the employee is employed jointly by two or more employers, i.e., that employment by one employer is not completely disassociated from employment by the other employer(s), all of the employee's work for all of the joint employers during the workweek is considered as one employment for purposes of the Act. In this event, all joint employers are responsible, both individually and jointly, for compliance with all of the applicable provisions of the act, including the overtime provisions, with respect to the entire employment for the particular workweek. In discharging the joint obligation each employer may, of course, take credit toward minimum wage and overtime requirements for all payments made to the employee by the other joint employer or employers.
(b) Where the employee performs work which simultaneously benefits two or more employers, or works for two or more employers at different times during the workweek, a joint employment relationship generally will be considered to exist in situations such as:
(1) Where there is an arrangement between the employers to share the employee's services, as, for example, to interchange employees; or
(2) Where one employer is acting directly or indirectly in the interest of the other employer (or employers) in relation to the employee; or
(3) Where the employers are not completely disassociated with respect to the employment of a particular employee and may be deemed to share control of the employee, directly or indirectly, by reason of the fact that one employer controls, is ...