NY Restaurant Chain to Pay Nearly $1 Million in Back Wages and Damages

Document created by 1050210 on Nov 13, 2014
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Published Date: 08/04/2014


George; Ports

By George Ports


The US Department of Labor (USDOL) has obtained a consent judgment in a US District Court ordering the restaurant chain Manna’s to pay a total of $956,482 in back wages and liquidated damages to 85 low-wage employees following an investigation by the USDOL’s Wage and Hour Division. The restaurant chain will also pay $31,952 in post-judgment interest and $39,737 in civil money penalties to the USDOL because of the repeated and willful nature of the violations of the Fair Labor Standards Act (FLSA).


Investigations by the division’s New York City District Office found widespread violations by the restaurants of the FLSA’s minimum wage, overtime and recordkeeping requirements. Specifically, the restaurants paid cooks, dishwashers and cashiers flat salaries for all hours worked instead of paying them overtime at time and one-half their regular rates of pay when they worked more than 40 hours in a workweek, as the law requires.


To ensure that the restaurant chain complies with the terms of the judgment, the USDOL has secured a lien on its property in Palisades Park, NJ. If the defendants fail to make scheduled payments, the court can appoint a receiver to ensure that the judgment’s terms are met.


The restaurant chain agreed to maintain future compliance with the FLSA in addition to paying the back wages owed. The restaurants will post FLSA posters in English and any other languages spoken by employees and will inform employees of the terms of the judgment in a language they understand.


The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers that violate the law are, as a general rule, liable to employees for back wages and liquidated damages payable to the employees.


For more information about the FLSA, go to the Wage and Hour Division’s website at http://www.dol.gov/whd.