Tag Archives: Minimum Wage

Philadelphia Restaurants to Pay Employees Nearly $830,000 for Wage Violations

PHILADELPHIA RESTAURANTS TO PAY EMPLOYEES NEARLY $830,000 FOR WAGE VIOLATIONS

Two Philadelphia restaurants, Tierra Colombiana and Mixto, have agreed to pay 156 employees a total of $830,00 in back wages, liquidated damages and penalties to resolve federal wage theft violations.

An investigation conducted by the Wage and Hour Division of the United States Department of Labor (DOL) found that Tierra Colombiana and Mixto violated the overtime, recordkeeping and minimum wage provisions of the Fair Labor Standards Act (FLSA). Both restaurants are owned by Jorge Mosquera, and are operated by Jorge and Mercy Mosquera. “This resolution restores back wages rightfully earned by hard-working employees,” said a Department of Labor representative. “We encourage all employers to take advantage of the Department of Labor’s education and outreach efforts to help them understand their responsibilities and how to properly comply with the Fair Labor Standards Act.”

The Department of Labor found that servers, bartenders, barbacks, runners, hostesses, kitchen chefs, and dishwashers regularly worked more than 40 hours per week, but were allegedly paid overtime hours worked at a rate of their regular hourly pay instead of at time-and-a-half as the FLSA requires.  The Department of Labor claims that the restaurants also failed to maintain required records and made some illegal deductions from employee wages by taking “breakage fees” out from workers’ paychecks, which resulted in some restaurant workers being paid less than the federal minimum wage. “This enforcement action will ensure that workers are paid for all of the hours they worked, and will go a long way in leveling the playing field for employers in the restaurant industry,” commented another representative.

The restaurants have agreed to comply with the FLSA in the future and protect the workers’ rights, including paying the proper overtime premium. The FLSA requires that covered, nonexempt employees be paid at least the minimum wage of $7.25 per hour (note that New York has a higher minimum wage) for all hours worked, plus time-and-one-half their regular rates, including commissions, bonuses, and incentive pay, for hours worked beyond 40 per week.  Employers also must maintain accurate time and payroll records.

Busser Sues Mario Batali’s Restaurant for Minimum Wage and Overtime Pay Violations

Busser Sues Mario Batali’s Restaurant for Minimum Wage and Overtime Pay Violations

A former busser employed by Mario Batali’s Babbo Ristorante Enoteca is suing the restaurant to recover minimum and overtime wages, and tips unlawfully retained by the restaurant. According to Octavio Quinones, who worked at Babbo as a busboy  for almost two years, the restaurant willfully failed and refused to pay him at the correct minimum wage and overtime rate, did not provide him with a written wage notice detailing his rate and frequency of pay, and forced the waitstaff to share tips with management.

During his shifts as a busser, Quinones would spend one and a half hours performing side-work, such as cleaning floors and folding napkins. Quinones was paid at the tipped minimum wage for all of his shifts even though he spent more than 20% of his time performing non-tipped side-work. According to the lawsuit, Babbo failed to notify front of the house workers at the beginning of 2017 that the proper full minimum wage was $11 and that it intended to take a $3.50 tip credit. According to the wage theft lawsuit, when Quinones earned overtime pay, Babbo also incorrectly factored in a tip credit.

Restaurants must provide notice before claiming a tip credit towards an employee’s wages. Under the Fair Labor Standards Act and the New York Labor Law, if an employee works over 40 hours per week, that employee must receive overtime pay. Sharing of an employee’s tips with a restaurant manager is strictly prohibited under the law.

Mastro’s Restaurant Accused of Stealing from Tip Pool

tip pool

Tipped employees at Mastro’s Steakhouse in Chicago sued the restaurant in Illinois state court, claiming that the restaurant illegally retained a portion of the tip pool, and failed to pay its servers the correct minimum wage.

Former Mastro’s busser Jose Murata brought the class action in Illinois State Court against Mastro’s, accusing the restaurant of violating Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act when it kept part of the pool of tips shared by its front of the house employees.

Attorneys for the severs claim that “the net effect of defendant’s policies and practices is that defendant willfully failed to pay the full amount of compensation earned and due to plaintiff and all other similarly situated employees,” and that “defendant thus enjoyed ill-gained profits at the expense of its hourly employees, including its Tip Credit Employees and Tip Pool Employees.” The class action lawsuit alleges that “in exchange for said labor, defendant was obligated to plaintiff and each member of putative … class the full amount of wages they earned, including tips. Defendant’s practice of operating an illegal tip pool and its improper taking of the Tip Credit has resulted in defendant’s Tip Credit Employees not being paid the full amount of minimum wages owed to them.” The lawsuit, claims that the restaurant was not allowed to take a  tip credit because it failed to pay the proper amount of wages to its servers.

Restaurants cannot require servers to share their tips with non-service employees who do not customarily and regularly receive tips, such as dishwashers, cooks, chefs, janitors, and managers. Restaurants can require waiters to split their tips from customers with other front of the house employees who provide personal service to customers as a principal and regular part of their duties (such as bussers, bartenders, barbacks, food runners, captains who provide direct food service to customers, and hosts who greet and seat guests).

Buca di Beppo Cheated Workers Out of Wages, According to Wage Theft Lawsuit

Buca di Beppo wage theft

A wage theft lawsuit claims the Times Square location of Buca di Beppo, a nationwide Italian restaurant, failed to pay its workers minimum wages and overtime pay in violation of the Fair Labor Standards Act (“FLSA”) and the New York Labor Law.  According to a former server, Buca di Beppo maintained a policy of cheating its servers, bussers, and bartenders out of their wages by requiring them to clock out and continue working unpaid and off the clock, as well as refusing to pay them spread of hours pay when the length of their workday exceeded 10 hours.

According to the former server, Buca di Beppo required him to record his time using the restaurant’s point-of-service system, but did not allow him to accurately keep track of his hours.  He alleges that whenever he worked a double shift, Buca di Beppo required him to clock out for 30 minutes between shifts, even though he continued to work at the restaurant during that time.  When working the double shifts, the server claims his workday exceeded 10 hours, yet he never received spread of hours pay of an additional hour of pay at the minimum wage rate.

The class action lawsuit states that the server regularly worked more than 40 hours per week, yet whenever he worked more than 28 hours in a week, the restaurant would roll back and adjust his hours worked by reducing the hours on his time records.  It’s further claimed that Buca di Beppo shaved time by requiring the server to arrive at work two hours before the start of his shift to perform unpaid, off-the-clock work.

New York City French Restaurant Bagatelle to Pay $1.1 Million for Tip Credit Violations

server restaurant image waiter tip credit

Bagatelle will pay $1.1 million to settle a wage theft lawsuit claiming that the restaurant misappropriated the tips of its food service employees and improperly used a tip credit to pay restaurant workers less than the minimum wage, in violation of the Fair Labor Standards Act and the New York Labor Law.  Bagatelle, the popular upscale French restaurant located in New York City’s Meatpacking District and self-described “NYC institution” is alleged to have required its food service workers, including servers, runners, bussers, and bartenders to share tips with tip ineligible employees, such as managers and silver polishers.   According to the lawsuit, brought by two servers who worked at the restaurant in 2015, when one of the servers asked his manager how much he had earned in tips on a particular night, he was referred to two different managers and never received an answer.

Attorneys for the workers also alleged that Bagatelle used a tip credit to pay its food service workers at the tipped minimum wage, despite failing to give them notice and requiring them to share tips with back of the house employees such as glass polishers and food expeditors.

The proposed settlement encompasses all servers, runners, bussers, and bartenders who worked at Bagatelle from January 1, 2012 to March 1, 2017.  It is estimated that the settlement will cover at least 100 workers and will be distributed in two categories: a. the amount of tips each worker received during his or her work period at Bagatelle, and b. a calculation based on total weeks worked.

10 Domino’s Franchise Locations Will Pay $480K For Violating Workers’ Rights

dominos pizza logo

New York Attorney General Eric T. Schneiderman announced settlements with three Domino’s Pizza franchisees, totaling $480,000 in restitution to hundreds of workers subject to wage and labor violations at ten different franchise locations.  The Attorney General filed a lawsuit in May 2016 against these three franchisees and their franchisor Domino’s Pizza, Inc., Domino’s Pizza LLC, and Domino’s Pizza Franchising LLC (collectively, “Domino’s”) seeking restitution from Domino’s and its franchisees for a number of alleged violations, including violations against minimum wage, overtime, and other basic labor law protections.

As part of the settlement agreements for the wage theft violations, the three franchisees will be dismissed from the lawsuit, and only the franchise Domino’s remains as a defendant.  The Attorney General has now settled investigations into labor law violations at 71 Domino’s franchise locations in New York State, owned by fifteen individual franchisees.  These locations comprise more than half of the franchise stores and over a third of the total number of Domino’s stores in New York.  The Attorney General’s office has secured nearly $2 million in total restitution for Domino’s workers statewide through these settlements.

“In the past three years, my office’s investigations have revealed a consistent and outrageous record of disregard for workers’ rights by franchisees, and as we allege, with the full knowledge of Domino’s Pizza,” Attorney General Schneiderman said. “My office will continue with our lawsuit against Domino’s Pizza to end the systemic violations of workers’ rights that have occurred in franchises across the State.  We will not allow businesses to turn a blind eye to blatant violations that are cheating hard working New Yorkers out of a fair day’s pay.”

Eight of the stores involved in the settlements announced today were owned jointly by Shueb Ahmed and Anthony Maestri, with locations in New York, Nassau and Westchester Counties.  Two of the stores were owned by Matthew Denman and located in Montgomery County.  Shueb Ahmed will pay $150,000 in restitution to workers, Matthew Denman will pay $90,000 and Anthony Maestri will pay $240,000.

In the continuing lawsuit against Domino’s, the Attorney General has asserted that Domino’s was heavily involved in the employment practices of the three franchisees and, as a result, is a joint employer of the workers at the franchisees’ stores and is responsible for underpaid wages to these workers.  The Attorney General has also alleged that Domino’s encouraged franchisees to use payroll reports from the company’s computer system (called “PULSE”), even though Domino’s knew for years that PULSE under-calculated gross wages.  Domino’s typically made multiple updates to PULSE each year, but decided not to fix the flaws that caused underpayments to workers or tell franchisees about the flaws, deeming it a “low priority.”

Montauk, Long Island 7-Eleven Settles Wage Theft Lawsuit for $199,500

7 eleven logo

A manager at the highest grossing 7-Eleven store in the United States won $199,500 in a wage theft lawsuit against 7-Eleven. Muhammad Anwar, the manager at the 7-Eleven in Montauk, New York, alleged 7-Eleven cheated him out of minimum wages, overtime pay, and spread-of-hours pay.

 

Anwar alleged that 7-Eleven steadily increased his hours and required him to work seven days a week for 18 months straight. Although the start and end time for Anwar’s shifts varied on a week-by-week basis, he claimed that throughout those 18 months, he always worked at least 80 hours per week without an uninterrupted break each day. 7-Eleven adjusted Anwar’s hours worked at the end of each week, paying him for far fewer hours than he actually worked. In one example of time shaving, Anwar claimed that 7-Eleven paid him for six hours’ worth of work, despite working 80 hours during that week.

 

In late June of 2013, the  FBI raided fourteen 7-Elevens across Long Island and Virginia for requiring their employees to work more than 100 hours per week and only paying them for a fraction of that time.  Anwar claims that after these raids, the Montauk 7-Eleven reduced his hourly wages from $25.00 to $16.00, started paying him overtime, and substantially reduced his weekly hours.

 

7-Eleven has been hit with several wage theft lawsuits recently, alleging that their stores fail to pay workers overtime pay.

‘Essen Sued for Wage Violations

Essen NY Logo

‘Essen, a to-go café with locations in Midtown East, Hell’s Kitchen, and Financial District in New York City, has been hit with a wage violation lawsuit. The lawsuit alleges that the cafe failed to pay several cooks, food preparers and salad preparers minimum wage, overtime pay, and spread-of-hours pay. The lawsuit claims that these cooks, food preparers, and salad preparers would work between 48 to 78 hours a week, and would be paid fixed weakly salaries regardless of how many hours they worked. The employees also claim that they were forced to buy “tools of the trade” such as work uniforms out of their own pockets. Lastly, the lawsuit asserts that ‘Essen required employees to sign documents claiming they were paid properly in order to disguise the actual number of hours worked by employees.

For example, one employee claims worked approximately 78 hours a week and was paid a fixed weekly salary of $550.00. His hourly wage rate for those weeks was approximately $7.00, below the minimum wage. This employee also claims was asked to sign a document which he didn’t understand in order to receive his pay, and did not receive his pay when he failed to do so.

NY Diner Found Guilty of Retaliation Against Workers

Waverly Diner Restaurant front

Waverly Restaurant, a diner in New York City’s West Village, was found guilty of retaliation against former workers in a decision by Judge Steven Davis of the National Labor Relations Board. After a three-day trial, Judge Davis found that the restaurant reduced worker hours because they had filed a federal court wage theft lawsuit against the restaurant for overtime, minimum wage, and other violations. The Judge also found that management had pressured waiters, delivery workers and bussers involved in the FLSA lawsuit to drop the suit. The restaurant workers were represented at the trial by Vivianna Morales and Louis Pechman, founder of waiterpay.com.

Benares and Baluchi’s NYC Restaurants Sued for Stiffling Delivery Workers out of Minimum Wage and Overtime Pay

Benares Indian Restaurant logo

Delivery workers at Benares and Baluchi’s Indian restaurants in New York City were not paid minimum and overtime wages, and also were cheated out of the hours that they worked, according to a wage theft lawsuit filed in Manhattan federal court. The lawsuit claims that Benares and Baluchi’s purposefully failed to keep track of the delivery workers’ hours, and that the delivery workers were paid a fixed daily salary ranging from $16 per day to $50 per day, regardless of the number of hours they actually worked.

The delivery workers claim that the restaurant failed to provide them with any notice that tips they earned would count towards their wages. In addition, the restaurants unlawfully required their delivery workers use their own money to purchase “tools of the trade,” such as bikes, helmets, lights, and bike chains. The lawsuit also claims the restaurants regularly required delivery workers to continue working without pay for at least an hour after their scheduled stop time.