Restaurant operators of the three Pongsri Thai restaurants agreed to pay $3.68M to former employees to settle a lawsuit alleging violations of federal and state minimum wage and overtime pay laws.
The agreed upon settlement covers two different classes of workers which include cooks, cashiers, bussers and delivery people who worked for the three NYC Pongsri restaurants – two of which are now closed- anytime since April 8, 2008 and opted into the collective action. The former employees claim that they were not paid at the proper minimum wage rate and that they were not paid at the proper overtime rate for all hour worked over 40. The workers were also not paid “spread-of-hours,” premium, an additional hour of pay at the minimum wage rate when their workday exceeded ten hours. Additionally, workers claimed that restaurant operators shaved off 15% of their credit card tips and delivery workers were not reimbursed for the costs of buying and maintaining their deliver bikes.
Under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL), employers are required to pay employees at the statutory minimum wage and for all hours worked over 40, at one-and-a-half (1 ½) times the hourly rate. NYLL also requires employers to pay employees who are paid at or below the minimum wage an additional hour of pay at the statuary minimum wage when their workday is longer than 10 hours. Both laws direct employers to document all the hours their employees work.
If you are a restaurant worker who believes that you are not being paid at the proper minimum wage and overtime rates, please call Pechman Law Group PLLC at (212) 583-9500.
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