Veranda, a hookah lounge and restaurant in the West Village of New York City, has been ordered by the New York attorney general to pay $200,000 to 25 current and former employees in back wages and penalties. The investigation found that the business was underpaying employees and had fired two employees for reporting the violations to authorities.

As part of the settlement, Veranda will be required to pay $150,000 in restitution to employees that were not paid minimum wage or overtime pay for hours worked beyond 40. The business will pay an additional $50,000 for lost wages, damages and penalties for the wrongful termination of the workers.

The workers in question took advantage of the Wage Theft Protection Acts, which took effect last April. Under the legislation, employers must pay four times the penalties for underpaying workers. Additionally, the law strengthened protection for whistle-blowers.

Moutaz Ali, the owner of Veranda, said that he was in compliance with the labor laws and that he would fought back against the allegations, but he didn't have the paperwork to prove it. Employers can avoid allegations of labor law violations with accurate records of payroll and employee attendance. 

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