New York restaurant chain agrees to record-breaking overtime back pay
New York City-based sandwich chain Lenny's recently reached a $5.1 million agreement with the Department of Labor regarding overtime back pay.
Officials reported that the chain's employees were paid an average weekly salary of $275 between 2002 and 2008, despite working 10 to 12 hours per day for six to seven days a week. The state's time and attendance laws dictate that workers should receive a minimum wage of $7.25, and be paid time-and-a-half for each hour of overtime.
"This settlement, the largest recorded settlement for workers in the history of the Department of Labor, sends a strong message to employers that exploiting employees will not be tolerated," said New York Governor Andrew Cuomo.
The eatery made a $1 million down payment to the department, and was given two years to produce the remaining $4 million, in addition to a $100,000 fine.
One worker is expected to receive a total of $93,000 in compensation, and three others will receive $55,000 each.
Earlier this year, jeans company Levi Strauss also agreed to a sizeable overtime back wage payout. The company reimbursed a total of more than $1 million to nearly 600 of its employees across the country after it was found to have violated the Fair Labor Standards Act.
Officials reported that the chain's employees were paid an average weekly salary of $275 between 2002 and 2008, despite working 10 to 12 hours per day for six to seven days a week. The state's time and attendance laws dictate that workers should receive a minimum wage of $7.25, and be paid time-and-a-half for each hour of overtime.
"This settlement, the largest recorded settlement for workers in the history of the Department of Labor, sends a strong message to employers that exploiting employees will not be tolerated," said New York Governor Andrew Cuomo.
The eatery made a $1 million down payment to the department, and was given two years to produce the remaining $4 million, in addition to a $100,000 fine.
One worker is expected to receive a total of $93,000 in compensation, and three others will receive $55,000 each.
Earlier this year, jeans company Levi Strauss also agreed to a sizeable overtime back wage payout. The company reimbursed a total of more than $1 million to nearly 600 of its employees across the country after it was found to have violated the Fair Labor Standards Act.
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