Wage and Hour Division (WHD)

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NEW YORK -- Queens-based Taki House Inc., and company owner George Spanos have agreed to pay employees $45,950 in back wages and interest following a U.S. Labor Department lawsuit alleging violations of the Fair Labor Standards Act (FLSA). The company does business as P & B’s Seville Restaurant, formerly the Seville Diner.

According to Philip Jacobson, director of the department’s Wage and Hour Division district office in Manhattan, an investigation by his office revealed that 17 employees of the restaurant were required to work more than 40 hours during many workweeks and always were paid straight time. These payroll practices resulted in both minimum wage and overtime pay violations. The investigation also found that the company did not keep proper records of the number of hours employees worked, their regular rates of pay and other required information.

The FLSA requires that covered employees be paid at least the federal minimum wage as well as one and one-half times their regular rate of pay for hours worked over 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.

The department’s lawsuit was filed by the U.S. Labor Department’s regional Solicitor of Labor office in New York City in U.S. District Court for the Eastern District of New York. It resulted in a consent judgment in which the defendants neither admitted nor denied violations of the FLSA but are prohibited from future violations of the law’s minimum wage, overtime and recordkeeping provisions.

The court order, signed by U.S. District Judge Jack B. Weinstein on Jan. 30, 2007, also prohibits the defendants from taking retaliatory action against any employees who exercise their rights under the law. It orders them to pay $45,950 in overtime back wages and interest in five installments. The back wage payments cover the period between April 4, 2002 and Sept. 30, 2006.

If the defendants fail to make any payments, the court will appoint a receiver with power to seize and liquidate the defendants’ assets to satisfy the back wage payment order. Finally, the defendants must allow the Wage and Hour Division to advise employees of their rights under the FLSA, the terms of the judgment, and their right to engage in protected activities under the FLSA without fear of retaliation. Official posters must also be posted where all employees may view them.

For more information about the FLSA, call the U.S. Department of Labor’s toll-free help line at 1(866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov and an interactive “e-laws advisor,” providing detailed information about complying with the Fair Labor Standards Act, is available at www.dol.gov/elaws/flsa.htm.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.