Wage and Hour Division (WHD)

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NEW YORK -- – 6688 Corp., doing business as Sammy’s Noodle & Grill; 38 Corp., doing business as Sammy’s Asian Gourmet; and company president Cindy H.C. Wu have agreed to pay 69 kitchen and wait staff a total of $199,298.69 in back wages and interest to settle a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

The Labor Department’s suit was filed in the U.S. District Court for the Southern District of New York following an investigation by the department’s Wage and Hour Division that disclosed violations of the FLSA’s overtime and recordkeeping provisions at both New York City restaurants.

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

“This case should demonstrate to other employers of low wage workers that the Department of Labor will not hesitate to take them to court in order to compel them to pay their employees properly for all hours worked,” said Philip Jacobson, director of the Wage and Hour Division’s district office in New York City.

A consent judgment, signed by Judge Alvin K. Hellerstein, prohibits the defendants from future violations of the minimum wage, overtime, recordkeeping and anti-retaliation provisions of the FLSA, and orders them to pay employees the back wages and interest in 24 installments. The defendants agreed to entry of the judgment while neither admitting nor denying the allegations in the department’s suit.

The back wages cover the period between July 5, 2004, and July 29, 2006. If the defendants fail to make the payments, the court will appoint a receiver with power to seize and liquidate their assets to satisfy the order. The defendants must advise employees in Spanish, Mandarin and English of their rights under the FLSA and their right to engage in protected activities without fear of retaliation. Official posters must be posted where all employees may view them.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections last year represent a 30 percent increase over back wages collected in fiscal 2001. The number of workers receiving back wages has increased by 14 percent since fiscal 2001.

For more information about the FLSA, call the Department of Labor’s toll-free helpline at (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 FLSA compliance is available at www.dol.gov/elaws/flsa.htm.

Chao v. 6688 Corp. et al; Civil Action Number 07-CV-06512-AKH

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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.