Wage and Hour Division (WHD)

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WESTBURY, N.Y. -- A car wash in East Northport, N.Y., on Long Island, 5 Star Enterprises LLC, has paid 77 employees a total of $96,693 in back wages and interest, and has paid the U.S. Department of Labor a civil money penalty of $10,400 to resolve a lawsuit filed by the department alleging violations of the federal Fair Labor Standards Act (FLSA).

An investigation by the department’s Wage and Hour Division district office in Westbury revealed that low-wage employees of the company were required to work many hours while being paid less than the federal minimum wage, and were required to work more than 40 hours during many workweeks without being properly compensated for overtime.

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 over 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained, and prohibits employers from retaliating against employees who exercise their rights under the law.

“Our investigation,” said Wage and Hour Division District Director Irv Miljoner, “disclosed evidence of payroll records that had been falsified to appear compliant with the act’s requirements when, in fact, straight time had been paid for overtime hours actually worked.”

The suit was filed by the Labor Department’s Regional Solicitor’s Office in Manhattan in the U.S. District Court for the Eastern District of New York. A consent judgment resulted in which the defendants neither admitted nor denied violations of the FLSA. Nevertheless, they are prohibited from future violations of the law’s minimum wage, overtime and recordkeeping provisions. The court order, signed by Judge Arthur D. Spatt, also prohibits the defendants from taking retaliatory action against any employees who exercise their rights under the law. Additionally, the defendants were ordered to pay back wages and interest covering the period between June 9, 2004, and Nov. 4, 2006, and the civil money penalty for willful violations.

If the defendants had failed to make any payments, the court would have appointed a receiver with power to seize and liquidate the defendants’ assets to satisfy the back wage payment order. The defendants also were ordered to orally advise employees, in English and Spanish, of their rights under the FLSA, the terms of the judgment and their right to engage in protected activities without fear of retaliation. Official posters must be placed where all employees may view them.

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.govand through an interactive “e-laws advisor” at www.dol.gov/elaws/flsa.htm..

Chao v. 5 Star Enterprises LLC et al; Civil Action Number: 2:07-CV-01989-ADS-WDW

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