Wage and Hour Division (WHD)

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NEW YORK -- 717 Fifth Avenue Gourmet Corp., doing business as C’est Bon Café, and owner Byung S. “Bruce” Lim have agreed to pay 31 employees a total of $30,000 in back wages to resolve their part of a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA). New Blue Flowers Gourmet Inc., doing business as New Blue Flower Deli, and owner Byung N. Lim have agreed to pay 15 employees a total of $42,355 in back wages and liquidated damages to resolve their portion of the suit.

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 minimum wage, overtime and recordkeeping provisions at both New York City delicatessens.

The FLSA requires that covered employees be paid at least the federal minimum wage as well as time and one-half 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 for other employers of low-wage workers throughout the city that the Department of Labor will not hesitate to take them to court in order to compel them to pay employees properly for all hours worked,” said Philip Jacobson, director of the Wage and Hour Division’s district office in New York City.

Two partial consent judgments, signed by Judge Miriam Goldman Cedarbaum, prohibit the defendants from future violations of the minimum wage, overtime, recordkeeping and anti-retaliation provisions of the FLSA. The defendants also are ordered to pay employees the back wages and, in the New Blue Flowers case, liquidated damages. 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. Finally, the defendants must post official posters explaining employee rights under the FLSA where all employees may view them.

The Labor Department’s Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 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 atwww.dol.gov/elaws/flsa.htm.

Chao v. 717 Fifth Avenue Gourmet Corp. doing business as C’est Bon Café et al Civil Action Number: 07-CV-757-MGC

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