Wage and Hour Division (WHD)

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NEW YORK -- Forest Hills Physical Therapy P.C. and corporate officer Fern Toback have agreed to pay 22 employees a total of $74,541 in minimum wage and overtime back wages to resolve a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA). The defendants must also pay the Labor Department a civil money penalty of $10,285.

The Labor Department’s suit was filed in the U.S. District Court for the Eastern 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 the business.

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 serve as a reminder to employers of low-wage workers throughout New York City that the U.S. Labor Department will not hesitate to compel them to meet legal obligations to their employees through litigation when necessary,” said Philip Jacobson, director of the Wage and Hour Division’s district office in New York City.

A consent judgment, signed by U.S. District Judge David G. Trager, prohibits the defendants from future violations of the minimum wage, overtime, recordkeeping and anti-retaliation provisions of the FLSA. The defendants are ordered to pay 22 employees the back wages, which cover the period from Jan. 9, 2005, through Nov. 1, 2007. They are also ordered to pay the civil money penalty. The defendants agreed to entry of the judgment while neither admitting nor denying the allegations in the department’s suit.

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. They are also ordered to orally advise their employees in Spanish, English and other languages spoken by the employees of their rights under the FLSA. 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 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. Forest Hills Physical Therapy P.C. et al; Civil Action Number: 07-CV-05190-DGT-JMA

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