Wage and Hour Division (WHD)

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NEW YORK -- Naxos Cleaners, doing business as Aphrodite Cleaners, in Brooklyn and owner Nicolas Nanas have agreed to pay 10 employees a total of $30,492 in back wages and liquidated damages to resolve 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 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 illustrate for other employers of low-wage workers in every borough of 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.

A consent judgment, signed by Judge Sandra L. Townes, 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 10 employees a total of $30,492 in back wages and liquidated damages, which cover the period from Aug. 18, 2004, through Aug. 1, 2006. They are also ordered to pay a $1,540 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 and English of their rights under the FLSA and the terms of the judgment. Finally, the defendants must post official posters explaining employee rights under the FLSA 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 in fiscal year 2006 represent a 30 percent increase over back wages collected in fiscal year 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 atwww.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. Naxos Cleaners Inc. doing business as Aphrodite Cleaners et. al.

Civil Action Number: 07-CV-04776-SLT-SMG

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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.