Wage and Hour Division (WHD)

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NEW YORK -- AHN Corp. of Yonkers, N.Y., and Haytham Abuali, an officer of the corporation, have agreed to pay 16 employees a total of $55,000 in minimum wage and overtime back wages, plus interest, to resolve a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

The suit was filed in the U.S. District Court for the Southern District of New York following an investigation by the Labor Department’s Wage and Hour Division that disclosed violations of the FLSA’s minimum wage, overtime and recordkeeping provisions at the paper products manufacturing 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, and prohibits retaliation against employees who exercise their rights under the law.

“Workers in low-wage industries are just as entitled as anyone else to be paid properly for all the hours they work,” said Sonia Rybak, assistant district director for the Wage and Hour Division in charge of the Hudson Valley Area Office. “This legal action demonstrates that we will not hesitate to sue employers who violate their obligations under the law to properly pay their employees.”

A consent judgment signed by Judge Charles L. Brieant prohibits the defendants from future violations of the FLSA’s minimum wage, overtime and recordkeeping provisions. It orders the defendants to pay the back wages covering the period between September 11, 2004, and September 9, 2006, plus interest. The defendants agreed to entry of the judgment while neither admitting nor denying the allegations contained in the Labor 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 advise employees, in Spanish and English, of their rights under the FLSA, and in particular their right to engage in protected activity without fear of retaliation. 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. AHN Corp. et al; Civil Action Number: 08-CV-02551-CLB

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