Wage and Hour Division (WHD)

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NEW YORK -- Lage Management Corp., Atlantic Auto Care Center Inc., Boulevard Car Wash of N.Y. Inc., Bronx River Lube Inc., First Avenue Lube Corp., Midnight Express Lube Inc., Auto Care Lubes Ltd., Boston Road Lube Corp. and corporate president John Lage have agreed to pay 211 employees a total of $535,838 in back wages, liquidated damages and interest 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).

The suit, filed in the U.S. District Court for the Southern District of New York, named as defendants a number of related businesses and individuals, including the above-named. The suit followed an investigation by the Labor Department’s Wage and Hour Division that disclosed violations of the FLSA’s minimum wage, overtime and recordkeeping provisions.

The FLSA requires that employees be paid at least the federal minimum wage and time and one-half their regular rates of pay for hours worked over 40 per week. Employers also are required to maintain accurate records of employees’ wages, hours and other conditions of employment.

“This case should be a pointed reminder to other employers of low-wage workers that the federal Department of Labor will not hesitate to take them to court in order to compel them to pay employees properly for all hours worked and comply with the FLSA’s recordkeeping requirements,” said Philip Jacobson, director of the Wage and Hour Division’s district office in New York City.

A partial consent judgment, signed by Judge Barbara Jones, prohibits the defendants from future violations of the FLSA’s minimum wage, overtime and recordkeeping provisions, and orders them to pay employees the back wages, liquidated damages and post-judgment interest. 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.

Jacobson stressed that the Wage and Hour Division is attempting to locate several workers who are no longer employed by the establishments to pay them the back wages they are due. Individuals who believe they are due back wages as part of this settlement should contact the New York District Office of the division at 212-264-8185.

The Labor Department’s Wage and Hour Division office in Manhattan investigated this case, and the suit was filed by the department’s Regional Solicitor’s Office in New York City. For more information about the requirements of the FLSA, contact the Wage and Hour Division office in Manhattan at 212-264-8185 or call the Department of Labor’s toll-free helpline at 866-US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

Chao v. LMC et al; Civil Action Number: 05-CV-6786

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