Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

NEW YORK -- Porta Bella Inc., a chain of discount men’s clothing stores located in the New York City metropolitan area, has agreed to pay 173 employees a total of $173,046 in back wages to settle a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

Named as defendants in the suit, filed in the U.S. District Court for the Southern District of New York, were: Porta Bella Inc.; Porta Bella PR Inc.; Porta Bella Holding Co. Inc.; Porta Bella Buying Office Inc.; and Hamdy Ashmawy as chairman or chief executive officer of the corporations.

The Labor Department’s suit was filed following an investigation by the department’s Wage and Hour Division that disclosed violations of the FLSA’s overtime and recordkeeping provisions.

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

The workers involved were employed as sales associates, tailors, stockers, cashiers and security guards at the chain’s 23 stores.

A consent judgment, signed by Judge Deborah A. Batts, prohibits the defendants from future violations of the FLSA and orders them to pay employees the $173,046 in back wages, plus interest, in six installments. The defendants agreed to entry of the judgment while neither admitting nor denying the allegations in the department’s lawsuit.

If the defendants fail to make the back wage payments, the court will appoint a receiver with power to seize and liquidate the defendants’ assets to satisfy the back wage payment order. Finally, the defendants must advise employees of their rights under the FLSA, the terms of the judgment and their right to engage in protected activities under the FLSA without fear of retaliation. Official posters must also be posted where all employees may view them.

For more information about the FLSA, call the U.S. 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 via an interactive “e-laws advisor” at www.dol.gov/elaws/flsa.htm..

Chao v. Porta Bella Inc. et al; Civil Action Number: 1:07-CV-04846-DAB

###

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.