Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

NEW YORK -- Brooklyn, N.Y.-based Preferred Builders Inc. and company president Patrick Kelleher have paid 69 employees a total of $101,731 in 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).

An investigation by the department’s Wage and Hour Division district office in Manhattan revealed that low wage employees were required to work more than 40 hours during many workweeks without being properly compensated for overtime. The investigation also found that the company did not keep proper records of the number of hours employees worked, their regular rates of pay and other required information.

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 more than 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.

The suit was filed by the Labor Department’s Regional Solicitor’s Office in Manhattan in the U.S. District Court for the Eastern District of New York. A consent judgment resulted in which the defendants neither admitted nor denied violations of the FLSA. However, they are prohibited from future violations of the law’s minimum wage, overtime and recordkeeping provisions. The court order, signed by Judge Sandra J. Feuerstein, also prohibits the defendants from taking retaliatory action against any employees who exercise their rights under the law.

The defendants must advise employees, in English and the employees’ native languages, of their rights under the FLSA, the terms of the judgment and their right to engage in protected activities without fear of retaliation. Official posters must also be placed 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 through an interactive “e-laws advisor” at www.dol.gov/elaws/flsa.htm.

Chao v. Preferred Builders Incorporated et al; Civil Action Number: 2:07-CV-02351-SJF-ETB

###

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.