Wage and Hour Division (WHD)

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WESTBURY, N.Y. -- CHIAD (also known as Cihad) Corp., which runs a gas station in Farmingville, N.Y., and the company’s three officers have agreed to pay four employees a total of $30,528 in back wages to resolve a lawsuit filed by the U.S. Department of Labor alleging violations of the Fair Labor Standards Act (FLSA).

An investigation by the department’s Wage and Hour Division district office in Westbury revealed that low-wage employees were required to work more than 40 hours during many weeks without being properly compensated for overtime and that the employer failed to maintain required employment records.

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 over 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained, and prohibits employers from retaliating against employees who exercise their rights under the law.

The department’s 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, and named as defendants CHIAD Corp. and company officers Sukru Akkaya, Mustafa Catalbas and Atilla Cenk Akcay. A consent judgment resulted in which the defendants neither admit nor deny violations of the FLSA. Nevertheless, they are prohibited from future violations of the law’s minimum wage, overtime and recordkeeping provisions. The court order, signed by Judge Arthur D. Spatt, also prohibits the defendants from taking retaliatory action against any employees who exercise their rights under the law.

The defendants are ordered to pay the $30,528 in back wages, which cover the period between Jan. 9, 2005, and June 26, 2007. If the defendants fail to pay the back wages, the court will appoint a receiver with power to seize and liquidate the defendants’ assets to satisfy the payment order. The defendants are ordered to advise employees, in Turkish and English, of their rights under the FLSA and to engage in protected activities without fear of retaliation. Official posters must be placed where all employees may view them.

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 on the Internet at www.wagehour.dol.govand through an interactive “e-laws advisor” at www.dol.gov/elaws/flsa.htm.

Chao v. CHIAD Corp. et al; Civil Action Number: 07-CV-03565-ADS-AKT

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