Wage and Hour Division (WHD)

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NEW YORK -- Restaurant Ranchito Salvadoreno, doing business as Rincon Salvadoreno, and owner Elena Barcenas have agreed to pay 15 employees a total of $76,338 in back wages and interest to resolve a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

The Queens, N.Y., restaurant was investigated by the Labor Department’s Wage and Hour Division district office in Manhattan, which found that half of all workers were employed off the books, and the defendants were liable for unpaid minimum wage and overtime amounts due those workers. The investigation also found that the defendants had failed to maintain required records of employees and of wages, hours and other conditions of employment.

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.

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. It resulted in a consent judgment in which the defendants neither admitted nor denied violations of the FLSA but are prohibited from future violations of the law’s minimum wage, overtime and recordkeeping provisions.

The court order, signed by U.S. District Judge Raymond J. Dearie, also prohibits the defendants from taking retaliatory action against any employees who exercise their rights under the law. It orders them to pay the $76,338 in back wages and interest for the period between June 19, 2004, and June 17, 2006.

If the defendants fail to make any 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 orally 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 stating employees’ rights under the law 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 help line at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov and an interactive “e-laws advisor,” providing detailed information about complying with the act, is available at www.dol.gov/elaws/flsa.htm.

Chao v. Ranchito Salvadoreno, et al; Civil Action Number: 07-CV-00717-RJD-RML

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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.