Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

NEW YORK -- E and D LLC, doing business as The Prime Grill, and JA Restaurant LLC, doing business as Solo Restaurant, have agreed to pay 82 kitchen and wait staff a total of $23,035 in back wages to resolve two lawsuits filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

The Labor Department’s suits were filed in the U.S. District Court for the Southern District of New York following an investigation by the department’s Wage and Hour Division that disclosed violations of the FLSA’s overtime and recordkeeping provisions at the jointly operated New York City restaurants.

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

Consent judgments signed by two federal judges prohibit the defendants from future violations of the overtime and recordkeeping provisions of the FLSA. E and D LLC is ordered to pay 57 employees at total of $16,709 in back wages, while JA Restaurant LLC has been ordered to pay 25 workers a total of $6,326 in back wages. E and D LLC is also ordered to pay the Labor Department a $6,000 civil money penalty. The defendants agreed to entry of the judgments while neither admitting nor denying the allegations in the department’s suits.

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.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections in fiscal year 2006 represent a 30 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 14 percent since fiscal 2001. 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.gov, and an interactive “e-laws advisor” providing detailed information about FLSA compliance is available at www.dol.gov/elaws/flsa.htm.

Chao v. E and D LLC; Civil Action Number: 1:07-CV-07422-LLS
Chao v. JA Restaurant LLC; Civil Action Number: 07-CV-07420-JSR

###

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.