Wage and Hour Division (WHD)

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NEW YORK -- Two New York City commercial laundries, one in Brooklyn and the other in Queens, have agreed to pay 16 employees a combined total of $41,255 in minimum wage and overtime back wages following investigations by the U.S. Department of Labor into alleged violations of the federal Fair Labor Standards Act (FLSA).

“The recovery of rightful, hard-earned wages for these low-wage workers should remind all employers in the New York City area of their legal obligation to pay employees properly for all hours worked,” said Philip Jacobson, district director in New York City for the Labor Department’s Wage and Hour Division.

The Wage and Hour Division investigated Party Linen USA Inc. in Brooklyn and Schlaeffen Laundry Corp. in Queens. The investigations disclosed that some employees of both companies were being paid at rates below the federal minimum wage, and some of these workers also were not receiving time and one-half their regular rates of pay when working more than 40 hours per week.

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, and prohibits retaliation against employees who exercise their rights under the law.

When informed of the apparent underpayments, the owner of Schlaeffen Laundry Corp. agreed to come into full compliance with the requirements of the FLSA and pay all back wages due. The company paid four employees a total of $4,689.60 in back minimum wages and paid six employees $11,173.50 in overtime back wages for a total of $15,863.10.

The owners of Party Linen USA agreed to pay 10 employees $4,578 in minimum wage and $20,814 in overtime back wages for a total of $25,392. The company entered into a stipulation settlement with the Labor Department in which it agreed to full future compliance with the FLSA, including paying employees proper minimum wages and overtime, keeping required payroll records and not retaliating against employees who exercise their rights under the law. The company also agreed to advise its employees, in Spanish and English, of their rights under the FLSA, and to place posters informing workers of these rights where all employees may view them.

This case was investigated by the New York City District Office of the Labor Department’s Wage and Hour Division. 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 atwww.dol.gov/elaws/flsa.htm.

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