Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

NEW YORK -- Two New Jersey Asian food stores doing business under the name Hong Kong Supermarket have agreed to pay 57 current and former employees a total of $340,400 in back wages and damages to resolve a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

The department’s suit was 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. The suit, which was filed in federal court in New York because both stores have their principal offices in New York City, named as defendants Hong Kong Supermarket of South Plainfield Inc. and Hong Kong Supermarket of East Brunswick Inc.

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.

“Spanish and Chinese-speaking employees of these supermarkets worked as many as 60 hours per week but were not aware of their right to receive overtime pay,” said Philip Jacobson, director of the Labor Department’s Wage and Hour Division district office in New York City. “The hours worked and wages paid were not recorded accurately by the company, and workers were not paid proper overtime after 40 hours. The liquidated damages and civil money penalties included in this legal action will demonstrate to employees and employers that we are committed to ensuring that all covered workers are protected by the FLSA’s minimum wage, overtime and recordkeeping requirements.”

A consent judgment signed by Judge Sidney Stein prohibits the defendants from future violations of the FLSA’s minimum wage, overtime, recordkeeping and anti-retaliation provisions, and orders the payment of $290,000 in back wages and $50,400 in liquidated damages covering the period from June 1, 2002, through October 8, 2005. The defendants are also ordered to pay a civil money penalty of $19,600. 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.

This case was investigated by the New York City District Office of the U.S. Labor Department’s Wage and Hour Division in cooperation with the New York State Department of Labor’s Division of Labor Standards, which investigated the store chain’s locations in New York City. The suit was filed by the U.S. Labor Department’s Regional Solicitor’s Office, also in Manhattan.

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. Hong Kong Supermarket of South Plainfield Inc. et al; Civil Action Number: 1:07-CV-02730-SHS

###

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.