Wage and Hour Division (WHD)

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NEW YORK -- Owner Monair Khann, doing business as B & M Cosmetics of New York City, has agreed to pay eight employees a total of $90,301 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 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 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.

“Employers in the city must be aware,” said Philip Jacobson, director of the Wage and Hour Division’s district office in New York City, “that they are subject to federal law, and that the Labor Department will not hesitate to take them to court should they fail to live up to their obligations to pay employees properly for all hours worked.”

A consent judgment signed by Judge Denise L. Cote prohibits the defendant from future violations of the FLSA’s minimum wage, overtime, recordkeeping and anti-retaliation provisions. It orders the defendant to pay the back wages covering the period between Nov. 1, 2004, and Nov. 1, 2006, plus interest. Defendant Khann agreed to entry of the judgment while neither admitting nor denying the allegations contained in the Labor Department’s suit.

If the defendant fails to make the payments, the court will appoint a receiver with power to seize and liquidate his assets to satisfy the order. He is also ordered to advise employees in Spanish and English of their rights under the FLSA, and in particular their right to engage in protected activity without fear of retaliation. Finally, the defendant must post official posters explaining employee rights under the FLSA where all employees may view them.

The Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 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. Monair Khann, doing business as B & M Cosmetics; Civil Action Number: 08-CV-01583-DC

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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.