Wage and Hour Division (WHD)

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NEW YORK -- The Judith Lynn Home for Adults, owners Alfred and Judith Schonberger, and the home's administrator Robert Snyder have agreed to pay 66 employees over $75,000 in back wages, damages and interest to settle a lawsuit filed by the U.S. Department of Labor.

The complaint, filed April 3, 2003 in the U.S. District Court, Southern District of New York, alleged willful violations of the overtime and record keeping provisions of the federal Fair Labor Standards Act (FLSA) by the defendants. The suit was the result of an investigation by the department's Wage and Hour Division office in New York City. It alleged that between March 1998 and August 2002 the defendants failed to pay their employees proper overtime wages and falsified records to conceal their unlawful practices.

In a consent judgment, signed by U.S. District Judge Lewis A. Kaplan on March 29, the defendants, without admitting the alleged violations, agreed to pay 66 employees a total of $75,252 in back wages, liquidated damages and post-judgment interest. The amount breaks down to $37,500 in overtime compensation, $37,500 in liquidated damages and $252 in post-judgment interest to be paid in installments over the next year.

The judgment also prohibits the defendants from future violations of the overtime and record keeping provisions of the FLSA. The FLSA requires that employees be paid the minimum wage of $5.15 per hour; time and one-half their regular rate of pay for hours worked over 40 per week; and that accurate records be maintained of employees' wages, hours and other conditions of employment.

"Our investigation and this court action demonstrate our commitment to low-wage workers in New York City and throughout the country," said Phil Jacobson, district director for the Wage and Hour Division office in New York City. "Employers must understand the department's resolve in pursuing injunctive relief against those who violate the law."

The WHD recovered more than $212 million in back wages in fiscal year (FY) 2003, a 21 percent increase over the record setting amount of FY 2002. Average days to resolve a complaint decreased in FY 2003 from 129 days to 108 days. WHD assessed employers nearly $10 million in civil money penalties in FY 2003.

For more information about the FLSA, call the Labor Department's toll-free help line at 1-866-4USWAGE (1-866-487-9243) or contact the New York City Wage and Hour Division office at 212-264-8185. Information is also available on the Internet at www.wagehour.dol.gov.

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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.