Wage and Hour Division (WHD)

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NEW YORK -- Ahik, Inc., of Williamsville, N.Y., doing business as Stereo Advantage, and the owner and two officers of the company have been ordered to pay 68 present and former employees a total of $111,798.82 in overtime and interest as the result of a lawsuit filed by the U.S. Department of Labor.

Also named in the suit alleging violations of the Fair Labor Standards Act (FLSA) were Anthony J. Ragusa, Jr., owner of the company, Al Walters, president of the company, and Craig Werynski, vice president of Ahik, Inc., doing business as Stereo Advantage.

According to Christopher Martin, district director for the department's Wage and Hour Division in Albany, N.Y., an investigation by his agency determined that workers employed in the retail sales, wholesale sales, computer building, advertising, installation and office divisions of the consumer electronics business were not paid overtime as required by the FLSA.

The FLSA requires that covered workers be paid one-and-one-half times their regular rates of pay for all hours worked over 40 in a single work week. The law also requires employers to maintain adequate and accurate records of employees' wages, hours and other conditions of employment. Martin noted that the Wage and Hour Division also found the defendants to have violated these recordkeeping requirements.

A final judgment and order, signed by U.S. District Judge Richard J. Arcara on March 28, 2002, resolves the Labor Department's lawsuit against the defendants, which was filed on July 7, 1998, in the U.S. District Court for the Western District of New York. The suit covered the period from July 7, 1996 through December 31, 1997.

The judgment requires the defendants to pay back wages totaling $75,304.34 and pre-judgment interest totaling $36,494.48. The defendants are also ordered to refrain from future violations of the FLSA and must maintain accurate payroll records.

The Labor Department's legal action followed an investigation by the Buffalo area office of the Wage and Hour Division. For more information on federal overtime pay requirements or other provisions of the FLSA, call the Department of Labor's toll-free help line a 1-866-4USWAGE (1-866-487-9243) or contact the Buffalo area office at 716-551-4891 or the Albany district office at 518-431-4279. Information is also available on the Internet at www.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.