On June 14, 2011, Governor Andrew M. Cuomo announced that the New York State Department of Labor reached a $5.1 million settlement with New York City-based “Lenny’s: The Ultimate Sandwich” for minimum wage and overtime violations affecting over 800 workers. This is the largest recorded settlement in the NYSDOL’s entire 110 year history.
The NYSDOL’s investigation found that employees were regularly paid less than the minimum wage and were not paid overtime. The NYSDOL also found that the time records kept by the employer were not accurate and that wage statements were not provided to workers as required by law.
Wage and hour violations are quite common in the restaurant industry. Oftentimes, smaller restaurants feel as though they don’t need to comply with the wage and hour laws simply because other restaurants don’t comply and have yet to get “caught.” This settlement should serve as a warning to restaurant employers that the NYSDOL is serious about investigating and enforcing New York’s wage and hour laws. The full press release can be found at www.labor.ny.gov/pressreleases/2011/june-14-2011.shtm.