A Manhattan bakery will fork over $436,000 in back pay, interest and liquidated damages to 27 employees as part of the resolution of a U.S. Department of Labor wage-and-hour lawsuit.
The DOL sued 3 East Bakery and Back Stage Eatery, along with owners Holly and Joon Kim.
The DOL had charged the bakery with failing to pay employees at least the federal minimum wage, requiring employees to work more than 40 hours per week without overtime pay and failing to maintain proper hours-worked records.
The bakery elected to settle the matter before going to court. The final tally added up to $435,913 according to an agreed-upon payment schedule.
In addition, the bakery owners must install a reliable punch clock or time card system and train employees how to use it.
The employers must display a poster outlining employee rights under the Fair Labor Standards Act in a conspicuous place and provide a copy to each employee at training sessions.
Many half-baked schemes to deprive workers of their pay fall flat. New York’s new wage-theft law (see “Wage theft law goes into effect April 12”) will focus state investigators on bread missing from worker’s paychecks. Make sure you don’t get burned by the increased enforcement that’s sure to result.