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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 10-1681-NEW / BOS 2010-508

Date: 

December 20, 2010

Contact: 

John M. Chavez

Phone: 

617-565-2075

US Labor Department recovers nearly $436,000 in back wages, liquidated damages and interest for employees of New York City restaurant


NEW YORK -- The U.S. Department of Labor has recovered nearly $436,000 in minimum wages, overtime pay, liquidated damages and interest for 27 employees of a New York City restaurant, resolving a lawsuit against the company and two of its officials for allegedly violating the federal Fair Labor Standards Act.

The Labor Department filed suit in the U.S. District Court for the Southern District of New York against 3 East Bakery Corp., doing business as Back Stage Eatery, located at 3 East 47 St. in Manhattan , and against Holly Kim as an officer and Joon Kim as manager of the corporation. The alleged violations of federal labor law included failing to pay employees at least the federal minimum wage, requiring employees to work more than 40 hours in many workweeks without properly compensating them for the overtime hours worked, and failing to maintain proper records of the number of hours worked by employees and the compensation they were paid.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as one and one-half times their regular hourly rates of pay for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.

“This legal action demonstrates the Labor Department’s commitment to ensure workers are properly paid the wages they work hard for and deserve,” said Maria Rosado, director of the Labor Department’s Wage and Hour Division district office in New York City, which investigated this case.

A consent judgment, entered by the court, permanently prohibits the defendants from future violations of the FLSA’s minimum wage, overtime pay, recordkeeping and anti-retaliation requirements. The judgment orders the defendants to pay a total of $435,913 owed in back wages, damages and interest in accordance with a payment schedule. If the defendants fail to make any of the payments in a timely manner, the court will appoint a receiver with the power to seize and liquidate their assets to satisfy the order.

The defendants also are ordered to maintain a mechanical or electronic timekeeping system to accurately record employees’ hours worked and to train employees in the system’s use. The judgment orders the defendants to train all employees regarding their rights under the FLSA, to place the poster titled “Employee Rights Under The Fair Labor Standards Act” where all employees may view it and to provide all employees with individual copies during training sessions. The employees must be paid for the time spent in this training.

The Wage and Hour Division’s New York District Office conducted the investigation, and the case was litigated by the Labor Department’s Regional Solicitor’s Office in New York City. For more information about the requirements of the FLSA, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or contact the division’s New York office at 212-264-8185. Information is also available on the Internet at http://www.dol/gov/whd.

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Solis v. 3 East Bakery Corp. doing business as Back Stage Eatery, et al Civil Action Number: 1:10-CV-1698 (PKC)


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.