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Restaurant Owners Arrested For Wage Violations

Published by on December 8, 2008

The New York Times reports here that two restaurant owners in Manhattan were arrested and charged with 400 counts relating to their ongoing wage and hour litigation with their employees (“151 counts of falsifying business records in the first degree with regard to wage violations, 45 counts of tampering with physical evidence and 46 counts […]

The New York Times reports here that two restaurant owners in Manhattan were arrested and charged with 400 counts relating to their ongoing wage and hour litigation with their employees (“151 counts of falsifying business records in the first degree with regard to wage violations, 45 counts of tampering with physical evidence and 46 counts of offering a false instrument for filing in the first degree”).  According to the article, “[a]ll are class E felonies, which carry a sentence of up to four years in prison.”

Readers may recall the same restaurant being the subject of a recent post on our blog on jury verdicts after a judge ordered them to pay $4.6 million for overtime violations and improper payroll deductions.  Workplace Prof Blog has a recap post on the NYT story as well.  The owners’ attorney accused the employee/plaintiffs of being “liars” in court at the arraignment.

A criminal indictment certainly raises the stakes for employers dealing with wage and hour disputes.  Perhaps the magnitude of the case — and the federal court ruling in favor of the employees — led to the indictment, but it stands nonetheless as a warning to employers to pay attention to the law in this area.

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