Mr. Broadway To Pay Over $300,000 In Back Wages

New York State Attorney General Spitzer announced today that Mr. Broadway Kosher Deli, and its owners, have agreed to pay $300,000 in back wages to workers as part of a settlement of a lawsuit in which the restaurant was alleged to have violated minimum wage laws by underpaying its workers.

The settlement provides that R. Gross Dairy Kosher Restaurant, Inc.--which operates a res Mr. Broadway Kosher Deli at 1372 Broadway in Manhattan-- will not only pay the workers restitution, but will also be subject to monitoring to assure future compliance with all minimum wage and overtime laws. The restaurant has workers who serve food on its premises and others who deliver throughout the five boroughs of New York City. All will receive back wages under the settlement.

"The agreement filed in state court guarantees that the workers will now receive the compensation to which they are entitled by law. It is part of an ongoing effort to guarantee fair wages and working conditions for the labor force in the restaurant industry" Spitzer said. "My office will continue to aggressively investigate wage violations, and we encourage workers to come forward and report these violations."

Spitzer’s office began its investigation into federal and state minimum wage violations by the restaurant in May 2005 after receiving complaints from employees. The investigation revealed that from November 2001 until at least October 2004 delivery workers were routinely working up to fourteen hours per day, six or seven days per week, for daily wages of only $15. Busboys, dishwashers and kitchen staff received neither the required minimum wage nor compensation for overtime work. The Attorney General filed a lawsuit seeking recovery of all unpaid wages for the restaurant’s 90 employees, at least 45 of whom are delivery workers.

Since January 1, 2005, New York State Law mandates a minimum hourly wage of $6, an increase of 85 cents from the $5.15 required prior to December 30, 2004. The amount is less for employees who receive tips, and a sheet showing these amounts is attached. The law also provides that employees who work more than 40 hours each week must receive one and one-half times their regular rate of pay for such additional hours.

The case was handled by Labor Bureau Chief M. Patricia Smith.

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