labor lawAdivision of labor law center

The New York minimum wage will increase by 10 cents from $7.15 to $7.25 on July 24, 2009. Many employers point out that a dime an hour will have little impact for employees, but be a major annoyance for employers.

For one thing, every New York employer has to update his or her state and federal minimum wage posters on that date.

However, there is no way to avoid this increase. Under state law, the New York minimum wage cannot be lower than the federal minimum wage. On July 24, 2009 the federal minimum wage increases from $6.55 per hour to $7.25 per hour under the FLSA.

The federal Fair Labor Standards Act  or FLSA covers employers that engage in interstate commerce and companies with an annual revenue of at least $500,000. These employers are required by FLSA to pay their workers the federal minimum wage.

In 2007, the federal minimum rose from $5.15 to $5.85 per hour. In 2008, the federal rate rose by again to $6.55 per hour. On July 24, 2009, the federal minimum wage will again increase by 70 cents from the $6.55 per hour to $7.25 per hour. (more…)

Testimony continues this week in the New York trial of a couple on federal charges of involuntary servitude, or slavery.

If the allegations are true, the two are clearly the worst employers in the nation.

In May, a sobbing, bruised and battered middle-aged woman identified as “Samirah” escaped from a Long Island mansion and fled to a nearby Dunkin’ Donuts, where she was discovered at about 6 am on Sunday morning. When police arrived, she wept and said, “I want to go home (to Indonesia.)” A second woman was found cowering in the closet in the palatial home.

The working conditions in the couple’s mansion were clearly violations of nearly every New York labor law.

“The conduct the defendants committed is monstrous,” said Assistant U.S. Attorney Demetri Jones. “It’s truly a case of modern-day slavery.”

Both women worked as housekeepers in a home in the fabulously wealthy Long Island enclave of Muttontown, in an estate guarded by two stone lions.

According to court testimony, the two Indonesian women were kept as slaves for five years in the exclusive estate. The accused man is Varsha Mahender Sabhnani, who is from India. According to testimony, most of the more serious offenses were committed by his wife, Mahender Murliddhar Sabhnani, while he watched. Mrs. Sabhnani is also from Indonesia. The pair operated a multi-million dollar perfume importing company.

The job became an excuse for the women to be tortured. The Sabhnanis are accused of beating, cutting and scalding the woman identified in court documents as Samirah. Among the allegations, the woman says that she was forced to:

Take up to 30 ice-cold showers in a row

Swallow 25 or more chili peppers

Walk naked from the servant’s quarters to the kitchen

Run up and down a flight of stairs 150 times or more

In addition, Samirah was burned with hot water, stabbed and had her ears sliced with knives. On at least one occasion, she was forced to eat rotted food. After she threw up, she was forced to consume her own vomit.

The two Indonesian women legally immigrated to the U.S. with B-1 visas. They were told they would receive $200 per month. This wage is far below the New York minimum wage, which is $7.15 per hour, applies to domestic workers. The law also requires that employees be paid time-and-a-half when working more than 40 hours per week.

Based on a conservative estimate, over 5 years of working 107 hours per week for the minimum wage, each woman would have accumulated in excess of $250,000. When they were rescued, both women were penniless, although they had never been outside of the house to spend any money.

In fact, the women were given little or no money. Instead, their wages were sent to their families in Indonesia. Samirah later learned that her daughter was receiving only half of the promised wages, or $100 per month. That works out to about 68 cents per hour.  The second woman’s family never received any money.

As soon as the two women arrived, the Sabhnanis demanded their passports. They forced the two to work 21 hours per day, from 4 am to 1 am, 7 days per week. The women, aged 46 and 51, were allowed to sleep only 3 hours per day, on 3 ft. x 6 ft. mats on the floor of one of the home’s two kitchens.

They were beaten for minor transgressions including taking food or not being able to locate an item in the large mansion. The beatings were administered with rolling pins, a bamboo stick or a broomstick. The beatings often occurred in the home’s laundry room or one of the bathrooms. The prosecution notes that one woman bears prominent scars from beatings, and had deep knife wounds behind her ears when she was discovered. The defense contends that the wounds were self-inflicted.

Both women were starved, until they began hiding food. The second woman, identified only as “Nona” led police to a drop ceiling panel in the kitchen where the two hid personal belongings and snacks that they could pilfer.

Both women were told that if they ever left the house, the Sabhnanis would use their wealth and influence in Indonesia to have the women, and their families, arrested.

When the family had visitors, the women were forced to hide in the basement, a closet or the garage. They were allowed to go outside only at night, to empty the garbage. It was on one of these nighttime forays that Samirah made her escape. She was dressed only in pants and a towel when the Dunkin’ Donuts manager, Adrian Mohammed, 26 found her the next morning. Thinking she was homeless, he gave her coffee, bagels and a jacket.

The Sabhnanis were denied bail, because their international connections and wealth made them an extreme flight risk. If convicted, each of them could face 17 to 22 years in jail. The couple denies any wrongdoing in the case.

Five Long Island, New York restaurants that are jointly operated were ordered to pay almost $1 million in overtime and back wages to employees, under federal Department of Labor lawsuits.

Seven company officers have been ordered to pay $966,046 in overtime, plus a penalty of $14,773 to resolve the five lawsuits.

“The department has made an intensive effort to protect low wage workers who may not know their legal rights under the federal labor laws,” said U.S. Secretary of Labor Elaine L. Chao. “In this case, we have secured nearly $1 million for 192 workers who were not being paid all the wages they had earned.”

An investigation by the department’s Wage and Hour Division district office in Westbury, based on an anonymous tip, revealed that low-wage workers at the restaurants were being paid less than the federal minimum wage. In addition, the employees were often required to work long hours, without being paid overtime. The restaurants also failed to keep adequate records of the hours that employees worked.

Sources close to the case speculate that at least some of the payments went to servers who were paid less than the minimum wage, even during times when they earned little or no tips. Servers must be paid the minimum wage if their salary plus tips is less than the federal minimum. In addition, they must be paid time-and-one-half for overtime hours.

The U.S. Department of Labor filed five separate suits in the case, against Ital Pizza Corp. of Merrick, New York, Mister Gold Inc. of Plainview, New York, Millennium Foods Ltd. Of Westbury, New York, Tremezzo LLC of East Meadow New York and Nocera Restaurant Inc. of New Hyde Park New York. Individuals named in the suits include Anthony Branchinelli, Louis Branchinelli, Michael D’Abruzzo, Mauro Gallo, Fortunato Nicotra, Marco Nicotra and Franco Giambanco.

All the officers denied that they had violated any laws, but agreed to the settlement and back pay for employees.

The total payments included $164,810 to 34 employees of Ital Pizza Corp., $243,561 to 50 employees of Mister Gold Inc., $204,812 to 50 employees of Millennium Foods, $199,253 to 44 employees of Nocera Restaurant Inc. and $153,610 to 29 employees of Tremezzo LLC.

If the defendants fail to make any payments, the court will appoint a receiver with power to seize and liquidate the defendants’ assets to satisfy the back wage payment order. The defendants must orally advise employees, in English and Spanish, of their rights under the FLSA, the terms of the judgments and their right to engage in protected activities without fear of retaliation.

These employers, like all employers in the U.S. are obligated to prominently post federal and state minimum wage posters where they can be seen by every employee.

The Fair Labor Standards Act of 1938 (FLSA) requires that employees be paid at least the minimum wage. Since July 24, 2007 the federal minimum wage is $5.85 per hour. In addition, the FLSA requires that employees who work more than 40 hours in one week be paid one-and-one half their usual rate for each hour in excess of 40. The law also requires that employers keep accurate payroll records to verify their payment practices.

This is just the most recent effort by the U.S. DOL to force employers to abide by the minimum wage laws.

In late July, the U.S. Department of Labor forced Desert Plastering, Inc., a Las Vegas Nevada firm, to pay nearly $1.2 million in back pay to 1060 employees. The feds found that Desert Plastering had not paid required overtime to lathers, finishers, plasterers and estimators who worked up to 58 hours per week.

In early July, the U.S. Department of Labor forced 107 subcontractors of KBR, Inc. of Virginia to pay some $1.5 million in back wages and benefits for up to 2,600 workers who participated in the Hurricane Katrina recovery project. The construction workers were involved in repairs to the Naval Construction Battalion Center in Gulfport Mississippi or the Naval Air Station/Joint Reserve Base in Belle Chasse, Louisiana.

Earlier this year, under a voluntary agreement to prevent a federal suit, Wal-Mart, Inc. agreed to pay $33 million in unpaid overtime wages to 86,680 employees throughout the nation. An internal audit revealed that the company had incorrectly classified some employees as “salary-exempt” when in fact they were entitled to overtime pay.

Five Long Island, New York restaurants that are jointly operated were ordered to pay almost $1 million in overtime and back wages to employees, under federal Department of Labor lawsuits.

Seven company officers have been ordered to pay $966,046 in overtime, plus a penalty of $14,773 to resolve the five lawsuits.

“The department has made an intensive effort to protect low wage workers who may not know their legal rights under the federal labor laws,” said U.S. Secretary of Labor Elaine L. Chao. “In this case, we have secured nearly $1 million for 192 workers who were not being paid all the wages they had earned.”

An investigation by the department’s Wage and Hour Division district office in Westbury, based on an anonymous tip, revealed that low-wage workers at the restaurants were being paid less than the federal minimum wage. In addition, the employees were often required to work long hours, without being paid overtime. The restaurants also failed to keep adequate records of the hours that employees worked.

Sources close to the case speculate that at least some of the payments went to servers who were paid less than the minimum wage, even during times when they earned little or no tips. Servers must be paid the minimum wage if their salary plus tips is less than the federal minimum. In addition, they must be paid time-and-one-half for overtime hours.

The U.S. Department of Labor filed five separate suits in the case, against Ital Pizza Corp. of Merrick, New York, Mister Gold Inc. of Plainview, New York, Millennium Foods Ltd. Of Westbury, New York, Tremezzo LLC of East Meadow New York and Nocera Restaurant Inc. of New Hyde Park New York. Individuals named in the suits include Anthony Branchinelli, Louis Branchinelli, Michael D’Abruzzo, Mauro Gallo, Fortunato Nicotra, Marco Nicotra and Franco Giambanco.

All the officers denied that they had violated any laws, but agreed to the settlement and back pay for employees.

The total payments included $164,810 to 34 employees of Ital Pizza Corp., $243,561 to 50 employees of Mister Gold Inc., $204,812 to 50 employees of Millennium Foods, $199,253 to 44 employees of Nocera Restaurant Inc. and $153,610 to 29 employees of Tremezzo LLC.

If the defendants fail to make any payments, the court will appoint a receiver with power to seize and liquidate the defendants’ assets to satisfy the back wage payment order. The defendants must orally advise employees, in English and Spanish, of their rights under the FLSA, the terms of the judgments and their right to engage in protected activities without fear of retaliation.

These employers, like all employers in the U.S. are obligated to prominently post federal and state minimum wage posters where they can be seen by every employee.

The Fair Labor Standards Act of 1938 (FLSA) requires that employees be paid at least the minimum wage. Since July 24, 2007 the federal minimum wage is $5.85 per hour. In addition, the FLSA requires that employees who work more than 40 hours in one week be paid one-and-one half their usual rate for each hour in excess of 40. The law also requires that employers keep accurate payroll records to verify their payment practices.

This is just the most recent effort by the U.S. DOL to force employers to abide by the minimum wage laws.

In late July, the U.S. Department of Labor forced Desert Plastering, Inc., a Las Vegas Nevada firm, to pay nearly $1.2 million in back pay to 1060 employees. The feds found that Desert Plastering had not paid required overtime to lathers, finishers, plasterers and estimators who worked up to 58 hours per week.

In early July, the U.S. Department of Labor forced 107 subcontractors of KBR, Inc. of Virginia to pay some $1.5 million in back wages and benefits for up to 2,600 workers who participated in the Hurricane Katrina recovery project. The construction workers were involved in repairs to the Naval Construction Battalion Center in Gulfport Mississippi or the Naval Air Station/Joint Reserve Base in Belle Chasse, Louisiana.

Earlier this year, under a voluntary agreement to prevent a federal suit, Wal-Mart, Inc. agreed to pay $33 million in unpaid overtime wages to 86,680 employees throughout the nation. An internal audit revealed that the company had incorrectly classified some employees as “salary-exempt” when in fact they were entitled to overtime pay.

In New York state—getting away from the connections with the New York state minimum wage and the federal minimum wage just for a moment—domestic workers have long been exempt from the minimum wage laws. In fact, in most locations and on the federal level through the Fair Labor Standards Act, the domestic workers of the world have been exempt from the minimum wage laws.

But a new lobbying group in the state of New York in particular—made up of 55 different non profit, charity and religious groups with such diverse backgrounds and interests as immigrant rights, labor unions and community groups, are trying to get a new law passed to get a new New York minimum wage just for domestic workers. In fact, it would not just be a minimum wage. What they are calling for would be more of a living wage. They say that domestic workers in New York should get paid as much as $14 per hour.

The law that they are trying to get passed in the legislature is called the Domestic Workers’ Bill of Rights. And it would extend just beyond this New York living wage for nannies, yard caretakers, baby sitters and maids and such. It would also create a whole set of wage and hour protections that are generally given to most full time workers in New York and elsewhere but have up until this point not necessarily been given to domestic workers. These include the rights to have paid time off, paid vacation time, paid personal time off, the right to have at least one day off per week, three weeks’ notice before they get fired, as well as some form of severance pay if they were to get laid off. The bill also calls for employers to have to pay for health insurance for the domestic workers, or pay an additional $2 per hour to the workers on top of the base $14 per hour.

Supporters of the bill do not just include these labor and community groups. In fact, the bill is already working its way through the State Assembly in New York thanks to as many as 15 sponsors. But despite this outside and inside support in Albany and through the state, the bill is not guaranteed to get passed. The governor of the state of New York, Gov. Eliot Spitzer, has not said either way whether or not he supports the bill or is against it.

Those who are openly opposing it at the moment, including some other officials of the state, have said they do not think the bill could be a good idea just because it singles out one particular job type for a special pay increase. And the $14 per hour proposed as the minimum wage, or living wage, whatever you want to call it, would be much higher than the current New York minimum wage set for all workers in the state, at $7.15 per hour.

Some other opponents say that domestic workers already make that much or more in salary from their employers, so the new bill is not necessary. They point to one survey done on more than 500 nannies in the state that shows that their average pay rate is more than $10 per hour. As many as one in six employers of these nannies in the survey paid as much as $13.46 per hour or more for their nannies, according to my sources.

Another issue could be that one of the original law makers who introduced the bill last year, Sen. Nicolas A. Spano, a Republican, did not win re-election in 2006. So there is no one to lead it through the Senate. As I like to say, stay tuned!