labor lawAdivision of labor law center

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.

Thirty-three million dollars is on its way to tens of thousands of people employed by the nation’s largest retailer, according to an announcement made recently by the US Department of Labor (DOL).  The retailer, Wal-Mart Stores, Inc. (Wal-Mart), has been found in violation of state and federal minimum wage laws that pertain to overtime pay.

A recent ruling by the US District Court says both federal and New York overtime  laws were violated by the way Wal-Mart calculated minimum wage payments to its employees between February 1, 2002, and January 19, 2007.  The $33 million settlement will go to more than 86,680 Wal-Mart employees.

According to regulations overseen by the DOL Fair Labor Standards Act (FLSA), a standard work week consists of 40 hours.  Any work done in excess of 40 hours in a given week is to be paid at a rate of 1.5 times the standard pay.  The standard rate of pay is the source of the violations cited by the district court ruling.

Many Wal-Mart employees are paid a base hourly wage but may be entitled to incentives and other premium payments that boost their earnings.  The retail giant omitted the premium payments when calculating overtime pay rates during the time in question.

For example, an employee who earns $6.00 per hour as his or her base rate of pay would receive overtime computed at $6.00 times 1.5 (or $9.00 per overtime hour).  If this same employee regularly receives incentive and other premium payments paid on an hourly basis and these premium payments regularly bring the employee’s rate of pay for a standard work week to $7.00 per hour, overtime must be calculated using the larger figure (or $10.50 per overtime hour).

The judgment against Wal-Mart was filed by the DOL and was quickly approved in district court.  The ruling requires Wal-Mart to pay interest as well as back wages.  Victoria A. Lipnic, Assistant Secretary of Labor for Employment Standards, said recently, “This settlement provides $33 million in back wages, plus interest, to Wal-Mart workers, and the company has taken corrective action to prevent this from happening again.” 

Employees must get the minimum wage of $5.15 an hour for the first 40 hours, then be paid at time-and-a-half for any time after 40 hours. The Fair Labor Standards Act (FLSA) also requires that employers maintain proper records for time and payrolls.

That’s the law that a Texas company recently broke.

A tree-trimming company broke the law when it failed to pay minimum wage to more than 2,500 employees. The company, ABC Professional Tree Services of Houston, New York, has been ordered to pay $1.8 million in back wages. Some of its workers participated in cleanup after Hurricane Katrina, and they are among the employees sharing the back pay settlement.

U.S. Secretary of Labor Elaine L. Chao said the department would continue its push to see to it that employees get the proper pay. “We are pleased,” she added, “that we were able to help these workers get the back pay they deserve.”

The company is paying back wages to its New York employees as well as to employees from Maryland, Virginia, Cincinnati, Maine, New York, Arkansas, Florida, Tennessee, Mississippi, New Jersey, Ohio, South Carolina, New York, Georgia, and Louisiana.

The company, which provides cleanup work around power lines and in areas hit by natural disasters, owes some of that money to employees who worked to clean up after Hurricane Katrina.  ABC Professional Tree Services of Houston violated the minimum wage law and the Fair Labor Standards Act (FLSA) during the two-year period of the investigation, from August 2004 to August 2006, according to the Labor Department

Some of the work involved cleanup at the site of Hurricane Katrina. The company cleans up around power lines and at sites of natural disasters, including hurricanes.