Verandah, a Manhattan restaurant and nightclub, must pay $150,000 for underpaying approximately 25 workers plus $50,000 for terminating two employees who questioned the company’s pay practices under a settlement agreement with New York Attorney General (AG) Eric Schneiderman.
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Get Your Report Now!An investigation by AG Schneiderman’s office revealed that Verandah paid workers less than the minimum wage and denied them overtime pay. In addition, investigators found that the company illegally distributed tips to management. When two employees participated in a group complaint about pay practices made to the advocacy organization Make the Road New York, they were fired. Make the Road referred the complaints to the AG’s office.
“By scaring employees into silence, employer retaliation undermines basic labor law protections,” said Schneiderman. “My office will aggressively pursue employers who fire workers for standing up for their rights—especially during tough economic times, when so many workers are already afraid of losing their jobs.”
“When Veranda employees demanded that their employer obey the law, Veranda tried to cover its tracks by firing the workers who had the courage to complain,” said Deborah Axt, co-executive director of Make the Road New York. “We commend the Attorney General for aggressively investigating this case and for obtaining the maximum penalty and liquidated damages provided by the new Wage Theft Prevention Act.”