UFCW Statement on Andy Puzder

WASHINGTON, D.C. — Marc Perrone, International President of the United Food and Commercial Workers International Union (UFCW), the largest private sector union in the nation, made the following statement about Andy Puzder being nominated to be Secretary of Labor.

“The Secretary of Labor’s top priority must be protecting America's hard-working men and women, not increasing corporate profits. Andy Puzder has been critical of raising the minimum wage and advocated for replacing workers with automated technology. If he is confirmed, the American people will expect him to protect American jobs and most importantly, all workers who have earned and deserve better wages, better benefits, and a better life.”

NY Department of Labor announces $1.5 Million Enforcement Action Against NYC Gourmet Grocery Stores

News from New York State Department of Labor

For more information contact: Leo Rosales, 518-457-5519

Labor Department Announces $1.5 Million Enforcement Action Against New York Gourmet Grocery Stores

Amish Market, Zeytinia, Zeytinz and Zeytuna Cheated Approximately 550 Workers out of Overtime Wages

ALBANY, NY (02/26/2009; 1319)(readMedia)-- At a press conference in New York City, State Labor Commissioner M. Patricia Smith today detailed the findings of a Department of Labor (DOL) investigation of Amish Market and its related stores: Zeytinia, Zeytinz and Zeytuna. The stores, which specialize in gourmet "on-the-go" cuisine and cater to an upscale clientele, operate mostly out of Manhattan, but also have locations in Queens, Croton-on-Hudson and Hyde Park. As a result of this investigation, approximately 550 workers will receive nearly $1.5 million, primarily in unpaid overtime wages.

"These stores market themselves as 'the answer to busy people's dilemma,'" said Commissioner Smith. "But while busy patrons bought gourmet meals, busy workers were working up to 60 hours per week without being paid overtime."

Commissioner Smith continued, "It's unfathomable to think that in this day and age - in these frightening economic times - an employer would actually believe it could get away with cheating workers out such an exorbitant amount of their hard earned money. This case is a prime example of collaboration, good detective work and, as always, strong labor law enforcement."

The case involving Amish Market, Zeytinia, Zeytinz and Zeytuna was referred to the Department of Labor by the United Food and Commercial Workers (UFCW) Local 1500, which has since become a member of New York State Wage Watchers, the Labor Department's pilot community policing program.

As part of their community outreach efforts, the union met with workers at one of the Amish Market stores. They realized that workers were not being paid overtime, and brought the issue to the Department of Labor's attention. Under state labor law, employers are required to pay overtime for weekly hours past 40 at 1½ times the employee's regular pay rate.

At the beginning of the case, UFCW Local 1500 served as a liaison between workers and the Department of Labor, bringing workers to the DOL's New York City offices to provide information.

DOL staff researched the stores and learned that in fact there were nine locations statewide with joint or overlapping ownership. In order to maximize the impact of the enforcement effort, a sweep was conducted by over 30 investigators from the Division of Labor Standards simultaneously at nine locations throughout the State. Investigators visited each location unannounced, at the same time on the same day, in order to prevent owners and managers from coaching employees or destroying records. Widespread overtime violations were found as a result of the sweep, with many workers clocking between 45 and 60 hours per week but being paid only "straight time" -- and not the overtime rate required by law.

In addition, the DOL found that at a few locations, the employer unlawfully paid new hires subminimum wages during a so-called "trial period." The minimum wage in New York State is $7.15 per hour and will increase to $7.25 per hour in July, 2009.

In the course of the investigation, one worker was fired for providing information to the DOL. The DOL subsequently obtained lost compensation and penalties based on the unlawful retaliation. Typically, however, DOL's statutory remedies in retaliation cases are limited to issuing a $2,000 penalty. Last year the Department proposed legislation to increase remedies in retaliation cases.

Thus far, Amish Market, Zeytinia, Zeytinz and Zeytuna have agreed to pay nearly $1.2 million dollars (approximately $300,000 for 26 employees is still in negotiations), primarily in overtime wages, due to current and former employees of the stores.

Bruce W. Both, president of United Food and Commercial Workers Union Local 1500 said, "When workers do not receive the pay they are entitled to by law, both the workers and tax payers suffer. Unpaid wages also mean unpaid taxes. We can never tolerate that, especially in these difficult economic times. The New York State Department of Labor and the workers from Amish Markets, a gourmet grocery store serving high-end food products, deserve the gratitude of every taxpayer in this city because they had the courage to stand up and say: 'This is wrong!' Today, the only thing being served and delivered by these grocery workers is justice."

This investigation was handled by more than 30 investigators from the Division of Labor Standards, located in the New York City, White Plains, and Albany district offices. Commissioner Smith also commended the work of Investigator Jorge Alvarez of the Apparel Industry/Fair Wages Task Force, who successfully negotiated settlements on behalf of workers at several stores in New York City. The investigation was carried out under the supervision of Lorelei Boylan, Director of Strategic Enforcement in the Division of Labor Standards and Carmine Ruberto, Director of the Division of Labor Standards.

The State Labor Department encourages employers and workers to contact the department about wage and hour issues. Investigators will answer any questions regarding New York's labor laws. Information is also available on the department's web site - www.labor.ny.gov; or by phone at 1-888-52-LABOR.

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Local 1500 joins in fight to monitor labor laws...

Image via CrunchBaseStreet-Level Groups Enlisted to Report Labor Violations

By SEWELL CHAN and COLIN MOYNIHAN

To crack down on businesses that pay less than the minimum wage, fail to pay overtime or to pay wages altogether, steal tips or commit other labor violations, the New York State Department of Labor is starting an experimental program that will rely on community organizations to monitor compliance with labor laws.

In an announcement, the state labor commissioner, M. Patricia Smith, called the program, the New York Wage Watch, a “one-of-a-kind grassroots tool in the fight against illegal labor practices.”

The six-month pilot will begin with six participants: the Chinese Staff and Workers’ Association, which will focus on Chinatown, Flushing and parts of Long Island; Make the Road New York, which will focus on Bushwick; the Workplace Project, based on Long Island; the United Food and Commercial Workers union, which will look at high-end supermarkets; the Retail, Wholesale and Department Store Union, which will focus on retail stores in Lower Manhattan, Bushwick, the Kingsbridge section of the Bronx and parts of Queens; and the Centro del Inmigrante, based on Staten Island.

The six groups will conduct know-your-rights training, providing employers with information about compliance and distributing brochures to workers in supermarkets, laundromats, nail salons, day-labor sites and other work areas. They will have a designated contact in the Labor Department’s Division of Labor Standards, which enforces wage and hour laws, to whom they can refer violations or questions.

The department is to provide training and materials to the groups starting on Feb. 7.

After the first experiment in New York City and on Long Island, the Labor Department will seek additional groups for the program. The groups must be nongovernmental and nonprofit, and can include religious organizations, student groups, labor unions, business associations or neighborhood groups.

Ms. Smith said the program was loosely based on the Neighborhood Watch programs that began in Queens in the 1960s. In December 2007, she said, the Labor Department investigated a commercial strip in Bushwick. Two of the six groups now taking part in the pilot project — Make the Road New York and the Retail, Wholesale and Department Store Union — maintained a presence in the Bushwick area, staying in touch with workers and employers, and the number of labor-law violations went down, Ms. Smith said.

The Labor Department has documented numerous labor-law violations at a variety of workplaces in recent years, from restaurants and car washes to sites like the Saratoga Race Course and the Erie County Fair.

Amy Carroll, a supervising lawyer at Make the Road New York, said, “The Department of Labor can’t be in every nook and cranny of the city and the state all the time. We want employers to know there are costs for violating the law. They can’t get away with it.”