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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Respnose to King Kullen closing store in Staten Island

Image via WikipediaUnion Responds to Closing of Staten Island King Kullen Supermarket

Quick and Aggressive First Steps Taken to Assist Workers.

QUEENS VILLAGE, NY (01/22/2009; 1253)-- United Food and Commercial Workers Union Local 1500 is responding as quickly and aggressively as possible in response to the news that the King Kullen Supermarket located at 2660 Hylan Blvd. in the New Dorp section Staten Island will be closing in late February of this year, according to Local Union President Bruce W. Both.

"We are extremely concerned about our members who work in that store and will do everything within our power to minimize the effect this store closing has on them and their families," Both concluded. "Furthermore, this is another example of why New York City quickly must move on economic reforms to encourage the preservation and development of Supermarkets. This is a crisis that strikes at the heart of the economic viability of all communities," Both concluded.

President Both outlined the Unions first responses to the store closing announcement:

• Notifying King Kullen of its legal obligations under both Federal and State WARN Acts, the law covering the closing of such facilities.
• Enforcement of the Unions Collective Bargaining Agreement with regard to seniority.
• Contacting other Supermarket operators who may be interested in the soon to be vacant location
• Outreach to Local elected leaders at the City and State level for assistance
• Possible Placement of members within other Unionized Supermarkets.

In addition to these efforts, President Both called on King Kullen management to rethink its decision to close the store. "Just over one year ago this store was a Pathmark Supermarket. Many of the workers there today are Pathmark holdovers and have been in the industry for over 20 years," Both commented. "We urge the company to reconsider its decision and continue to fulfill its commitment to making the Hylan Boulevard store the success we all know it can be, "concluded Both.

United Food and Commercial Workers Union Local 1500, based out of Queens Village, represents over 23,000 grocery workers in New York City, Long Island, Westchester, Putnam and Dutchess Counties. Members of Local 1500 are employed by Pathmark, King Kullen, Stop and Shop, Gristedes, Fairway, D'Agostino, Key Food and Shop Rite, Dairy Barn.