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Department sues NYC coffee shops over unpaid overtime claims

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The U.S. Department of Labor has initiated legal action against a chain of coffee shops in New York City for allegedly failing to pay overtime wages to employees working across multiple locations. The lawsuit was filed following an investigation by the department's Wage and Hour Division.

The defendants in this case include White Noise Coffee I Corp., White Noise Coffee 2 Corp., Milk Under Café Inc., and individuals Su Hyung Kim, also known as Vanesa Kim, and Han Flanagan. The coffee shops operate in Manhattan and Brooklyn and were previously active in Queens under the name White Noise Coffee Co.

The complaint accuses the employers of not combining hours worked by employees at different locations, which resulted in workers being paid their standard hourly rate even when exceeding 40 hours per week. This practice is claimed to be a violation of the Fair Labor Standards Act. Additionally, the employers are alleged to have breached federal recordkeeping requirements by failing to maintain accurate records.

In response, the Department of Labor's Office of the Solicitor has filed a suit seeking back wages, liquidated damages, and injunctive relief to prevent future violations.

"This suit makes clear all employers will be held accountable when they fail to pay employees their legally earned wages," stated Jeffrey S. Rogoff, Regional Solicitor of Labor in New York. "The department will use every tool available to prevent employers from violating workers’ rights, including litigation."

Jorge Alvarez, Wage and Hour Division District Director in New York, emphasized the responsibility of employers: "Employers are legally responsible to pay employees for all hours worked and to maintain required records. Employers that know and understand the law can easily prevent violations."

The case has been filed with the U.S. District Court for the Eastern District of New York in Brooklyn under docket number 24-cv-6645.

For more information on wage-related issues or if there are concerns about owed back wages, workers can contact the Wage and Hour Division confidentially through its helpline at 866-4US-WAGE (487-9243). The division offers assistance in over 200 languages and provides resources such as a Timesheet App for accurate tracking of work hours.

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