New York’s AG’s office is bringing a staggering number of criminal charges – over 400, according to the New York Times – against the two, who are a husband-and-wife couple.
A judge had already ordered the restaurant to pay its workers $4.6 million as part of a prior civil suit for violations of wage-and-hour laws, the New York Times reports.
These new criminal charges are related to the subject of the civil suit – the restaurant’s mistreatment of its workers. Each of the two is charged with 151 counts of falsifying business records, 46 counts of offering a false instrument for filing, and 45 counts of tampering with physical evidence. These counts come from the allegation that the couple provided the New York Department of Labor with fake payroll records during its investigation of minimum wage violations.
And then there are the counts for failure to pay wages, failure to keep records, and receipt of kickback wages. These counts stem from the couple’s alleged failure to pay minimum wages for 4 years to employees who were working 70 to 80 hours per week.
The AG’s office also alleges that the couple threatened to end delivery service at its restaurants after some of its delivery workers decided to file the civil suit mentioned earlier, leading to charges of witness tampering, coercion, and retaliation.
Finally, the AG’s office complains that the restaurant owners paid some employees off the books and failed to report their employment to New York State‘s unemployment insurance fund. The AG’s office states that the owners failed to report the employment of 65 employees, effectively cheating the New York State unemployment insurance fund and tax funds.
It’ll be interesting to follow this case through trial and see what happens. Restaurant employers, beware.