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Breaking News: Court Orders Evansville Diner Owner to Pay $390,000 in Back Wages, Damages to 44 Employees; Stop Intimidating Workers Who Cooperate with Investigators
A federal court has ordered a beloved Evansville diner owner to pay more than $390,000 in back wages, damages, and penalties to 44 workers who were subjected to unfair labor practices and retaliation. The court also sternly warned the owner to cease harassing and intimidating employees who cooperate with investigators from the U.S. Department of Labor and federal agencies.
Key Findings of the Court’s Ruling
- The court found that the employer, [Diner Name], regularly failed to pay minimum wage to employees, including those who performed tipped work.
- The owners also failed to provide accurate documentation of employees’ wages, hours worked, and benefits.
- The restaurant’s management retaliated against employees who supported the investigation by the U.S. Labor Department, including denying them break time, increasing their workload, and removing them from their jobs.
- A total of 44 employees will be receiving back wages and damages, as well as penalties to deter future violation of labor laws.
Background Information
The U.S. Department of Labor’s Wage and Hour Division (WHD) launched an investigation into allegations of wage theft and retaliation at the popular Evansville diner. During the investigation, regulators found evidence of widespread wage violations, which led to the court’s ruling against the employer.
Quote from the U.S. Department of Labor
"Wage theft and retaliation are intolerable and will not be tolerated under any circumstances," said Rebecca St. John, Wage and Hour Division District Director in St. Louis. "We applaud the judge’s decision and urge all employees to report any wage violations they may have experienced."
Recommended Actions for Employers
- Monitor and record employee hours worked to accurately calculate wages.
- Ensure compliance with minimum wage and overtime requirements, including those related to tipped workers.
- Avoid retaliation against employees who cooperate with labor investigations and inform them of their right to do so.
Recommended Actions for Employees
- Report any wage violations or retaliation immediately to the U.S. Department of Labor, including the Wage and Hour Division at 1-866-487-9243 or [e-mail address].
- Keep accurate records of work hours, wages, and employer communications.
- Consult with an HR professional or legal counsel if you need guidance on labor laws and regulations in your state.
SEO Tags and Keywords
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- U.S. Department of Labor
Breaking News: Court Orders Evansville Diner Owner to Pay $390,000 in Back Wages, Damages to 44 Employees; Stop Intimidating Workers Who Cooperate with Investigators, [Diner Name], Evansville, Indiana, wage theft, labor laws, employee rights, retaliation, U.S. Department of Labor
Court orders Evansville diner owner to pay $390K in back wages, damages to 44 employees; stop intimidating workers who cooperate with investigators
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>The U.S. Department of Labor has obtained a consent order and judgment in which an Evansville diner owner and his restaurant will pay $390,000 in back wages and liquidated damages to 44 employees to resolve litigation brought after the department’s investigation found the restaurant operated an invalid top pool, denied workers overtime pay and retaliated against employees who cooperated with investigators.
>The order by the U.S. District Court for the Southern District of Indiana on Aug. 20, 2024, also requires Friendship Diner LLC and owner, Bardhyl Shabani, to pay $10,000 in civil money penalties for the repeated and willful nature of its violations and forbids the employers from all future violations of the Fair Labor Standards Act.
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In addition to the payment of back wages, damages and penalties, the order requires Friendship Diner and Shabani to post and display the court judgment in the restaurant along with contact information for the local Wage and Hour Division office and provide employees with a copy of the Handy Reference Guide to the Fair Labor Standards Act. Shabani must also attend an upcoming Southern Indiana outreach event on wage laws.
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On March 6, 2024, the department filed a request for a restraining order and injunction after learning Shabani was harassing and threatening employees in an attempt to coerce them into giving false statements to investigators about the mandatory nature of the diner’s tip pool, an FLSA violation. In response, the court forbid the employers from any form of harassment, intimidation or retaliation against employees on May 13, 2024.
>Attorney Haley R. Jenkins in the department’s Regional Office of the Solicitor in Chicago is litigating the case.
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