Get instant
small business insurance quotes


Home > Employment Practices Liability Insurance > News
 

New York restaurant sued for violating labor laws

Published:

According to reports, a class-action lawsuit has been filed against a New York restaurant for allegedly failing to pay overtime wages to employees.

The lawsuit, which was filed in the U.S. District Court for the Southern District of New York, claims the restaurant, Pret, routinely violated labor laws when it failed to compensate its employees for hours logged beyond a normal workweek. According to the suit, Pret regularly requires managers-in-training to work shifts that total between 40 to 65 hours per week.

While each state has its own labor laws, the common rule is that any non-exempt employee working more than 40 hours in a workweek should be compensated with overtime pay. The plaintiffs claim Pret did not do this. As a result, they are moving to have this practice eliminated at the restaurant, and are seeking the wages and overtime pay due to them.

The case highlights the importance of companies recognizing labor laws and adhering to them. Businesses that fail to issue deserved overtime wages may face similar professional liability lawsuits and also damage their reputation in the process. 

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.