Tag: settlement

VIACOM AGREES TO SETTLE FOR $7.2 MILLION IN INTERNSHIP LAWSUIT

Last week, media giant Viacom, Inc., agreed to pay about $7.2 million to end the class-action lawsuit filed by a former MTV intern, who alleged that the Company failed to pay minimum wage. The deal encompasses interns who worked at the Company’s New York and California offices at certain time periods. The average settlement payment to each claimant will be approximately $505 for each academic semester in which they were an intern at Viacom, with a cap at $1,010.

Although the Company agreed to pay $7.2 million, it still must be approved by the court. As such, U.S. Magistrate Gabriel W. Gorenstein asked for more financial details of the proposed settlement before he could approve. If approved, this will be the highest settlement amount awarded to interns to resolve labor claims.

This Firm will continue to monitor the developments in this case.

TGI FRIDAY’S SETTLES WITH 14 PLAINTIFFS IN CLASS ACTION SUIT

Last year, the parent company of popular restaurant, TGI Friday’s, was sued in New York federal court by restaurant workers claiming to have been shorted on wages when performing side work and “off-the-clock” work. Specifically, it was alleged that tipped workers were required to perform work during off-hours without receiving minimum wage and overtime, and management manipulated employee time records to permit “off-the-clock” non-tip producing side work such as cleaning and preparing food. Plaintiffs sought to recover unpaid minimum wages and overtime, misappropriated tips, unlawful deductions and other wages under The Fair Labor Standards Act (“FLSA”) and New York Labor Law.

Earlier this week, TGI Friday’s agreed to settle the claims of 14 members of the FLSA class. U.S. District Court Judge Analisa Torres approved of all settlements, which ranged from $2,500 to $82,000. Several other named plaintiffs and opt-in plaintiffs still remain in the case.

The case is Flood, et al. v. Carlson Restaurants, Inc., No. 14-cv-2740.

FAMOUS MIDTOWN DELI SET TO PAY $2.65 MILLION TO SETTLE FLSA LAWSUIT BROUGHT BY STAFF

Carnegie Deli has made an agreement in principle to pay approximately 25 current and former waiters, waitresses, bus boys and cooks a total sum of $2.65 million, with an average pay-out of $106,000 per employee.  The workers claim that their hourly pay was between $2.50 and $3.00, and thus below minimum wage and that they also did not receive overtime pay.

  The workers further allege that the owners also subtracted pay for hour-long lunch breaks that were never taken and paid back-of-the-house workers off the books in violation of federal laws.

Both sides had previously agreed that half of the settlement would be paid upfront and the other half a year later.  However, lawyers have informed the judge in the case that one of the owners wished to alter the arrangement by paying out the settlement over the course of four years.

DOMINO’S PIZZA FINED BY ATTORNEY GENERAL FOR IMPROPER PAY PRACTICES

New York Attorney General Eric Schneiderman recently announced a $448,000 settlement with six Domino’s pizza franchisees operating in New York.  The business owners paid workers less than the $5.65 per hour tipped minimum wage and failed to pay adequate overtime, thereby violating wage and hour laws.  Specifically, delivery drivers were inadequately paid for their work, some receiving only $5.00 per hour, and workers who used their cars to deliver pizza were not reimbursed for their expenses.

  Moreover, employees were shifted from one store to another just before they were to reach 40 hours worked, and a manual override or a system flaw in the timekeeping system prevented an accurate calculation of the overtime worked. The settlement money will be dispersed among approximately 750 employees.

The Attorney General is also investigating Papa John’s franchisees.

NYC SETTLES LAWSUIT AGAINST FIRE DEPARTMENT FOR $98 MILLION DOLLARS

 Last week, New York City Mayor Bill de Blasio announced a settlement to pay $98 million in back pay, including $6 million in medical benefits, to those who have filed claims against the New York City Fire Department on grounds of racial bias.  As part of the settlement, the fire department also agreed to create the position of chief of diversity, who will report directly to the fire commissioner, and a diversity advocate who will monitor hiring practices and training for discrimination.

For years, civil rights groups have advocated on behalf of minorities whose efforts to join the fire department have been unsuccessful due to institutional biases.  Civil rights groups have argued that the entrance exams used by the fire department were biased against minority applicants.  Judge Nicholas G. Garaufis of the Federal Court in Brooklyn, N.Y. ruled that the entrance examination was indeed a violation of civil rights laws and the U.S. Constitution.  As such, he ordered the creation of a new exam and reforms in hiring practices, which were overseen by a court-appointed monitor.  Although Judge Garaufis’ ruling was appealed, the City did not dispute the ruling that the entrance exam was discriminatory, but rather, it challenged the notion that the discrimination was intentional.

As litigation continued, however, a new exam was designed, the fire department increased recruiting in minority neighborhoods and implemented special training sessions for new recruits.  From 2002 to 2013, the percentage of minorities in the department grew from 8 percent to 16 percent, and in December, the most-racially diverse class in the history of the fire department graduated from the fire academy.