US Department of Labor recovers $82K in back wages, liquidated damages for employees of Manhattan real estate developer, managers that again withheld overtime

Date of action:                       May 24, 2024

Type of action:                      Consent judgment 

Employers:                            Cohen Brothers Realty Corp. 

                                                     CEO Charles Cohen

                                                    Chief Operating Officer Steven Cherniak

Address:                                 750 Lexington Ave., New York, NY                            

Allegations:                            Prompted by an investigation by the U.S. Department of Labor’s Wage and Hour Division, the department’s Office of the Solicitor filed suit against Cohen Brothers Realty Corp., a Manhattan real estate development and management company, and its CEO Charles Cohen and Chief Operating Officer Steven Cherniak. The department alleged the employers willfully failed to pay overtime wages to six salaried, non-exempt personal drivers for hours over 40 in a workweek and did not keep proper records of the employees’ work hours. These actions violated the Fair Labor Standards Act.

Resolution:                            The division has recovered $82,309 – $41,000 in back wages, an equal amount in liquidated damages and $309 in post-judgment interest – for the affected employees. The employers also paid $8,060 in civil money penalties and post-judgment interest to the department, due to the willful and repeated nature of their violations. In 2019, the division recovered $76,618 for six employees shortchanged by the company.

Court:                                     U.S. District Court for the Southern District of New York

Docket Number:                    1:24-cv-02000-VSB

Quote:                                    “The violations found here were willful and repeated with significant penalties.  However, such violations are preventable if employers know and follow the Fair Labor Standards Act’s pay, recordkeeping and other requirements,” said Wage and Hour Division District Director Jorge Alvarez in New York.

“The U.S. Department of Labor will not hesitate to pursue legal action to ensure that all employees are compensated as required by law,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York. “This case’s resolution shows employers that violating federal wage law can lead to legal action with costly consequences.”

Background:                          Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour Division confidentially with questions – regardless of immigration status – and the department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s Timesheet App for iOS and Android devices — also available in Spanish — to ensure hours and pay are accurate.