US Department of Labor sues New York City coffee shops, operators for not paying overtime to employees working at multiple locations

Date of action:     September 20, 2024 

Type of action:     Complaint

Defendants:     White Noise Coffee I Corp., White Noise Coffee 2 Corp., Milk Under Café Inc., Su Hyung Kim a/k/a Vanesa Kim, and Han Flanagan. 

Allegations:      Following a U.S. Department of Labor Wage and Hour Division investigation, the department filed suit against a chain of New York City coffee shops operating in Manhattan and Brooklyn, and previously operating in Queens, as White Noise Coffee Co. and the individuals operating the chain. The complaint alleges the employers failed to pay overtime to employees, most notably by not combining hours worked across all locations when employees worked at multiple locations. Instead, workers were paid the same hourly rate even when they worked more than 40 hours in a workweek, in violation of the Fair Labor Standards Act. The employers also allegedly violated federal recordkeeping requirements by failing to keep and maintain accurate records.

The department’s suit, filed by its Office of the Solicitor, seeks back wages, liquidated damages, and injunctive relief to prevent ongoing and future violations.                                                                

Quotes:     “This suit makes clear all employers will be held accountable when they fail to pay employees their legally earned wages. The department will use every tool available to prevent employers from violating workers’ rights, including litigation,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.

“Employers are legally responsible to pay employees for all hours worked and to maintain required records,” said Wage and Hour Division District Director Jorge Alvarez in New York. “Employers that know and understand the law can easily prevent violations. We encourage employers who may have questions to contact the Wage and Hour Division.”

Court:     U.S. District Court for the Eastern District of New York, Brooklyn, NY.

Docket Number:       24-cv-6645

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 – available in English and Spanish – to ensure hours and pay are accurate.