NY Gyro Ordered To Pay More Than $613,000 In Back Wages

(KNSI) – A Minnesota restaurant chain with three St. Cloud locations must pay more than $613,000 in back wages after a federal investigation found the company shorted 46 workers on overtime pay.

The U.S. Department of Labor’s Wage and Hour Division ordered the payment after an investigation of four of the employer’s nine Minnesota locations. Federal investigators found that Rehman LLC, IN LLC, IQ LLC and MOON LLC, all operating as NY Gyro, failed to keep records of the hours their employees worked, a violation of the Fair Labor Standards Act.

The company also paid workers straight-time wages for every hour on the clock, including hours beyond 40 in a workweek, when federal law requires time-and-a-half for those hours. The division found an additional violation when NY Gyro paid one employee less than the federal minimum wage of $7.25 per hour.

The Labor Department did not identify which four locations were investigated. NY Gyro operates three restaurants in St. Cloud: one on University Drive South near the St. Cloud State University campus, one on 3rd Street North and one on Northway Drive.

The Wage and Hour Division says workers who believe they are owed back wages can search the agency’s online database by clicking here. The division also operates a toll-free helpline at 866-487-9243 for both workers and employers with questions about wage law.

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