According to the New York Post, the owners of the world famous Carnegie Deli are settling a wage and overtime class action lawsuit for $2.65 million. Photo of legal document

The settlement will pay an average of about $106,000 per employee involved. The lawsuit alleged that the deli promoted unfair labor practices among 25 employees.

The deli’s owners, Marian and Sandy Levine, who are estranged and we have blogged about for a previous family law story, were accused of not paying their workers overtime and giving out salaries well-below minimum wage (reportedly of $2.50-$3 per hour).

The deli was also accused of docking workers pay for lunches that they did not or were not ordered to take. The complaints in the lawsuit dated back to 2004, and also claimed that “cooks, dishwashers and other ‘back-of-the house’ staffers were quietly paid ‘off the books’ in violation of federal tax laws,” according to the Post.

Wait staff members were also reportedly docked pay if they miscalculated customer bills.

The lawsuit settlement was expected to be finalized on April 7.

I Am Owed Back And/Or Overtime Wages

As we reported last week, class action lawsuits have proven effective in wage and overtime disputes for employees. It is becoming increasingly common for people in food service or retail positions to take their employers to court over unfair pay practices.

If you have had your pay wrongfully withheld by an employer and have interest in speaking with an attorney about a potential class action lawsuit, please contact Gary S. Graifman, Esq. to schedule a free initial consultation.

Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers