New York Indian Restaurant Facing Ex-Employee's Unpaid Wage Lawsuit

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Shree Laxmi Restaurant, Inc., which operates as Swagat, and two individuals are the defendants in a former employee’s proposed collective action over alleged wage and hour violations. The plaintiff, who was hired ostensibly as a tipped delivery worker, claims he was required by the defendants to spend a substantial amount of time each workday performing non-tipped, non-delivery-related tasks, including preparing food and stocking deliveries, presumably to justify paying the man at a lower hourly rate.

According to the lawsuit, the plaintiff was not paid proper minimum and overtime wages because his work duties were being disguised for payroll purposes.

“[The defendants] employed and accounted for [the plaintiff] as a delivery worker in their payroll, but in actuality his duties included greater or equal time spent performing the non-delivery-non-tipped duties alleged above,” the lawsuit reads. “Regardless of duties, [the defendants] paid [the plaintiff] and all other delivery workers at a rate lower than the required tip-credit rate.”

The complaint cites alleged violations of the federal Fair Labor Standards Act (FLSA) and New York state labor law.