12/10/2009 09:18 PM

Labor department finds violations at Ithaca restaurants

By: Web Staff

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ITHACA, N.Y. -- The State Labor Department says a number of Ithaca restaurants underpaid their employees. It comes from an investigation of 22 restaurants last May, most located at the Ithaca Commons.

The investigation came about after two other restaurants, Taste of Thai and Tamarind, were found to have underpaid workers more than $28,000.

Officials say five of the restaurants investigated were in full compliance with labor laws, but 17 had errors that resulted in workers being cheated out of wages and the state not receiving unemployment insurance money. While some of those were simple errors, labor officials say nearly $90,000 is owed to employees at six restaurants that failed to pay minimum wage or made illegal deductions.

So far, the labor department has recovered more than $13,000, with the rest in negotiation or being repaid through a payment plan.