Mount Kisco Diner Paying $900,000 Settlement To Workers

MOUNT KISCO, NY — The Mount Kisco Diner has begun paying out on a $900,000 settlement to former and current employees who sued over compensation and treatment, and ended the bankruptcy case it filed in March.

Workers at the Mount Kisco Diner won their lawsuit against the Three Diamond Diner Corp over the company’s treatment of its workers.

In the suit, filed in 2019, the Worker Justice Center of New York argued that the company violated the federal Fair Labor Standards Act and analogous provisions of New York Labor Law. It also sought relief under federal and state law for racial discrimination perpetrated by the Mount Kisco Diner and its owners against their predominantly Hispanic workforce. Among their top issues were minimum wage, overtime, tip credit and unlawful deductions.

They alleged that the company routinely paid them less than the applicable federal and state minimum wage, failed to pay overtime compensation when required, often paid them nothing whatsoever for hours worked and unlawfully confiscated portions of patron’s tips for service staff.

Then the company filed for bankruptcy in March — which touched off another lawsuit.

The owners told The Journal News the bankruptcy filing was necessary because with the precipitous drop in income during the new coronavirus outbreak they needed more time.

In a court agreement last month, they closed the bankruptcy filing and agreed to pay the settlement, starting with $500,000 and following up with $400,000 by Aug. 24.

"This case should send a clear message that exploiting workers is not only unjust, but also a losing business proposition,” said Maureen Hussain, labor and employment attorney for the Worker Justice Center of New York. “Mount Kisco Diner’s owners are now required to get anti-discrimination training and allow periodic inspections of their records by the Worker Justice Center of New York. Our clients hope this will help ensure the company changes its practices and treats its employees fairly."