Jenkintown Restaurant Owes More Than $25K In Back Wages: DOL

JENKINTOWN, PA — A Jenkintown restaurant must pay its employees more than $25,000 in back wages after violating federal law, the U.S. Department of Labor ruled Friday.

Metro Kitchen Bar (doing business as Drake Tavern at 304 York Road), willfully violated the Fair Labor Standards Act in their actions, officials found. The business is co-owned and managed by Zachary Hulayev.

“This resolution secures proper compensation for these hard-working employees, and helps ensure that the law will be followed in the future,” Wage and Hour District Director James Cain said in a statement.

In addition to the $25,902 owed in back wages, the restaurant must pay an equal amount in liquidated damages to 50 employees, authorities said. The business was also fined another $15,021 for child labor violations after they illegally allowed a pair of 15-year-olds to work beyond their permitted hours, according to the U.S. Department of Labor.

In a statement issued through a communications firm, Hulayev said that the DOL's characterization of the incident was misleading:

"In 2016, an issue involving two former employees was taken up by the DOL. As part of its review of the two employees, the DOL asked for retroactive printed schedules for all Drake employees. In the restaurant industry, as any local restaurateur will tell you – due to the rapid schedule shifts and employee’s voluntary schedule swapping - documenting and archiving retroactive work schedules with exacting specificity is a near impossibility. At The Drake, work shifts range from 6-8 hours. Without printed retroactive schedules for all 60 employees, the DOL unilaterally assumed that the employees worked 9-hour shifts and calculated the alleged back pay based on 9-hour shifts for the last three years. Using its flawed analysis, the DOL claimed that $25,000 total was due to certain employees. The law requires that the back pay total be doubled.

Though we contested DOL’s allegations, we agreed to enter into a settlement with the DOL. The agreement was in the best interest of all involved – and importantly – our employees. This allows us and our employees to move forward without any distraction and continue to service our community. The hard lesson learned is the critical importance of immaculate record-keeping – and we long ago put new protocols into place to ensure that schedules and timesheets are documented with greater accuracy.

The Drake has always been committed to good corporate citizenship. We host fundraising events and donate to local charities whenever we are asked. We are the largest employer in Jenkintown Borough and we are proud to be a part of such a vibrant community. As I indicated earlier, I have learned a hard lesson about the importance of better record-keeping – one I am committed to resolving. It is my sincere hope that we can all move on from here."

Hulayev also directly contradicted the DOL's statement that two 15-year-olds worked for too long; he said that only one worked for 10 minutes too long, and that the fine for this infraction was $1,282, not the $15,021 penalty which court documents indicate he was assessed.

Other violations, per the U.S. Department of Labor:

• Pay was illegally deducted from employees for the cost of their uniforms, bringing their pay below minimum wage
• Time records were altered to maintain accurate records of hours worked
• Overtime payments were not made for some employees

The incidents occurred between Oct. 13, 2014 and Nov. 20, 2016, according to court documents.

“We will vigorously enforce the law to level the playing field for companies that play by the rules and to safeguard employees’ hard-earned wages,” added Regional Solicitor Oscar L. Hampton III in a statement.

Editor's note: a previous version of the story contained the incorrect address. The correct address is 304 York Road.

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