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March 05, 2004
Judge Orders Employer to Pay $236,000 to Workers

After ruling that a Farmingdale, New York, employer had been concealing assets to avoid paying back wages due its low-wage employees, a U.S. Magistrate Judge ordered the company to pay $236,323 in monthly installments of $19,693.

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The Department of Labor sued Vidtape, Inc., company president Mohinder Singh Anand, his brother Satinder Singh Anand (and others) following an investigation by the department's Wage and Hour Division that revealed violations of the minimum wage, overtime, youth employment, recordkeeping, and "hot goods" provisions of the Fair Labor Standards Act (FLSA).

An order and judgment signed March 29 (and amended April 22), 2002, by Judge E. Thomas Boyle of the U.S. District Court for the Eastern District of New York originally ordered the defendants to pay their employees back wages and liquidated damages totaling $239,707. The defendants appealed that ruling and, on May 29, 2003, the U.S. Court of Appeals for the Second Circuit found defendants Vidtape, Inc., Mohinder Singh Anand, and Satinder Singh Anand liable to pay 66 employees a total of $236,323 in back wages and liquidated damages, according to the department.

Since that ruling, the defendants had refused to pay any of the judgment amount, according to the department. On January 30, 2004, Judge Boyle ruled that these defendants were guilty of concealing assets to avoid paying the outstanding judgment and ordered payment of monthly installments of $19,693 for a total of $236,323, plus court costs and post-judgment interest.

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