News from New York State Department of Labor

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State Raids and Closes Bronx Bakery

Finds Severe Wage and Hour Violations and No Workers’ Compensation Coverage

ALBANY, NY (04/08/2008)(readMedia)-- State Labor Commissioner M. Patricia Smith and Workers’ Compensation Board Chair Zachary S. Weiss announced that investigators from both agencies raided the Arthur Avenue Bakery in the Bronx at 9 p.m. April 3, 2008 in response to complaints from workers about unlawful working conditions, including below minimum wage pay and unpaid wages. Investigators from the Workers’ Compensation Board reentered the bakery on April 7 and issued a stop work order for not having workers’ compensation coverage for its workers.

Staff of the Governor’s Joint Enforcement Task Force on Employee Misclassification conducted the sweep after receiving several complaints from former employees of the bakery. This establishment, located at 2409- 2415 Arthur Avenue, is owned by Walter Galiano, has operated as Arthur Avenue Bakery Co. Inc. and later as G Galiano Bakers Inc. It is a 24-hour commercial bakery that sells baked goods on premises and also distributes them to other retail locations.

“The Labor Department will enforce every labor law and pursue every employer who cheats their workers out of their hard earned pay,” said Commissioner Smith. “We want to send a message to all workers that the Labor Department will stand with you against these kinds of abuses and we will also protect you against retaliation by your employer.”

"Basic protections for employees are non-negotiable in New York," Workers' Compensation Chair Weiss said. "Workers' compensation insurance is as essential to an employee as decent working conditions and an honest pay check."

The Labor Department received complaints about the employer’s failure to pay bakers and others for work performed. In addition to unpaid wages, investigators learned that the company issued checks with insufficient funds, and failed to pay minimum wage and overtime rates.

Several employees reported that they often worked twelve-hour days, six to seven days a week and received $50.00 to $75.00 per day. In New York State the minimum wage is $7.15 per hour – far more than they were being paid. So far, investigators have calculated approximately $140,000 in wages owed and have identified violations related to labor law record-keeping provisions.

Galiano was asked to produce proof of workers' compensation insurance during the April 3 sweep. He could not show that his business carried insurance, so investigators from the Workers' Compensation Board served a stop-work order on Galiano on Monday. He owes $37,750 in penalties because he has not carried workers' compensation insurance since Dec. 31, 2006.

Members of the multi-agency task force conducting this sweep included staff from the Department of Labor Office of Special Investigations, Unemployment Insurance and Labor Standards Divisions and the Workers’ Compensation Board. They review employer record-keeping for adherence to state labor laws and look at related workforce issues.

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