Thursday, May 5, 2011

Owner of Yuma Doughnut Store Indicted

The owner of Arizona Donuts Bakery & Cafe, Tong-Seng "Jerry" Luy, has been indicted for failing to pay his employees for their overtime hours.  From the Yuma Sun:
"According to the indictment, in September 2010, Luy agreed to pay over $27,000 in back wages to eight employees for the two-year period ending in July 2010. In October 2010, Luy falsely affirmed to the Department of Labor that all employees had been paid, and that he was in compliance with the FLSA. In reality, Luy allegedly continued to employ cook/cashier employees in excess of 40 hours per week without paying overtime wages.
In addition, in lieu of actually paying the back wages to which he had agreed, says the Labor Department, Luy prepared additional payroll checks, demanded that his employees endorse them, redeposited the checks back into his own account and then sent copies of the fronts of the checks to the department as proof of payment."
That's a lot of dough. Check the full article here.