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State Reaches $5 Million Settlement with Lenny's for Labor Violations

Inside a location of Lenny's: the Ultimate Sandwich.
Inside a location of Lenny's: the Ultimate Sandwich.
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Flickr/Roboppy

By Serena Solomon

DNAinfo Reporter/Producer

MIDTOWN — Gov. Andrew M. Cuomo announced a multimillion-dollar settlement Tuesday for employees of the New York City-based restaurant group, Lenny's: The Ultimate Sandwich.

A Department of Labor investigation found the chain exploited more than 800 workers between 2002 and 2008 through minimum wage and overtime violations.

"This settlement, the largest recorded settlement for workers in the history of the Department of Labor, sends a strong message to employers that exploiting employees will not be tolerated in New York State," Cuomo said in a statement.

The department found that Lenny’s, which has 13 locations throughout Manhattan, paid employees an average weekly salary of $275, according to a statement from the governor's office. Workers should have received at least $500 for the same amount of hours. Wage statements were also not provided to workers as required by law.

The sandwich chain will payout the $5.1 million in backwages over the next two years. It has also been slapped with $100,000 in penalties payable to the state.

Lenny’s did not immediately return calls for comment.