Tesser, Ryan, & Rochman LLP

Gregory Ryan and Irwin Rochman of the firm represented the owner of restaurants in Arkansas and Missouri, who had been indicted by a Federal Grand Jury in Arkansas and charged with violations of Federal immigration law.  The charges included allegations that the owner harbored, concealed and transported illegal aliens, as well as employ them, in violation of the Immigration and Nationality Act.

After negotiating a plea to avoid a trial, the firm was able to successfully argue that the client should receive probation rather than the possible 18 months in prison which he faced for the charges.  The firm used the “rare and usually unsuccessful argument” that the client should not receive jail time because, while he was guilty of harboring aliens, he did not transport or conceal them, according to Irwin Rochman. Moreover, they argued that even if he did transport and conceal these workers, the client “did not benefit and did not expect to benefit from harboring, concealing, or transporting aliens.”

With this argument, the firm was able to convince the Chief Judge of the United States District Court for the Western District of Arkansas to sentence the client to probation rather than prison time.

The success of the argument before the Court and the fact that he was sentenced to probation rather than prison time garnered national attention.  The case and result was the topic of a published report in the Bureau of National Affair .

At the sentencing hearing in Harrison, Arkansas, the firm was able to convince the Court that the client had treated the employees in a fair and decent manner and that he did not take unfair advantage of them or personally benefit from his actions.  In fact, Gregory Ryan told the Bureau of National Affairs in an interview that while the firm was pleased with the verdict, he was “upset” with how the client had been portrayed by ICE.  “ICE mischaracterized” the situation by stating that the defendant had “exploited workers,” Ryan said, when in fact, he had “treated them decently.”

Ryan went on to clarify that “If you look at interviews from the employees, they show that employees were free to [come and] go to [as they pleased]” adding that, the workers also were paid more than the minimum wage.

According to Ryan, the restaurateur had hired the undocumented workers because of a lack of qualified chefs in the area, not because he wanted to pay lower wages. He “needed people who could do those jobs and were skilled in those jobs,” according to Ryan. “If you look around the neighborhood there were not many Chinese chefs,” he said.

The District Court Judge acknowledged Ryan’s point, noting that the defendant was “well intentioned” toward the workers.”

By Anand Patel, Associate, of Tesser, Ryan & Rochman, LLP

In a case that should serve as a warning signal to all restaurant owners in New York, world-famous Celebrity chef Mario Batali settled a class action lawsuit filed by employees of his various New York City restaurants for an astonishing $5.25 million.  In addition to claiming violations of the minimum wage and overtime provisions of New York Labor Law and the FLSA, the employees filed suits claiming that Batali and his business partner Joseph Bastianich unlawfully confiscated up to five percent of the employees’ tips for their own profit.  The Federal Government has set forth strict guidelines regarding compensation by way of tips and bonuses.

Violations pursuant to the FLSA and NY Labor Law may result in damages that are double the actual payment owed to employees with an obligation to pay the employees’ attorneys’ fees.  This provides an incentive for lawsuits pursuant to these statutes.  It is more important now than ever to ensure that your business is represented by someone who is adept at navigating this complicated legal landscape in order to protect your business and personal assets.  Tesser, Ryan & Rochman, LLP is a firm with the experience and know-how to bring your business into compliance and defend your interests in the courtroom.