New York Diner To Pay $900K In Lawsuit Settlement

Mount Kisco, NY (WorkersCompensation.com)- The ‘upscale’ Mount Kisco Diner has started to pay out on a $900,000 settlement to current and former employees who sued the establishment over compensation and treatment. The suit was filed last year by employees, Julissa Morales, Aidee Geronimo-Romero, Ady Garcia, and seven others. The suit had been part of an ongoing labor dispute in federal court from workers who declared that they were not paid their fair wages.

The Worker Justice Center of New York argued that from 2004-2019 the employer violated the Federal Fair Labor Standards Act and parallel provisions of New York Labor Law. The suit also sought relief under federal and state law for racial discrimination allegedly committed by the Mount Kisco Diner and its owners against their workforce, which is predominately Hispanic. The workers' top issues were minimum wage, tip credit, overtime, and unlawful deductions in their paychecks.

The lawsuit was filed against Three Diamond Diner Corp., and its owner and CEO Frank Georgiou; Harry Georgiou, an owner and general manager of the Mount Kisco Diner; and Yiota Georgiou, owner of the Mount Kisco Diner. The formal complaint obtained by WorkersCompensation.com consisted of the following: 

1. Plaintiffs Julissa Morales, Aidee Geronimo-Romero, and Ady Garcia (collectively Plaintiffs”) were employed in various job capacities by Defendants at their ‘upscale diner’ in Mount Kisco, N.Y. They bring this Collective and Class Action on behalf of themselves and the scores of other individuals who currently work and/or previously worked in Defendants’ restaurant business and were not paid their lawfully owed wages and were subjected to illegal discrimination based on their gender, race, ethnicity and/or national origin.
2. During the course of Plaintiffs’ employment, Defendants engaged in a veritable smorgasbord of legal violations. Defendants failed to pay Plaintiffs their regular wages for all hours worked, failed to pay Plaintiffs an overtime premium on the frequent occasions when they worked more than 40 hours in a week, cheated Plaintiffs out of tips, and ‘cooked the books’ by falsifying records of how many hours employees worked and how much money they received.
3. Defendants created a hostile work environment for their predominantly Hispanic staff, routinely using racially derogatory language. Defendants also perpetrated and condoned rampant sexual harassment against female employees including Plaintiffs Julissa Morales and Aidee Geronimo-Romero.

On March 10 the company filed for bankruptcy. In a media release, the owners declared, "the bankruptcy filing was necessary because, with the precipitous drop in income during the new coronavirus outbreak, they needed more time."

Before the New York state-mandated closure of bars and restaurants, U.S. Bankruptcy Court Judge Robert Drain dismissed the case on June 29 and signed off for the diner to pay the 11 workers who had sued.

Julissa Morales had also filed a separate adversary complaint, accusing Harry Georgiou of subjecting her to "sexual abuse, sexual harassment, sexual extortion, discrimination, and stalking." Georgiou allegedly had called Morales to his office, and when she got there, pressed himself against her and kissed her on the lips. Morales claims that when she resisted him, he threatened to fire her.  Morales also states that a few days after the incident, Georgiou had forgiven her for denying his advances, but said that if she wanted to stay employed, she would have to let him touch her.

“This case should send a clear message that exploiting workers is not only unjust but also a losing business proposition,” said Maureen Hussain, a labor and employment attorney for the Worker Justice Center of New York who represented the plaintiffs in a media release. “Mount Kisco Diner's owners are now required to get anti-discrimination training and allow periodic inspections of their records by the Worker Justice Center of New York. Our clients hope this will help ensure the company changes its practices and treats its employees fairly."

WorkersCompensation.com reached out to Hussain but did not respond before press time.

In a statement to the media, Georgiou responded to the lawsuit and noted, "Unfortunately, a few disgruntled employees were able to use the judicial system to receive additional compensation. We have always denied the allegations in the lawsuit because they are not true."

The Mount Kisco Diner has made a payment of $500,000, according to court documents, and will pay out the additional $400,000 by August 24.

Share This Article: