Manhattan, NY – Three weeks ago, hundreds of disgruntled New York workers braved the cold weather to march 20 blocks in protest of unfair wage practices. On Tuesday, they received some vindication. One of the objects of their protest, David Cohen, owner of fast fashion, seven-store chain Mystique Boutique, was arrested by the state attorney general’s office for cheating his employees out of $1.5 million.
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“Workers were not only ripped off, but were also intimidated to make sure they stayed quiet,” said Attorney General Andrew Cuomo, in a statement. “Today’s civil and criminal charges should send a strong message: No one is above the law. My office will take action against employers that take advantage of their workers and cheat the state’s unemployment insurance fund.”
Mr. Cohen owns stores such as Mystique at 547 Broadway, Exstaza at 491 Broadway, and Amsterdam at 454 Broadway. Employees at his stores were allegedly paid $5.25 an hour, which is $2 below minimum wage. In addition, for the last six years, employees have worked 66-hour work weeks and were not paid overtime. About 150 workers are owed the $1.5 million. The attorney general’s office also reported filings that Mr. Cohen allegedly threatened workers, and even offered one person up to $50,000 to divulge which employees were involved in the investigation against him and his business.
“We applaud the attorney general for this arrest, which puts merchants on notice that New Yorkers have zero tolerance for employer lawlessness,” said Stuart Appelbaum, president of the Retail Wholesale and Department Store Union. “This gives our fight for ending wage theft and securing a living wage for retail workers a real boost.”
Mr. Cohen is charged with 19 counts of falsifying business records in the first degree and 19 counts of offering a false instrument for filing, both Class E felonies with a possible imprisonment of four years each. Mr. Cuomo is seeking civil damages of $1.5 million.
In early February, 250 workers from Mystique and another local chain, Shoe Mania, marched from SoHo to Union Square in a demonstration against low wages and unfair labor practices. The march was organized by the Retail Action Project, which is part of the RWDSU.
Great so now instead of making 5.25 they will make zero when he files for bankruptcy and closes the stores. Don’t people feel they have the option of leaving a job if it doesn’t pay enough for them no one forced them to stay there
Another “nice story” related to an infamous “Union”.
When I see a union involved, especially when it’s connected to strikes and so called “brave” ‘parades’, I know the story before listening to the defendant’s side.
The unions are killing the business owners, and eventually the economy.
over time is over 40 hours per week. I was working for a frum owned business and when I asked the boss for overtime (I worked 48 hours that week) they laughed at me and told me no. My new goyishe boss respects the law. Its not that my frum boss didn’t know the law, none of the other employees would think to ask (and told me I was crazy when I complained). The bosses simply didn’t care because the other employees were frum and refused to believe their boss would cheat them. Yidden only distrust goyim and thats too bad.
If he did something wrong then I’m not saying anything, but if this is just another step of the mafia (sorry, meant to say union..) then I’d side with the owner of the fashion business.
So let them go work somewhere else … if they can find a job. No one is claiming they were chained to their work place.
Yes, let us justify bullying employees into accepting sub-par and illegal wages! Thats the right, fair, and Jewish approach!
Maybe you do not understand the idea of law. There is a minimum wage law. You have to keep it, even if you have arguments against it.
These laws are plain stupid. Does this guy really deserve a maximum of 76 years in prison? Please! This is not capitalism.
Not surprised at all. If the vicious unions are involved then there’s nothing left for speculation.
Wake up people! Some of the aides that are supposed to take care of your parents are also paid wages as such. Now you know why the quality of most home care is extremely poor, unless you choose a consumer directed program, where you are boss and the city pays more than double what these agencies pay. Yes, the agencies pocket the difference and make these cute advertisements how they take the old to shul and tashlich. So don’t worry about Mr. Cohen worry about the care you agree for you parents.
the Torah says you must pay a fair wage. the law of the land requires that certain labor and safety laws are adhered to. why do these business people think they are above the law, create chillul Hashem and act unforgiveably to low wage workers? because they have no fear of Shamayim ! because they have their own idols of money to worship ! and those who blindly defend them should be ashamed of their evil nature.
Were these workers all here legally in the USA? If not, they should have no claim to the money. Why should I be forced to pay a legal minimum wage for employees that don’t respect the law of this country?
to comment#3. there is a sefer called shmiras haloshon. that will put a stop from talking against a fellow yid. love you fellow yid! it’s a mitzvah.
to “Authentic Satmar Says” – so it is ok to hire illegals and not pay them? even if they work and perform – you would let them starve. what a mensch.
Leagal fees will cost him much more now than the few dollars he was cheating his employees. With seven stores he was most likely making money, how could he ever justify to a judge or jury paying below minimum wages and not paying overtime. He needs to setlle this case and yafa shaha achas kodem.
reply to 30
he’s no mensch. he’s “Authentic Satmar”
How does everybody jump to such harsh conclusions before hearing the other side of the story?
Shame on all critics!
a cleaning woman gets at least $8.00 an hour, if not more. What kind of people would work for so little pay? What kind of work were they doing for that wage? Was this a sweat shop?
It seems to me that cheating a worker of his wages contravenes a biblical injunction (requiring a worker to be paid, and on time).
Where can you get a cleaning woman for $8 an hour???!!!!! Please post her number here!
He didn’t break any laws. They were volunteers and he gave them donations.
That’s the ojne and only reason why the US has lost 99% of manufacturing to china
It is absolutely wrong to mistreat employees, very wrong to under pay employees. But, it is also very wrong to take a stance when NON OF YOU HEARD the second side of the story, and there are always 2 sides to every story.
All I know is the UNION is the one waging the war here against this Cohen, and it doesn’t smell good..
Last I learned, Capitalism has this strange component to it that People have to be able to afford the products produced, regardless of how cheaply they are produced — sadly since America began electing peanut farmers, b-movie actors, a professional womanizer and a president (and his son) with 20 home states, that hasn;t been the case for a while
To the posters who say that the lawyers will take all the employees’ money in a settlement: They don’t have a private lawyer, they have the Attorney General of New York. Only Cohen will be paying lawyers.
1. The workers were all legal U.S. Residents here on visas. Most of them worked in the warehouses and stockrooms.
2. A worker making minimum wage with a 66-hour work week should get $572.75 per week (40 hours at minimum wage and 26 hours at time-and-a-half). Cohen paid his workers $346 per week (66 hours at 5.25/hour). That is illegal. Cohen then (allegedly) falsified his records to hide how many workers he had, and how little he was paying them. That is also illegal. He then (also allegedly) fired any worker rumored to have a hand in organizing to get what was owed to them. That too is illegal.
3. If you lost your job tomorrow, how long would you be able to feed your family? How about if you were making $346 per week? THAT’S what’s forcing people to stay at their jobs.
4. Every American Jew is a descendant of immigrants. Nearly all of our ancestors came to this country scared, poor, and barely speaking English, but hopeful for a better life in the New World. Many worked in sweatshops because no one else was hiring, and working for too little money was better than starving. How are these people any different?
5. Remember that Jews founded the American labor movement.