Arrest Shows Wage Theft Doesn't Pay (2/23/10)

Earlier this month, the RWDSU’s Retail Action Project (RAP) sponsored a march through New York City's SoHo neighborhood, calling for an end to the wage and hour violations among retail workers that plague the trendy shopping district. One of the stores the activists targeted for underpaying its workers was Mystique Boutique (above).

Today, Mystique Boutique owner David Cohen was arrested by the state attorney general’s office for wage and hour violations of $1.5 million. According to the attorney general’s office, about 150 workers at the seven-store chain worked 66-hour weeks without being paid overtime, and were paid $2 below the minimum wage. Cohen is also accused of intimidating employees and even offering $50,000 to an employee in exchange for information regarding other employees who were involved in the investigation.

“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.”

According to RWDSU President Stuart Appelbaum, today's arrest shows that time has run out for retailers who engage in wage and hour violations in New York City.

 “We applaud the attorney general for this arrest, which puts merchants on notice that New Yorkers have zero tolerance for employer lawlessness,” Appelbaum said. “This gives our fight for ending wage theft and securing a living wage for retail workers a real boost.”

Cohen faces 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. The attorney general is also seeking civil damages of $1.5 million.

Activists rally in front of Mystique on February 3.