Carnegie Deli has made an agreement in principle to pay approximately 25 current and former waiters, waitresses, bus boys and cooks a total sum of $2.65 million, with an average pay-out of $106,000 per employee. The workers claim that their hourly pay was between $2.50 and $3.00, and thus below minimum wage and that they also did not receive overtime pay. The workers further allege that the owners also subtracted pay for hour-long lunch breaks that were never taken and paid back-of-the-house workers off the books in violation of federal laws.
Both sides had previously agreed that half of the settlement would be paid upfront and the other half a year later. However, lawyers have informed the judge in the case that one of the owners wished to alter the arrangement by paying out the settlement over the course of four years.