Labor Department recovers $600K in back wages from Minnesota's NY Gyro, but company denies wrondgoing

Federal labor officials say they have recovered more than $600,000 in back wages for employees of a Mediterranean restaurant with multiple locations in Minnesota.

The Department of Labor said Tuesday NY Gyro failed to compensate workers for overtime and, in one case, paid an employee less than the federal minimum wage of $7.25. The company also failed to keep proper records of employees' work hours, according to officials.

NY Gyro owner Nasir Khan told WCCO the company denies any wrongdoing, but agreed to pay the back wages. He said the locations in violation are in Minneapolis and Willmar, Minnesota, and that record-keeping was the primary issue.

Khan said the company has since given their franchise partners training on record-keeping and hired another accountant based in Minneapolis.

The department discovered the violations after investigating four of the restaurant's nine locations in Minnesota. In total, the department recovered $613,037 in back wages for 46 employees.