By KATI CORNELL
June 12, 2008
The swank Cipriani restaurants rake in big bucks from star-studded parties, but skimp on security costs by short-changing the guards hired to protect famous guests, a federal lawsuit alleges.
Guards who staff celebrity events for Cipriani USA filed a class-action lawsuit yesterday accusing the company of paying illegal flat rates to avoid shelling out for overtime.
The suit lists eight guards, but claims at least 40 have been deprived of fair pay for working at seven locations, including the opulent Cipriani Fifth Avenue and the Rainbow Room.
"You charge $10,000 for a ticket and then underpay an employee? You're screwing up your workforce for the sake of getting filthy rich," said Niyazi Turel, who has worked for Cipriani for three years
In the past, the company paid security guards as independent contractors in an effort to get around labor laws, according to the suit.
In March, guards were reclassified as staff, but they now receive a second check for any time worked beyond 40 hours without any overtime pay.
"The practices are continuing to this day," said attorney Walter Kane, who filed the suit in Manhattan federal court, seeking back pay and unspecified damages.
"I think people like Mayor Bloomberg, who go there, would assume things are being done properly."
Christopher Giglio, a spokesman for Cipriani, said, "It is our belief that we properly treat all categories of workers in accordance with the law."
Guards are paid between $10 and $20 per hour for a 12-hour shift or flat rates for an event that range from $70 to $110.
