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You are here:  Home / Business News / Trendy clothier accused of cheating staff

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Trendy clothier accused of cheating staff

Published: Dec. 30, 2006 at 12:25 PM
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NEW YORK, Dec. 30 (UPI) -- Chic clothier Yellow Rat Bastard cheated its workers of pay and retaliated against them if they complained, New York's attorney general alleges in a lawsuit.

Attorney General and Gov.-elect Eliot Spitzer alleges that the flagship store and 10 affiliates cheated workers out of more than $1 million, The New York Times (NYSE:NYT) said Saturday. Spitzer accused the stores of paying less than the state minimum wage, not paying overtime and retaliating against workers who complained by firing or demoting them.

The suit seeks more than $2 million, including back wages, interest and penalties.

Spitzer asked the court to freeze nearly $1 million in bank assets held by Alla Levy, a part owner of the stores and wife of founder Henry Ishay.

Former employees said managers were abusive and rats -- originally caged and used as a marketing tool -- now run around the store.

In an affidavit, Spitzer accused Ishay and Levy of hiding assets through a web of companies and accounts, reporting earnings of $1,700 a week, even though they bought a home valued at more than $3 million, the affidavit said.

Scott Fenstermaker, a lawyer for the stores, did not comment. Ishay and Levy were unavailable, the Times said.

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