MINNEAPOLIMEDIA NEWS | Federal Investigation Recovers $613,037 for Workers at Minnesota Restaurant Chain

MINNEAPOLIS, MN (July 29, 2026). A federal investigation has recovered more than $613,000 for 46 employees of NY Gyro after finding that workers at four Minnesota locations were denied wages required under federal law.

The U.S. Department of Labor announced Tuesday that its Wage and Hour Division found minimum-wage, overtime and recordkeeping violations involving four companies that operate NY Gyro restaurants.

The businesses were identified as Rehman LLC, IN LLC, IQ LLC and MOON LLC.

Investigators determined that the employers paid workers their regular hourly rates even when they worked more than 40 hours during a workweek. Under the federal Fair Labor Standards Act, most covered employees must receive one and one-half times their regular rate for hours worked beyond 40 in a week.

The investigation also found that at least one employee received less than the federal minimum wage of $7.25 per hour.

The restaurant operators failed to maintain accurate records of the hours employees worked, according to the Labor Department. Reliable time records are essential because they allow employees and regulators to determine whether minimum-wage and overtime requirements have been satisfied.

The department recovered $613,037 in back wages for 46 workers.

The amount represents wages the employees should have received for work already performed. It is not merely a general regulatory fine, as some descriptions of the case have suggested.

NY Gyro operates nine restaurants in Minnesota, including three in Minneapolis, one in Columbia Heights, three in St. Cloud and locations in Willmar and Waite Park. The federal investigation examined four of the nine locations.

The Labor Department’s announcement did not identify the individual workers or provide a location-by-location breakdown of the money recovered.

It also did not allege that every NY Gyro restaurant in Minnesota committed the violations. The findings apply to the four operating companies and locations examined during the investigation.

The case has particular relevance in Minneapolis and Columbia Heights, where restaurants and other service-sector businesses employ many immigrants, students and lower-wage workers who may not know how to challenge inaccurate pay.

Federal law protects employees’ right to receive required wages regardless of immigration status. Employers are also prohibited from retaliating against workers for asking about their pay, contacting the Labor Department or participating in a wage investigation.

Workers who believe they have been denied wages can contact the Wage and Hour Division confidentially at 866-487-9243. The department provides assistance in more than 200 languages.

For employers, the enforcement action is a reminder that paying a regular hourly rate does not satisfy federal law when an eligible employee works overtime. Businesses must also maintain accurate records showing when employees worked and how their compensation was calculated.

MinneapoliMedia did not find a public response from NY Gyro addressing the Labor Department’s findings.

Sources: U.S. Department of Labor; FOX 9