November 20, 2025
New York Beer Distributor to Pay $1 Million to Workers Over Pay Issues
A New York beer distributor has agreed to pay $1 million to more than 1,600 drivers and helpers who said they weren’t paid correctly for overtime work. The workers asked a federal court to approve the settlement, which would end a lawsuit that has been going on for 10 years.
The lawsuit started in 2015 when a worker, Larry Swanson, claimed the company:
- Required employees to work through meal breaks and long hours without overtime pay; and
- Took money out of workers’ paychecks for missing or damaged bottles
The case has had many twists:
- In 2018, the company won on the overtime claims under the Federal Labor Standards Act
- In 2020, the workers won on the paycheck deductions claims
- In 2023, the court allowed the overtime claims to move forward again, but only under New York State law, not federal law
The settlement includes the following payments:
- $15,000 to the main worker, Larry Swanson
- $30,500 for the settlement administrator
- Approximately $333,000 for the plaintiffs’ lawyers’ fees
- Up to $15,000 for other legal costs
What This Means for Employers
Even if you’ve been following the rules most of the time, this case shows that small issues can lead to big problems for businesses.
- Meal breaks – Make sure employees can take their lunch or rest breaks. Don’t require employees to work through required breaks.
- Overtime pay – Pay overtime rates to employees for all hours worked over 40 per week.
- Pay deductions – Do not deduct or take any money out of paychecks for damaged or missing items. This is unlawful under New York State law.
- State laws matter – Even if federal claims don’t stick, New York law can still create liability.
- Litigation is expensive – Cases can drag on for years, and involve significant amounts in attorneys’ fees and settlement payments, even if employers defeat some of the employees’ claims.
Once wage and hour lawsuits start, businesses cannot make them go away merely by paying the amounts owed to workers. Instead, businesses must go through the litigation process in court, must pay plaintiffs’ attorneys fees if the case is settled or lost, and must obtain court approval for any settlement between the parties.
Employers should check their payroll, overtime, and deduction policies now to avoid similar lawsuits. We invite you to call Book Law to discuss a compliance plan for your business.
