A New York federal judge ruled Friday that Gristede’s Foods Inc. owner John Catsimatidis is personally liable for any damages the company owes to a class of hundreds of grocery workers who say they are due millions in overtime payments under the Fair Labor Standards Act.  “The conclusion should come as no surprise to Mr. Catsimatidis,” U.S. District Judge Paul A. Crotty said Friday, ruling that the owner of Manhattan’s largest supermarket chain is an employer under the law, and therefore jointly and severally liable for damages owed by the chain. “There is no aspect of Gristede’s operations from top to bottom and side to side which is beyond Mr. Catsimatidis’ reach. There is no area of Gristede’s which is not subject to his control, whether he chooses to exercise it.”

Friday’s decision puts the New York grocery magnate on the hook for what could amount to millions of dollars in damages to hundreds of hourly workers who say the company misclassified them as managers to avoid paying them overtime.  The lawsuit traces back to April 2004, when plaintiff Carlos Torres filed a class action seeking damages on behalf of nearly 500 Gristede's department managers and co-managers for unpaid overtime in violation of the FLSA and New York Labor Law.  The class was certified in September 2006, and the parties agreed on a settlement amount on the eve of trial in June 2009.  Negotiations on key settlement terms continued, and in June 2010, the court granted preliminary approval to a $3.5 million settlement that provided for a lump payment of $425,000, followed by 27 monthly payments. The court granted final approval to the settlement in December.  The settlement has since run into trouble. In July, Gristede’s filed a motion saying it had missed scheduled payments and seeking to modify the settlement terms and block an acceleration provision in the settlement agreement. (click on link to read full story)