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GRANGER, Ind. — The U.S. Department of Labor is seeking a temporary restraining order and preliminary injunction against a Granger-based business and its owner for allegedly retaliating against and intimidating employees who were owed back wages.
The complaint, filed Feb. 28 in the U.S. District Court for the Northern District of Indiana in South Bend, accuses Vishav Inc.—which does business as Mega Liquor & Smoke—and its owner, Bhola Singh, of violations of the Fair Labor Standards Act, which bans employers from retaliating against workers.
The allegations follow a settlement agreement Singh signed on Sept. 23, 2023 to pay nearly $355,000 in back wages and liquidated damages to 156 employees for minimum wage and overtime violations over a two-year period.
Singh owns and operates 61 Mega Liquor & Smoke stores in Indiana and Michigan.
The DOL said an investigation by its Wage and Hour Division found that after signing the settlement agreement, Singh engaged in an ongoing kickback scheme “to deprive current and former employees of the money they are owed using threats, intimidation and coercion.”
Singh allegedly demanded that current and former employees sign documents stating they had received the back wages and damages they were owed when the workers received little or no payment.
“Singh’s coercion included threats of termination to employees to convince them to assist him in this scheme,” the DOL said.
Inside INdiana Business has reached out to Singh and Mega Liquor & Smoke for comment but has not received a response.
“The Department of Labor is asking the court to hold Bhola Singh accountable for his illegal tactics to prevent employees from receiving the back wages and damages they are owed and that he agreed to pay. Retaliation against workers is a clear violation of the law,” said Regional Solicitor of Labor Christine Heri said in a news release. “We will use every available legal resource to protect workers and end retaliatory practices by employers, including seeking punitive damages for those harassed.”
The DOL is asking the court to prohibit Singh and his company from inquiring about current or former employees’ potential or actual communications with DOL representatives, as well as withholding wages, terminating or threatening to terminate employees from cooperating with investigators.
The complaint also seeks the company and Singh to be required to notify employees in writing of their right to cooperate with investigators. Singh must also advise the DOL in writing of any potential terminations seven days prior to doing so.
The court is being asked to award punitive damages to some employees who were allegedly retaliated against.
“These federal laws were established decades ago to prevent employers from intimidating workers and exploiting them for financial gain,” said Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago. “Our actions to stop this harassment will ensure that these workers receive the wages they have rightfully earned and serve notice to other employers that retaliation will not be tolerated.”
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