A well-known Indian restaurant in the heart of Park Slope is facing a massive $3 million tab after New York State investigators concluded the owner systematically underpaid her staff for years — with some employees allegedly working 75–80 hour weeks without a single day off.
Mariam Khandakar, who owns Indian Spice on Seventh Avenue, was slapped with the eye-watering bill after a Department of Labor probe found years of minimum-wage violations, missing overtime, and nonexistent meal breaks, according to agency records. The state says she now has mere days to appeal before officials can move to place a lien on her property under new enforcement powers granted this year.
Khandakar did not respond to repeated calls or emails — and it’s unclear whether she has legal representation. Online reviews paint the restaurant as a neighborhood favorite, with TripAdvisor calling it “perhaps one of the most popular dining spots for local area residents.”
A Rare $3 Million Case — But Not the First
The huge payout includes roughly $915,000 in unpaid wages and overtime, an equal amount in liquidated damages owed directly to workers, 16% interest, and over $1 million in civil penalties. While uncommon, cases of this size aren’t unheard of; nearly 30 New York businesses have faced more than $1 million in back-wage claims over the last decade.
According to the Order to Comply, five former employees — a dishwasher, busser, waiter and two chefs — were affected. Investigators said some violations stretched more than eight years, from 2016 through 2024.
“No official day off for me”: Workers say they were pushed to the limit
The largest single claim belongs to Raju Ahmed, a former waiter and manager owed $308,000. He says he routinely worked seven days a week and only ever saw a break on major holidays.
“There is no official day off for me,” Ahmed told WNYC/Gothamist.
Workers often clocked 11- to 12-hour shifts, according to the Workers Justice Project, which helped file the claims. Advocates say wage-theft cases involving immigrant workers are widespread — and some employers allegedly threaten to call immigration authorities if staff push back. State officials stress that immigration status does not block workers from recovering unpaid wages.
Ahmed said staff were paid erratically and never received overtime. All the workers involved are from Bangladesh.
“Not all of us has a green card and everything,” he said.
City officials say wage theft is surging
Brooklyn Councilmember Shahana Hanif, whose office assisted the workers, said she is seeing an alarming rise in labor exploitation — often involving newly arrived immigrants employed by longer-established immigrant business owners.
Hanif welcomed the Labor Department’s findings and urged other workers to come forward.
“I really hope that we're able to get the word out about this case,” she said, pointing workers to the city’s Department of Consumer and Worker Protection.
As the deadline for appeal approaches, the fate of Indian Spice — and whether the state moves to seize assets — now hangs in the balance.
Legal Analysis: What Indian Spice Is Accused of — And What Happens Next
State investigators say Indian Spice violated several core New York labor laws, and the combination of long hours, missing records, and years of underpayment is what pushed the case into multi-million-dollar territory.
Key Violations (State Findings)
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Below-minimum wages paid over multiple years
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No overtime pay despite 75–80 hour workweeks
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No weekly day of rest as required under Labor Law §161
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No meal breaks under Labor Law §162
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No payroll records, making unemployment and wage claims far harder to process
How the Penalties Hit $3 Million
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$915,000 in unpaid wages and overtime
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$915,000 in liquidated damages to workers
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16% interest on the unpaid amounts
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Over $1 million in civil penalties for long-running violations
Under New York law, these damages can double when violations are considered willful — and the missing records didn’t help the employer’s case.
New Enforcement Powers
Thanks to new state legislation, the Labor Department can now place liens on property, freeze assets, block business sales, or even pursue personal liability if an employer refuses to pay. Khandakar has only a short window to appeal. If she doesn’t, the state can move immediately to enforce the order — including filing liens, referring collection to the Attorney General, or publicly listing the business as non-compliant.
Immigration Status Not a Factor
New York law requires full payment of earned wages regardless of immigration status, and any threats involving immigration authorities are considered retaliation and carry additional penalties.
