Not surprising at all. In NYC you have an unlimited labor force of marginalized people that need some type of payday. You have people who are willing to hire these people at ridiculous low wages and exploit these people without a second look. It's sad but true. It happens everyday in big cities around the world. The owner was originally from Cuba but that didn't stop him from treating other immigrants poorly. He justified the $4 an hour as being supplemented by tips and used this to skirt labor laws. Bravo to these guys who challenged him legally and got what they deserved for themselves and others. Sadly this owner will probably move on and scam another group of people and make money at their expense.
he just did it in the wrong state. maybe he could have pulled that off in South Florida, but NY is not exactly the most receptive state to Cuban shenanigans.