Labor Dept. Investigating Donovan's Reef For Not Paying Workers: State

BRANFORD, CT — An investigation by the state labor department has been opened following "several complaints about nonpayment of wages" at Donovan’s Reef restaurant in Branford, officials said.

"The first complaints were received early this week and investigators immediately opened the case and began a review," a spokesperson for the labor department's Wage and Workplace Standards Division sent in an email to Patch.

The role of the Division of Wage and Workplace Standards is to protect Connecticut workers by enforcing workplace laws, including fair wage and employment standards.

When a complaint is received, investigators begin an inquiry, may audit employment, payroll, and other records, and may issue Stop Work Orders to protect workers. Companies found to have violated labor laws are subject to both criminal and civil fines and/or penalties.

Patch reached out via phone and email to Steve Sinapis, owner of the popular and longtime Branford eatery, for comment. Neither was immediately returned.

Last week, employees of the restaurant and catering business at 1212 Main St., in the Branford Lockworks building, went on strike after they reported that they'd not been paid for months.

Employee Schuylar Giwa posted to a Branford community Facebook page on Aug. 20. It garnered more than 225 comments, with most offering support for workers. The post was shared more than 350 times.

"This post is to inform everyone that the employees at Donovan’s Reef restaurant in Branford are currently on strike due to the owner's refusal and negligence to pay their staff members. This has been going on for quite a few months now and even got to the point where management was left to pay the team out of pocket. This is absolutely ridiculous, and the owners are refusing to take accountability. When sent an email regarding the issue, the owners only chose to respond to the address used to send the email and not the issue at hand, “Cute email address.” The owners are careless and selfish, they do not care about the employees well beings and what effect this has made on their livelihoods. Please support the staff in this ongoing issue, as the restaurant will not be able to open without this team."

The restaurant was shuttered Thursday when Patch went to speak to Sinapis, or any management that might be available. The doors were locked. And several calls were either not answered or were straight-to-voicemail. The restaurant has been closed for at least a week.

Donavan's Reef Owner Got $300,000 In Coronavirus Paycheck Protection Loans, Both Forgiven

The Connecticut registered corporation with Sinapis as owner is Cnaps LLC.
According to federal records, the restaurant received a Paycheck Protection Loan of $149,900 through Ion Bank. It was approved April 30, 2020.

Those same federal records show a second loan of $149,000, approved in January 2021.

In the records it shows that the loans were provided to pay the wages of, and retain, 40 employees.

Both loans were reported by the Small Business Administration as "paid in full or fully forgiven" from repayment under PPP guidelines.

Those guidelines allow borrowers to get loans forgiven if the money was used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the eight or 24-week period after the loan was disbursed. A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness.

Patch attempted to reach Sinapis to ask both about the labor department investigation, and the PPP loans. Neither email nor phone calls were returned.

Patch editor Rich Kirby contributed to the report.