Now-closed State College restaurant scores victory at trial that alleged wage violations

A now-closed State College restaurant emerged victorious Wednesday from a federal trial after a jury found it was not liable for alleged labor and wage violations.

The jury deliberated for about two hours before they ruled in favor of John’s Shanghai and Yun “Danny” Xue, attorney David Gaines Jr. said. The Chinese restaurant operated from 312 W. Beaver St. until it closed in March 2021.

Jian Zhong Xue and Raymond Chow collectively sought nearly $670,000. They alleged the business intentionally failed to pay certain minimum wage and overtime payments.

“My clients and I are, of course, happy with the outcome of the trial,” Gaines said after the three-day trial. “We thank the jury for its service.”

The trial amounted to somewhat of a family dispute. Jian Zhong Xue sued his son; the elder Xue said his son owned and operated the business, while the younger Xue said he “had nothing to do with the operation or management” of the restaurant.

Jian Zhong Xue and his longtime friend Raymond Chow each worked at the restaurant. Xue said he worked 14 hours a day, seven days a week for more than three years and was neither paid minimum wage nor overtime.

Chow alleged he worked 11 hours a day, seven days a week for about two years and also was not paid properly.

The business denied each of the allegations, writing in response to the lawsuit it paid and provided working conditions “in accordance with all applicable state, federal, and local laws.”

The jury found the business employed Chow, but not the elder Xue. Jurors also found Danny Xue was not their employer.

A message left with attorneys who represented the elder Xue and Chow were not immediately returned Wednesday.