An insurance company is not obligated to defend the chairman of a defunct Brooklyn nonprofit’s board of directors against a federal lawsuit claiming employees were routinely not paid on time, a state appeals court has ruled.
In 2012, a group of eight former employees of Vannguard Urban Improvement Association, a nonprofit based in the Bedford-Stuyvesant section of Brooklyn that provided career counseling for at-risk youths, filed suit in the Eastern District over delayed wages, claiming violations of the Fair Labor Standards Act and the state Labor Law.
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