New York Attorney General Eric Schneiderman recently announced a $448,000 settlement with six Domino’s pizza franchisees operating in New York. The business owners paid workers less than the $5.65 per hour tipped minimum wage and failed to pay adequate overtime, thereby violating wage and hour laws. Specifically, delivery drivers were inadequately paid for their work, some receiving only $5.00 per hour, and workers who used their cars to deliver pizza were not reimbursed for their expenses. Moreover, employees were shifted from one store to another just before they were to reach 40 hours worked, and a manual override or a system flaw in the timekeeping system prevented an accurate calculation of the overtime worked. The settlement money will be dispersed among approximately 750 employees.
The Attorney General is also investigating Papa John’s franchisees.