Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: New York Domino’s franchisees agree to pay nearly $1.5M to workers, (Apr 14, 2015)

New York Attorney General Eric T. Schneiderman announced that four current Domino’s Pizza franchisees, who together own 29 stores across New York State, as well as with one former franchisee who owned 6 stores, have settled charges they violated their workers’ basic rights. The franchisees will pay restitution to workers in the amount of nearly $1.5 million.

According to the press release, some stores paid delivery workers below the tipped minimum wage applicable to delivery workers under New York law; failed to pay or underpaid overtime to employees who worked over 40 hours in a week; failed to fully reimburse delivery workers who used their own cars and bicycles to make deliveries; violated a state requirement that employers must pay an additional hour at minimum wage when employees’ daily shifts are longer than 10 hours; violated a state requirement that employers must pay restaurant workers for at least three hours of work when those employees report to work for a longer shift but are ultimately sent home early because of slow business or other reasons; took a “tip credit” without tracking tips; and assigned delivery workers to kitchen or other untipped work for more time than legally permitted.

The Attorney General continues to investigate additional Domino’s franchisees in New York.

News: FranchisingDistribution NewYorkNews