Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Papa John’s franchisees to pay $500K in back wages, damages, (Oct 16, 2015)
Organizations Mentioned:193 Papa, Inc. | 3320 Woodside Papa, Inc. | 99 Food, Inc. | AMHC Food Inc. | AMHC Food, Inc. | Judy & Jesenia, Inc. | Ksara Corp. | Parson Papa, Inc. | Sunnyside Papa, Inc. | U.S. Department of Labor | Zeeshee, Inc.
By Greg Hammond, J.D.
Various Papa John’s Pizza franchisees, which together own nine restaurants in the New York City area, have agreed to pay approximately $500,000 in back wages and damages to more than 250 workers. The payments will be made pursuant to settlements to charges, filed by New York Attorney General Eric Schneiderman and the U.S. Department of Labor, that the franchisees violated minimum wage, overtime, and other basic labor laws.
According to the New York Attorney General’s and Labor Departments’ joint announcement, the Papa John’s franchisees admitted to: (1) failing to pay employees minimum wage and overtime wages, as required under the Fair Labor Standards Act and state law; (2) violating a state requirement that employers pay an extra hour at minimum wage when employees’ daily shifts are more than 10 hours; and (3) failing to provide employees with adequate uniforms and failing to pay required uniform laundry allowances.
“Once again, we’ve found Papa John’s franchises in New York that are ripping off their workers and violating critical state and federal laws,” stated New York Attorney General Eric Schneiderman. “Fast food chains across the State should be on notice: we will not stop until your workers are treated with respect and paid lawful wages. Once again, I call on Papa John’s and other fast food companies to step up and stop the widespread lawlessness plaguing your businesses and harming the workers who make and deliver your food.”
Besides paying back wages and liquidated damages, the franchisees must also establish complaint procedures; post a statement of employees’ rights; and select an officer to submit quarterly reports to the Attorney General’s office concerning ongoing compliance for a period of three years.
“These settlements and our successful partnership with the Attorney General’s office are a warning to employers who choose to violate state and federal wage laws that we do not tolerate such mistreatment of employees and will actively work together to pursue and obtain proper compensation for workers,” stated regional solicitor for the Labor Department, Jeffrey S. Rogoff.
Companies: 3320 Woodside Papa, Inc.; 99 Food, Inc.; Sunnyside Papa, Inc.; Zeeshee, Inc.; 193 Papa, Inc.; Parson Papa, Inc.; AMHC Food Inc.; Ksara Corp.; Judy & Jesenia, Inc.
News: FranchisingDistribution NewYorkNews