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Department of Labor Announces $170,000 Settlement With 3 Brooklyn Papa John's Pizza Franchisees for Failing To Pay Workers

Department of Labor Announces $170,000 Settlement With 3 Brooklyn Papa John's Pizza Franchisees for Failing To Pay Workers

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The Department of Labor announced a settlement with the owners of three Papa John’s Pizza franchise stores in Brooklyn, New York. According to the lawsuit, the three locations violated minimum wage and overtime requirements, and took unlawful deductions from workers’ wages by failing to reimburse all work-related expenses. In total, the owner has agreed to pay $171,895.12 in restitution and damages to over 100 underpaid workers.

“Today’s settlement underscores a shameful track record of New York Papa John’s franchisees cheating vulnerable workers to line their own pockets,” said Attorney General Schneiderman. “With this agreement, my office has won back more than $4.5 million for hundreds of underpaid Papa John’s employees. We will continue to defend the rights of all workers and fight pervasive wage theft in the fast food industry.”

The agreement follows an investigation into the Papa John’s franchisees that began in 2013. According to the lawsuit, the employer admitted having violated the law by not paying workers the overtime wages required under the federal Fair Labor Standards Act (FLSA) and state law, by not paying the workers an additional hour at minimum wage when employees’ daily shifts were longer than 10 hours in violation of New York State’s “spread of hours” regulations; and by not reimbursing the workers for the cost of the uniforms that they were required to purchase and wear. 

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