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Papa John's franchisee sued for underpaid wages

By Ashley Perry | Oct 17, 2014

New York Attorney General Eric Schneiderman

Papa John's pizza franchisee New Majority Holdings LLC and its owner Ronald Johnson are being sued by Attorney General Eric T. Schneiderman due to alleged underpaying of wages.

The suit alleges that Johnson failed to pay delivery drivers the state minimum wage and violated various state labor laws. Johnson is also accused of shaving hours from employees pay and requiring them to purchase and maintain their own bicycles and safety equipment in order to do their jobs. The lawsuit seeks more than $2 million in restitution and damages, and aims to stop illegal business practices.

“Nobody who works 40 hours a week should have to live in poverty,” Schneiderman said. “Like every other business in New York, fast-food employers must follow the law. My office will combat wage theft whenever and wherever we see it in order to protect the rights of hardworking New Yorkers, including pizza delivery workers and others who toil at fast-food restaurants.”

The lawsuit against New Majority was filed following a year-long investigation by the Attorney General's Labor Bureau into the company's pay practices. The evidence gathered during the investigation including company records and Johnson's testimony showed that the company was in violation of multiple state employment laws.

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