Six Domino's franchisees settle wage allegations with N.Y. AG

NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced settlements on Thursday with six Domino's Pizza franchisees who own 23 stores combined to resolve allegations of labor law violations.

The franchisees, who own stores in New York City and Westchester, Suffolk, Schenectady, Rockland, Nassau, Erie and Dutchess counties, allegedly paid delivery workers subminimum wages, failed to pay overtime and failed to reimburse delivery workers for all job-related vehicle expenses.

"The violations in these cases demonstrate a statewide pattern of Domino's franchisees flouting the law and illegally chiseling at the pay of minimum-wage workers, who struggle to survive as it is," Schneiderman said. "My office will be relentless in pursuing fast-food employers that underpay the hardworking people who are the backbone of their operations."

Some franchisees allegedly paid delivery workers $5 per hour, which is below the $5.65 tipped minimum wage under New York law. Two of the franchisees allegedly failed to pay adequate overtime while others underpaid overtime because they did not combine all hours worked at multiple stores or because they used the wrong formula. Franchisees also allegedly failed to reimburse delivery workers who used their own cars or bicycles for job-related vehicle expenses.

Under the terms of the settlements, the six franchisees must pay $448,000 to be distributed among approximately 750 employees. Most workers will receive between $200 and $2,000, depending on their hours, wages and length of employment.

The franchisees also agreed to institute complaint procedures, train supervisors on the labor law, provide bilingual written handbooks to employees, designate an officer to submit quarterly reports to Schneiderman's office and post a statement of employee rights.