Three Papa John's owners in New York City to pay $500,000 for alleged wage law violations

By Mark Iandolo | Aug 26, 2016

NEW YORK (Legal Newsline) — Sultan Ali Lakhani, Moregrace LLC, and Thegrace Inc., owners of three Papa John’s Pizza franchise stores in Manhattan and the Bronx, will pay $500,000 after allegations of violating minimum wage and overtime laws, New York Attorney General Eric T. Schneiderman has announced.


“When businesses brazenly violate the law by systematically failing to pay their employees minimum and overtime wages, they rip off some of our state’s most vulnerable workers,” Schneiderman said. “I have called on corporate leaders in the fast food industry – including Papa John’s – to step up and stop these ongoing violations, which are so pervasive in this company and industry.”


According to allegations, the defendants failed to pay workers minimum wage and overtime wages mandated by state law, failed to adhere to the state’s “spread of hours” regulations and did not give delivery workers bicycle safety equipment.


In addition to the $500,000 in restitution, the defendants must display a statement of employees’ rights in their stores, develop procedures for employees voicing complaints, and designate an officer to monitor compliance with the settlement agreement.


“This resolution exemplifies the corrective action and restitution that can be achieved on behalf of workers when state and federal agencies work together on their behalf,” said Jeffrey S. Rogoff, regional solicitor for the U.S. Department of Labor.

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