ALBANY, N.Y.—Settlements totaling $448,000 with six Domino's
Pizza franchisees, who together own 23 stores, were announced today.
The settlement money will be distributed among approximately
750 minimum-wage employees who were underpaid by the franchisees.
"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. My office will be relentless in pursuing fast-food employers that
underpay the hardworking people who are the backbone of their operations," said
Attorney General Schneiderman.
Attorney General Schneiderman's
investigation found that from 2007 to 2013, the Domino's franchisees violated
numerous safety net labor laws designed to protect the lowest wage workers.
The violations included the
franchisees paid delivery workers as little as $5 per hour, which is below
the $5.65 tipped minimum wage that has applied to delivery workers since
2011 under New York law.
franchisees failed completely to pay adequate overtime, as required by
franchisees underpaid overtime because they did not combine all hours
worked at multiple stores owned by the same franchisee or because they used
the wrong formula to calculate overtime for tipped workers, unlawfully
reducing workers' pay.
workers who used their own cars to make deliveries were not fully
reimbursed for their job-related vehicle expenses.
workers who used their own bicycles to make deliveries were typically not
reimbursed for any expenses related to maintaining their bicycles, nor
were they provided with protective gear as required by New York City law.
stores violated a state requirement that employers must pay an additional
hour at minimum wage when employees' daily shifts are longer than 10
stores also violated a state requirement that employers must pay
restaurant workers for at least three hours of work when those employees
report to work for a longer shift but are ultimately sent home early
because of slow business or other reasons.
may take a "tip credit" and pay a lower minimum wage to tipped restaurant
employees only if those employees spend most of their time – at least
80 percent – performing tipped work. Some stores took a
"tip credit" but failed to ensure that delivery employees spent
no more than 20 percent of their time doing kitchen or other untipped
Most of the workers will receive between $200 and$2,000 back depending on