Labor settlements reached with 23 Domino's, including Schen. loc - NEWS10 ABC: Albany, New York News, Weather, Sports

Labor settlements reached with 23 Domino's, including Schen. location


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 following:

  • Some 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. 
  • Two franchisees failed completely to pay adequate overtime, as required by law.  
  • Other 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. 
  • Delivery workers who used their own cars to make deliveries were not fully reimbursed for their job-related vehicle expenses. 
  • Delivery 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.
  • Some stores violated a state requirement that employers must pay an additional hour at minimum wage when employees' daily shifts are longer than 10 hours. 
  • Some 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.
  • Employers 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 work. 

Most of the workers will receive between $200 and$2,000 back depending on the circumstance.

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