Domino's Pizza Franchisees in New York Settle Wage Theft Investigation

Mar 28, 2014 02:06 PM EDT | By Dina Exil

Domino's Pizza has become the latest fast food chain to reach a settlement with New York, after an investigation found that the company failed to pay overtime for employees who worked more than 40 hours in a week.

According to the Huffington Post, the owners of 23 Domino's pizza outlets in New York agreed Thursday to pay out $448,000 to workers who claim they were paid less than minimum wage and accused the company of wage theft.

New York attorney general Eric Schneiderman announced that an investigation found six Domino's franchisees in New York City and elsewhere in the stat, guilty of breaking the law and not paying their employees the full amount for time spent on the clock.

The investigation looked into how the stores illegally took advantage of delivery drivers by not providing them with tips or reimbursement for their auto expenses. 

The violations occurred between 2007 and 2013 and all stores involved in the investigation reportedly acknowledge their wage thievery in the settlement. The Huffington Post reported that about 750 workers will receive between $200 and $2,000 each. Under the terms of the settlement, the franchisees must also improve training and complaints procedures.

"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," Schneiderman said in a statement. "My office will be relentless in pursuing fast-food employers who underpay the hardworking people who are the backbone of their operations."

The settlement is part of Schneiderman's plan to help low-paid restaurant workers take action against "wage theft." Last week, Schneiderman announced a $500,000 settlement with a McDonald's franchise in New York, after a class action lawsuit accused the chain of shorting their pay, making employees work off the cloak and not paying for overtime.

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