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NEW YORK - Attorney General Eric T. Schneiderman today announced settlements with six Domino’s franchisees over labor violations, requiring them to pay $448,000 in restitution to 750 employees.
The violations include subminimum wages, nonpayment of overtime and failure to reimburse delivery workers for all job-related vehicle expenses. The franchise owners are from eight different counties.
The New York AG’s investigation found that from 2007 to 2013, Domino’s franchisees violated numerous safety net labor laws designed to protect the lowest wage workers. The store owners admitted to the violations of law outlined in the settlement agreements.
“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,” AG Schneiderman stated. He added, “My office will be relentless in pursuing fast-food employers that underpay the hardworking people who are the backbone of their operations.”
Settlement outlines franchisee violations
The violations varied by location and time period, and included the following:
In addition to paying restitution, franchisees must also institute complaint procedures, provide bilingual written handbooks to employees, train supervisors on the labor law, post a statement of employees’ rights, and designate an officer to submit quarterly reports to the Attorney General's Office regarding ongoing compliance for two to three years. Two of the franchisees with the most egregious violations were also required to hire an independent monitor who will conduct unannounced inspections. Investigations of additional Domino’s franchises are ongoing.
Previous New York AG settlements
Today’s settlement comes on the heels of three other ongoing investigations of numerous fast-food employers conducted by New York AG’s Labor Bureau for labor violations. Last week, Schneiderman announced another settlement for $500,000 with a McDonald’s franchisee. In December, the AG’s Office secured reinstatement for 25 workers at a Domino’s Pizza franchise store located in Manhattan’s Washington Heights neighborhood.