GO
Loading...

Domino’s franchisees stiffed workers, must pay about $450K

Six Domino's Pizza franchisees in New York must pay a total of $448,000 to minimum-wage workers as part of a labor settlement announced Thursday by the state's attorney general.

The $448,000 will be distributed to about 750 workers who were underpaid by the franchisee's restaurants and who will each receive between $200 and $2,000.

Under the deal, the franchisees admitted to various labor-law violations, including paying workers less than minimum wage, failing to pay overtime and not reimbursing delivery employees for job-related vehicle costs.

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

Numerous fast-food employers are the subject of ongoing investigations by the New York attorney general's office for possible labor law violations, Schneiderman's office said in the press release. This settlement is the third to result from these investigations.

Last week, his office settled with a New York City McDonald's franchisee for $500,000.

The settlements come as the federal minimum wage debate comes into sharper focus.

Read MoreConnecticut Senate approves highest minimum wage

In early December, fast-food employees engaged in mass protests to advocate for a federal minimum hourly wage increase to $15 from the current level of $7.25.

A separate movement has gained steam on Capitol Hill, with U.S. President Barack Obama and many Democrats in Congress advocating for a federal minimum wage hike to $10.10.

Contact Restaurants

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More