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New York Sues Domino's: Pizza Payrolls Short of Dough

Image: New York Sues Domino's: Pizza Payrolls Short of Dough
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By    |   Wednesday, 25 May 2016 08:35 AM

New York is suing Domino's Pizza and three of its franchisees, not for failing to deliver in 30 minutes or less but instead for failing to fix a payroll system that shortchanges workers.

State prosecutors accused Domino's of wage theft for allegedly underpaying workers at least $565,000 at 10 of its stores. The attorney general's office said Domino's knew that payroll reports from its computer system shortchanged workers but declined to fix the problems, according to an attorney general's office news release..

"At some point, a company has to take responsibility for its actions and for its workers' well-being," said New York attorney general Eric Schneiderman. "We've found rampant wage violations at Domino's franchise stores. And, as our suit alleges, we've discovered that Domino's headquarters was intensely involved in store operations, and even caused many of these violations."

Domino's said in a statement, per the New York Post, that it had been working with the attorney general's office for the past three years to assist franchisees in understanding and complying "with some of the many complex wage and hour laws that apply to their employment decisions."

"We were disappointed to learn that the attorney general chose to file a lawsuit that disregards the nature of franchising and demeans the role of small business owners instead of focusing on solutions that could have actually helped the individuals those small businesses employ." 

The Post noted that employment issues have traditionally been the responsibility of individual franchise owners but that the attorney general's office said Domino was a "joint employer because the company micromanaged employee relations at its franchisee stores."

"As the attorney general's investigation found, the company played a role in the hiring, firing, and discipline of workers; pushed an anti-union position on franchisees; and closely monitored employee job performance through onsite and electronic reviews," the attorney general's office said.

Domino's spokesman Tim McIntyre charged that naming the company as a joint employer would "deprive our independent business owners of the opportunity to make their own employment decisions" along with impacting "the viability of the franchise model," reported The Wall Street Journal.

The attorney general's office said it had already settled cases with 12 Domino's franchisees who own 61 total stores and who agreed to pay about $1.5 million to date.

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New York is suing Domino's Pizza and three of its franchisees, not for failing to deliver in 30 minutes or less but instead for failing to fix a payroll system that shortchanges workers.
new york, sues, dominos, pizza, payroll
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2016-35-25
Wednesday, 25 May 2016 08:35 AM
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