Papa John’s HQ pays up after franchisee stiffs workers — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Papa John’s HQ pays up after franchisee stiffs workers

by on
in Compensation and Benefits,Human Resources

The Papa John’s pizza chain has come through for employees left in the lurch when a franchisee in Sacra­­mento abruptly closed eight stores.

The franchise owner, APNA Invest­­ments, filed for Chapter 7 bankruptcy without issuing final paychecks to the employees. They complained to the Sacramento office for the U.S. Department of Labor’s Wage and Hour Division, which contacted Papa John’s corporate office to try to get the workers paid.

Papa John’s has a separate non-profit arm known as the “Franchise Team Member Relief Fund.” The company invited the workers to apply to the fund for their lost wages. To date, they have received more than $28,000 in back wages.

Note: Papa John’s corporate office mounted a proactive campaign via Facebook to reach out to the affected employees. Doing the right thing, even though it didn’t have to, delivered great publicity for the pizza chain.

{ 1 comment… read it below or add one }

N Harper November 3, 2014 at 6:34 pm

While we believe Papa John’s corporate did the right thing by offering money through the relief fund, this does not tell the whole story. There is still at least one worker who is owed approximately $12,000 in back wages for paychecks which were not honored by the bank. APNA Investments, which is the corporate name of the franchisee, closed the bank account the checks were written on, did not notify the employee and did not reissue the paychecks from the new bank account. These actions were taken more than two months prior to the bankruptcy filing and before the stores were suddenly closed. I seriously doubt the Patel brothers (owners of APNA) were unaware of what they were doing. The employees for APNA witnessed the Patel brothers doing a lot of wrong things during their employment and I feel we have a sick system of rewarding corporations such as APNA with Chapter 7 bankruptcy. While I’m sure Papa John’s corporate was happy to have “good” press resulting from their former franchisers actions, the press should be equal and report the negative fallout continues. And, the Patel brothers should not be allowed to get away with what they have done, they should have to pay the wages owed.

Reply

Leave a Comment