NYC pizza franchisee sliced paychecks too thin — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

NYC pizza franchisee sliced paychecks too thin

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in Compensation and Benefits,Human Resources

The owner of five Manhattan Papa John’s pizza franchises will be out a little dough after a state court ruled he didn’t properly pay his delivery people. The employees had alleged that owner, Ronald Johnson, had failed to pay workers for fractions of hours, overtime or reimburse workers for costs associated with delivery bikes.

New York Attorney General Eric Schneiderman brought the suit after investigating claims that delivery people were forced to perform other tasks off the clock while waiting for deliveries. At least one employee reported being paid only $5 per hour.

The number of current and former employees will likely run into the hundreds, with a total tab estimated to be worth around $2 million.

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