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.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Contractor or employee? New IRS audits turn up heat on worker misclassification
- Minimum wage wars move to local level
- Uncle Sam's 2014 budget: Will it cap retirement savings?
- Should we automatically make payroll deductions for employees' lunch breaks?