New York Attorney General Eric Schneiderman announced a $40,000 settlement with a Domino’s Pizza store in downtown Schenectady for failing to pay employees proper wages and overtime.
The Domino’s at 1441 Broadway, owned by John Dobson, did not pay employees the adequate overtime rate and failed to reimburse delivery workers for vehicle costs, among other violations, according to Schneiderman’s office.
The Schenectady store was one of 23 throughout the state that reached settlements with Schneiderman totaling $448,000. The money will be distributed among 750 employees, Schneiderman said.
“The violations in these cases demonstrate a statewide pattern of Domino’s franchises flouting the law and illegally chiseling at the pay of minimum-wage workers, who struggle to survive as it is,” Schneiderman said in a statement.
From July 2009 to July 2012, the Domino’s in Schenectady paid employees $9.38 per hour of overtime instead of the required $9.88. The store also failed to reimburse delivery workers for work-related vehicle costs.
Schneiderman’s investigation also found that the store did not provide employees with notices of pay rates and failed to keep track of employees’ work that did not involve tips to ensure they earned the minimum wage.
Over the past seven years, the 23 Domino’s stores located in New York City and Dutchess, Erie, Nassau, Rockland, Schenectady, Suffolk and Westchester counties violated labor laws that protect low-wage workers, Schneiderman said.
Franchises admitted to violations of paying some delivery workers less than the $5.65 minimum, according to Schneiderman’s office. Several stores also failed to pay adequate overtime and did not reimburse delivery workers for job-related expenses.
As part of the settlement, workers are expected to get back between $200 and $2,000, depending on their hours, wages and length of employment. Investigations of additional Domino’s franchises are ongoing.