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New York Papa John’s Franchises to Settle Unfair Wages Case

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

Date: 11/01/2015 | Category: General | No comments

 

Papa John’s franchise owners in New York City will have to pay about half a million to settle allegations of paying their workers unfair wages. 

According to an official announcement from the attorney general and the U.S. Labor Department, four Papa John’s pizza franchise owners will have to pay about 250 workers from nine restaurants located in Queens, Brooklyn, and The Bronx. The current and past employees involved in the lawsuit will receive about $2,000 each.

The Attorney General believes that this could be the first in many similar lawsuits related to unfair wages at fast food chains. According to a UPI news report, the New York State Attorney General is calling upon all fast food companies and franchise owners to stop the “widespread lawlessness plaguing” the industry.

Papa John’s International Inc. was able to stay out of the lawsuit, but the four franchisees will have to pay up. One franchise owner charged with cheating his employees out of fair wages will have to serve 60 days in jail and pay $230,000 in back wages. It’s unclear from the report if other local franchise owners will face jail time as well.

Franchise owners tend to follow the practices of the parent franchise company. This means that most individual franchises abide by the same rules and practices. When a handful of franchises get cited for unlawful behavior, it could mean more franchise owners will face similar charges.

If you own a franchise and you pay your employees near the minimum wage, you may want to take preventive measures by discussing your legal options with a New York City business attorney. By planning ahead and making sure that your actions are legal, you can protect your business, and avoid costly litigation.

A New York City franchise attorney can help you start, build, and maintain your business. Your lawyer can also make sure that you’re safe from litigation from your employees. Don’t hesitate to make sure your business and future are safe.

 

Source: http://www.upi.com/Business_News/2015/10/17/Papa-Johns-franchises-to-pay-500k-in-wage-theft-settlement/2141445108710/   

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