“Daily News: AG Eric Schneiderman Forces NYC Papa John’s Franchises to Dish up $172G Over Labor Law Violation”
January 8, 2018
As published by The New York Daily News, on January 5, 2018.
State Attorney General Eric Schneiderman on Friday continued to slice up Papa John’s franchises for cheating workers out of wages.
Schneiderman announced that Sandeep Singh, who owned three Papa John’s franchises in Brooklyn, has agreed to pay $171,895 to more than 100 workers who were cheated out of wages.
Singh, according Schneiderman, failed to pay workers overtime or extra pay for shifts longer than 10 hours. He also did not reimburse employees for the cost of their uniforms.
“Today’s settlement underscores a shameful track record of New York Papa John’s franchisees cheating vulnerable workers to line their own pockets,” Schneiderman said, noting that his office has obtained more than $4.5 million in back wages and penalties from Papa John’s franchises.
Papa John’s International, in a statement Friday, distanced itself from the actions of its franchise owners.
“As a company, Papa John’s believes that all of its team members should be fairly compensated in accordance with the law,” the company said. “Papa John’s does not control or dictate independent franchisees’ employment activities, including the hiring, firing, and compensation of their employees. Papa John’s does not operate any corporate restaurants in the State of New York.”
Singh operates franchises at 1016 Coney Island Avenue and 5804 5th Avenue in Brooklyn. A third store at 1612 Neptune Avenue has since closed.
As part of the settlement, Singh also agreed to provide handbooks to employees, train supervisors on labor law, post a statement of employees’ rights, and submit quarterly reports to Schneiderman’s office.