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Papa John’s stores to pay $500,000 wage theft settlement

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LauraClawsonNew York Attorney General Eric Schneiderman keeps cracking down on wage theft, and around 250 workers will be sharing in a nearly $500,000 settlement from four current and former Papa John’s franchisees.

“Once again, we’ve found Papa John’s franchises in New York that are ripping off their workers and violating critical state and federal laws,” New York Attorney General Eric Schneiderman said in a statement. “Once again, I call on Papa John’s and other fast food companies to step up and stop the widespread lawlessness plaguing your businesses and harming the workers who make and deliver your food.”

Though it often isn’t treated this way, it actually is illegal to fail to pay minimum wage or overtime, to make people work off the clock, to force workers being paid at the tipped worker subminimum wage to do non-tipped work, and a disturbing list of other ways businesses have found to keep money that workers have earned. And about that “once again”:

In July, the attorney general’s office arrested Abdul Jamil Khokhar, owner of nine Papa John’s stores in New York, accusing him of breaking minimum wage and overtime laws. According to his plea agreement, Khokhar could serve up to 60 days in jail. In another case, the attorney general’s office secured a judgment of nearly $3 million against two other Papa John’s franchisees.

So while the workers were technically employed by—and cheated by—the franchisees, at a certain point you see a pattern and start to think maybe the parent company has something to do with it. That’s one of the reasons the National Labor Relations Board pushed to treat some fast food chains as joint employers responsible for working conditions in franchise restaurants.

In 2013, a report from Fast Food Forward found 84 percent of New York City fast food workers reporting that they’d been victims of wage theft. Fully 100 percent of fast food delivery workers said the same. Schneiderman’s efforts to crack down have also led to settlements at franchises of other chains, including Domino’s and McDonald’s.

This blog was originally posted on Daily Kos on October 17, 2015. Reprinted with permission.

About the Author: The author’s name is Laura Clawson. Laura has been a Daily Kos contributing editor since December 2006  and Labor editor since 2011.


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Broward Is Second Florida County to Address Wage Theft

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Kenneth Quinnell

This week, Broward County—one of the most populous counties in South Florida—became the second county in the state to pass a local wage theft ordinance, joining Miami-Dade County. In a 7-2 vote, the Board of County Commissioners voted to create the new law to deal with a significant and growing problem in Florida. Wage theft occurs when workers are not paid overtime, not paid at least the minimum wage, are forced to work off the clock or are not paid at all for work they have completed.

“I was at the meeting yesterday asking commissioners to vote yes for the ordinance, speaking on behalf of my close friends who are victims of wage theft in our county and haven’t been able to recover their wages after months of effort,” says Maria Isabel Fernandez, a resident of Dania Beach in Broward County. “I was thrilled when the ordinance passed! It may be too late for my friends, but it will help other people like them in the future who will now have the possibility of recovering the salaries they earned through their work without having to hire a lawyer and wait months without any income.”

Florida is considered one of the worst states in the country for wage theft, and Broward County is the third worst county in the state. Nearly 5,000 wage theft cases have been reported in Broward in the past three years, totaling more than $2 million in back wages. More than $28 million in unpaid wages have been recovered in Florida. Miami-Dade created a similar ordinance in 2010 and has recovered more than half a million dollars in unpaid wages in that county alone.

Several factors contribute to the problem. Florida does not have a state-level Department of Labor, has a high percentage of workers who are not covered by federal wage and hour laws and has a legislature that is openly hostile to wage theft laws, so much so that it recently tried to ban such laws at the local level.

Cynthia Hernandez of the Research Institute on Social and Economic Policy at Florida International University says:

Policymakers need to consider the ramifications of Florida becoming a glaring example of a state that tolerates and even encourages wage violations. Broward County and Miami-Dade’s wage theft ordinances are examples of good government policy addressing this growing issue. These ordinances are critical to maintaining a fairly competitive business environment so critical to Florida’s economy.

Alachua County, where Gainesville and the University of Florida reside, is considering becoming the third county to pass a wage theft ordinance. For more information or to report wage theft in Florida, contact the Florida Wage Theft Task Force.

This post was originally posted on AFL-CIO NOW on Monday, October 29, 2012. Reprinted with permission.

About the Author: Kenneth Quinnell is is senior writer for AFL-CIO. He is originally from Florida and is the father of three sons. He can be reached at [email protected]


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