New York State suing Domino's for wage shorting

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PostPosted: Tue May 24, 2016 6:44 pm
http://www.msn.com/en-us/money/companie ... OCID=HPDHP


U.S. fast food giant Domino's Pizza and three of its franchises could be required to pay employees a lot of dough if a newly filed New York lawsuit succeeds.

The nation's largest pizza delivery company and three of its franchisees underpaid workers at least $565,000 at ten New York-based stores, the state's top legal official alleged in a court action set to be formally announced Tuesday.

Filed by New York Attorney General Eric Schneiderman, the lawsuit charges that Domino's itself should be legally deemed a joint employer of workers at the 10 franchise locations because the company played an active role in hiring, firing and disciplining store staffers and closely monitored job performance.

The company's oversight included requirements for employees, attire, appearance and grooming, including restrictions on the diameter of earrings and color of undershirts, an investigation by Schneiderman's staff found.

Domino's urged franchise operators to use the company's "PULSE" computer system even though executives knew the system had under-calculated gross wages for years, the investigation found. Domino's decided not to fix the flaw, treating the issue as a "low priority," the investigation also concluded.

The allegations mark the latest legal attack by Schneiderman's office on companies suspected of underpaying low-wage workers, and his first effort to hold a corporate franchise legally responsible along with individual franchisees.

“At some point, a company has to take responsibility for its actions and for its workers’ well-being," Schneiderman said in a formal statement. “Under these circumstances, New York law — as well as basic human decency — holds Domino’s responsible for the alleged mistreatment of the workers who make and deliver the company’s pizzas, and it is incumbent upon Domino’s to fix the problems.”

Asked for comment, Domino's released copies of a March 18 letter to Schneiderman's office that included a proposal for paying restitution to employees who were underpaid by the company's franchises. The proposal also included measures to prevent future violations.

However, drawing a distinction between the company and its franchisees, the letter said Domino's made the proposal in an effort to find solutions, "rather than because of any direct or vicarious obligation to do so."

"We were disappointed to learn that the Attorney General chose to file a lawsuit that disregards the nature of franchising and demeans the role of small business owners instead of focusing on solutions that could have actually helped the individuals those small businesses employ," Domino's spokesman Tim McIntyre said in a company statement.

Ann Arbor, Michigan-based Domino's is the world's second-largest pizza restaurant chain, behind Pizza Hut. The company operates roughly 12,500 stores in more than 80 countries, including the U.S. According to the company's data, franchise owners, including 850 in the U.S. account for 97% of all Domino's locations.


The alleged legal violations at the New York stores varied, the lawsuit said, but included:
--Paying workers less than the legal minimum wage rate.
--Failing to pay all overtime required by law.
--Neglecting to reimburse workers fully for costs related to use of their motor vehicles or bicycles for deliveries.


The lawsuit seeks an accounting to calculate how much restitution is owed to workers at the locations and a court finding that Domino's is a joint employer of workers at those stores. Additionally, the lawsuit seeks a finding that Domino's defrauded franchise owners and violated state law, as well as appointment of a monitor to oversee the company's future compliance.

The New York Attorney General's office previously settled similar cases with 12 Domino's franchisees who collectively own 61 stores. They have agreed to pay approximately $1.5 million to date, Schneiderman said.

Additionally, Schneiderman and the U.S. Department of Labor in October announced that four Papa John's Pizza franchisees in New York would pay nearly $500,000 in back wages and damages to more than 250 workers who were improperly short-changed on pay day.



WOW a fucked up for years POS system. Who would have thought that was a possibility???? (please note sarcasm)

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PostPosted: Wed May 25, 2016 1:37 am
Good find Racket_man, did you post it elsewhere?

I hope that the ruling, on whether or not the franchisor will be deemed a joint employer, is in favor of the franchisor being a joint employer. That alone will be a huge win for the employees. I also hope this law enforcement officer prevails in addressing these many issues. It is nice to see at least one state's law enforcement go after these employers.
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PostPosted: Wed May 25, 2016 11:19 am
The highlighted part in red actually concerns me, since I was with Dominos for four years. I never had any reason to suspect they were shorting me, since the hours were about what I worked...maybe the part about on the road vs inside was off? Either way, its a good bet if pulse was screwing one area, it was screwing all equally.

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PostPosted: Fri May 27, 2016 2:01 am
tompace wrote:The highlighted part in red actually concerns me, since I was with Dominos for four years. I never had any reason to suspect they were shorting me, since the hours were about what I worked...maybe the part about on the road vs inside was off? Either way, its a good bet if pulse was screwing one area, it was screwing all equally.


Might this be something to raise with your attorney? Have your attorney contact the NY Attorney General's office?
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PostPosted: Sat May 28, 2016 3:37 am
AND people at my store wonder why I ALWAYS print out my detail payroll report at the end of EVERY pay period. I also print out my daily shift run detail also. Not that I have had a problem BUT I have printed records just in case. No I do not work for Domino's.

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PostPosted: Sat May 28, 2016 6:33 pm
But that's the problem racket man...the same system that you are printing out your report from is what is being accused of shorting the drivers. I took pictures of mine, rather than print it out, and kept detailed records from the system for the last 2ish years I worked there, but if the data is flawed, then my records are also flawed.

With Dominos, the PULSE system is the POS, the back office, the makeline, the dispatch, all of it.

And yeah Elric, I'm forwarding this to my lawyer, so that he can look into it as well.

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PostPosted: Sun May 29, 2016 4:17 am
tompace wrote:But that's the problem racket man...the same system that you are printing out your report from is what is being accused of shorting the drivers. I took pictures of mine, rather than print it out, and kept detailed records from the system for the last 2ish years I worked there, but if the data is flawed, then my records are also flawed.

With Dominos, the PULSE system is the POS, the back office, the makeline, the dispatch, all of it.

And yeah Elric, I'm forwarding this to my lawyer, so that he can look into it as well.


GREAT!! I mean fucking GREAT!!

Do you have any idea how mush of a change you can make for the entire industry (meaning the drivers) if you can bring the franchisor in to the lawsuit? You would have a much bigger pocket to delve into if you can prove that they were/are a co-employer. You won't have to settle (but you probably will) for a bare minimum settlement. You could change the game in our favor with a favorable ruling (not trying to put this all on you, but I AM!! :lol: )
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PostPosted: Sun May 29, 2016 9:06 pm
I got in touch with Mr. McInnes and informed him of the gist of this article as well as providing a link...he said they would look into it :D
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