Domino’s Franchisees Agree to Repay $480,000 in Stolen Wages

10 Domino’s locations in New York have settled a May 2016 lawsuit that alleged numerous labor violations

The franchisees have been dropped from the lawsuit, and only the parent company remains.

Last May, the state of New York sued Domino’s for wage theft, and this past week the 3 franchisees and 10 total takeout restaurants settled for $480,000 in back wages. New York Attorney General Eric T. Schneiderman announced that as part of the settlement, the three franchisees would be dropped from the case, with only the Domino’s parent company remaining.

The missing wages were the result of a faulty computer system that was known for grossly underestimating hourly wages. In May, when the lawsuit was first filed, Domino’s offered to pay the missing wages, but it took nearly a year for the terms to be settled.

"In the past three years, my office's investigations have revealed a consistent and outrageous record of disregard for workers' rights by franchisees, and as we allege, with the full knowledge of Domino’s Pizza,” Schneiderman said in a statement. "My office will continue with our lawsuit against Domino's Pizza to end the systemic violations of workers' rights that have occurred in franchises across the state. We will not allow businesses to turn a blind eye to blatant violations that are cheating hard working New Yorkers out of a fair day’s pay.”


This is not the only time Domino’s has been caught shortchanging employees. In 2014, franchise workers, who were underpaid based on purposefully miscalculated working hours, settled a $1.28 million lawsuit.