New York is suing Domino’s and three of its franchises for wage theft and for under-paying workers at least $565,000 in 10 stores in the New York metropolitan area. The class action suit was filed by New York Attorney General Eric Schneiderman, and claims that Domino’s corporate should be held responsible because the company closely oversaw the hiring, firing, and job performance of franchisees and employees.
Schneiderman claimed that Domino’s urged franchisees to use a computer system for calculating wages that was known for grossly underestimating numbers, and Domino’s corporate put a “low priority” on fixing the system. The investigation found that the faulty system, known as PULSE, was used nationwide resulting in similar wage theft issues in other franchises.
“At some point, a company has to take responsibility for its actions and for its workers’ well-being," Schneiderman said in a 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.”
When asked for comment, Domino’s sent a letter to USA Today that was sent to Schneiderman in March, offering to pay compensation to employees who were shortchanged.
"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 statement.