U.S. Department Of Labor Announce Criminal Charges And Civil Settlement Against Papa John’s Franchisee For Wage Theft

From www.restaurantnews.com

Attorney General Eric T. Schneiderman and Administrator for the U.S. Department of Labor’s Wage and Hour Division Dr. David Weil today announced charges against Abdul Jamil Khokhar and BMY Foods, Inc., which together owned and operated nine Papa John’s franchises throughout the Bronx. According to court documents, the owner and company allegedly failed to pay minimum wage and overtime to approximately 300 current and former employees, created fictitious identities to conceal overtime worked by employees, and filed fraudulent quarterly tax returns with New York State in order to cover up their alleged wage theft.

Charges filed by the Attorney General’s Office seek jail time and $230,000 in back wages to Khokar’s current and former employees. Administrator Weil announced the filing of a consent judgment whereby Khokhar would pay an additional $230,000 in liquidated damages to employees and $50,000 in civil monetary penalties.

“My office will not hesitate to criminally prosecute any employer who underpays workers and then tries to cover it up by creating fake names and filing fraudulent tax returns,” said Attorney General Schneiderman. “We will continue to be relentless in pursuing the widespread labor law violations, large and small, which we have found in the fast food industry. And I call on franchisors to stand up and stop the widespread lawlessness plaguing your businesses and harming your hardworking employees.”

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