The Attorney General of New York, Eric Schneiderman, has filed a wage-theft lawsuit against Domino’s Pizza. The suit alleges that the computer system used by the franchiser consistently undercounted hours worked by employees, thereby cheating employees of earned pay.
Since 2011, Mr. Schneiderman has secured more than $26 million for almost 20,000 workers who were bilked of wages. But unlike past cases, this one directly targets the corporate franchiser. If the state wins, Mr. Schneiderman hopes the case sets a precedent that makes it harder for corporations that run franchise businesses to avoid responsibility for the actions taken by the stores under their corporate umbrella.
“Wage theft is an epidemic causing harm to low-wage workers struggling to support their families every single day,” Mr. Schneiderman said in a statement.
A new twist in this case is that Attorney General Schneiderman has sued Domino’s Pizza L.L.C., instead of individual franchise owners. The suit alleges that the franchisees were forced to use the accounting system even though they were aware that it was flawed.