Domino's Pizza franchisees paying to settle wage issues

Six Domino's Pizza franchisees in New York State, Six Domino's Pizza franchisees in New York State, including two on Long Island, will pay a total of $448,000 to settle charges by state Attorney General Eric T. Schneiderman that they underpaid workers. Photo Credit: Getty Images / Joe Raedle

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Six Domino's Pizza franchisees in New York State, including two on Long Island, will pay a total of $448,000 to settle charges by state Attorney General Eric T. Schneiderman that they underpaid workers, his office  announced Thursday.

The settlement covers 23 locations, about half on Long Island, and about 750 employees, about a third on Long Island, the attorney general's office said. The wide-ranging allegations include violating overtime and minimum-wage laws and failing to reimburse delivery drivers for all their delivery expenses. Most of the workers will receive $200 to $2,000 as part of the settlement, the office said.

Franchise owner Christopher Hanley, who has locations in Sayville, Centereach, Patchogue, Holbrook, Stony Brook and Coram, agreed to pay $122,000. Yash Sharma, who owns five restaurants -- two in Hicksville and one each in Bethpage, Glen Cove and Carle Place -- agreed to pay $65,000.

Hanley could not be reached for comment. Sharma declined to comment. A spokesman for Ann Arbor, Mich.-based Domino's, noting that the franchises are independent businesses, also declined to comment.

The attorney general alleged that from July 2006 to July 2012, Hanley failed to pay his delivery workers minimum wage, among other charges. The office also alleged he failed to reimburse drivers for their costs to deliver pizza such as gas and insurance, as required under state law pertaining to delivery workers in the hospitality industry, and instead used a flat fee or percentage of the dollar amount of the food delivered.

Sharma faced similar allegations, including failing to pay overtime to workers who logged more than 45 hours a week.

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"The violations in these cases demonstrate a statewide pattern of Domino's franchises flouting the law and illegally chiseling at the pay of minimum wage workers, who struggle to survive," Schneiderman said in a statement.

The settlements are the third to come out of the agency's fast-food industry investigations, the office said. Last week the attorney general announced a $500,000 settlement with a McDonald's franchisee in New York City.

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