The U.S. Department of Labor has obtained a consent judgment in federal court requiring the operators of five pizza restaurants in Illinois and Indiana to pay $250,000 in back wages and damages for 35 restaurant and delivery employees who were cheated out of their overtime.
The judgment in this wage theft case follows an examination by the Department of Labor’s Wage and Hour Division of the companies’ pay practices. Department of Labor investigators found the employers misclassified delivery drivers as independent contractors, even though store management controlled their hours and assigned tasks. They also determined the employers failed to pay some workers’ overtime wages at time and one-half their regular rate of pay for hours over 40 in a workweek, incorrectly categorized some management employees as exempt from overtime, and failed to maintain adequate pay records. These actions violated the Fair Labor Standards Act.
“A federal court has agreed with our finding that these Rosati’s franchises must pay 35 employees fully for their hard work, and as the law requires,” said a Department of Labor spokesperson.“Employers who fail to understand wage laws that apply to individual employees may find there are costly consequences for not complying with the law.”
If you believe you are victim of wage theft, please contact the attorneys at Pechman Law Group at 212-583-9500. We have recovered over 20 million dollars on behalf of workers who have been cheated out of their overtime or have been subjected to other unlawful pay practices.