A company that owns 55 Dunkin’ Donuts stores in New Jersey and New York underpaid their employees and violated the federal Fair Labor Standards Act, officials with the U.S. Labor Department’s Wage and Hour Division announced Monday, August 26, 2013
The company, QSR incorrectly claimed their managers at all 55 locations were exempt from overtime andm as a result of the violations, 56 non-exempt store managers will be paid a total of $197,550 in back wages, the Labor Department said in a statement.
Investigators also found that at two locations management, took tips from customer service workers to cover register shortages, resulting in minimum wage violations of $237 for eight employees.
QSR argued that their managers were salaried employees – and thus exempt from being paid overtime – but the company otherwise treated them as hourly employees, the statement said, a violation of the Fair Labor Standards Act.
Although the Fair Labor Standards Act allows an overtime exemption for management employees who perform certain job duties, the exemption only applies if the managers receive a guaranteed weekly salary of at least $455.