A New York Papa John’s franchisee must pay more than $2 million to workers as part of a judgment resolving charges that the company underpaid hundreds of delivery workers at five Harlem-area restaurants.

New York Attorney General Eric Schneiderman announced the judgment Thursday resolving a lawsuit and investigation into the pay practices of New Majority Holdings, LLC and its owner and operator.

A lawsuit filed against New Majority by Schneiderman’s office last year claimed the franchisee violated New York Labor law by rounding down workers’ hours to the nearest whole hour increment; failing to pay legally required overtime premiums; paying delivery workers the lower, “tipped” minimum wage, even though they were assigned to a substantial amount of untipped kitchen and other wooers; and failed to reimburse employees for the costs of purchasing and maintaining bicycles used to make deliveries.

This week’s judgment settles those charges and requires New Majority to pay workers $2,126,166.34 in owed wages, unreimbursed expenses, liquidated damages, and interest.

“We will continue to investigate wage and hour violations in the fast food industry,” Schneiderman said in a statement. “More broadly, franchisors need to step up to the plate. I call on all fast food franchisors, including Papa John’s, to take steps necessary to ensure that their workers — the backbone of their business — are treated fairly and paid the wages the law requires.”

Schneiderman’s office has delved into worker pay issues frequently in recent years.

Last October, the AG announced a judgment against a separate Papa John’s franchisee – Emstar Pizza, Inc. – in which the company would had to pay $800,000 for unfair pay practices.

In March 2014, the office reached a $500,000 agreement with several McDonald’s locations for failing to pay legally required laundry allowances for many employees, for uncompensated work time and for unlawful deductions from wages.

A.G. Schneiderman Obtains Judgment For More Than $2 Million Against Papa John’s Franchisee That Underpaid Employees [New York Attorney General Eric Schneiderman]

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