Florida pizza franchisee pays workers over $370,000 for labor rights violations

PDQ Pizza, a franchisee operating out of Melbourne, Florida, as Domino's Pizza, recently agreed to pay 401 employees working at 19 locations $371,675 in back wages for overtime, minimum wage and recordkeeping violations of the Fair Labor Standards Act (FLSA). The company has also promised to bring its payroll practices into compliance to avoid future violations.

According to an investigation conducted by the Department of Labor's Wage and Hour Division, the employer was not correctly compensating its tipped employees or paying them all the wages earned for overtime. Moreover, the division found PDQ Pizza was making illegal deductions from employees' paychecks to cover uniform costs.

The FLSA maintains that while it's not illegal for employers to require uniforms on the job, they can't obligate workers to purchase them out of pocket if it causes employees' earnings to fall below minimum wage. Moreover, businesses that staff both tipped and non-tipped employees must make sure their timekeeping systems can accurately calculate wages that reflect each position's earnings. Servers' tips count towards their minimum wage, while bussers or hosts who do not receive gratuity typically receive a standard hourly rate.

Advanced payroll processing systems can help companies track employee attendance for workers in various positions and generate paychecks that accurately represent their earnings.