The operator of international doughnut and coffee chain Dunkin Donuts in the New Jersey area were cited for labor violations for inadequately compensating employees for time and attendance, according to the Princeton Patch. In total, the operator Edison, N.J.-based QSR Management erroneously classified 56 managers as exempt workers because they received a salary.

Consequently, QSR witheld all overtime payments, which the U.S. Labor Department's Wage and Hour Division found to be in violation of the Fair Labor Standards Act. As a result, the company owes 64 total workers more than $197,000 in back pay. In fact, the operator treated the workers as hourly employees and penalized managers who worked fewer than 60 hours per week, according to New Jersey Today, a local newspaper.

Moreover, QSR management used tips allocated to hourly workers to balance register shortages, which, in effect, garnished employee wages. The source indicated the Dunkin Donut managers required to meet the standards that qualified them for overtime wages but never received compensation. As a result of the litigation, QSR has agreed to abide by time and attendance regulations.

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