Hourly Employees at Krispy Kreme to Recover $1.1M Over Unpaid Overtime

Hourly employees at doughnut chain, Krispy Kreme, have recently resolved claims of unpaid wages. A settlement of over $1.1 million will end allegations that Krispy Kreme failed to pay its hourly employees all of their overtime wages under the Fair Labor Standards Act (“FLSA”). More than 500 workers at 242 Krispy Kreme locations nationwide stand to benefit from the $1,187,757 payout.

The Department of Labor launched an investigation into a Louisville, Kentucky location of Krispy Kreme less than a month ago that quickly determined wage violations were widespread and nationwide. The investigation found that Krispy Kreme failed to include all forms of payment when calculating overtime rates. Specifically, monthly bonuses were not taken into account into hourly employees’ regular rates of pay which in turn caused their overtime to paid at a lower rate than required by the FLSA. This federal law requires that hourly employees be paid time and a half their regular rate of pay when working over 40 hours per week. In addition to the back pay agreed in the settlement, the doughnut chain agreed to comply with the FLSA’s overtime provisions going forward.

The food service industry has long been riddled with wage and hour violations. By failing to pay minimum wages correctly, companies unfairly underpay their hard working employees making it more difficult to make ends meet. If you have had a similar experience working in the industry and feel you may be owed wages, speaking to an employment attorney regarding your rights may be helpful. Our employment law firm, Fitapelli & Schaffer, LLP, offers a free and confidential consultation to help determine if you might have a potential claim. You can reach us at (212)300-0375 or visit our website for additional information.