Krispy Kreme has joined a long list of corporations that have been reprimanded for failing to pay their staff correctly.
The breakfast chain, known for its cherished Krispy Kreme Doughnuts, has been ordered to fork over $1,187,757.69 in back wages and damages to 516 workers for failing to pay them overtime. The U.S. Department of Labor announced the verdict on Thursday following a November 7th complaint.
In that filing, the DOL claimed Krispy Kreme did not properly calculate overtime for its district managers. This resulted in monthly bonuses never being paid and overtime compensation not being correctly computed to employees’ paychecks. The investigation quickly looked into all 242 locations in the United States.
Half of the settlement will be paid as back wages, and the balance will go towards damages outlined in the November injunction. Several employees are set to receive thousands.
Jessica Looman, the Wage and Hour Division’s principal deputy administrator, revealed that, sadly, overtime violations are common within the food industry.
“Employers who fail in their obligation to pay minimum wage and overtime wages as the law requires make it harder for workers and their families to make ends meet,” Looman shared in a statement.
Krispy Kreme said they did not agree with the department’s findings and maintained that they didn’t swindle any employees out of their salary. However, they agreed to settle the matter but would not admit to any wrongdoing.