LOUISVILLE, Ky. Local Charlotte — Krispy Kreme Doughnut Corp. has agreed to pay more than $1.1 million in back wages and liquidated damages to 516 workers to resolve overtime violations in multiple locations.
The agreement to pay $1,187,757 is part of a U.S. Department of Labor investigation in which the federal agency filed a complaint listing the violations and a consent order defining the settlement in the U.S. District Court for the Western District of Kentucky.
The department Wage and Hour Division first opened an investigation at a Krispy Kreme store in Louisville, Kentucky, but soon determined violations found there were widespread and systemic, according to a Thursday news release from the Labor Department.
The division then expanded its probe to include all the Charlotte-based company’s 242 locations nationwide.
Investigators found the company failed to include monthly bonuses in some employees’ pay rates. By doing the, the employer paid overtime at lower rates than the Fair Labor Standards Act (FLSA) requires, the release states.
As part of the court order, Krispy Kreme agreed to future compliance with the FLSA’s overtime provision.
“Overtime and minimum wage violations are common violations found in food service industry investigations,” explained Principal Deputy Wage and Hour Administrator Jessica Looman. “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. The Wage and Hour Division works diligently to inform employers of their obligations and protect the workplace rights of food service workers.”
Established in 1937 in Winston-Salem, Krispy Kreme Doughnut Corp. employs around 9,200 workers across the U.S. The company operates in more than 30 countries.
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