The New York Attorney General's office sued Domino's Pizza for wage theft and using a computer system that under-calculated workers' pay. Bobbi Rebell reports.
Domino's Pizza and three of its franchisees where it managed workers could be forced to pay up a lot of dough. New York Attorney General Eric Schneiderman is suing them for wage theft. The claim: that the company knowingly used a computer system that under-calculated workers' pay. (SOUNDBITE) NEW YORK ATTORNEY GENERAL ERIC SCHNEIDERMAN, (ENGLISH) SAYING: "Domino's not only cheated workers, and enabled the cheating of workers by their franchises. They also defrauded their own franchises with misrepresentations about the software. They required the franchises to use flawed software that Domino's knew to be flawed." Schneiderman said, employees were underpaid a total of $565,000. The significance here - the corporation - Domino's is on the hook - not just the franchisees. And this lawsuit comes as another fast food chain, McDonald's, is also facing claims that it's liable for various labor violations because of the degree of control it exerts over franchises. A Domino's spokesperson responded that franchisees are solely responsible for hiring, firing and paying their employees. But it added that the company has worked with Schneiderman's office and franchisees to ensure employees are paid properly. The International Franchise Association released a statement saying quote "This is a blatant attempt to pay back special interests who have spent tens of millions of dollars attacking franchising as they have unsuccessfully sought to organize employees." Since 2014, the New York AG's office has settled cases with 12 other Domino's franchisees who had been accused of depriving workers of minimum wage and overtime pay.