By Ross Lenihan
Domino’s famously prides itself on quick delivery at an affordable price. Now, news has leaked that the famous pizza chain may also be great at shaving minutes off its employees’ timesheets. The New York Attorney General has accused the pizza chain of using payroll software to systematically under-calculate wages, accusing Domino’s of having its computers purposefully log fewer hours for employees than they actually work.
"The Pulse system which Domino's required all franchises to use systematically under-calculates workers' wages," A.G. Eric Schneiderman said. "This is widespread, systemic illegality, and it victimizes some of the most vulnerable workers in our state." Worse? Schneiderman says the chain has known about the problem since at least 2007 but done nothing to correct it.
In a classic corporate hustle, Domino’s argues that individual stores (“franchisees”) are solely responsible for payroll for their stores employees. But Schneiderman and legal activists aren’t buying it, arguing that, “Domino's does not only control how many pepperonis are on each pizza, or how fast pizza should be delivered, Domino's exercises over all key aspects of employment relationships.”
The current lawsuit against Domino's involves just over $500,000 but experts say the legal stakes for corporate franchises could be much greater.
Here at Labor 411, we firmly oppose the standard corporate practice of exerting control over franchises when it brings in the big bucks, then claiming cluelessness and a lack of responsibility when it comes to lawsuits and worker protections.
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