Krispy Kreme to pay over $1.1 million in back wages

Investigations had revealed that the doughnut company had not paid its workers what was due to them in terms of overtime and had been accused of wage theft

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About 516 workers of Krispy Kreme will receive over $1.1 million in back wages and damages. Federal investigations have brought to light what has been called a case of ‘widespread and systemic’ wage theft across the hundreds of stores of Krispy Kreme.

The employees in question had not been paid for working overtime. It is reported that the Company did not take into account the monthly bonuses of these workers while paying them for extra hours of work.

While the Company denies having broken any laws, it also commits to paying fair wages. It has agreed to settle the matter without admitting to having violated any minimum wage or overtime rules.

According to the agreement, some employees will end up receiving over $13,000! The doughtnut brand will shell out about $1.1 million in settlement to the workers who reclaimed the overtime pay that had been due to them.

The violation of law had been noticed at a Kentucky store of Krispy Kreme, but on further investigation it was found that the issue was more widespread than was expected.

As per the Fair Labour Standards Act, Per the Act, the federal minimum wage for full-time workers is $7.25, and minimum overtime pay is 1.5 times that amount, about $10.88.

It is pertinent to mention here that the doughnut brand had announced the closure of many stores across the US due to dipping profits not long ago.

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