Dollars to doughnuts: Krispy Kreme to pay more than $1.1M to 516 workers

U.S. Department of Labor found systemic overtime violations

Louisville, KY – Krispy Kreme Doughnut Corp. has agreed to pay $1,187,757 in back wages and liquidated damages to 516 workers to resolve overtime violations in multiple locations found as part of a U.S. Department of Labor investigation.

On Nov. 7, the department 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’s Wage and Hour Division first opened an investigation at a Krispy Kreme location in Louisville, Ky., but soon determined violations found there were widespread and systemic. The division then expanded its probe to include all the Charlotte, N.C.-based company’s 242 locations nationwide.

Investigators determined Krispy Kreme failed to include monthly bonuses in some employees’ regular rates of pay. By doing so, the employer paid overtime at lower rates than the Fair Labor Standards Act requires. As part of the court order, Krispy Kreme agreed to future compliance with the FLSA’s overtime provision.

COMMON VIOLATIONS IN FOOD SERVICE
“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 and headquartered in Charlotte, N.C., Krispy Kreme Doughnut Corp. employs approximately 9,200 workers nationwide. The company’s network of retail doughnut shops, partnerships with third-party retailers, e-commerce and delivery services operates in more than 30 countries.