AP – Krispy Kreme will pay nearly USD1.2 million in back wages and damages to workers to resolve overtime pay violations under a settlement announced on Thursday by the United States (US) Department of Labor.
The payments will go to 516 workers in multiple locations for what the labour department described as “widespread and systematic” violations.
According to a filing in US District Court, Krispy Kreme hasn’t calculated overtime correctly for its assistant district managers for the last three years. The Department of Labor said Krispy Kreme was supposed to include workers’ bonuses when determining their pay rate but stopped doing that around November 2019.
In a statement, Krispy Kreme said it didn’t agree with the labour department’s findings but agreed to settle the case with no admission of wrongdoing.
The labour department’s Wage and Hour Division opened an investigation at a Krispy Kreme in Louisville, Kentucky, but said it soon expanded its probe to all Krispy Kreme’s 242 US locations.
Charlotte, North Carolina-based Krispy Kreme has around 9,200 employees in the US.
