Pizza Chain Settles Unpaid Overtime Lawsuit with Labor Department

Massachusetts Pizza Chain Settles Unpaid Overtime Action with Labor Department for Almost $600,000

BOSTON — The U.S. Department of Labor’s Wage and Hour Division recently announced a significant settlement with a Massachusetts pizza chain that will resolve wage theft allegations against dozens of current and former employees by paying back the workers’ rightfully earned income. An estimated 73 employees will share in the $584,000 settlement to end the investigation into whether or not the defendant, Golden Pizza, defrauded scores of employees across is suburban Boston locations in Worcester, Shrewsbury, and Auburn.

According to the unpaid overtime lawsuit, filed in U.S. District Court for the District of Massachusetts, Golden Pizza failed to comply with several provisions of the Fair Labor Standards Act (FLSA), including overtime pay and accurate recordkeeping, from July 1, 2013 and July 31, 2016. The Labor Department’s press release also notes the defendant was previously investigated two other in 2011 over other violations of the FLSA for not paying workers one and a half times their regular hourly wage for overtime hours.

“This agreement recovers back wages for the workers who earned them. Golden Pizza’s prompt payment and agreement to a consent judgment ensures that its employees will receive all the wages they are due now, and in the future,” said Carlos Matos, director of the Division’s Boston District Office. “Unfortunately, overtime and recordkeeping violations are not uncommon. Employers are obligated to comply with the Fair Labor Standards Act, and are encouraged to contact us with any questions they may have.”

The settlement will pay the workers $292,016 in back wages and an equal amount in liquidated damages as compensation for the defendant’s unwillingness to comply with federal wage protections. Under the FLSA, employers must pay workers at least one and a half times the individual’s average hourly wage for time spent on the job above 40-hour overtime threshold. Hopefully, this latest action will compel the defendant and other companies to properly compensate workers for all their hard work to provide for themselves and loved ones.

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