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New York Papa John's ordered to pay employees nearly $800,000 for wage theft

New York Attorney General Eric T. Schneiderman issued two separate judgments against Papa John's franchisee Emstar Pizza for underpaying employees.

February 5, 2015

New York Attorney General Eric T. Schneiderman issued two separate judgments against Papa John's franchisee Emstar Pizza for underpaying employees, according to a press release issued by the Attorney General's office. The judgment finds operator Emmanuel Onuaguluchi liable for wages owed to hundreds of workers at six New York City stores. Emstar was ordered not to sell assets to avoid paying back wages.

Emstar violated New York labor laws, according to the statement, by underreporting workers' hours, rounding down to the nearest whole number in hours worked, not paying for fractions of hours and neglecting to pay overtime premiums.

Justice Johnny Lee Baynes of the Kings County Supreme Court ordered a payment of $789,507.66 for lost wages, uniform maintenance and liquidated damages and interest to hundreds of former employees who worked for Onuaguluchi the past six years. Justice Baynes ultimately approved a settlement of $541,337.61 that holds Emstar Pizza Inc. and its owner Uchenna Onuaguluchi jointly responsible.

"This judgment sends a clear message that like every other business in New York, fast food employers must follow the law. Depriving workers of their wages or other lawful benefits hurts families and communities, and creates an unfair advantage for employers who don’t play by the rules," Attorney General Schneiderman said in a statement. "This Papa John’s franchisee brazenly violated the law, shaving employees' hours and avoiding paying overtime by various means, including giving managerial-sounding titles such as 'head driver.' We will continue to combat wage theft whenever and wherever we see it to protect the rights of hardworking New Yorkers."