October 17, 2014
A five-unit Papa John’s franchisee has been sued by the New York State attorney general for $2 million. According to Reuters, the AG has accused the franchisee, New Majority Holdings LLG, and owner Ronald Johnson, of wage theft practices, claiming the company underpaid 400 delivery drivers.
New Holdings has five Papa John’s locations in Manhattan. About half of the $2 million is restitution for alleged unpaid wages.
From the story:
"Nobody who works 40 hours a week should have to live in poverty," Attorney General Eric Schneiderman said in a statement. "My office will combat wage theft whenever and wherever we see it in order to protect the rights of hardworking New Yorkers, including pizza delivery workers and others who toil at fast-food restaurants."