Papa Johns worker hands out pizzas in response to Washington D.C. Papa Johns promotion in which Cavaliers James was shown on shirts as cry baby in Lakewood
Photograph by Aaron Josefczyk — Reuters

Papa John’s franchise ordered to pay $2 million to N.Y. pizza deliverers

Mar 05, 2015

(Reuters) - A New York judge ordered a Papa John's pizza restaurant franchise and its owner to fork over more than $2 million after short-changing hundreds of delivery workers and shaving hours from their paychecks, prosecutors said on Thursday.

The judgment comes amid a national debate over minimum wage laws that has sparked protests by fast-food employees and prompted cities across the United States to propose wage increases for their lowest-paid workers.

"I call on all fast food franchisors, including Papa John's, to take steps necessary to ensure that their workers - the backbone of their business - are treated fairly and paid the wages the law requires," New York Attorney General Eric Schneiderman said in a statement.

Schneiderman last October sued the Papa John's International franchisee, New Majority Holdings, and its owner, Ronald Johnson, who owns five of the pizza restaurants in the Harlem section of Manhattan.

In a judgment filed on Tuesday, New York County Supreme Court Justice Joan Kenney ordered the business to pay employees a little more than $2.1 million in back wages, unreimbursed expenses, damages and interest.

Earlier this year, Schneiderman obtained a nearly $800,000 judgment against the operator of another Papa John's franchisee, Emstar Pizza, Inc.

His office has also reached several out-of-court settlements with other fast-food franchises, including Domino's Pizza Inc and McDonald's Corp restaurants, over worker wages and employment conditions.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions