A Papa John’s franchise owner faces jail time and $500,000 in back pay

By Benjamin SnyderManaging Editor
Benjamin SnyderManaging Editor

Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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
Papa Johns worker Kemal Velagig hands out pizzas for a Cleveland area promotion for $.23 pizzas in response to a Washington D.C. Papa Johns promotion in which Cleveland Cavaliers LeBron James was shown on shirts as a "cry baby" in Lakewood, Ohio, May 8, 2008. Papa Johns donated all proceeds to charity. REUTERS/Aaron Josefczyk (UNITED STATES) - RTX5HTF
Photograph by Aaron Josefczyk — Reuters

A New York Papa John’s franchise owner and his company are in big, big trouble. The franchise owner, Abdul Jamil Khokhar, has been accused by New York prosecutors over not paying employees minimum wage and overtime.

He’s facing backpay of $500,000 along with the potential for jail time as well. Meanwhile, BMY Foods, which owns nine Papa John’s franchises in the Bronx with Khokhar, was charged Wednesday by the New York Attorney General Eric Schneiderman and the U.S. Department of Labor. Over 300 current and former employees have been impacted by the lack of proper wages paid to them, Consumerist reported.

“My office will not hesitate to criminally prosecute any employer who underpays workers and then tries to cover it up by creating fake names and filing fraudulent tax returns,” said Attorney General Schneiderman in a statement. “We will continue to be relentless in pursuing the widespread labor law violations, large and small, which we have found in the fast food industry. And I call on franchisors to stand up and stop the widespread lawlessness plaguing your businesses and harming your hardworking employees.”

“This judgment should be a wake-up call for all employers who think they can break the law, not pay their workers, cover it up and get away with it,” according to David Weil, the administrator for the U.S. Department of Labor’s Wage and Hour Division, in a statement.

This isn’t even the first time this year that Papa Johns’s franchise owners have found themselves in trouble. In February and March, the Attorney General charged two other franchisees for violating wage laws.