The U.S. Labor Department says the operator of 55 Dunkin' Donuts franchises throughout New Jersey and on Staten Island will pay nearly $200,000 in back wages to 64 employees for overtime and minimum wage violations.
Federal officials say Edison, N.J.-based QSR Management wrongly claimed its store managers were exempt from overtime. Though the employees performed management duties, they did not receive a guaranteed weekly salary, entitling them to overtime pay.
An overtime exemption applies only if managers receive a guaranteed weekly salary of at least $455. Dunkin' Donuts managers would have their pay reduced when they worked less than 60 hours.
Investigators also found management used tips at two locations to cover register shortages. The action resulted in minimum wage violations of $237 for eight employees.
QSR has agreed to comply with all overtime and wage requirements.