Krispy Kreme agrees to pay more than $1.1 million to 516 workers for overtime pay violations

Krispy Kreme has agreed to pay $1,187,757 in back wages and liquidated damages to 516 workers to resolve overtime violations in multiple locations as the result of an investigation by the Department of Labor.

It was determined that Krispy Kreme failed to include monthly bonuses in some employees’ regular pay rates, subsequently paying overtime rates that were lower than required by the Fair Labor Standards Act.

The department’s Wage and Hour Division first opened an investigation at a Krispy Kreme location in Louisville, Kentucky. After some time, the department found that violations were widespread throughout the company.

The investigation was then expanded to include all the Charlotte, North Carolina-based company’s 242 locations nationwide.

“Overtime and minimum wage violations are common violations found in food service industry investigations,” explained Principal Deputy Wage and Hour Administrator Jessica Looman. “Employers who fail in their obligation to pay minimum wage and overtime wages as the law requires make it harder for workers and their families to make ends meet. The Wage and Hour Division works diligently to inform employers of their obligations and protect the workplace rights of food service workers.”

On Nov. 7, the department filed a complaint listing the violations and a consent order defining the settlement in the U.S. District Court for the Western District of Kentucky.