Krispy Kreme will pay nearly $1.2 million to hundreds of workers after the company violated federal overtime laws at several stores, according to federal labor department officials.
The Charlotte-based doughnut king and coffee shop agreed to pay back wages and liquidated damages to 516 workers for the overtime violations, the U.S. Department of Labor said in a news release Thursday.
Amounts due to each employee listed in court documents range from over $100 to nearly $14,000.
What began as an investigation at one Krispy Kreme store in Louisville, Kentucky, led the department’s Wage and Hour Division to expand its probe to all 242 stores nationwide. The labor law violations were “widespread and systemic,” the agency said.
Krispy Kreme failed to include monthly bonuses in some employees’ regular rates of pay, investigators said. “By doing so, the employer paid overtime at lower rates than the Fair Labor Standards Act requires,” the agency said.
Krispy Kreme officials were not immediately available for comment Thursday. The Labor Department did not initially identify the stores where the violations occurred.
On Nov. 7, the Labor Department filed a complaint listing the violations and a settlement order in the U.S. District Court for the Western District of Kentucky. As part of the court order, Krispy Kreme agreed to future compliance with the overtime provision.
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