>> The Domino's Pizza chain on Tuesday facing allegations that it stole over half a million dollars from employees. I'm Conway Gittens in New York. The State Attorney General says that faulty software was responsible for systematically underpaying employees at several Domino's franchises. And that the company is liable because it knew of the wage theft and did nothing to stop it.
According to the lawsuit, employees were cheated out of $565,000. In response, Domino's said franchisees are solely responsible for workers and their pay, but the complaint alleges Domino's was effectively managing these locations, even at times ordering certain workers to be fired. Headquarters even used tactics to discourage union organizing at the local level, not the kind of activities you expect from a national chain.
Fast food companies are no strangers to regulatory scrutiny for how they treat workers. McDonald's is currently being sued by the National Labor Relations Board on similar claims it has outsized influence on employee relations at franchised operations, even though it is not a direct owner. The industry warns that if chains are held responsible for the actions of their franchisees, it could negatively impact the way they do business.