Krispy Kreme to Pay Almost $1.2 Million to Workers Who Weren't Paid Overtime

Krispy Kreme will pay millions in back wages and damages to some of its almost 9,200 employees in the U.S.

The Associated Press reports that the donut company failed to pay 516 of its employees for overtime following wage theft complaints at one Krispy Kreme shop. The Department of Labor then launched an investigation into the entire chain of stores—242 locations—and found that there were “widespread and systemic” breaches of the law.

A filing made to a U.S. District Court revealed that Krispy Kreme didn’t accurately calculate overtime for its assistant district managers since November 2019, which were supposed to be included as monthly bonuses. The company will pay almost $1.2 million in total to the workers, with one receiving more than $13,000 and another around $12,500.

“Overtime and minimum wage violations are common violations found in food service industry investigations,” Jessica Looman, from the Department of Labor, said in a statement, per Business Insider. “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.”

However, Krispy Kreme didn’t see eye-to-eye with the court, saying they didn’t believe they did anything wrong, but wanted to settle. “We do not agree with the department’s findings and the basis for them,” the company said. “However, we have agreed to settle this matter with no admission of wrong-doing in the best interests of our business and our team members.”