Doughnut chain Krispy Kreme will pay approximately $1,200,000 in back wages and liquidated damages following overtime violations found as part of a U.S. Department of Labor investigation, according to a news release from federal officials.
Investigators found that Krispy Kreme failed to include monthly bonuses in some employees' regular pay, and by doing so, paid overtime at lower rates than required by the Fair Labor Standards Act, according to a Department of Labor news release. The DOL's Wage and Hour Division initially began investigating at a Louisville, Kentucky, location and later found the violations were "widespread and systemic."
Investigators later expanded the probe to include all of the chain's 242 U.S. locations, which includes stores in Homewood, Evergreen Park, Hillside and Elk Grove Village. The chain says it will pay a total of $1,187,757 to 516 workers and has agreed to future compliance at all locations.
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