Donut chain Krispy Kreme will pay $1.2 million to hundreds of employees for violating federal overtime laws.
Over 500 employees will receive amounts ranging from $100 to nearly $14,000 in pay and damages. The U.S. Department of Labor, in a statement, called the violations “widespread and systemic.”
The initial overtime investigation kicked off at a Louisville, Kentucky store and led to the federal labor agency to investigate the brand’s 242 U.S. stores.
The allegations included failing to include monthly bonuses in regular rates of pay, according to a Myrtle Beach Online report. Another violation involved paying overtime at lower rates than the Fair Labor Standard Acts requires.
In a statement to The Charlotte Observer the brand said it did not agree with the findings and agreed to settle with no admission of wrong-doing.
Krispy Kreme Doughnut Corp. was founded in 1937 and has about 9,200 workers nationwide and also operates in over 30 countries.
