The New York Attorney General is turning up the heat on Papa John's founder and CEO John Schnatter.
Eric Schneiderman announced Thursday that he obtained a judgment for more than $2 million against a Harlem Papa John's franchisee for underpaying delivery workers.
Ronald Johnson, who owns five Papa John's locations, paid employees a rate allowed for tipped employees (presently $5.75 an hour), like delivery men — when they were assigned substantial nondelivery work that should have paid the higher state minimum wage, now $8.75.
While the suit named just the Harlem franchisee, the AG took aim Thursday at the parent company.
Schneiderman said he wants franchisors, including Papa John's, "to take steps necessary to ensure that their workers — the backbone of their business — are treated fairly and paid the wages the law requires."
Schneiderman did not mention franchisors when announcing a back-pay judgment against another Papa John's franchisee last month.
The AG has been weighing legal action against the pizza chain's parent company for allowing the wage theft to happen, sources said.
Placing the sins of the franchisee at the feet of the parent company is a new and controversial law enforcement tactic.
The National Labor Relations Board in December, in a controversial and precedent-setting ruling, held McDonald's responsible for the alleged discriminatory acts of a Virginia franchisee.
Schneiderman also reached settlements in 2014 with local Domino's and McDonald's franchisees.
Neither Johnson nor the Papa John's parent returned calls for comment.
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