Krispy Kreme agrees to pay workers more than $1.1 million over wage theft claims

• Krispy Kreme has agreed to pay 516 workers more than $1.1 million in back wages and damages.
• Federal investigators had uncovered "widespread and systemic" wage theft at the company.

What began as an investigation into wage theft complaints at one Krispy Kreme store turned into a sprawling examination of the iconic doughnut maker's 242 locations, uncovering what the Department of Labor said Thursday was a "widespread and systemic" failure to pay workers what they were owed.

As detailed in a Nov. 15 consent order approved by US District Judge Rebecca Grady Jennings, Krispy Kreme has agreed to pay back wages and damages to 516 employees who did not receive proper compensation for working overtime. According to investigators, the North Carolina-based company failed to include those employees' monthly bonuses when calculating their overtime rate.

The agreement will mean a big payday for some employees. A manager of one location in Alabama, for example, is due to receive a check for more than $13,000. Another worker there is due just under $12,500.

"Overtime and minimum wage violations are common violations found in food service industry investigations," the Department of Labor's Jessica Looman said in a statement. "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."

Krispy Kreme, for its part, said it is "strongly committed" to paying its workers fairly. However, the company disputes the allegation that it broke any laws.

"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."

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