A company that owns 55 Dunkin' Donuts stores in New Jersey and New York –
including two in Toms River and two in Brick – underpaid their
employees and violated the federal Fair Labor Standards Act, officials
with the U.S. Labor Department’s Wage and Hour Division announced
QSR Management LLC, based in Edison, owned all of the stores, the federal agency said.
QSR incorrectly claimed their managers at all 55 locations were exempt
from overtime andm as a result of the violations, 56 non-exempt store
managers will be paid a total of $197,550 in back wages, the department said in a statement.
Investigators also found that at two locations management, took tips from
customer service workers to cover register shortages, resulting in
minimum wage violations of $237 for eight employees.
stores include the Dunkin' Donuts locations at 1245 Route 166 and 1902
Route 37 west in Toms River, as well as 14 Beaverson Boulevard and 620
Mantoloking Road in Brick.
The company also owns locations in Belmar, Neptune and Asbury Park.
argued that their managers were salaried employees – and thus exempt
from being paid overtime – but the company otherwise treated them as
hourly employees, the statement said, a violation of the Fair Labor
Although the Fair Labor Standards Act allows an overtime exemption for
management employees who perform certain job duties, the exemption only
applies if the managers receive a guaranteed weekly salary of at least
$455, the statement said.
"QSR has assured compliance with the FLSA and has agreed to pay all back wages," the statement said.
As part of its commitment to future compliance, QSR has changed its
employee handbook to reflect its intent to properly apply any valid
exemptions, and to no longer allow management to take tips from