In New York City, a judge found that a Papa Johns franchisee underpaid employees and did not pay overtime. A New York City franchise, Emstar Pizza, Inc., who owns seven Papa Johns franchises, was ordered to pay $789,507.06 in unpaid wages, damages, interest and other costs to their workers. The suit alleged that the franchise had been underreporting hours worked by their employees over the past six years and had been rounding down hours to the nearest whole hour as well as not paying any overtime.
Papa John's franchisee violated the law in various ways and avoided paying overtime by giving managerial sounding titles such as "head driver."
A restraining order had been placed against the franchise that prevented the company from selling any units after it was discovered that the franchises' owner was trying to sell the locations in a possible effort to frustrate the efforts to recoup wages owed to employees.
Another franchise owner has also been accused on underpaying their workers. The case is still pending.