SEATTLE — A Seattle Domino’s Pizza franchise operator has agreed to pay more than $2.1 million to 1,330 Seattle workers after being accused of violating the city’s secure scheduling, minimum wage and wage theft ordinances.
On Monday, the Seattle Office of Labor Standards (OLS) announced the settlement following its investigation into Carpe Diem Pizza Inc., which operates 14 Domino’s Pizza locations in Seattle and dozens elsewhere throughout the Puget Sound region.
Following the investigation, OLS accused the company of not consistently providing employees with schedules at least two weeks in advance, failed to provide workers with honest estimates of work schedules and did not provide premium pay for those workers whose schedules were changed with less than a two-week notice.
“So many of us were worked to the bone at that franchise, and to have them not follow Seattle law on top of it was so discouraging,” said Lynzie Dugar, who worked for Carpe Diem Pizza in 2018. “It felt like we had no real power to do anything about it since they owned so many stores and none of us could afford to lose our jobs if we were retaliated against.”
The OLS also alleged the company did not pay the Seattle minimum wage to delivery drivers for making deliveries in Seattle when they were working out of a location near the city’s border. Additionally, the OLS said the company failed to consistently pay overtime to employees who worked more than 40 hours in a week.
In a statement, Carpe Diem Pizza called the investigation a “learning opportunity.”
“We believe each worker is essential and should be scheduled and paid fairly, respecting their time and desire to earn predictable wages. We believe we met this goal for our team and remain committed to that goal,” the company’s statement reads in part.
The company also released the following statement last Friday:
"Carpe Diem Pizza, Inc. is a local family-owned pizza business that is proud to own and run various Domino’s Pizza restaurants in the Puget Sound area. Their goal is to provide excellent products and services to their customers and community, with the support of their valued team members who are the face of their company.
"While there were no official findings by the City, Carpe Diem Pizza has reached an agreement with the City of Seattle’s Office of Labor Standards to resolve its investigation related to certain wage & hour rules. The investigation was primarily related to technical record-keeping issues under Seattle’s complex Secure Scheduling Ordinance. Carpe Diem Pizza has complied in good faith with the Ordinance’s requirements and believes it schedules its employees fairly and with respect for their time and desire to earn predictable wages. This includes providing employees with flexible work hours where they request it, including voluntarily [requesting] to leave work early or arrive late. However, the City did not agree that the company fully met certain technical obligations. Carpe Diem decided to resolve the matter to save time, effort and resources for itself and the City.
"The settlement amount does not reflect individualized assessments or actual violations. Instead, the amount each employee will receive is based on a formula using the number of shifts each employee worked over the 4-year period covered by the investigation. Thus, the employees who have been with the Company the longest will see the biggest benefit. Importantly, there was no finding the company purposefully changed employee schedules without meeting the Ordinance’s requirement notice or intentionally violated the law. Instead, Carpe Diem believes the investigation was primarily based on technical record-keeping obligations concerning scheduling changes and the City’s broad interpretation of them.
"Carpe Diem Pizza continues its commitment to great service for both its workers and its customers. Although it denies any wrongdoing (as the settlement agreement reflects), the company cooperated in the investigation and is pleased to have reached [a] resolution. It used the investigation as a learning opportunity to help improve employment practices and record-keeping, including enhanced training, improved record-keeping processes related to scheduling changes, and better practices to track pay that it believes reflect the City’s expectations. Ultimately, the settlement allows Carpe Diem and its valued team to focus on what it does best: Offer hot and delicious pizzas at a great value.
"We look forward to continuing to serve the Seattle community with the help of our excellent team."
Workers who wish to ask questions, file a complaint or provide information to the OLS can call 206-256-5297 or fill out the online form.
Employers can also get free and private help from the OLS to make sure they’re in compliance with the city’s labor standards.