Krispy Kreme Doughnut Corp. has agreed to pay $1.2 million in back wages and liquidated damages to 516 workers to resolve alleged overtime violations of the Fair Labor Standards Act, the U.S. Department of Labor said Thursday.
The DOL said in a statement that its wage and hour division first opened an investigation at a Krispy Kreme location in Louisville, Kentucky, but then determined the violations were “widespread and systemic.”
It expanded its investigation to include all of the Charlotte, North Carolina-based company’s 242 locations nationwide. Investigators determined the company failed to include monthly bonuses in some employees’ regular rates of pay, and by doing so, paid overtime at lower rates than the FLSA required.
As part of the settlement, Krispy Kreme agreed to comply with the FLSA’s overtime provision, the DOL said.
The company did not respond to a request for comment.