Papa John’s Franchisee Fails to Pay Employee Wages, Gets Jail Time

On November 16, 2015, New York Attorney General Eric T. Schneiderman issued a press release stating that Abdul Jamil Khokar, a franchisee of nine Papa John’s restaurants in the Bronx, pled guilty for failing to pay wages under the New York Labor Law (“NYLL”). BMY Foods, Inc., the corporation which owned and operated the Papa John’s franchises with Khokar, pled guilty of falsifying business records. Khokar will serve 60 days in jail, and will pay $230,000 in restitution to his employees.

Employees of Khokar’s Papa John’s restaurants frequently worked over 40 hours per week, entitling them to overtime pay. Yet, instead of paying employees time-and-one -half their regular rate for all hours worked over forty, as required by the NYLL, Khokar paid his employees straight time, which is the same flat rate of pay for all hours worked. To hide this practice, Khokar created fake employees and required his employees to record their overtime hours under the fake employees’ names. Khokar also filed fraudulent tax returns which did not include the payments made to the fake employees.

A separate settlement was reached by the U.S. Department of Labor in July which required Khokar to pay $230,000 in liquidated damages and $50,000 in civil monetary penalties. Additionally, Khokar’s Papa John’s restaurants will also be subject to an independent auditing.

In his press release, Attorney General Schneiderman stated, “My office will do everything in its power to protect the rights of New York’s workers and make sure that all employees – including fast food restaurants – follow the law.”

The New York City employment lawyers at Fitapelli & Schaffer, LLP are strongly committed to protecting the rights of hard working employees. We are investigating fast food restaurants and franchisees for failing to pay proper wages. If you believe you have a potential claim regarding unpaid wages or overtime pay, please call the employment lawyers at Fitapelli & Schaffer, LLP at (212) 300-0375 or visit our website at www.fslawfirm.com.