By Joshua A. Cline, JD
Most employers know that failing to pay minimum wage or overtime can lead to serious consequences. When employees file lawsuits claiming unpaid overtime wages, they can bring in their coworkers, leading to lawsuits that are both costly to defend and costly to settle.
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Further, reports by employees can lead to disruptive investigations by the U.S. Department of Labor (DOL). But one Papa John’s franchisee in New York has found that the stakes can be even higher—he was sentenced to 60 days in jail in addition to paying $230,000 in restitution to his employees.
Is criminal prosecution for wage law violations a new trend?