Many of the Krispy Kreme employees fall under the non-exempt category of employment and MUST be paid overtime wages according to the guidelines laid out in the Fair Labor Standard Act (FLSA). The FLSA sets the overtime rate for non-exempt employees at time and one-half their standard rate of pay for any time worked over 40 hours in a single week.
The FLSA regulations do not apply to “administrative” or “professional” employees due to exemptions preventing specific categories of employees from receiving overtime pay.
Exemptions are not based entirely on one’s job title, however. Whether or not an employee should receive overtime pay is calculated by the hours worked, the rate of pay, the job duties, and even the job description.
It’s always a good idea to speak with an attorney with experience in overtime pay laws due to issues with additional state laws governing overtime pay. These laws sometimes overlap federal laws and further complicate or contradict the FLSA.
Based in Winston-Salem, NC, Krispy Kreme Doughnuts, Inc. is an American doughnut company and coffeehouse chain. Founded by Vernon Rudolph in 1937, the company now has more than 1,000 locations worldwide. Steady growth since inception lead to an ambitious expansion as a public company between 2000-2016 that, while initially successful, ultimately proved unprofitable. Krispy Kreme reports an annual revenue of $518 million, owed to its distinctive donut brand and its red, white, and green trade dress. The franchises vary according to three different kinds — the factory store, tunnel oven shop, and fresh shop. Each franchise type is a distinctive format requiring differing financing and managing capabilities. While owned by parent company JAG Holdings, a nearly $30 billion conglomerate, Krispy Kreme is internationally recognized in its owned right.
Numerous non-exempt Krispy Kreme employees may be required to start before their shifts or even work after their shifts finish off the clock. It is not uncommon for employees to work double shifts as well. Because of this, if many Krispy Kreme employees exceed 40 working hours in a single week, they should receive overtime pay.
Employers have been known to illegally misclassify positions to avoid paying overtime. For instance, Krispy Kreme shift or location managers may have been labeled “managers” with the goal of marking them exempt from overtime pay. However, these employees are in fact non-exempt because of the nature of their job duties.
Often companies label employees as managers even though they do not fill vital roles for the business. The FLSA dictates that “managers” must have specific abilities, for instance, hiring or firing employees, making schedules, or completing other tasks that are essential to the running of the business. Typically these employees do not perform these duties and are instead only labeled as managers for employers to save money by avoiding paying overtime.
Another unlawful practice that the Krispy Kreme may perform is having employees clock in before a shift or asking them to stay after a shift without compensating them. This practice of manipulating time cards to keep payroll costs down is a violation of the FLSA and can result in a lawsuit.
How Can a FLSA Lawyer Help You
An experienced lawyer can analyze your case and see if you are entitled to lost overtime wages from Applebee’s by evaluating how state and federal laws apply to your situation.
Does Krispy Kreme Have to Pay Overtime Wages to Employees?
For the most part, Krispy Kreme must pay overtime to non-exempt employees who work more than 40 hours in a week as long as they are not excluded by the FLSA. However, these exemptions become more complicated by some states that have additional laws governing them.
If you feel like you have been denied overtime wages, then it is in your best interest to consult an attorney with FLSA experience and knowledge of state overtime laws.
Are There Other Overtime Pay Lawsuits Involving Krispy Kreme?
Here are a few examples from the many previous lawsuits that have been issued against other employers for failing to pay overtime wages:
Justia lists at least 5 lawsuits involving Krispy Kreme related to labor disputes
In 2009, Krispy Kreme was fined $40k for violating labor and immigration law by hiring illegal immigrants
If you feel as though Krispy Kreme or any another employer has denied you overtime wages, you could have a case. Please get in touch with the Lemberg Law legal team. Complete our form for a FREE case evaluation, or call 844-685-9200 NOW. Lemberg Law will evaluate your case as see if you are eligible to receive lost overtime wages as a non-exempt employee.
About the Author:
Sergei Lemberg is a lawyer whose practice focuses on consumer law, class actions and personal injury litigation. He has been repeatedly recognized as the “most active consumer attorney” in the country. In 2020, Mr. Lemberg represented Noah Duguid in the United States Supreme Court in the case entitled Duguid v. Facebook. He is the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.