NEW YORK CITY — In a significant victory for labor rights in the five boroughs, hundreds of fast-food workers are set to receive a multi-million dollar settlement. City officials announced Tuesday that Salz Management LLC, a major franchisee of Dunkin’ and Taco Bell, has been ordered to pay $1.5 million after a Department of Consumer and Worker Protection (DCWP) investigation revealed systematic violations of the city’s labor laws.

The settlement follows allegations that the management firm denied essential scheduling protections to employees across 24 locations in Queens and Manhattan. According to City Hall, the move underscores a commitment to enforcing the “Fair Workweek Law,” which was designed to provide stability for service industry workers who often face volatile scheduling practices.

The Cost of Unpredictability

The investigation into Salz Management LLC centered on the Fair Workweek Law, a landmark piece of legislation that requires fast-food employers to provide workers with predictable schedules. The city accused the franchisee of forcing employees into “unpredictable” shifts without the required notice or financial compensation.

Key violations cited in the city’s report include:

• Failure to provide premium pay: Employers are required to pay workers extra for last-minute schedule changes.
• Illegal “Clopenings”: The company allegedly forced employees to work back-to-back closing and opening shifts without the required 11-hour rest period or extra pay.
• Ignoring “Access to Hours”: The franchisee reportedly failed to offer open shifts to current, qualified employees before hiring new staff, a practice that limits the ability of part-time workers to secure full-time hours.

Impact on the Workforce

The $1.5 million settlement will be distributed among more than 500 current and former employees who worked at the affected Dunkin’ and Taco Bell locations. Of the total amount, approximately $1.4 million is earmarked for direct worker restitution, while the remainder will be paid in civil penalties to the city.

“Fast-food workers are the backbone of our city’s economy, yet they are too often subjected to schedules that make it impossible to plan for childcare, education, or even a second job,” Mayor Zohran Mamdani stated during the announcement. “This settlement sends a clear message to every employer in New York: labor laws are not optional. If you violate the rights of our workers, we will hold you accountable.”

A Growing Trend of Enforcement

The Department of Consumer and Worker Protection has been increasingly aggressive in its oversight of the fast-food industry. This latest settlement follows a string of similar cases against major national brands and their franchisees. Commissioner Vilda Vera Mayuga noted that since the Fair Workweek Law took effect, the city has recovered tens of millions of dollars for thousands of workers.

“Scheduling stability is a matter of economic justice,” Mayuga said. “We are proud to return this money to the hard-working New Yorkers who earned it and to ensure that these locations operate fairly moving forward.”

What’s Next for Workers?

As part of the settlement, Salz Management LLC has agreed to comply with all aspects of the Fair Workweek Law moving forward. This includes implementing better tracking systems for schedule changes and ensuring all managers are trained on city labor requirements.

The DCWP will be reaching out to the 500-plus workers eligible for back pay. Current and former employees of the affected Queens and Manhattan locations who believe they are owed money are encouraged to visit the DCWP website to verify their eligibility and update their contact information.