Insomnia Cookies, Krispy Kreme Violated Federal, New York Labor Statutes, Lawsuit Alleges

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A proposed class and collective action alleges Insomnia Cookies, Krispy Kreme Inc. and their CEO have violated federal and state labor laws.

The 20-page complaint outlines a laundry list of alleged violations ranging from the companies’ purported failure to provide employees with proper notices and meal breaks to the claim that workers are owed reimbursement for using their own vehicles to make deliveries.

All told, the lawsuit alleges Insomnia Cookies, who was acquired by Krispy Kreme in 2018 and operates more than 100 Insomnia Cookies stores across the U.S., owes workers unpaid minimum and overtime wages and damages for the apparent New York Labor Law violations.

The plaintiff claims to have worked for the defendants as a delivery driver at a Rochester, New York location. Per the suit, Insomnia failed to provide the plaintiff with notice that it would apply a tip credit toward its hourly minimum wage obligations. The case contends that employers are not permitted to apply a tip credit unless it first provides a worker with notice of their intent to do so.

Moreover, the lawsuit says that the plaintiff spent more than two hours or 20 percent of her workday on non-tipped activities, such as operating the cash register and cleaning the store, yet was not paid appropriately for this time.

The suit further alleges that during the last three weeks of her employment, the plaintiff noticed a discrepancy in the amount she should have received for tips from online orders and the amount she actually received in her personal checks. According to the lawsuit, the defendants failed to keep accurate records of the plaintiff’s wages and hours as required by New York law.

The plaintiff also claims that she and other delivery drivers were required to shoulder the costs of operating their own vehicles, including bicycles and electric bicycles, to deliver the defendants’ products. Per the case, delivery drivers should have been compensated for the costs of gasoline, vehicle depreciation, insurance, maintenance and repairs associated with using their own vehicles for business purposes.

The plaintiff goes on to charge that the defendants ran afoul of the New York Labor Law by “knowingly, willfully, and maliciously” failing to provide her with a time-of-hire notice that stated her pay rate, and paystubs that included all statutorily required information, including the plaintiff’s name; employer’s name, address and phone number; rate of pay; any deductions made from her wages; any allowances claimed as part of the minimum wage; and her gross and net wages for each pay period. The defendants also failed to post notices in the workplace regarding minimum wage rates, overtime pay, tip credits and paydays, according to the suit.

Finally, the lawsuit says the plaintiff and other employees were not provided with proper meal breaks in accordance with New York law. According to the suit, the New York Labor Law requires employers to provide a 30-minute meal period for employees who work a more than six-hour shift that occurs during the noon meal period from 11:00 a.m. to 2:00 p.m.; an additional 20-minute meal period between 5:00 p.m. and 7:00 p.m. for workers whose shift starts before 11:00 a.m. and continues past 7:00 p.m.; and a 45-minute meal period midway between the beginning and end of shifts that last more than six hours and start between 1:00 p.m. and 6:00 a.m.

The plaintiff looks to represent current and former non-exempt employees who worked for the Insomnia Cookies and Krispy Kreme within the last three years and until judgment is entered in the case and who were not compensated at their promised rate for every hour worked and at one-and-one-half of their promised rate for every hour worked in excess of 40 each week.

The lawsuit also proposes to cover non-exempt personnel who were employed by the defendants within the past six years.

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