Former Employee Accuses Panera of Time Shaving, Failing to Properly Pay New York Workers

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A proposed collective action claims New York Panera employees have not been paid in accordance with state and federal labor laws as a result of the restaurant’s practice of “shaving” time off of workers’ weekly hours.

According to the 18-page lawsuit, the restaurant chain has a corporate-wide policy of “time-shaving” workers’ hours and thus failing to pay them for every regular and overtime hour worked. Moreover, the case alleges Panera pays hourly employees, including baristas, counter workers, associates, cashiers, cleaners, bakers, sandwich/salad makers and other cooks, on a bi-weekly basis even though the New York Labor Law (NYLL) requires manual workers be paid within seven calendar days of the week during which their wages were earned.

The plaintiff claims to have worked for Panera in New York between August and December 2021. Per the suit, Panera “intentionally, willfully, and repeatedly” engaged in a practice whereby its store managers would shave down hourly workers’ time in order to avoid paying them for every hour worked. The lawsuit says this practice violates both the federal Fair Labor Standards Act (FLSA) and NYLL given workers were not properly paid for overtime hours whenever they put in more than 40 hours per week. In weeks during which employees put in 40 hours or less, Panera failed to pay them at their agreed-upon wage rate in violation of the NYLL, the case alleges.

The lawsuit goes on to claim that the plaintiff and other hourly workers performed mostly manual labor, meaning they should have been compensated on a weekly basis instead of bi-weekly, in accordance with the NYLL. Per the suit, the plaintiff spent more than 25 percent of her time on physical tasks, including making drinks, restocking supplies, cleaning and running dishes from the dining areas to the dishwashing area. Despite the amount of time she spent on manual labor, the plaintiff was paid bi-weekly instead of within seven calendar days after the end of the week during which her wages were earned, the lawsuit alleges.

The plaintiff further claims that she was not provided with a time-of-hire wage notice as required by the NYLL or accurate wage statements with each paycheck.

According to the suit, the plaintiff complained to management about Panera’s apparent time-shaving practice and was terminated in retaliation for her good faith complaints.

The plaintiff looks to represent anyone who works or worked as an hourly employee for Panera in New York between June 24, 2015 and the date of final judgment in the case.

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