NEW YORK, NY — A franchisee operating Taco Bell and Dunkin’ locations in New York City agreed to pay more than $1.5 million to settle allegations of violating local worker scheduling laws, city officials announced.
The settlement follows a two-year investigation by the Department of Consumer and Worker Protection, which found that Salz Management LLC changed employee schedules without proper notice and failed to provide schedules at least 14 days in advance, as required under the city’s Fair Workweek Law.
Investigators also found the company did not obtain employee consent or provide additional pay for “clopening” shifts, in which workers close a store late at night and return to open the next morning.
The company also failed to offer newly available shifts to current employees before hiring additional staff, officials said.
Under the agreement, Salz Management will pay more than $1.5 million in restitution to 760 workers and $155,000 in civil penalties.
The company, based in Jericho on Long Island, operates additional franchises including Wingstop, Wendy’s and Baskin-Robbins.
The agency also reached a separate settlement with Theory, a retail clothing company, over similar violations.
Theory agreed to pay more than $277,000 to about 60 workers at two Manhattan locations and more than $21,000 in penalties and costs.
“A reliable schedule is one of the most basic rights that New Yorkers have in the workplace,” Department of Consumer and Worker Protection Commissioner Sam Levine said. “With these actions, we are sending a clear message that compliance with the city’s workplace laws is not optional.”
City officials also filed a lawsuit against QSR Management LLC and its managing officer, Ronny Nader, alleging violations affecting about 1,000 workers at 21 Staten Island Dunkin’ locations.
The operator previously settled a similar case in 2022 involving compensation for more than 100 employees.
Neither Salz Management nor QSR Management responded to requests for comment. Parent companies Yum Brands and Inspire Brands also did not respond.
New York City has led efforts to regulate “on-call scheduling,” a practice in which employers adjust or cancel shifts with little notice. Similar laws have been adopted in Oregon and cities including Los Angeles, Chicago and San Francisco.
City data shows 57 investigations into potential fast food scheduling violations were opened in 2025. Industry groups have opposed the rules, saying they create operational challenges for businesses.