Freddy’s workers weren’t paid for 15-minute breaks, feds say. Now franchisee owes $77K

Workers who were given 15-minute breaks after six hours of work at Freddy’s Frozen Custard & Steakburgers were required to clock out before taking those breaks, according to the U.S. Department of Labor.

As a result, a Freddy’s franchisee with restaurants in Missouri and Arkansas had to pay nearly $77,000, federal officials say.

The Department of Labor says it recovered $38,495 in owed overtime and $38,495 in liquidated damages to 213 employees of 3Pointe Restaurant Group Holdings LLC.

That’s because the Fair Labor Standards Act says that short rest periods — usually those under 20 minutes — “must be counted as hours worked.” These breaks, which officials say are common in the industry, also “promote the efficiency of the employee.”

McClatchy News could not reach 3Pointe Restaurant Group Holdings for a statement, and Freddy’s Frozen Custard & Steakburgers did not immediately respond to a request for comment from McClatchy News.

The 213 affected employees worked for nine Freddy’s locations, including restaurants in Springfield, Missouri; Branson, Missouri; and Fayetteville, Arkansas.

“Food service workers are some of the nation’s lowest paid workers. They depend upon every dollar earned to make ends meet and the law protects their rights to be paid for all the hours worked,” said Wage and Hour District Director Hanz Grünauer in a May 4 news release. “As businesses struggle to find the people they need to be successful, those who fail in their legal obligations to their workers may find it more difficult to retain and recruit workers in the future.”

This story was originally published May 4, 2022 at 1:37 PM with the headline "Freddy’s workers weren’t paid for 15-minute breaks, feds say. Now franchisee owes $77K."