The owner of nine Papa John's franchises in the Bronx has pleaded guilty to charges of not paying his workers minimum wage and overtime.
State Attorney General Eric Schneiderman says as part of the plea, Abdul Jamil Khokar will serve 60 days in jail and pay $230,000 in back wages to his workers when he is sentenced in September.
Khokar was accused of requiring workers to use fake names once they reached 40 hours to avoid paying time and a half for overtime.
This is the first time in the U.S. a state attorney general filed criminal charges against a fast food franchisee for cheating workers.
"My office has zero tolerance for wage theft. When you take money out of the pockets of hard working New Yorkers, you're taking food off the tables of their families. Today's announcement sends a loud and clear message to every fast food franchise. If you steal wages, you will be held accountable and you can go to jail," said Schneiderman.
In a statement, Papa John's says it does not condone the actions of any franchisee that violates the law.
Earlier this year, Schneiderman obtained judgments totaling almost $3 million against two other Papa John's franchises for violating wage laws.
He also secured settlements with several Domino's, McDonald's, and KFC franchisees.