Workforce

Panera franchisee must pay $4.6M to settle overtime suit

Covelli Enterprises, the country’s largest Panera franchisee, wrongly excluded assistant managers from overtime protections, the court found.
Panera Bread Co.
Photograph: Shutterstock

The country’s largest Panera Bread franchisee, Covelli Enterprises, must pay $4.6 million to settle a class-action case involving overtime pay, according to a deal that received final judicial approval late last week.

The lawsuit dates back to January 2018 when a group of Panera assistant managers in Ohio filed suit against the operator claiming that they were being forced to work without overtime pay after being wrongly classified as exempt from overtime protections.

Under the settlement, Covelli must pay $4.62 million into a settlement fund for members of the protected class, made up of more than 900 assistant managers

Covelli owns and operates more than 300 Panera locations in eight states.

Panera did not immediately respond to a request to comment on the legal action.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

In Red Lobster, a symbol of the challenges with casual dining

The Bottom Line: Consumers have shifted dining toward convenience or occasions, and that has created havoc for full-service restaurant chains. How can these companies get customers back?

Financing

Crumbl may be the next frozen yogurt, or the next Krispy Kreme

The Bottom Line: With word that the chain’s unit volumes took a nosedive last year, its future, and that of its operators, depends on what the brand does next.

Technology

4 things we learned in a wild week for restaurant tech

Tech Check: If you blinked, you may have missed three funding rounds, two acquisitions, a “never-before-seen” new product and a bold executive poaching. Let’s get caught up.

Trending

More from our partners