NYC Announces $275,000 Settlement with Smashburger

The Department of Consumer and Worker Protection (DCWP) recently entered into a settlement agreement with Smashburger for violating the City’s Paid Safe and Sick Leave law at locations around the city, and for violating the Fair Workweek laws at its 123 William Street location, between 2018 and 2020.

Under the settlement agreement, Smashburger will pay $275,000 in civil penalties and restitution to 241 employees whose rights were violated and comply with the law going forward. Employees covered by the sick leave investigation will each receive $500 and workers at the 123 William Street location, where DCWP also investigated Fair Workweek Law violations, will additionally receive $200 per week they were employed at that location during the settlement period, up to $10,600 per worker.

“Unpredictable scheduling is illegal in NYC fast food restaurants, and workers in all NYC businesses have the right to take sick time,” said DCWP Commissioner Vilda Vera Mayuga. “We are happy to be putting money back in Smashburger workers’ pockets to compensate them for violations of these important rights.”

Additionally, the Smashburger location at 123 William Street location in Lower Manhattan was found to have violated the City’s Fair Workweek Law by failing to:

• provide employees with a good faith estimate of the hours they could expect to work each week,
• provide or post employees’ work schedules in advance during most weeks,
• maintain records of employees’ consent to work additional hours,
• consistently pay required schedule change premium pay, and
• offer available shifts to current employees before offering them to new employees.

Since the Fair Workweek Law went into effect in November 2017, DCWP has received more than 520 complaints about potential Fair Workweek violations, closed more than 230 investigations, and obtained resolutions requiring nearly $27.1 million in combined fines and restitution for more than 20,100 workers.

NYC Department of Consumer and Worker Protection (DCWP) protects and enhances the daily economic lives of New Yorkers to create thriving communities. DCWP licenses more than 51,000 businesses in more than 40 industries and enforces key consumer protection, licensing, and workplace laws that apply to countless more. By supporting businesses through equitable enforcement and access to resources and, by helping to resolve complaints, DCWP protects the marketplace from predatory practices and strives to create a culture of compliance. Through its community outreach and the work of its offices of Financial Empowerment and Labor Policy & Standards, DCWP empowers consumers and working families by providing the tools and resources they need to be educated consumers and to achieve financial health and work-life balance. DCWP also conducts research and advocates for public policy that furthers its work to support New York City’s communities. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp or on its social media sites, Twitter, Facebook, Instagram and YouTube.