Insomnia Cookies Failed To Pay Workers Minimum Wage, Class Action Suit Claims

NEW YORK CITY, NY — Minimum wage employees at Insomnia Cookies had their pay docked and tips stolen from them, and one employee who caught on to the practice was bullied into quitting, according to a new class action lawsuit filed against the confectionery in U.S. Court in the Southern District of New York.

The practice specifically targeted delivery drivers, the suit claims, and is brought forth on behalf of a woman in Indiana who was making just $7 an hour when her tips were stolen.

It's not the first time that the cookie company, founded by University of Pennsylvania students in 2003 and headquartered in Philadelphia and New York City, has found itself in legal trouble. Similar suits alleging malpractice surrounding delivery drivers were filed in in both Rochester, New York and Auburn, Alabama within the past 14 months.

The plaintiff in the latest case noticed that many of her orders were changed online to "not delivered" after she'd already delivered them, the suit states. Only when an order is marked "delivered" can a driver receive the $2.50 per delivery they're promised, as well as whatever tips the

Insomnia, the suit states, was keeping the $2.50 for each order and then pocketing the tips themselves, giving none to the driver.

Patch has reached out to Insomnia Cookies for comment on the case.

It's not clear exactly how much money was stolen from minimum wage employees, but attorneys estimate that at least 40 workers were impacted.

Beyond just stealing from their lowest paid employees, Insomnia's general manager at the Indiana store engaged in a nightmarish bullying campaign against the employee when he realized she had discovered their wage theft practices, the suit states.

Among the most egregious allegations laid out in the suit: the general manager called the woman "sneaky" and a "snake" for calling out the wage theft, he scolded her for crying after she slipped and fell on the snow, he put plastic spiders inside her delivery bag, switched her delivery bag to a new bag that cut her hand open, and "diagnosed" the woman with ADHD.

Ultimately, the actions and intimidation forced the employee to resign, the suit states.

In addition to back pay and lost wages, the suit seeks "compensatory damages for mental anguish,

emotional distress and humiliation" as well as a legal injunction preventing Insomnia Cookies from "harassing, intimidating, threatening, and terminating" workers for exercising basic labor rights.

Read the full lawsuit is online here.