Kimberly Redmond//August 16, 2023//
In recent years, Boston Market has closed hundreds of locations and is now down to roughly 300 locations nationwide. - CREATIVE COMMONS ATTRIBUTION 2.0
In recent years, Boston Market has closed hundreds of locations and is now down to roughly 300 locations nationwide. - CREATIVE COMMONS ATTRIBUTION 2.0
Kimberly Redmond//August 16, 2023//
Nearly 30 Boston Market restaurants across New Jersey were ordered closed after authorities say they discovered multiple violations of workers’ rights and fined the rotisserie chicken chain nearly $2.6 million.
In an Aug. 14 press release, the New Jersey Department of Labor and Workforce Development (NJDOL) said it issued stop-work orders to 27 Boston Market locations because it found more than $607,000 in back pay owed to 314 employees and $1.2 million in liquidated damages.
After receiving a complaint in November 2022 from an employee at the chain’s Hamilton restaurant, NJDOL began an investigation that prompted nearly three dozen other Boston Market workers from other locations to come forward, officials said.
Initial findings included: unpaid/late payment of wages, hindrance of the investigation, failure to pay minimum wage, records violations, failure to pay earned sick leave and failure to maintain records for earned sick leave, according to NJDOL.
Additionally, the franchise was assessed an administrative fee of $182,241.30 and $549,500 in administrative penalties, for a total of more than $2,554,154.30, the NJDOL said.
In a statement, Joseph Petrecca, assistant commissioner of NJDOL’s Division of Wage and Hour and Contract Compliance, said, “With restaurants across the country, Boston Market needs to set a better example for fair treatment of its workers.”
According to NJDOL, Boston Market requested a hearing to appeal the stop-work orders. In the meantime, the state can assess a penalty of $5,000 per day against stores conducting business in violation of the order. Normal operations can resume when and if remaining back wages and penalties have been paid and all related issues have been resolved, NJDOL said.
NJDOL reported that stop-work orders were issued to the following Boston Market restaurants:
All Boston Market stores are owned by Rohan Group of Cos., which acquired the chain in 2020 from private equity firm Sun Capital Partners.
In July, before the Boston Market case, the New Jersey Department of Labor and Workforce Development said it issued more than 110 stop-work orders and assessed more than $2.7 million in back wages owed to affected workers, liquidated damages and penalties since 2019. Click here to read more.
NJDOL’s action against Boston Market is only the latest in a series of setbacks for the once-thriving fast casual operator.
Founded in 1985, the chain quickly grew to 1,200 locations over the next 12 years. However, in 1998, the brand filed for bankruptcy due to decreasing unit level economics and large amounts of debt. Two years later, it was acquired by McDonald’s, which held onto Boston Market until 2007 when it sold the chain to Sun Capital.
In recent years, Boston Market has closed hundreds of locations and is now down to roughly 300 stores nationwide.
It is also facing numerous complaints from vendors, employees and management, including an $11 million lawsuit from distributor US Foods and two lawsuits over unpaid wages in Massachusetts and Arizona.
Rohan’s owner, Pennsylvania-based real estate investor and restaurant operator Jay Pandya, could not immediately be reached for comment.