NJDOL lifts stop-work order at 27 Boston Market restaurants

In recent years, Boston Market has closed hundreds of locations and is now down to roughly 300 locations nationwide. - CREATIVE COMMONS ATTRIBUTION 2.0

Workers paid $630,000 in back wages

Kimberly Redmond//September 18, 2023//

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The New Jersey Department of Labor and Workforce Development lifted a stop-work order that temporarily shut down nearly 30 Boston Market restaurants after the owner paid more than $630,000 in back wages owed to 314 workers.

The 27 locations across the state were initially ordered closed Aug. 14 after labor officials said the rotisserie chicken chain would have to pay nearly $2.6 million in fines, which included the back wages as well as penalties for violating laws that protect workers’ rights.

In a Sept. 14 press release, NJDOL said the restaurants could reopen since employees received all their back pay; however, additional damages and fees may be levied against Boston Market.

Labor Commissioner Robert Asaro-Angelo said the case is “exactly the reason Gov. [Phil] Murphy and our legislators empowered our department to issue stop-work orders against employers that are seemingly willfully operating in bad faith.”

“We’re glad this investigation resulted in every dollar making it into the pockets of those who earned the money. Hopefully this action puts other bad actors on notice: If you don’t pay your workers, we will shut you down,” he said in a statement.

New Jersey Department of Labor & Workforce Development Commissioner Robert Asaro-Angelo said the Bostom Market case is “exactly the reason Gov. [Phil] Murphy and our legislators empowered our department to issue stop-work orders against employers that are seemingly willfully operating in bad faith.” – AARON HOUSTON/NJBIZ FILE PHOTO

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 last month.

Subsequent 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, NJDOL said.

According to The Associated Press, Boston Market has requested a hearing to challenge the results of the investigation.

A once sizzling-hot fast-casual brand, Boston Market has cooled to about 310 stores nationwide after peaking at 1,200 locations during the 1990s.

In 1998, the chain 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 private equity firm Sun Capital Partners.

All Boston Market stores are owned by Engage Brands, a subsidiary of Rohan Group of Cos., which acquired the chain in 2020 from Sun Capital Partners.

In addition to growing competition and inflation, Boston Market has faced financial problems that led to lawsuits from vendors, employees and management in multiple states.

A media representative for Boston Market corporate in Colorado did not respond to a request for comment, and Rohan’s owner, Pennsylvania-based real estate investor and restaurant operator Jay Pandya, could not immediately be reached.