Taco Bell Franchisee Underpays Employees, Lawsuit Says

Sundance Inc., a franchisee that operates 173 fast-food restaurants in six Midwestern states, underpays workers, according to a lawsuit filed Sept. 25 by a former Iowa Taco Bell crew member.

The company avoids paying overtime by paying for work time after the 40-hour mark in a different week, according to the complaint. Employees who regularly work more than 40 hours in a week are paid no more than 80 hours for a two-week pay period, no matter how many hours they actually worked, the complaint says.

Robyn Morgan filed the complaint as a collective action, which is a procedure for ...