NYC Franchisee to Pay $1.5M in Scheduling Violation Settlement

Taco Bell and Dunkin' operator Salz Management LLC agrees to pay penalty for failing to provide worker protections.

Mar. 26, 2026 at 12:00am

A Taco Bell and Dunkin' franchisee in New York City has agreed to pay over $1.5 million to settle claims by the city that its managers at two dozen restaurants violated local laws requiring fast food businesses to give workers advance notice of their schedules and other worker protections. The city is also filing suit against another Dunkin' franchisee, QSR Management LLC, on similar allegations.

Why it matters

This case highlights New York City's efforts to strengthen enforcement of worker protection laws, particularly in the fast food industry where scheduling practices have long been a source of concern for labor advocates. The large settlement amounts underscore the city's commitment to holding franchisees accountable and ensuring workers receive the benefits they are entitled to under local laws.

The details

According to the city's Department of Consumer and Worker Protection, Salz Management LLC routinely failed to give workers sufficient notice of their schedules, pay extra wages for 'clopening' shifts, and offer available shifts to existing workers before hiring new ones. The city is also suing another Dunkin' franchisee, QSR Management LLC, for similar violations affecting around 1,000 workers at 21 Staten Island stores.

  • The settlement with Salz Management LLC was announced on March 23, 2026.
  • In 2022, the city required QSR Management LLC to pay relief to more than 100 workers for scheduling law violations.

The players

Salz Management LLC

A franchisee that operates Taco Bell and Dunkin' restaurants in New York City.

QSR Management LLC

A Dunkin' franchisee in New York City that is being sued by the city for alleged scheduling law violations.

Ronny Nader

The managing corporate officer of QSR Management LLC.

Zohran Mamdani

The mayor of New York City who campaigned on strengthening enforcement of worker protection laws.

Eric Adams

The former mayor of New York City during whose tenure the city announced a $38.9 million settlement with Starbucks over scheduling law violations.

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The takeaway

This settlement underscores New York City's commitment to protecting fast food workers' rights and holding franchisees accountable for violating local labor laws. As more cities adopt similar scheduling regulations, this case sets an important precedent for how aggressively municipalities will pursue enforcement actions against businesses that fail to comply.