Denny’s Franchise Owners Failed to Pay More than 1,900 Workers for Shifts Spanning Over 10 Hours
New York Attorney General Letitia James today secured $440,000 from Denny’s franchise owners Reveille Management, LLC (Reveille Management) and Top Line Restaurants, Inc. (Top Line Restaurants) for failing to pay their restaurant workers the full wages they were owed. Reveille Management and Top Line Restaurants, both owned by Arizona-based couple Glenn and Tina Beattie, operate Denny’s restaurants in at least five states, including 23 locations across Western New York, and employ thousands of New Yorkers as cooks, dishwashers, servers, hosts, and supervisors. An Office of the Attorney General (OAG) investigation found that these franchise owners repeatedly failed to pay more than 1,900 Denny’s workers the extra pay they were owed for long shifts, known as “spread of hours” pay, as required by New York law. As a result of OAG’s investigation, the Beatties must pay $440,000 in restitution to current and former employees whose wages were unlawfully withheld and overhaul their policies and procedures to ensure the violations do not continue.
“Denny’s workers kept these restaurants running through long days and late nights, and they deserve to be paid every dollar they earned,” said Attorney General James. “These franchise owners ignored clear wage laws and shortchanged hardworking New Yorkers. My office will continue to stand up for workers and hold employers accountable when they cheat people out of their pay.”
New York state law requires restaurant workers to receive one additional hour of pay for any workday longer than 10 hours. This “spread of hours” pay is calculated at the state’s minimum wage rate and applies by day, not by shift, meaning it covers consecutive shifts worked within a single day and includes meal breaks, rest periods, and time between shifts. Employers must provide spread of hours pay for every qualifying workday, whether or not the employee requests it.
The OAG opened an investigation in December 2024 after a Denny’s employee filed a complaint alleging the company wasn’t paying for extended shifts. After a thorough review of payroll and timekeeping records, OAG determined that since 2019, at least 1,900 workers had completed more than 20,000 shifts that qualified for spread of hours pay but had not been properly compensated. The OAG found that the franchise owners paid spread of hours wages only sporadically, usually when an employee or manager requested it. The companies also failed to notify employees of their right to spread of hours pay and did not include the requirement in their employee handbook.
As a result of OAG’s investigation, Attorney General James has secured $440,000 in restitution from Reveille Management and Top Line Restaurants for impacted workers. A settlement administrator engaged by OAG will distribute the funds directly to Denny’s workers who had qualified for spread of hours pay, providing them with the compensation they were denied. Eligible workers will be contacted by the settlement administrator via mail, email, and/or text with notices of the settlement and information on how to file a claim. The franchise owners will pay up to $40,000 in addition to the restitution amount to cover the costs of the settlement administrator. None of the settlement funds will revert to the franchise owners.
To prevent future wage violations, Attorney General James is requiring Reveille Management and Top Line Restaurants to overhaul their human resources policies and practices. The companies must:
- Provide notices to all managers and employees explaining their wage and hour policies, including the right to spread of hours pay;
- Update their employee handbook to include spread of hours requirements;
- Revise employee earnings statements to specifically identify spread of hours payments;
- Train all new and existing employees on wage and hour policies under New York and federal law, including employee rights to spread of hours pay, breaks, paid sick leave, and paid family leave;
- Conduct annual anti-harassment and anti-discrimination trainings;
- Designate a point of contact to review complaints received by OAG from current and former employees; and
- Submit regular compliance reports to OAG for three years.
The franchise owners are also forbidden from retaliating against any employees, including former or current employees who participated in OAG’s investigation. More information on the settlement can be found on OAG’s website.
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