Written by Phil Cerroni
Seven employees and former employees filed a class action lawsuit against Jack in the Box franchise owner Bassam Odeh on July 3, claiming he and his company created had a system to defraud both employees and the government. They say the franchise circumvented overtime procedures by means of straw men employees.
“Plaintiffs allege that they did not receive all overtime compensation because Bassam Odeh, Inc. (“Bassam”), and Mr. Bassam Mohammed Odeh (“Odeh”) (collectively “Defendants”) engaged in a scheme whereby Plaintiffs were not credited with any overtime hours worked. Instead, Defendants credited those hours worked over 40 per workweek to fictitious employees in order to avoid payment of time and one-half overtime compensation to the Plaintiffs,” reads the plaintiffs’ filing with the district court.
“The fictitious employee checks were then cashed by Defendants, and after deduction for a check processing free, the Plaintiffs were then paid cash for hours worked over 40 in each and every workweek,” continued the filing.