Domino's Pizza Allegedly Exploited Outdated Computer System to Cheat Workers

Domino's Pizza, the nation's largest pizza delivery chain, is being accused of exploiting an outdated computer system to commit "rampant wage violations" in a $565,000 lawsuit filed by the New York State Attorney General.

The move expands upon the New York State government's aggressive efforts recently to reclaim wages for allegedly unpaid or underpaid workers, which was highlighted by an order to pay nail salon workers $2 million in unpaid wages earlier this month.

This is also the second time that Domino's Pizza has been targeted by New York State for allegedly violating labor laws. In April of 2015, four franchise owners agreed to pay out $970,000 to settle claims they broke multiple labor laws, including allegedly breaking the minimum wage and failing to pay overtime, according to the New York Daily News.

A multi-year investigation by Attorney General Eric Schneiderman's office alleges that Domino's had urged franchisees to use payroll reports from the company's computer system, known as PULSE, even though the corporation knew for years that it under-calculated gross wages, according to the lawsuit.

"At some point, a company has to take responsibility for its actions and for its workers' well-being. We've found rampant wage violations at Domino's franchise stores. And, as our suit alleges, we've discovered that Domino's headquarters was intensely involved in store operations, and even caused many of these violations," Schneiderman said during a news conference today.

The company typically made multiple updates to the PULSE system each year, according to Schneiderman's office. But the lawsuit, filed Monday in state Supreme Court, alleges that the company deliberately made no effort fix the flaws, including testimony by a Domino's vice president that he was told by Domino's that it was a "low priority."

The lawsuit also claims that Domino's is a "joint employer" because the company inserted itself directly into employee affairs at its franchises. When two businesses hire and control the same employee, they are considered joint employers. In this case, the joint employer would be the corporation Domino's Pizza as well as the individual franchises. The lawsuit alleges that the company monitored workers, played a role in their hiring, firing and discipline, and promoted an "anti-union" agenda.

Domino's pushed back on the claims today, insisting that franchisees are solely responsible for employment and pay decisions, and noting that company had been working with the Attorney General's office for "more than three years" to rectify potential issues of wage discrepancy.

"It's unfortunate that these steps were not enough, and that the Attorney General now wants the company to take steps that would not only deprive our independent business owners of the opportunity to make their own employment decisions, but could impact the viability of the franchise model," company representative Jenny Fouracre-Petko told ABC News in an email.

But the Attorney General places the responsibility on Domino's, and accuses the corporation of using the franchise model to take advantage of low-level workers.

"Under these circumstances, New York law -- as well as basic human decency -- holds Domino's responsible for the alleged mistreatment of the workers who make and deliver the company's pizzas," Schneiderman said. "Domino's can, and must, fix this problem."