More than 800 Waffle House employees in North Carolina should be paid today following a court decision in favor of Freeway Foods, the former franchise owner of 36 stores.
A Georgia Superior Court judge has ordered Waffle House Inc./Yellow Sign Inc. to return funds taken from Freeway Foods. An attorney for Freeway Foods says this will allow the company to pay all unpaid employees today.
Freeway sued Waffle House on March 24 for damages from alleged acts including fraud, unfair and deceptive trade practices and breach of contract in a campaign to take control of the franchised stores away from Freeway Foods. Freeway is amending its suit to reflect that Waffle House improperly wrote over $107,000 of unauthorized checks to vendors out of Freeway funds specifically dedicated to paying employees and then distributed paychecks to these employees with full knowledge the money wasn’t available.