EXHIBIT 11 TO AFFIRMATION OF TERRI GERSTEIN

Transcription

1 FILED: NEW YORK COUNTY CLERK 05/24/ :48 PM INDEX NO /2016 NYSCEF DOC. NO. 19 RECEIVED NYSCEF: 05/24/2016 EXHIBIT 11 TO AFFIRMATION OF TERRI GERSTEIN

2 Page PEOPLE OF THE STATE OF NEW YORK 3 OFFICE OF THE ATTORNEY GENERAL 4 LABOR BUREAU x In The Matter Of The Investigation Of ERIC T. 6 SCHNEIDERMAN, ATTORNEY GENERAL OF THE STATE OF 7 NEW YORK OF, 8 9 NADER, INC.; & SUPER DUPER PIZZA, INC., x 11 January 15, :28 a.m EXAMINATION OF SHUEB AHMED, pursuant to 15 Notice, held at the offices of Office Of The 16 Attorney General Of The State Of New York, Broadway, New York, New York before Mandy 18 Fein, a Notary Public of the State of New York

3 Page A P P E A R A N C E S : 3 4 OFFICE OF THE ATTORNEY GENERAL Broadway 6 New York, New York BY: CLAUDIA HENRIQUEZ, ESQ 9 ANDREW ELMORE, ESQ MARTIN SILVER, P.C Motor Parkway, Suite Happauge, New York ALSO PRESENT 19 MONICA MISRA, Interpreter

4 Page 10 2 of perjury under Article 210 of the New York 3 Penal Law? 4 A Yes, understand. 5 Q If you need to clarify or correct 6 your testimony, please let me know 7 immediately. 8 A Yes. 9 Q Your testimony has the same effect as 10 if given in court and may be used in a court 11 proceeding. 12 A I understand. Alright. 13 Q I am handing you what was marked in 14 the November 21st hearing and that is 15 November 21st, 2014, as Nader Exhibit (Exhibit handed to witness.) 17 MR. SILVER: Off the record. 18 (Off the record.) 19 MR. ELMORE: For the record, when we 20 said earlier the hearing was conducted on 21 November 21st, 2014 what we meant was that the 22 hearing that was conducted on November 21st, Do you understand? 24 THE WITNESS: Yes in November. 25 Q Do you understand that you are here

5 Page 11 2 to testify pursuant to the subpoena that was 3 served on you? 4 A Yes. 5 Q And that the subpoena requires you to 6 testify regarding your personal knowledge of 7 the employment practices of the Dominoes 8 stores that you own? 9 A Yes. 10 Q And that you were designated by 11 Nader, Inc. and Super Duper Pizza, Inc. to 12 testify pursuant to the subpoenas issued to 13 those companies? 14 A Yes. 15 Q And to testify on those company's 16 behalf? 17 A Yes. 18 Q This is to confirm that you currently 19 own and operate two stores, two Dominoes 20 stores? 21 A Yes. 22 Q And these stores are Store Number , Nader, Inc., located at 479 West Merrick 24 Road? 25 A In the same building there are three

6 Page 12 2 numbers. 3 Q Can you confirm the address of Nader, 4 Inc.? 5 A Q Nader, Inc. located at 479 West 7 Merrick Road, Valley Stream, New York 11580? 8 A Yes. 9 Q And confirming that Store 3534? 10 A Yes. 11 Q Store Number 3682, that is Super 12 Duper Pizza, Inc.; is that correct? 13 A Yes. 14 Q That is located at 181 Church Street, 15 New York, New York? 16 A Yes. 17 Q ZIP code 10007? 18 A Yes. This is wrong. 19 (Indicating) 20 MS. HENRIQUEZ: Let the record 21 reflect that the address that is listed on the 22 subpoena contains the wrong ZIP code for Super 23 Duper Pizza. 24 MR. ELMORE: What is the correct ZIP 25 code?

7 Page 13 2 THE WITNESS: Q As with the last hearing, this 4 subpoena hearing is pursuant to the Attorney 5 General's investigatory power. 6 A Yes. 7 Q As a result, you have no right to be 8 represented by a lawyer. 9 A Yes. 10 Q However, as a courtesy, we have 11 allowed Mr. Silver to be present today. 12 A Yes. 13 Q You have no right to have a copy of 14 the transcript of today's proceeding. 15 A Yes. 16 Q You do not have the right to a copy 17 of any of the exhibits introduced in today's 18 hearing. 19 A Yes. 20 Q Your counsel may not make objections 21 unless these are valid privileged objections 22 under the CPLR. 23 THE INTERPRETER: How to explain? 24 Q If under the civil practice law and 25 rules, if there is a rule that allows you not

8 Page 25 2 LLC. 3 A Yes, alright. 4 Q Is it correct to say that you don't 5 have any other business interests or business 6 ownership other than these Dominos franchises; 7 is that correct? 8 A Yes, true. 9 Q Did you ever own a business or have a 10 business interest before operating a Dominos 11 franchise? 12 A No. 13 Q Is it correct to say that both Super 14 Duper Pizza, Inc. and Nader, Inc. have used 15 the accountant Christopher Miu since 2001? 16 A Well, that is the same accountant the accountant is the same since that time 18 until now. 19 Q Understood. So, the corporations 20 have used him since 2001; is that correct? 21 A There are two corporations that are 22 involved. So, Nader, Inc. has used him since and Super Duper uses him since Q So, both corporations have used 25 Mr. Miu since they were created?

9 Page 26 2 A Yes. The same accountant are used by 3 both the corporations. 4 Q And you continue to use Mr. Miu 5 today; is that correct? 6 A Yes. 7 Q Mr. Miu's firm processes the payroll 8 for both Super Duper Pizza, Inc. and Nader, 9 Inc.; is that correct? 10 A Yes. 11 Q Other than the services that Mr. Miu 12 provides, do the companies, Super Duper, Inc. 13 and Nader, Inc. have a bookkeeper? 14 A No. 15 Q What is your educational background? 16 A I did not study here. In Bangladesh 17 I was doing the course of management honors 18 course in management, but I did not complete 19 it, the course. 20 Q Was that at a university? 21 A Yes. In Jagannath University in 22 Dhaka, Bangladesh. 23 Q Do you have a college degree? 24 A I have a college degree. I did not 25 finish. I did up to intermediate in college.

10 Page 27 2 Like two years is intermediate, four years is 3 graduation. 4 Q Is that the interpreter's explanation 5 or his? 6 A I finish my high second degree 7 schooling and then two years of college. 8 Q What was your employment prior to 9 owning the two Dominos stores? 10 A I used to work delivery of Dominos 11 Pizza. 12 Q That was at Cooper Square location? 13 A It was 65 Cooper Square. 14 Q How long were you a delivery person? 15 A I did the delivery work for about 16 four years. 17 Q Then you became a manager? 18 A And I became a manager in Before Dominos, I was the manager from 1992 to Q That was manager of the Cooper Square 22 location? 23 A The owner had two stores, one in 24 Cooper Square and another one was in Harlem. 25 Q Which one did you manage?

11 Page 28 2 A I was a manager in Cooper Square for 3 four years and the last -- I worked as a 4 manager in the Cooper Square store for four 5 years and then in the Harlem store for one and 6 a half years. 7 Q What year were you in the Harlem 8 store? 9 A '94, ' Q What years were you the manager of 11 the Cooper Square location? 12 A Yes. 13 Q What years were you the manager of 14 the Cooper Square location? 15 A From '92 to ' Q Then in 1996 you opened Super Duper 17 Pizza Inc., correct? 18 A Yes. 19 Q Currently what do you do to operate 20 the two stores? 21 A I supervise. 22 Q Can you elaborate, please. 23 A I get two general managers in the two 24 stores, so I see that both of them are working 25 properly and if they need any help, then I

12 Page 29 2 help them. 3 Q Is that two general managers per 4 store or one general manager in each store? 5 A There are different managers in the 6 two stores. 7 Q How many managers are in each store, 8 how many general managers? 9 A One. 10 Q Who is the manager at Nader, Inc.? 11 A Abdul Hoque. 12 Q Who is the manager at Super Duper 13 Pizza, Inc.? 14 A Kutuv Ahmed. 15 Q How long has Mr. Ahmed been the 16 general manager of Super Duper Pizza, Inc.? 17 A Almost twelve years. 18 Q How long has Mr. Abdul Hoque been the 19 manager of Nader, Inc.? 20 A Four years. 21 Q Who sets the policies for the stores? 22 A I do it. 23 Q In doing so, do you follow guidelines 24 issued by Dominos Pizza? 25 A Yes, always.

13 Page 30 2 Q These are required guidelines? 3 A Yes. 4 Q In other words, Dominos sets certain 5 requirements for how you operate your stores? 6 A Yes. 7 Q Do the two stores, and I am referring 8 to Nader, Inc. and Super Duper Pizza, Inc., 9 have similar operational policies? 10 A Same. 11 Q These follow the Dominos 12 requirements? 13 A Yes. 14 Q Do the two stores have similar 15 recording and management structures? 16 A Yes, same. 17 Q And these follow the Dominos 18 requirements? 19 A Yes. They work according to Dominos 20 requirements. 21 Q Can you elaborate. 22 A For example, we have to purchase all 23 our food from Dominos, not from anywhere else. 24 All of the employees have to use their 25 uniform, Dominos uniform. Our employees have

14 Page 31 2 to wear those. 3 Q Do your stores have similar hiring 4 procedures? 5 A If we need some employee, we put now 6 hiring sign. 7 Q My question was, do the two stores 8 have similar hiring procedures to each other? 9 A The same rule. 10 Q Do these also follow Dominos 11 requirements? 12 A Yes. 13 Q Can you explain? 14 A Like, for example, they have -- they 15 must legal, have work permit, the Social 16 Security number before employing. We see 17 these things are okay. 18 Q Are those Dominos requirements? 19 A Yes. 20 Q Are there other Dominos requirements 21 with respect to hiring? 22 A We see the legal papers and we need 23 references from wherever they are working. 24 Earlier we check that reference. 25 Q Is there a criminal background check?

15 Page 35 2 MR. SILVER: Okay. 3 Q I believe before your counsel's 4 objection I had asked you how did you come to 5 start requiring references. 6 A If anybody comes to seek employment, 7 there is an application for hiring. We give 8 them that, they fill out that paper. Then 9 after that we have an interview. We set up a 10 date for an interview and then we explain that 11 if you work for so many hours how much money 12 you will get. So, we explain all details and 13 how much overtime you can get, etcetera. 14 Q Is the application form that you use 15 a form that is provided to you by Dominos 16 Pizza? 17 A Yes. 18 Q That form has a section for the 19 applicant to list references? 20 A Yes. 21 Q Are you required to use this form? 22 A Yes. It is required. 23 Q Do your two stores Nader, Inc. and 24 Super Duper Pizza, Inc., do the two stores 25 have similar record keeping procedures?

16 Page 36 2 A Yes, the same. 3 Q Do these follow Dominos requirements? 4 A Yes. 5 Q Can you explain? 6 A We do a background check that what is 7 his past work record, where did he work. Then 8 we try to get information from the previous 9 employers. 10 Q With respect to the records that are 11 kept by the two companies, for example, 12 records of employee hours worked and wages 13 earned, are those procedures the same for your 14 two stores? 15 A Yes. 16 Q Do these follow Dominos requirements? 17 A Yes. 18 Q Can you explain? 19 A The payroll record has to be kept and 20 it would -- it was necessary to give it to the 21 accountant, yes. 22 Q When you say the payroll records has 23 to be kept, are you referring to the records 24 that are kept in the Pulse System? 25 A Yes.

17 Page 37 2 Q Is it a Dominos requirement to keep 3 records in the Pulse System? 4 A Yes. 5 Q These include records of employee 6 hours worked and wages earned? 7 A Yes. 8 Q Are you required to use a document 9 called the Pulse Payroll Report? 10 A It's remains for about three years. 11 Q Are you required to keep this Pulse 12 Payroll Report by Dominos? 13 A Yes. 14 Q Do your two stores follow similar pay 15 policies and procedures? 16 A Yes, same. 17 Q Do these policies follow Dominos 18 requirements? 19 A Yes. 20 Q Can you explain? 21 A How much I pay to an employee, how 22 much overtime he will get. I keep them in my 23 system. 24 Q Which system? 25 A Pulse System.

18 Page 38 2 Q Can you explain how you keep these in 3 the Pulse System? 4 A When an employee is -- when the 5 employee has to clock in, into the system when 6 he starts work and when he ends work, these 7 are in the system. 8 Q You are referring to the Pulse 9 System? 10 A Pulse System, yes. 11 Q In the Pulse System, the employee has 12 to use the Pulse System to clock in and clock 13 out of work; is that correct? 14 A Yes. 15 Q Based on the hours that are in Pulse, 16 that is how the employee is paid? 17 A Let me explain it to you. There is a 18 payroll company called Wizard. Whatever the 19 Pulse System -- is in the Pulse System, they 20 are checked by Wizard. So, there is a company 21 called Wizard checks the payroll. They log 22 into the system to check make sure everything 23 is correct and then the accountant follows 24 that. 25 Q Can you explain what Wizard is.

19 Page 39 2 A Wizard is a company. I pay them. 3 Their job -- they have to do their job is 4 whatever is data in the payroll Pulse, they 5 again check it. As example, if somebody has 6 clocked in for ten hours, then they are -- 7 they can get bonus. So, Wizard -- it is their 8 job they fix it, Wizard checks it. The bonus 9 hour for overtime, that is not in the Pulse. 10 The bonus hour, that is if a person is doing 11 overtime, say ten hours, and they -- the 12 overtime rule is that if somebody say works 13 for ten hours and then works bonus hours, they 14 get a bonus of one hour extra. If a person 15 works for ten hours, he automatically 16 qualifies to get a bonus hour. The Pulse 17 doesn't have that system, so Wizard checks 18 that. 19 MS. HENRIQUEZ: Let the record 20 reflect that Assistant Attorney General Justin 21 Deabler entered the room. 22 Q Mr. Ahmed, if I understand your 23 testimony correctly, you are saying that you 24 use Wizard to correct certain payroll 25 functions that Pulse isn't able to do; is that

20 Page 40 2 correct? 3 A It is called the bonus hour. 4 MS. HENRIQUEZ: Off the record. 5 (Off the record.) 6 Please read back the last question. 7 (The record was read back by the 8 reporter.) 9 A Yes. 10 Q These include, for example, what you 11 have called the bonus hour, which is when an 12 employee works more than ten hours in a day 13 and then they are paid for an additional hour; 14 is that correct? 15 A Whenever ten hours you work for ten 16 hours then. 17 Q Then what? 18 A Then an employee after he completes 19 ten hours if he works further gets a bonus 20 hour. That bonus hour Wizard looks after 21 that. 22 Q Wizard adds the bonus hour; is that 23 correct? 24 A Yes. 25 Q Is that because Pulse is unable to

21 Page 41 2 calculate the bonus hour? 3 A Yes. 4 Q Are there other payroll functions 5 that Wizard is able to do that Pulse is not 6 able to do? 7 A If the Pulse makes any mistake, let's 8 say in overtime rating, if they do any 9 mistake, then Wizard corrects it. 10 Q Can you explain what types of 11 mistakes other than the bonus hour, which you 12 just explained, can you tell us about other 13 mistakes Wizard can correct? 14 A For example, the driver gets paid an 15 hourly rate of six dollars fifty cents, but he 16 also gets tip credit and the Wizard looks at 17 that record and decide the overtime. 18 Q Can you explain what Wizard does with 19 respect to the overtime for an employee that 20 is making a tip credit rate? 21 A Let's say that an employee gets six 22 fifty an hour, so six MS. HENRIQUEZ: I am going to ask you 24 to translate what he said. 25 A Six fifty and eight seventy-five, so

22 Page 42 2 he gets six fifty, but he is supposed to get 3 eight seventy-five, so this extra is the tips 4 credit. 5 Q Can you explain what does Wizard do 6 with that information? 7 A They update it and keep it in his 8 system. 9 Q Who updates what? 10 A Wizard keeps it and then the 11 accountant logs into Wizard's system and then 12 follows it. 13 Q Who logs into Wizard's system? 14 A Accountant. 15 Q So, the accountant logs into Wizard's 16 system and follows and what does the 17 accountant do with the information that is in 18 Wizard? 19 A They print it out and follows it, and 20 then makes the payroll check. 21 Q So, with respect to the example you 22 highlighted where an employee is making six 23 fifty per hour A Again, I am telling you if six fifty 25 an hour is the salary of one person, there is

23 Page 43 2 also a tips credit, he is an employee who gets 3 tips. Then he claims how much he's making 4 from the tips credit. The employee has to be 5 paid minimum eight seventy-five and the 6 difference between six fifty and eight 7 seventy-five, if it is not filled by the tips, 8 then I pay the difference. 9 Q Is that something that is tracked in 10 Wizard? 11 MR. ELMORE: For the record, your 12 counsel just wrote something on a piece of 13 paper and showed it to you. This is an 14 instruction that you are not to provide any 15 counsel to the witness during the questioning. 16 Is that understood? 17 MR. SILVER: Yes. 18 A Wizard overtime fixes the overtime. 19 Q Can you explain what Wizard does to 20 fix the overtime? 21 A For example, if someone wages ten 22 dollars an hour then his overtime rate will be 23 fifteen dollars. Wizard does that. That 24 record is modified by the Wizard. 25 Q Are there overtime records that are

24 Page 50 2 Q When did the meeting where Wizard was 3 introduced, when did that meeting take place? 4 A It is no fixed place, but it takes in 5 different places. 6 Q Is it in the New York, Metropolitan 7 area? 8 A Sometimes they are held in New York 9 and sometimes in Long Island. 10 Q Who organizes these meetings? 11 A Franchise consultant. 12 Q Who is the franchise consultant? 13 A The person who is the consultant is 14 Roger. 15 Q Is Roger a first name or a last name? 16 A That's the first name and we know 17 him -- we call him only by this name. 18 Q Do you know his last name? 19 A He's also new. I cannot remember. 20 Q Is Roger a representative of 21 corporate Dominos? 22 A He is only the consultant for the 23 franchises. 24 Q Is he employed by Dominos Pizza? 25 A Yes.

25 Page 51 2 Q How long has he been the consultant? 3 A Six months. 4 Q Who was the consultant when you found 5 out about the Wizard System? 6 A Bob Mecheam. 7 Q Can you spell the last name? 8 A M-E-C-H-E-A-M, first name is Bob. 9 Q Who else was present at the meeting 10 in which you learned about Wizard? 11 A They run about ten to fifteen Dominos 12 franchises. 13 Q Other than Mr. Mecheam, were there 14 other representatives from corporate Dominos? 15 MR. SILVER: Perhaps you can clarify, 16 when he says Dominos whether he was meaning the 17 franchisees or whether it was corporate, I 18 don't think it was clear. 19 MS. HENRIQUEZ: Sure. I can ask 20 that. 21 Q When we are referring to the Dominos 22 consultant for franchisees, is that person 23 employed by corporate Dominos? 24 A He's an employee of Dominos. 25 Q That is a Dominos Corporation, the

26 Page 52 2 apparent company? 3 A Yes. 4 Q Other than Mr. Mecheam, going back to 5 that meeting where you learned about Wizard, 6 were there any other Dominos corporate 7 representatives present? 8 A I cannot remember. He was the 9 consultant. 10 Q How was the information about Wizard 11 presented? 12 A He gave the phone number and the 13 address. 14 Q Who gave the phone number and 15 address? 16 A Bob Mecheam. 17 Q Gave the phone number and 18 address for Wizard? 19 A Yes. 20 Q Did he provide any other information 21 about Wizard? 22 A No. 23 Q Did he explain what Wizard was? 24 A Yes, he said. 25 Q What did he say?

27 Page 53 2 A That they are very good for 3 calculating payroll. If you use Wizard then 4 there wouldn't by any mistake. They are very 5 good. 6 Q Did he specifically say that Wizard 7 would fix mistakes in Pulse? 8 A Yes. 9 Q So, he acknowledged that Pulse makes 10 mistakes in calculating payroll? 11 A The only thing is that they don't about bonus hours, they don't add that, add 13 overtime rate. 14 Q Did Mr. Mecheam acknowledge that 15 Pulse had problems calculating bonus hours in 16 the overtime rate? 17 A Yes. 18 Q Did he say anything else about those 19 problems? 20 A No. 21 Q Was that the first time that someone 22 from Dominos had told you that Pulse had 23 problems calculating overtime and bonus hours? 24 A Yes. 25 Q Were you aware that Pulse had

28 Page 54 2 problems in calculating bonus hours and 3 overtime prior to that meeting? 4 A I did not know. 5 Q Do you recall when that meeting took 6 place? 7 A No. I don't remember. 8 Q Did anyone from Dominos explain that 9 the mistakes in Pulse could lead franchisees 10 to pay employees the incorrect amount? 11 A In that meeting I don't know who 12 found it out, so they asked if -- let me 13 explain to you. In that meeting we were 14 fifteen to twenty franchises. One of them, I 15 don't remember his name now, said in the Pulse 16 System bonus hours -- calculating bonus hours 17 is not an option, no option. Then Bob Mecheam 18 said that Wizard is a company -- there is a 19 company called Wizard, they calculate those 20 very well. Earlier the individual accountants 21 would -- before this individual accountants 22 would rectify if there was any mistake in 23 calculation. 24 Q Understood. 25 Now, you testified that you started

29 Page 55 2 using Wizard about a year and a half ago. Is 3 that correct? 4 A Yes. 5 Q How long after this meeting did you 6 start using Wizard? 7 A Within a week. 8 Q Now, other than the information 9 provided during this meeting, did anyone from 10 Dominos send out any other information about 11 Wizard? 12 A No. 13 Q Was there any written information 14 sent out about Wizard? 15 A No. 16 Q Would there have been a way for a 17 franchisee who didn't attend that meeting to 18 find out about Wizard? 19 A If someone was not present, didn't 20 attend the meeting, then they ask someone, 21 another person what happened to that 22 meeting -- what happened in that meeting and 23 they come to know. 24 Q So, a franchisee would have to obtain 25 that information from another franchisee; is

30 Page 56 2 that correct? 3 A Yes. 4 MS. HENRIQUEZ: It is 12:31, so let's 5 go ahead and break for lunch. Let's be back 6 here at 1:15. 7 (RECESS) 8 Q Mr. Ahmed, do you understand that you 9 are still under oath? 10 A Yes. 11 Q With respect to the two stores, 12 Nader, Inc. and Super Duper Pizza, Inc., how 13 often do you visit the stores? 14 A It depends. Once a week, once a 15 month. It depends. 16 Q You visit each store once a week? 17 A It depends on the condition of the 18 store. Sometimes I can go even twice in a 19 week. 20 Q That is for each store? 21 A Yes. Every store at least once a 22 week. 23 Q What do you do when you are at the 24 store? 25 A I do everything. Sometimes I sweep

31 Page 63 2 individual liability of the witness among other 3 topics. Please translate that. 4 MR. SILVER: Again -- 5 MR. ELMORE: No. Let her translate. 6 You are not to interrupt this hearing further 7 except for privilege objections. Do you 8 understand? 9 MR. SILVER: Yes. 10 MR. ELMORE: And you are certainly 11 not to provide any leading objections going 12 forward. Do you understand? 13 MR. SILVER: Yes, I do. 14 MR. ELMORE: Thank you. 15 Q Can you answer the question? 16 A Ask the question again. 17 Q The question was, you testified that 18 you had not had to fire or discipline any 19 employees and the question was if an employee 20 wasn't doing their job, how would the company 21 handle this, and by the company, I mean Nader, 22 Inc. or Super Duper Pizza? 23 A Such things never happened. 24 Q I understand. If it happened, how 25 would you handle it?

32 Page 64 2 A I would talk to them, explain to them 3 what they did wrong and how he must -- what he 4 should have done. 5 Q When you say them, you mean the 6 employee? 7 A Yes. Those who are working there. 8 Q When you visit the stores, do you 9 speak to employees while you are there? 10 A I shake their hands and ask them if 11 they are good, how are you, etcetera. 12 Q Do you discuss anything else with 13 them? 14 A No. 15 Q Do you give them information, for 16 example, about how to make the pizza? 17 A The GM had trained them. 18 Q What type of training did the GM 19 provide? 20 A How to make a pizza. 21 Q This training that the GM provides, 22 is this a Dominos, a corporate Dominos, 23 developed training? 24 A Yes. 25 Q How does the employee receive the

33 Page 65 2 training? 3 A The GM teaches him standing next to 4 him. 5 Q Is there anything else? 6 A The GM teaches them whatever they 7 require. 8 Q Whatever Dominos requires? 9 A Yes. The Dominos required. 10 Q Is the training in person or is there 11 a video? 12 A No. He stands next to him and shows 13 him. 14 Q How does the GM know the Dominos 15 requirements? 16 A I teach the GM. 17 Q You teach the GM's the Dominos 18 requirements? 19 A Yes. 20 Q Then the GM teaches that to the 21 employees? 22 A Yes. 23 Q How do you make sure that employees 24 are continuing to follow the requirements over 25 time?

34 Page 66 2 A I believe what the GM says. I rely 3 on him. 4 Q How do you ensure that the GM is 5 doing their job correctly? 6 A I see what in my camera -- on the 7 phone camera what the GM is doing. 8 Q Can you explain? 9 A There is a system to see what is in 10 the phone in the internet. 11 Q Can you provide more details, how 12 does the system work? 13 A Two things. One is, I have a hundred 14 percent confidence in the GM that he is doing 15 his duties well, properly. Sometimes I use 16 the camera to see what is happening in the 17 store. 18 Q That is a camera that is mounted 19 inside the store? 20 A Yes. 21 Q You can access that on your cell 22 phone? 23 A Yes. 24 Q Is there a camera inside both stores? 25 A Yes.

35 Page 79 2 report, his background, his criminal history. 3 Q Did Dominos tell you what in that 4 person's criminal history is considered bad or 5 a reason that you can't hire that person? 6 A Yes. If his license is invalid and 7 his criminal record is bad. 8 Q What does that mean, if the criminal 9 record is bad? 10 A So far I haven't faced any one with a 11 criminal history. The people who Info Mart 12 sent were all okay. 13 Q Your understanding is that if the 14 employee had a criminal history, Dominos would 15 not let you hire them? 16 A I have never faced it. If this 17 situation arises then I will contact the 18 Dominos. 19 Q If the situation arises then you 20 would contact Dominos? 21 A Yes. 22 Q Then you would follow whatever 23 Dominos told you to do? 24 A Yes. 25 Q If Dominos said you couldn't hire

36 Page 80 2 that person, then you just wouldn't hire them? 3 A I follow Dominos instruction. 4 Q If Dominos said you couldn't hire an 5 employee who had a criminal history, then you 6 wouldn't hire that employee? 7 A If his record is bad, then no, I 8 would not. 9 Q You testified earlier about certain 10 Dominos requirements. Do you recall that? 11 A Yes. 12 Q How does Dominos make sure that the 13 stores are following the Dominos requirements? 14 A I don't know how they would know it. 15 In the Pulse System they get this information. 16 Q What type of information do they get 17 from the Pulse System? 18 A I don't know how they get it. 19 Q But when you say it, what information 20 are you referring to? 21 A Whether the employee has a valid work 22 permit and there is an expiration date in the 23 work permit. 24 Q Does Dominos conduct inspections of 25 the stores?

37 Page 81 2 A Yes. 3 Q This is something called an OER? 4 A Yes. 5 Q What type of things happen during an 6 OER? 7 A They see the product, service, this 8 is product and service. They see the image of 9 the store, how it looks. 10 Q Who conducts the OER? 11 A There is an authorized person from 12 Dominos corporate. 13 Q That conducts the OER's? 14 A Yes. He comes from there. 15 Q How often do these inspections take 16 place? 17 A Every three, four months. 18 Q The inspector makes sure that the 19 store is complying with all the Dominos 20 guidelines; is that correct? 21 A Yes. 22 Q And meeting all of the Dominos 23 requirements? 24 A Yes. 25 Q If there is a problem with the store

38 Page 82 2 meeting the requirements, it can mean that 3 points are deducted from the OER score; is 4 that correct? 5 A Yes. 6 Q When the OER inspector comes to the 7 store, does he or she ever speak directly to 8 your employees? 9 A Yes. They can speak. 10 Q What type of things would they speak 11 to the employees about? 12 A About the product and the service. 13 Q Can you provide some more specific? 14 A Whether the food has expired, whether 15 the toppings are put properly, about these 16 kind of things for the product. And they see 17 the service also. How it is being operated. 18 Q What do they look for in terms of 19 service? 20 A Whether the customers are receiving 21 the products properly. 22 Q What does that mean? 23 A We have a Pulse System where the 24 customers send comments, comments, they study 25 those.

39 Page 83 2 Q Who studies those? 3 A The inspector. Those who come for 4 inspection. 5 Q They will study the customer comments 6 in the Pulse System? 7 A Yes. They see them. 8 Q What do they do with that? 9 A There is a points system. 10 Q Can you explain more? 11 A Five point is the highest. If the 12 customer's recommendation says that everything 13 is good, then it gets five points. 14 Q What gets five points? 15 A When they come to inspect MS. HENRIQUEZ: I asked the witness 17 what gets five points. 18 A Let me tell you. There are a hundred 19 points in the inspection. For example, if a 20 hundred person see it's right, okay, then he 21 gets five points. 22 Q If the store scores a hundred percent 23 on the OER, then the store gets five points? 24 A Let me explain to you, then you can 25 explain to them. There are different

40 Page 84 2 categories you have to see the product, 3 service, image, sanitation, safety and 4 security, all these different things. If the 5 coach put -- the inspector examines all this 6 and give accordingly the points, five 7 points -- not five points, how many points 8 within the hundred. How many points it gets. 9 Q Customer service gets five points 10 within the hundred? 11 A Customers has five points for his 12 comment, five points. 13 Q Are there specific things that 14 employees are required to do in order to get 15 those points for customer service? 16 A Yes. There is a list and they have 17 to follow the list. 18 Q You testified that when the Dominos 19 inspectors come for the OER they sometimes 20 speak to employees. How often does that 21 happen, meaning, how often do they speak to 22 employees while they are there? 23 A I mentioned that they come once in 24 three or four months. Number two, let me 25 explain. When they come, first they find out

41 Page 85 2 who is in charge and then they start their 3 inspection, and if they have any questions, 4 then the person in charge cooperates with 5 them, the inspectors and help them. 6 Q My question was, do the inspectors 7 speak not to the managers, but directly to the 8 employees, so for example, the person making 9 the pizza? 10 A If they think it is necessary they 11 would speak. 12 Q How often does that happen? 13 A Usually almost every time. Whenever 14 they come to inspect, they speak to the 15 employees. 16 Q What do they speak to the employees 17 about? 18 A I don't know what they say to them. 19 They don't ask me. 20 Q Are you usually present during the 21 OER's? 22 A No. They don't inform before coming. 23 Q So, sometimes you are there and 24 sometimes you are not? 25 A Most of the time -- I have never been

42 Page 86 2 present there any time. 3 Q Then how do you know that the 4 inspectors talk to employees? 5 A They mention it in the comments 6 section in the form. 7 Q That is the report that they issue 8 after they have conducted the OER? 9 A Yes. 10 Q What do the comments say? 11 A For example, let me explain to you, 12 suppose they find that the temperature in the 13 refrigerator is not right, then they tell the 14 employees that this is not right and they 15 write these comments and then I fix them later 16 on. 17 Q Do your managers tell you what 18 happened during the OER's when you are not 19 there? 20 A Not always, but sometimes if it is 21 necessary, then they tell me. 22 Q So, an OER inspector can come inside 23 the store then and inspect your store without 24 you being there? 25 A Yes.

43 Page 87 2 Q The OER inspectors can instruct your 3 employees and the managers about Dominos 4 requirements while you are not there; is that 5 correct? 6 A If there is a problem, then they 7 explain. 8 Q And you are not required to be there, 9 correct? 10 A No. 11 Q Are there ever unannounced visits 12 from Dominos representatives, for example, the 13 consultant you mentioned earlier? 14 A Those systems were there earlier 15 announced visit was once a year. 16 Q That is when the consultant comes to 17 the store? 18 A Not consultant, the inspectors come. 19 Q I am asking in addition to the 20 inspectors, do the consultants or other 21 Dominos representatives come to the stores? 22 A No. 23 Q That has never happened? 24 A No. There is inspection is done by 25 one person, the inspectors.

44 Page 91 2 (RECESS) 3 Q Earlier today we were discussing the 4 Pulse System. Do you recall that? 5 A Yes. 6 Q What is the Pulse System? 7 A It is a complete system of software. 8 So, it has all information how to operate a 9 business. 10 Q This is a software that you have 11 installed in both of your stores; is that 12 correct? 13 A Dominos has done it. 14 Q Dominos installed it in your store? 15 A In the beginning. When I -- in the 16 beginning when I bought the stores, then the 17 Dominos people came and then fixed the system. 18 Q In the beginning when you purchased 19 your franchise, Dominos people came in and 20 installed Pulse; is that correct? 21 A Let me explain to you. When I bought 22 the store, then there was a different system, 23 National Q Let me interrupt. 25 MS. HENRIQUEZ: Madam Interpreter,

45 Page 92 2 you can't ask him questions. You just asked 3 him what system. I have to ask the questions, 4 not you, so just translate the questions I ask. 5 THE INTERPRETER: The thing is he 6 also understands some English. 7 MS. HENRIQUEZ: I understand, but you 8 can't ask your own questions, you can only 9 translate what I am asking. 10 A You don't ask me, let me explain. 11 When I purchased the store in 1996 that time 12 there was National System. In 2004 or '05, 13 Dominos sent me a letter to all the stores 14 that they must use the same system and the 15 name is Pulse System. All Dominos in the 16 world operated by one system, it is called 17 Pulse. I cannot do something else. 18 Q Just a reminder, please answer the 19 questions in Bengali. 20 A I am sorry. 21 Q What does Pulse do? 22 A We do everything, all the business 23 through Pulse. 24 Q It tracks sales? 25 A Yes.

46 Page 93 2 Q It tracks employee hours worked? 3 A Yes. 4 Q Does it track service time? 5 A Yes. 6 Q Does Pulse produce something called a 7 service time report? 8 A Always that. 9 Q What is the service time report? 10 A The answer will be a little long, I 11 am going to explain. After the customer gives 12 the order, we prepare the order so the 13 Pulse -- it is in the Pulse how long it takes 14 to prepare the order. Then Pulse also notes 15 when the order was ready and I sent it to the 16 customer. After the delivery person, when he 17 comes back, then he notes in the Pulse that I 18 have delivered this, how much time it took, 19 the service time. 20 Q Is the service time report something 21 that Dominos looks at? 22 A I mentioned earlier that when they 23 come to inspect, then they see service also, 24 service, product. 25 Q When the inspector comes for the OER,

47 Page 96 2 correct? 3 A Default. If the points are very bad, 4 that is less then fifty, then it will be 5 default. I am not sure whether it is fifty or 6 sixty, but around that number. 7 Q But basically if you lose a certain 8 number of points, then your store can be 9 placed in default; is that correct? 10 A Yes. 11 Q Did you ever attend any sort of 12 training about Pulse? 13 A At the time of change when I was 14 changing the system, then they gave me some 15 training. 16 Q Have they given you any other 17 training since that time? 18 A It was not necessary because they 19 have a hotline. If necessary, we can directly 20 ask a person. 21 Q Pulse has a hotline number that you 22 can call if you have a question about the 23 system? 24 A Yes. 25 Q Is it correct to say that Pulse can

48 Page 97 2 track employee information? 3 A Everything is there in Pulse. 4 Q Pulse contains employee name and 5 contact information? 6 A Everything is in Pulse. 7 Q That includes their job 8 classification, for example, if they are a 9 delivery worker or an inside worker? 10 A Yes, all information. 11 Q And the wage rate? 12 A They don't have that. Whatever I 13 put, the number I put, that is it. I put it 14 there. 15 Q You enter a wage rate into Pulse; is 16 that correct? 17 A Yes. 18 Q Pulse also tracks employee hours 19 worked; is that correct? 20 A Yes. 21 Q You testified earlier that Dominos 22 requires all employees to clock in and out of 23 Pulse? 24 A Yes. 25 Q Pulse also tracks wages owed to

49 Page 98 2 employees; is that correct? 3 A Yes. 4 Q You testified earlier that Pulse 5 incorrectly calculates the overtime for 6 employees who are making a tip credit rate; is 7 that correct? 8 A Pulse makes mistakes, errors 9 sometimes about these things and then it is 10 corrected by Wizard. 11 Q So, Pulse makes errors in calculating 12 overtime rates for employees; is that correct? 13 A No. Only for -- this is only for the 14 tips credit employees, yes. 15 Q To make sure I understand your 16 testimony then, Pulse incorrectly calculates 17 overtime for tip credit employees; is that 18 correct? 19 A Yes. 20 Q Wizard fixes that problem in Pulse, 21 correct? 22 A Yes. 23 Q Was it your earlier testimony that 24 the first time you learned about this problem 25 was in the meeting that Dominos held about

50 Page 99 2 Wizard? 3 A Yes. 4 Q If you knew Pulse calculated overtime 5 incorrectly, would you have done anything 6 differently prior to using Wizard? 7 A Earlier my accountant used to do all 8 the calculations, had these things, but after 9 Wizard was installed, Wizard was doing it. 10 MS. HENRIQUEZ: Let's take a five 11 minute break. 12 (RECESS) 13 Q Mr. Ahmed, I am handing you the 14 exhibit you looked at earlier, the ones 15 labeled Nader Exhibits 6 through 19. You 16 testified earlier that these are correct 17 samples of the documents that you produced to 18 us last year in response to this 19 investigation, correct? 20 (Exhibits handed to witness.) 21 A Yes. 22 Q I just want you to take a few minutes 23 to look through the exhibits and just confirm 24 for me that for the exhibits that show Pulse 25 and payroll records, so for example, in front

51 Page reflected in the payroll register? 3 A There are one or two people cash a 4 long time ago I have given submitted the 5 receipts from the cashiers payroll register is 6 okay, correct. I didn't want to say anything. 7 Q You said a long time ago you paid 8 some employees in cash? 9 A Only those who used to work inside, 10 manager and assistant manager, they used to 11 take it in cash. 12 Q That would mean that they were paid 13 in cash instead of check; is that correct? 14 A Yes. 15 Q But the amounts that they would be 16 owed would be the amounts that are reflected 17 in the payroll register; is that correct? 18 A Whatever was in the payroll, I used 19 to give that amount. 20 Q You only paid employees what was in 21 the payroll register? 22 A Whatever was in the payroll they used 23 to take it in cash instead of check. 24 Q Understood. Regardless of whether 25 the employees were paid in cash or in check,

52 Page the amount they were paid was what was in the 3 payroll register? 4 A The people who used to take in cash, 5 that is not mentioned -- that is not reflected 6 in this. 7 Q I understand. But the amount that 8 those employees would receive in cash was 9 based on the amount that was listed in the 10 payroll register, correct? 11 A Yes. 12 Q To confirm then, I am not asking 13 about whether they were paid in cash or check, 14 but the total amount that employees received 15 that was only what was reflected in the 16 payroll register, correct? 17 A Yes. 18 Q Is it accurate to say that employees 19 did not work any hours that would not be 20 reflected in Pulse? 21 A Never. They never worked. 22 Q All the hours that employees worked 23 would be tracked in Pulse, correct? 24 A Yes. 25 Q If I can direct your attention to

53 Page Exhibit 6 for a moment. Now, you testified 3 earlier that Pulse incorrectly calculates 4 overtime for tipped employees; is that 5 correct? 6 A Yes. Even now, yes. 7 Q Prior to using Wizard, you relied on 8 your accountant to correct the problems; is 9 that correct? 10 A Yes. 11 Q You testified earlier that prior to 12 using Wizard, Pulse did not track spread of 13 hours, which you call bonus hours, meaning, 14 when employees work an additional hour of pay, 15 when employees work more than ten hours in a 16 day? 17 A Yes. They are not in the Pulse. 18 Q You also were relying on your 19 accountant for that as well, correct? 20 A Yes. 21 Q I would like to direct your attention 22 to Page Nader 11 of Exhibit 6. Specifically, 23 I will like to direct your attention to the 24 last employee Hossen, MD. 25 A Yes. I got it.

54 Page Q His information is at the bottom of 3 Page Nader 11 and at the top of Page Nader A Yes. I found it. 5 Q For Mr. Hossen, do you see that? 6 A Yes. 7 Q I would like you to look at the top 8 of Page Nader 12. Go over to the right-hand 9 of the page, it is about four columns from the 10 right where it says regular pay. It shows 11 that Mr. Hossen was making five dollars an 12 hour; is that correct? 13 A Yes. 14 Q Do you recall what the minimum wage 15 was for tipped employee in 2011? 16 A I don't remember, no. 17 Q It shows the overtime rate is seven 18 fifty. Do you see that, two lines over? 19 A Yes. 20 Q In this example, the accountant's 21 records were also calculating overtime as one 22 and a half times the regular rate; is that 23 correct? 24 A Yes. 25 Q This employee was paid five dollars

55 Page per regular hour and seven fifty for overtime 3 hours in -- 4 A Yes. 5 Q -- in this pay period that ended 6 January 9th, 2011, correct? 7 A Yes. 8 Q Below that there is, if you go about 9 four down, there is a Khan Dhaka. 10 A I found it. 11 Q This employee also was being paid 12 five dollars an hour during this pay period; 13 is that correct? 14 A Yes. 15 Q This employee was also being paid 16 seven fifty an hour during this pay period; is 17 that correct? 18 A Yes. 19 Q In fact, the calculation of the 20 overtime rate of pay in the accountant's 21 records at this time was the same as in Pulse; 22 is that correct? 23 A Yes. 24 Q So, is it correct to say then that to 25 the extent that your payroll records, and by

56 Page that I am referring to the payroll register, 3 show amounts that were below the required 4 minimum wage and overtime rates then that 5 means that those employees were not paid the 6 correct amounts? 7 A Yes. 8 Q That is true for Exhibits 6 through 9 19? 10 A Yes. 11 Q And for all of the records that you 12 have provided to this office? 13 A Whatever you are given, it's correct 14 for all that, yes. 15 MR. ELMORE: Excuse me. Are you 16 advising the witness in the middle MR. SILVER: Can -- we just delivered 18 some other records. 19 MR. ELMORE: We will get to that. 20 MR. SILVER: She said all the records 21 you delivered. 22 MR. ELMORE: She said to the extent 23 it shows violations. 24 MS. HENRIQUEZ: Right. To the extent 25 that the records are correct then there is no

57 Page problem. 3 MR. SILVER: I didn't understand the 4 question that way. I am sorry. 5 MR. ELMORE: I think the record 6 speaks for itself, we can move on. 7 Q Let me turn your attention to Exhibit 8 8. This is the document that has been Bates 9 marked Nader 15 through Nader A Yes. 11 Q Just very quickly, the receipts 12 contained in Nader 24, those reflect the cash 13 payments that you were discussing earlier? 14 A Yes. 15 Q And you produced all receipts 16 evidencing cash payments to this office, 17 correct? 18 A Yes. 19 Q So, I would like to direct your 20 attention to Page Nader A Okay. 22 Q At the bottom there is an employee 23 named Mohasin, MD. 24 A I see. 25 Q On 7/7/2011, it should be right above

58 Page the employee's name, that employee worked 3 twelve point six two hours. 4 A I can't find it. 5 Q We are looking at the Pulse records 6 on Nader 17. Do you see where on the day of 7 7/7/2011? 8 A Yes. 9 Q Do you see it? 10 A Yes. I found it. 11 Q Normally the employee would be 12 entitled to a bonus hour for working more than 13 ten hours in a day; is that correct? 14 A Yes. 15 Q For the record, in New York law that 16 is referred to as spread of hours pay. 17 A Yes. 18 Q Now, if I can direct your attention 19 to the page labeled Nader 23, three lines down 20 it has the name of Mohasin, MD. Do you see 21 that? 22 A Yes. 23 Q The bonus hours says zero. 24 A How many hours did he work? 25 Q Twelve point six two.

59 Page A Yes. It is true at that time he was 3 not given it. 4 Q So, at that time he was not paid the 5 bonus hour? 6 A At that time we did not know about -- 7 specifically about bonus hours, so those who 8 used to work in cash -- those who worked more 9 than ten hours, we paid them in cash, but it 10 was not done usually, but if there is -- it 11 didn't happen most of the time whenever we 12 were very busy then we used to do this. 13 Whatever you are saying is correct. 14 Q Now, you testified a moment ago that 15 all of the payments that employees received 16 were reflected in the payroll register? 17 A Yes, I said. 18 Q So, if the employee was not paid a 19 bonus hour in the payroll register, then is it 20 correct to say that the employee was not paid 21 a bonus hour in that pay period? 22 A Yes. 23 Q So, then in this example, is it 24 correct to say that Mr. Mohasin did not 25 receive a bonus hour for the pay period ending

60 Page /10/2011? 3 A Yes. 4 Q Is it correct to say that you did not 5 know that you were required to pay a bonus 6 hour during that period? 7 A I did not know, yes. 8 Q There was no feature in Pulse that 9 reminded you to pay a bonus hour when 10 employees worked more than ten hours in a day? 11 A Yes. It didn't tell me in the Pulse. 12 Q In fact, that feature is still not in 13 Pulse? 14 A Yes. Even now it doesn't come. 15 Q Each time that the Pulse records show 16 that someone worked more than ten hours and 17 the payroll register says zero for qualified 18 bonus hours, it is accurate to say that person 19 did not receive payment for bonus hour for 20 that pay period? 21 A Yes. 22 Q So again, to the extent that the 23 payroll records show that employees were 24 making less money then what they were required 25 the payroll register shows what employees were

61 Page paid? 3 A Yes. 4 Q Is it fair to say that there was a 5 time before Wizard in which your accountant 6 either made mistakes or failed to correctly 7 calculate overtime for tipped employees or the 8 bonus hour? 9 A Only the tips employees overtime, 10 yes. 11 Q This was based on the information 12 that was contained in Pulse? 13 A Yes. 14 Q Is that correct? 15 A Correct. 16 Q Just to be clear, at that time the 17 accountant would take the information that was 18 in Pulse and use that to create the payroll 19 register; is that correct? 20 A Yes. 21 Q Now, if at the time in 2011 and 2012, 22 if at that time you had known that Pulse could 23 not accurately calculate overtime for tipped 24 employees and could not accurately calculate 25 spread of hours pay, would you have done

62 Page anything differently? 3 A As soon as I came to know of this, I 4 went to Wizard. 5 Q I understand. 6 A I went to the accountant's office 7 also. 8 Q If you had known earlier that this 9 was a problem in Pulse, what would you have 10 done differently? 11 A I would have told the accountant to 12 fix the mistakes and to calculate it 13 correctly. 14 Q To make sure I am clear on your 15 testimony, the first time that you learned 16 about the problems in Pulse was during that 17 meeting in which Dominos explained the Wizard 18 program, correct? 19 A At that time I came to know only 20 about bonus hours. After I came here last 21 year, then I came to know about the tipped 22 employees getting the wrong rates. 23 Q You are referring to when you came to 24 this office for the November 21, 2013 hearing? 25 A That I came to know about the tips

63 Page employees and pay rate being wrong, but I came 3 to know about the bonus hours that they should 4 have got even earlier. 5 Q You learned about the bonus hours 6 during the Dominos meeting and then you 7 learned about the correct overtime for tipped 8 employees when you came to this office? 9 A Yes. 10 Q Bob Mecheam did not discuss the 11 overtime problems with Pulse in any of the 12 meetings that he held with franchisees? 13 A They only mentioned bonus hours, not 14 these. 15 Q So, at no point did Dominos inform 16 you about the problems with Pulse in 17 calculating overtime for tipped employees? 18 A No, never. They didn't inform, 19 never. 20 MR. SILVER: Off the record. 21 (Off the record.) 22 MS. HENRIQUEZ: Please mark this as 23 Exhibit 21, Nader Exhibit (Document marked as Nader Exhibit 21 for 25 Identification, as of this date.)

64 Page Q I am showing you what has been marked 3 as Nader Exhibit MS. HENRIQUEZ: For the record, it is 5 Bates stamped Nader 192 through Nader 205. It 6 reflects Pulse records for Store 3534 for the 7 pay period ending 1/19/2014. The pages showing 8 Pulse records are Nader 192 through Nader Then beginning on Page Nader 200 it shows the 10 payroll register and that ends on page Nader Q Do you have those documents in from 13 of you? 14 (Exhibit handed to witness.) 15 A Yes. 16 Q Is this an accurate sample of the 17 documents that you produced, the payroll 18 documents, both Pulse and payroll registers 19 for Nader, Inc. for 2014? 20 A Yes. 21 Q I would like to turn your attention 22 to Page Nader 200. Are you there? 23 A Yes. 24 Q Just looking at the second employee 25 Alamin Shah, this employee received a bonus