Minneapolis Settles With Pizza Hut Owner, Pays $33,630 Over Unpaid Sick Leave

The City of Minneapolis reached a settlement that will return roughly $33,630 to current and former employees of the Pizza Hut at 1101 Hennepin Avenue after an investigation found staff were not paid for sick leave taken in 2019. The agreement with Muy Pizza Minnesota LLC, a franchise owner that operates multiple Pizza Hut locations, was finalized on January 21, 2026.

City officials also settled with Potbelly Sandwich Works LLC over a separate Sick and Safe Time ordinance violation at a different location; that agreement will require payments distinct from the Pizza Hut settlement. The cases follow the city’s stepped-up enforcement of its local sick-leave law, which requires employers with six or more staff to provide at least one hour of paid sick time for every 30 hours worked.

The investigation into the Hennepin Avenue Pizza Hut found employees were denied paid time off that they were legally entitled to under the ordinance. Under the settlement, Muy Pizza Minnesota LLC agreed to make restitution to affected workers totaling about $33,630. The city’s action covers wages owed to both current and former employees and reflects the municipal process for resolving alleged violations through repayment rather than only fines.

For workers, the settlement provides direct back pay and reinforces the right to paid sick time guaranteed by local law. Employees who took sick leave in 2019 at the Hennepin Avenue location will receive compensation for hours that were not paid at the time. The outcome also serves as a reminder for workers to review pay stubs and keep records of hours and leave taken, since those documents can be key if unpaid leave is suspected.

For employers and managers, the case highlights common compliance pitfalls in franchise operations. Payroll systems, timekeeping procedures, and manager training need careful attention when local ordinances set specific accrual rates and eligibility thresholds. Muy Pizza Minnesota LLC’s settlement signals that franchise ownership does not shield operators from municipal enforcement when local labor rules are violated.

The Minneapolis settlements are part of ongoing enforcement as the city applies its Sick and Safe Time ordinance across restaurants and other employers. For readers, this means increased scrutiny of leave practices is likely to continue, and both workers and franchise owners should treat sick-leave accrual and recordkeeping as priorities to avoid future disputes.