Fast food franchise operator Salz Management has agreed to pay more than $1.5m to settle allegations that it breached local fast food scheduling rules in New York City (NYC).

The violations involved around two dozen restaurants, reported Reuters.

The settlement follows claims that managers at these locations failed to provide required advance notice of work schedules to the staff and did not comply with other protections, the report added, quoting NYC’s Department of Consumer and Worker Protection.

NYC mayor Zohran Mamdani, who assumed office in January after campaigning on tougher enforcement of labour protections, is expected to formally announce the agreement in the coming days.

Salz Management reportedly failed to provide the legally required advance notice of work schedules repeatedly.

The city’s worker protection department also alleges the company did not pay mandated premium wages for “clopening” shifts, where staff close late at night and return early the next morning.

It also alleged that the company did not consistently offer additional hours to current employees before hiring new workers, among other claims.

This comes as the city has filed a separate lawsuit against another Dunkin’ franchisee, QSR Management, and its managing corporate officer Ronny Nader.

The suit alleges violations of New York City's scheduling rules affecting approximately 1,000 employees at 21 Dunkin’ locations on Staten Island.

The city was among the first US jurisdictions ⁠to limit "on-call scheduling," under which employers in retail, fast food and other service sectors can cancel or add shifts with little notice.

Similar regulations have since been introduced in Oregon, as well as in Los Angeles, Chicago, San ⁠Francisco and other cities.

Last month, Mamdani and DCWP commissioner Sam Levine expanded the City’s Protected Time Off Law, previously called the Paid Safe and Sick Leave Law.

They also announced new enforcement actions, including compliance notices to 56,000 employers and a data-driven effort to ensure workers can use their guaranteed leave.