Pret A Manger will pay almost $1m (£779,000) to US workers who claim they were underpaid while working for the company.
The sandwich chain has been accused of rounding down the hours that staff at its New York outlets were reimbursed for.
It is the second time the UK-based firm has been hit by accusations of so-called time-shaving in New York.
In 2014 it settled a class action lawsuit by paying out $910,000, but did not admit liability.
This time the company has agreed to pay $875,000 to staff affected by the practices, which include rounding down their work hours, the Sunday Times reported.
Pret A Manger told City A.M: “We are absolutely committed to making sure all our team members are paid for all the hours that they work.”
The decision will add pressure on Pret’s management team, which is already facing criticism for its handling of teenager Natasha Ednan-Laperouse’s death.
The 15-year-old died in 2016 from an allergic reaction a Pret baguette.