Texas Franchise Breaks Wage and Hour Laws

Subway is a national chain sandwich restaurant with many franchise locations in Texas. Reports indicate that, for over a decade, Subway restaurants have violated wage and hour laws through inadequate compensation to their employees. Minimum wage workers that are financially injured by an employer's disregard of wage and hour laws may suffer significantly.

Records compiled by the Department of Labor's Wage and Hour Division revealed that over 1,100 situations required investigation for potential disregard of wage and hour laws. The amount of compensation that was required to pay back every employee found to have been a victim of wage theft of Subway totals at least $3.8 million. Other fast-food chains have been admonished for breaking wage and hour laws and have also experienced extensive fines and required compensation packages to employees.

Many common discrepancies connected to the wage and theft complaints include paying an employee through the end of their determined shift, but not compensating them for additional time spent completing duties after their shift ended. Some employers required workers to be responsible for compensating missing money out of cash drawers from their personal income, forcing their pay to drop and fall below minimum wage. The Department of Labor made the decision to work with Subway to eradicate the problem and help ensure proper pay for its employees.

Many of the fast-food companies fined for their violation of wage and hour laws claim that they are not responsible for independently owned franchises. This can require the agency to individually examine each location to determine that integrity and honesty are practiced when compensating employees. A Texas worker who believes they have been a victim to an employer breaking wage and hour laws may choose to seek compensation for their rightful pay and any financial damages incurred.

Source: ketknbc.com, "Subway leads fast food industry in underpaying workers", , May 1, 2014