A U.S. Department of Labor investigation, determined that ThunderCloud Subs, stiffed its employees out of minimum wages and overtime compensation for all hours worked over 40 in a given workweek. ThunderCloud Subs is a restaurant chain operating 30 locations and combined employing approximately 480 workers. The investigation revealed the wage violations occurred throughout several locations in the Austin, Texas area. As a result, Cumulus Inc. paid $83,617 in back wages and damages to 324 Austin restaurant workers, while ThunderCloud Inc. paid $44,250 to 229 employees.
The Department of Labor investigation revealed that ThunderCloud Subs failed to pay employees for all the hours they worked, allowing employees to work off the clock but paying only for scheduled hours, not hours actually worked. Other violations include failing to pay employees time and one-half for overtime hours worked, failing to pay overtime to several managers who did not meet the requirements for any exemption from overtime, and failing to keep accurate records of weekly hours worked by nonexempt employees.
Betty Campbell, regional administrator for the Department of Labor stated, “Employers like ThunderCloud Subs have a responsibility to know and follow the law. The U.S. Department of Labor will continue to vigorously enforce the law, and educate employers to ensure proper wages are paid. Companies who violate the law must not gain a competitive advantage over employers that play by the rules.”