Tag Archives: Subway

SUBWAY Restaurant Settles Overtime Pay Lawsuit

subway overtime pay tip theft

A SUBWAY restaurant located in Times Square has paid $42,500 to a sandwich preparer to settle a lawsuit alleging that the popular sandwich chain did not pay him overtime pay, in violation of the Fair Labor Standards Act and the New York Labor Law.  The lawsuit was filed against the individual franchise restaurant, as well as the SUBWAY corporation.

The sandwich preparer, also referred to within the Company as a “sandwich artist,” alleged that he worked up to 60 hours per week making sandwiches and preparing toppings, and was not paid overtime pay.  The lawsuit also alleged that a store manager regularly took tips from a tip jar meant for the sandwich preparers.  Federal and New York State law provides that an employer must pay overtime pay to its non-exempt employees, and that employers may not take a share of gratuities left by customers to food service employees.  The sandwich artist also claimed that SUBWAY did not give him required wage notices and correct wage statements.

This is not the first time that SUBWAY has been hit with a wage lawsuit.  In fact, as of 2014, SUBWAY restaurants violated the wage payment laws more than any other fast food restaurant.  Indeed, in July 2016, SUBWAY entered into a SUBWAY Agreement with USDOLwith the U.S. Department of Labor’s Wage and Hour Division to promote and achieve compliance with labor laws.

Vivianna Morales, an attorney with Pechman Law Group, was the lead attorney on behalf of the worker at SUBWAY.

Subway Tops List of Fast Food Restaurants that Violate Wage Payment Laws

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Subway restaurants violate the wage payment laws more than any other fast food restaurant, according to a recent CNNMoney article. CNNMoney reports that individual Subway restaurants have been found in violation of pay and hour rules in more than 1,100 investigations spanning from 2000 to 2013.

Common labor violations in fast food restaurants include employers forcing workers to deduct a 30-minute lunch break, even though the employee didn’t take a break. Some workers are forced to pay for a company uniform, which can be a violation if, after deducting that expense, the worker’s hourly rate falls below the minimum wage. Some employers also try to get around overtime rules by asking workers to sign contracts waiving time-and-a-half pay.  That practice is also against the law.

The Fair Labor Standards Act (“FLSA”) requires most fast food employees be paid at least the federal minimum wage of $7.25 an hour, plus time-and-a-half for any work beyond 40 hours a week.  In New York, the minimum wage is $5.00 per hour.  Employers are also required to maintain accurate time and payroll records.