Labor Department Recovers $196K from Subway Restaurants for Wage Violations

Investigation finds owners and managers illegally pocketed tips and underpaid employees across 10 locations in Washington.

The U.S. Department of Labor has recovered $196,000 after finding that owners and managers of 10 Subway restaurants in Washington illegally pocketed employees' tips and underpaid overtime wages.
100 employees across various locations were deprived of their earnings, with the Department of Labor recovering $80,528 in tips and $17,546 in overtime wages.
The investigation revealed that the restaurants, operated by four different franchise owners, violated the Fair Labor Standards Act by allowing owners and managers to participate in employees' tip pools and manually adjusting timesheets to evade paying overtime.
In addition to the recovered wages, the employers were ordered to pay $98,074 in liquidated damages and $22,017 in civil money penalties for the willful nature of the violations.
The Department of Labor encourages employers to review their practices to avoid the costly consequences of illegal actions.