Subway operators fined $218K for reportedly taking workers’ tips | |
Ten Subway franchise locations in Washington were ordered to pay $218,165 in back wages, damages, and fines after the U.S. Department of Labor (DOL) found that the owners and managers unlawfully engaged in employee tip pools. The investigation conducted by the Department of Labor’s Wage and Hour Division uncovered that four Subway franchisees—Jani Enterprises Inc., Keeyarah Enterprises Inc., Kian Enterprises Inc., and Quantum Enterprises USA Inc.—were involved in illegal practices by taking tips from 100 employees. This action directly violates the Fair Labor Standards Act (FLSA), which is designed to protect workers’ rights including their entitlement to earned tips. They adjusted timesheets to avoid overtime pay, and did not aggregate hours worked across multiple locations to bypass overtime payment obligations. | |
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Target State: All States Target City : Carlsbad Last Update : Jan 27, 2025 2:20 AM Number of Views: 22 | Item Owner : hrviews Contact Email: (None) Contact Phone: (None) |
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