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Subway Owner Ordered To Pay Back Wages And Damages

A Subway franchisee with 29 locations in the Tampa Bay area has been ordered to pay 122 employees back wages and liquidated damages for violations of the Fair Labor Standards Acts (FLSA). A federal judge ordered the payments after finding that the Subway owner violated minimum wage and overtime pay requirements.

Employees had to take Subway Sandwich Artist Certification courses as part of their employment with the sub shop but they were not paid for the time spent in the training classes. Not paying employees for their time spent in work-related activities, including training, was a violation of minimum wage laws.

The FLSA requires that non-exempt employees, which are typically those who are paid by the hour rather than salaried, must be paid at least minimum wage for all hours worked. The FLSA further requires that non-exempt employees must be paid an overtime rate of one and one-half times their hourly rate of pay for all hours worked over 40 in one week.

“Low-wage workers deserve the full protection of federal labor laws,” commented James Schmidt, director of the Wage and Hour Division office that conducted the investigation into the pay practices of the Subway franchisee.

The Wage and Hour division of the U.S. Department of Labor pursued the FLSA case against the Subway franchisee on behalf of the workers. Employees who currently work for the Tampa-area Subways involved in the case will be paid directly by their employer. The Wage and Hour Division will hold onto the payments for those employees no longer with the company while efforts are made to track them down.

Source:, “Subway franchisee must pay 122 employees back wages,” Michael P. Tremoglie, April 11, 2012

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