Subway franchisee pays $11,000 in back wages

A Subway franchisee in the Tampa Bay, Florida area was recently investigated by the Department of Labor's Wage and Hour Division and found to be in violation of the Fair Labor Standards Act (FLSA) minimum wage provisions.

The Franchise Equity Group, operating under the name MacSub was running 29 locations in the area. It has been ordered to pay 122 workers $7,536 in minimum wage back pay and $3,768 in penalties. Investigators discovered that the restaurant was not paying employees for employee attendance during training sessions.

"Low-wage workers deserve the full protection of federal labor laws," said James Schmidt, director of the Wage and Hour Division’s Tampa District Office. "The Wage and Hour Division is continuing its restaurant enforcement initiative throughout Florida to make sure employees of both full-service and limited-service restaurants receive their full pay."

Schmidt says the Wage and Hour Division continues to pursue employers who are not following federal and state labor laws. The agency aims to penalize those businesses to prevent them from gaining an unfair advantage over those who are in compliance. Employers should regularly review their payroll and update time and attendance policies to reflect the FLSA and state labor rights.