Subway franchisor pairs up with DOL
The Department of Labor is now working with the franchisor of sandwich restaurant Subway to educate the company's franchisees about federal labor laws. Overtime and minimum wage payroll policies are two issues being targeted by the program.
Although the locations in the Subway chain are independently owned, the franchisor will still provide resources for the owners, including a link to the Wage and Hour Division page on its web site, according to BLR.com. Posters and training materials will also be provided to all restaurant owners and employees. The intent is to put Fair Labor Standards Act compliance at the top of franchisees' priorities.
"Too often, franchisors ignore compliance issues among their independently owned franchised locations," Secretary of Labor Seth Harris said. "This company's efforts illustrate a commitment to integrity ... and to the well-being of Subway restaurant employees."
The deputy administrator of the WHD is now urging other franchisors to take similar steps forward in the workplace. The FLSA regulates minimum wage and overtime, protects whistle blowers and requires accurate tracking of employee time and attendance. If found in violation, an employer will owe back wages and money for damages as well as face other penalties, so it is a good idea for all businesses to protect themselves by learning the law.
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