U.S. Department of Labor Investigation Results in Franchise Operator in Pennsylvania Paying $47,668 in Back Wages and Damages

PHILADELPHIA, PA - The U.S. Department of Labor has entered into a consent judgment with BUB Inc. - a franchise operator of Primo Hoagies’ locations in Philadelphia and Bensalem, Pennsylvania - to resolve overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA). Filed in the U.S. District Court for the Eastern District of Pennsylvania, the judgment requires BUB Inc. to pay $23,834 in back wages and an equal amount in liquidated damages to 19 employees, and to pay $8,618 in civil money penalties assessed for willful violations of the FLSA.

The court’s action follows an investigation by the Department’s Wage and Hour Division (WHD) that found the employer failed to pay employees overtime at time-and-one-half when they worked more than 40 hours in a workweek, and failed to combine the hours employees worked at more than one location when determining whether overtime was due.

WHD investigators also determined BUB Inc. misclassified several employees as exempt from the FLSA’s overtime pay requirements. Instead of paying these workers guaranteed salaries, as is required for the exemption, the employer paid them on an hourly basis, without overtime. The employer also failed to maintain payroll records as required by the FLSA.

“The employees at these establishments worked as deli slicers, cashiers, and delivery drivers, earning hourly rates between $7.25 and $13 per hour. We remain committed to ensuring that workers receive all the wages they have legally earned,” said James Cain, Wage and Hour Division District Director in Philadelphia. “We provide a wide variety of compliance assistance – from live trainings, to online tools, to video tutorials – to help employers understand their responsibilities and prevent violations like those that occurred in this case.”

For more information about the FLSA and other federal wage laws, call the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.