U.S. Department of Labor Investigation Results in North Texas Subway Restaurants Paying $39,572 in Back Wages, Damages and Penalties

DALLAS, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Krunal Enterprise Inc. in Plano, Texas; Krunal Subs LLC in Richardson, Texas; and Krunal Foods LP in Plano, Texas – all with common ownership and doing business as Subway franchisees – have paid $18,151 in back wages and an equal amount in liquidated damages to 10 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).

WHD also collectively assessed all three locations with $3,270 in civil money penalties to settle violations of the FLSA’s child labor provisions.

WHD investigators found that the employers paid employees at their straight-time rates without regard to the number of hours that they worked. This practice resulted in violations when they worked more than 40 hours in a workweek but the employer failed to pay overtime. The Subway franchise operator also paid one employee only for 80 hours every pay period regardless of the number of hours actually worked, and employed 14- and 15-year-olds to work outside of the hours the law allows for such minors during the school year. Investigators also cited the employers for recordkeeping violations.

“The U.S. Department of Labor works diligently to ensure employers understand their obligations to pay their employees all the wages they have legally earned, and to comply with hours and occupational standards when employing minors,” said Wage and Hour Division District Director Jesus A. Valdez, in Dallas, Texas. “We encourage all employers to make use of the wide variety of information and tools we offer to help them operate in compliance, and to avoid violations like those found in this investigation.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.