News Brief
Federal court holds Grand Rapids Subway owner in contempt for failing to comply with US Department of Labor subpoena for wage investigation
Employers: Superior Ventures Unlimited LLC ‒ operating as Subway
Miranda Barajas-Brazil
Actions: U.S. Department of Labor enforcement of an administrative subpoena issued for Fair Labor Standards Act investigation
Courts: U.S. District Court for the Eastern District of Michigan, Southern Division
Court Action: On Jan. 5, 2024, Judge Paul Maloney of the U.S. District Court for the Eastern District of Michigan held Superior Ventures Unlimited LLC ‒ doing business as Subway ‒ and owner Miranda Barajas-Brazil in civil contempt for ignoring a court order and federal subpoena issued by the U.S. Department of Labor’s Wage and Hour Division requiring the company and its owner to produce pay and time records to complete a compliance investigation.
The court ordered Grand Rapids, Michigan based Superior Ventures Unlimited and Barajas-Brazil to produce all responsive documents by Jan. 25, 2024, instituted a $250 fine per day thereafter, and tolled the statute of limitations for 90 days after all documents are produced. The company has yet to comply.
The Wage and Hour Division opened an investigation with Superior Ventures Unlimited LLC to determine compliance with the Fair Labor Standards Act on (July 18, 2022). After the company failed to comply with the Wage and Hour Division’s request for information, the division issued an administrative subpoena.
Quote: “Employers do not get to choose whether or not to comply with court orders, federal subpoenas and wage investigations,” said Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago. “The Department of Labor is committed to complete its wage investigations and holding employers accountable for paying employees the wages they have earned if violations are found.”
“Employers can try to ignore or delay an investigation, but when they do, the department will seek a court order, if needed, to complete compliance reviews and make certain employees’ legal rights and protections are being respected,” Regional Solicitor Christine Heri added.
Background: Learn more about the Wage and Hour Division, a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.
Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.
