Subway Is Worst for Underpaying Employees

by William White | May 1, 2014 11:30 am

Subway Is Worst for Underpaying Employees

Subway is the worst fast-food company in terms of underpaying its employees[1].

subway185 Subway Is Worst for Underpaying EmployeesAccording to CNN Money, individual Subway franchisees had around 17,000 Fair Labor Standards Act violations from 2000 to 2013. These violations are part of 1,100 investigations into the fast-food chain. As a result of the investigations, Subway has had to give its employees more than $3.8 million in back-pay.

“We have a variety of violations, predominantly in the area of failure to pay overtime for hours worked over 40 in a work week, and also not paying for all hours worked by employees,” Neil Patrick, of the Department of Labor’s Wage and Hour Division, told WNPR News[2] while talking about Subway.

McDonald’s (MCD[3]) and Dunkin’ Donuts (DNKN[4]) were next of the list on offenders for underpaying employees. According to CNN, Both of these chains have argued that franchisees are responsible for pay violations and that a few cases shouldn’t define the company.

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Endnotes:
  1. underpaying its employees: http://money.cnn.com/2014/05/01/news/economy/subway-labor-violations/index.html?iid=HP_LN
  2. WNPR News: http://wnpr.org/post/subway-labor-officials-collaborate-tackle-violations
  3. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  4. DNKN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNKN
  5. McDonald’s Franchisee to Give Workers $500K Over ‘Wage Theft’: http://investorplace.com/2014/03/mcdonalds-franchisee-give-workers-500k-wage-theft/
  6. Subway Will Remove ‘Yoga Mat’ Chemical From Bread After Protest: http://investorplace.com/2014/02/subway-chemical-bread/
  7. Ex-McDonald’s Worker Sues Over Payment Policy: http://investorplace.com/2013/06/ex-mcdonalds-worker-sues-over-payment-policy/#.U2Jm6oFdWSo

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