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Owners and managers at some Washington Subway stores kept $80,000 in staff tips and reduced workers' hours on their timecards, a federal agency says
businessinsider.com ^ | 3-8 | gdean@businessinsider.com

Posted on 03/08/2024 7:33:54 AM PST by dennisw

Owners and managers at 10 Subway stores in Washington state illegally took money from staff tip pools, the Labor Department says. The stores also reduced staff's hours on their timecards to avoid paying overtime, the DOL said.

The stores have now given $196,000 in tips, overtime wages, and liquidated damages to 100 affected workers.

Owners and managers at 10 Subway stores in Washington state illegally kept $80,000 in staff tips, the Department of Labor says.

The stores, which were under common ownership, let owners and managers take part in the pools for tips left on credit-card payments, the DOL said in a press release on Tuesday. 100 workers lost out on tips because of this, the DOL said.

Under the Fair Labor Standards Act, business owners and managers are not allowed to participate in staff tip pools. Managers and supervisors can only keep tips that they receive directly for services provided solely by them. The stores also manually adjusted employee timesheets to make it appear that they hadn't worked more than 40 hours a week and didn't combine hours for staff who worked shifts across multiple stores in the group, the DOL said. They did this to avoid paying time-and-a-half overtime rates, per the DOL.

Following the DOL's investigation, the stores gave $80,528 in tips and $17,546 in overtime wages to the 100 affected workers, as well as the same amount in liquid damages, totaling just over $196,000.

The stores also paid $22,017 in civil money penalties for the willful nature of the violations.

Subway did not respond to a request for comment from Business Insider.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy
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To: Red Badger

I worked for years- we kept our own tips- never had to share tips. Made put pretty well, but still was a nowhere job in rural areas.


21 posted on 03/08/2024 8:18:47 AM PST by Bob434
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To: dennisw

Didn’t realize we were supposed to tip subway workers? Now that workers get what? $15-20 p/h, is tipping even a thing?


22 posted on 03/08/2024 8:21:31 AM PST by Bob434
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To: dennisw

Tipping Subway employees is complete BS anyway, please do not do it. They are not paid the waiter/waitress minimum wage, which has always been around $2-3/hour (it may be higher now). They are not servers and are paid much higher wages, even then some factory workers. Do not tip Subway, or Starbucks, anything like that. They are already compensated for their labor.


23 posted on 03/08/2024 8:32:58 AM PST by KobraKai
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To: dennisw

Had a girlfriend in 1992 that worked at Subway. She made fantastic sandwiches.


24 posted on 03/08/2024 8:52:19 AM PST by CodeToad (Rule #1: The elites want you dead.)
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To: KobraKai

It could be the owners classified them as tipped employees if they brought food to patrons who ate in the restaurant. I am not sure what DOL considers the legit classification of servers who work for reduced minimum wage plus tips.


25 posted on 03/08/2024 9:40:31 AM PST by lastchance (Cognovit Dominus qui sunt eius.)
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To: dennisw

So, that’s stealing.


26 posted on 03/08/2024 9:56:50 AM PST by sauropod (Ne supra crepidam.)
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To: MayflowerMadam

I am sure many of here are curious. On average how much per week did you make in tips?


27 posted on 03/08/2024 10:28:08 AM PST by Maine Mariner
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To: dennisw
Not a fan of Subway, but my wife loves them.

I am partial to Jimmy Johns. I live in a small city with a large university. Not sure how the local franchisee does it, but all the JJs seem to have college guys working there. And they are all in good spirits, almost like they are bartenders.

The experience is not "professional" like you might expect in other restaurants, but I get, "Hey dude, what's up?" "What are we makin' for ya today?" Just in general the workers talk to you like you might at a tailgate party instead. Like I said, I don't know how they hire for that. But it makes me a loyal customer.

28 posted on 03/08/2024 10:40:15 AM PST by Pappy Smear
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To: Roadrunner383

They often do share tips with “back of the house” staff. But those staff are paid at a higher hourly rate. (At least that was the case when I worked at restaurants.)


29 posted on 03/08/2024 10:41:00 AM PST by MayflowerMadam (Fraud vitiates everything." - SCOTUS)
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To: Maine Mariner

“On average how much per week did you make in tips?”

If I recorded it, I don’t recall, but it allowed me to pay for trips home when school was out for vacations, etc. It was the 1960s, and my hourly pay was $.60/hour. I do remember that!


30 posted on 03/08/2024 10:49:06 AM PST by MayflowerMadam (Fraud vitiates everything." - SCOTUS)
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To: MayflowerMadam

My first job was a maintenance person/painter at a drive-in theater for $1.00 an hour. What I remember most about that job was the showing of the movie “Night of the Living Dead.”
It was only to be shown for three nights but it was so popular we ran it for over a week.

I also have fond memories of my first boss-actually a husband/wife team.


31 posted on 03/08/2024 11:57:54 AM PST by Maine Mariner
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To: dennisw

Jersey Mike’s for those!🤗👍


32 posted on 03/08/2024 1:31:27 PM PST by justme4now (Our Right's are God given and I don't need permission from politicians or courts to exercise them!)
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