U.S. Department of Labor issued the following announcement on Nov. 14.
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.”