Multiple owners and managers of Subway restaurants in Washington have been caught stealing tips from their employees, according to the U.S. Department of Labor.

Photo by(Mike Mozart/Flickr)

A recent investigation found that 10 Subway restaurants under common ownership were allowing owners and managers to take part in employees' tip pools, which is a violation of the Fair Labor Standards Act. The Department of Labor recovered $196,000 in tips that were unlawfully taken, and the franchisees were fined $22,017 for their actions.

Impact on Employees

The illegal practice affected around 100 employees across Subway locations in Arlington, Des Moines, Kent, Lake Stevens, Marysville, Monroe, and Sultan.

Employees were deprived of tips left by customers through credit card payments. Additionally, the owners and managers adjusted employee timesheets to avoid paying overtime rates, further exploiting their staff.

This unethical behavior not only underpaid employees but also violated labor laws, leading to legal repercussions for the Subway franchises involved.

Repeat Offenders

This is not the first instance of Subway locations in Washington facing labor violations.

Last October, Subway restaurants in Burien, Renton, SeaTac, and Tukwila were found to be in violation of minimum wage, overtime, and tip pool regulations.

The investigation recovered $75,000 for workers at these locations, highlighting a pattern of disregard for labor laws among some Subway franchisees in the state.

What Are Your Thoughts?

What do you think about the illegal actions taken by the owners and managers of these Subway restaurants? How can employers ensure compliance with labor laws and the fair treatment of their employees in the service industry?

Share your thoughts and opinions in the comments below!