Subway Franchise Avoids Paying Overtime By Inventing Fake People

Subway240532A Subway sandwich franchise in Washington, D.C. is being sued by a former employee for refusing to pay overtime. Instead, alleges the lawsuit, the overtime hours were recorded under fictional names.

Erwin Zambrano Moya is suing a Subway near Howard University for allegedly paying Moya straight time instead of overtime, despite reportedly working an average of 70 hours a week. The Subway franchise owner, Parvin Feroz, got away with it by assigning employees second identities.

Under the Fair Labor Standards Act, most hourly workers like Moya are entitled to time-and-a-half pay for any hours worked over 40 per week. Moya says he worked 70 hours per week on average, but was paid in “straight time,” thanks to the multiple paychecks.

“To hide Plaintiff’s very high number of hours worked per week, Defendant regularly paid Plaintiff about half of his wages under his name and about half under a fictional employee name, typically, Ever Ventura,” the complaint states.

It goes on, “Sometimes during Plaintiff’s employ, Defendant took it one step further to attempt to hide [minimum wage and overtime] violations by paying Plaintiff under the payroll of another Subway owned by Defendant or its agents or owners.”

Source: Huffington Post

But wait, there’s more. According to Moya, he wasn’t even paid minimum wage. He was paid $7.25 per hour and during the time he worked at Subway, the D.C. minimum wage was $8.25. He also claims that he didn’t receive his last paycheck at all.

About a dozen former employees are joining in on the class action lawsuit.

Ripping people off from their overtime is hardly new. It happens in fast food and it happens with all types of office work. Many companies aren’t even hiring employees. They’re hiring independent contractors, who have to cover their own payroll taxes, business expenses, insurance, vacation time and yes, overtime.

Beyond that, Subway is particularly bad. They have the dubious record of having been caught committing wage theft more than any other employer. They have been found guilty a whopping 17,000 times in over 1,100 separate investigations.

While Subway corporate might create the environment that enables their franchisees to cheat their employees, the guys at the top have managed to insulate themselves, but that could change. Three different lawsuits are aiming to hold McDonalds corporation liable for the actions of their franchises and if the plaintiffs win, Subway corporation could also be liable for their stores’ actions.