US DEPARTMENT OF LABOR RECOVERS $196K AFTER INVESTIGATORS FOUND OWNERS, MANAGERS OF SUBWAY RESTAURANTS IN WASHINGTON ILLEGALLY POCKETED TIPS

WASHINGTON, March 5 -- The U.S. Department of Labor's Employee Benefits Security Administration issued the following news release:

Investigation findings: An investigation by the U.S. Department of Labor's Wage and Hour Division found 10 Subway restaurants under common ownership allowed owners and managers to participate in employees' tip pools, a violation of the Fair Labor Standards Act. Division investigators determined the illegal practice deprived 100 employees in Arlington, Des Moines, Kent, Lake Stevens, Marysville, Monroe and Sultan of the tips left by customers though credit card payments. Additionally, the employer manually adjusted employee timesheets to reduce hours worked to 40 hours or fewer per week and failed to combine hou...