Labor Department sues Subway franchisee to recover back wages, damages for 68 employees
The U.S. Department of Labor has sued Subway franchisee Hray Enterprises and owners Joseph Hray and Tammy Hray for alleged violations of the federal Fair Labor Standards Act's minimum wage, overtime and child labor provisions. The lawsuit resulted from an investigation by the department's Wage and Hour Division, and seeks to recover back wages for 68 current and former workers of five Subway eateries operated by Hray Enterprises in Warren, Cortland and Brookfield.
The investigation, which covered the period of July 21, 2009, through July 12, 2011, found that Hray Enterprises failed to pay employees for hours worked after the eateries closed to finish nightly closing procedures, resulting in both minimum wage and overtime violations. Additionally, deductions made from some employees' wages for cash register shortages caused their pay to fall below the required minimum wage of $7.25 per hour.