Subway is worst for underpaying employees

The sandwich chain had around 17,000 pay violations from 2000 to 2013, mostly for failing to cover overtime hours worked.

By InvestorPlace May 1, 2014 12:27PM

A Subway shop in New York City (© Ben Hider/Getty Images)By William White

Subway is the worst fast-food company in terms of underpaying its employees.

According to CNN Money, individual Subway franchisees had around 17,000 Fair Labor Standards Act violations from 2000 to 2013.

These violations are part of 1,100 investigations into the fast-food chain. As a result of the investigations, Subway has had to give its employees more than $3.8 million in back pay.

"We have a variety of violations, predominantly in the area of failure to pay overtime for hours worked over 40 in a work week, and also not paying for all hours worked by employees," Neil Patrick, of the Department of Labor's Wage and Hour Division, told WNPR News while talking about Subway.

McDonald's (MCD) and Dunkin' Donuts (DNKN) were next of the list on offenders for underpaying employees. According to CNN, both of these chains have argued that franchisees are responsible for pay violations and that a few cases shouldn't define the company.

More from InvestorPlace

May 1, 2014 1:39PM



I worked in kitchens thru college at IHOP and we never got OT, never got breaks or lunch breaks. the restaurant would close and we'd get paid to that hour even though we had to clean up for typically 1.5 hours after closing.   likewise if we opened, we'd have to show up early for prep work, but the clock started upon opening time.


and if we raised word about it, we'd be dropped from the schedule, never laid off, so we couldn't even get unemployment. 


it's a low end job.  such methods are what occurs to the low end jobs.  I ended up with motivation to graduate college and find a decent job! 

May 1, 2014 3:39PM
Look at the owner's of the shops.  They are the ones cheating the employees, not Subway Corporate or McDonald's Corporate.  The owner has to be held accountable by the State Employment Department.
May 1, 2014 1:43PM
These companies only get away with this because the employees sign blank time cards or allow their bosses to fill out their time cards.  Or they clock out and then all the bosses to direct them to do more work.  I always made copies of my time card after I signed it.  Then I check what they paid me.  If they didn't agree I brought to to the bosses or HR attention.

Unfortunately, with the economy the way it is, some people put up with this because they are afraid of being fired.

May 1, 2014 2:16PM
Solution: Massive fines, prison sentence, loss of business licence, confiscation of assets, or any other punitive measure that would make breaking law cost more then following the law. As it stands now companies will continue to violate the law if the punishment is less then they save from breaking the law. If the CEO of a company would go to prison for 20 years for violating payroll law you would be sure the policy would change overnight.
May 1, 2014 1:56PM
Phukkers ...I am not eating there again ....
May 1, 2014 2:43PM
I worked for Subway for 10 yrs 7 of those yrs I was manager,  and I will say this article is totally right.  Not only do they not pay the employees what is they worked for they also treat the employees with very little respect.  The owners think that the workers are lower than dirt. The only reason I stayed for so long is the customers.
May 1, 2014 4:28PM
the part at the end where the corporate guys are like "its the franchises fault" is ****. yeah, maybe it is the actual franchises responsibility to pay the workers, but its the owners responsibility for ensuring that it is happening correctly. them denying any responsibility in itself makes the whole company look bad. 

luckily its fast food and fatties will always want that crap no matter who or what is happening behind the scenes, so this will wash over pretty quick. 
May 3, 2014 3:56AM
May 1, 2014 1:57PM
Actually thinking about it last time I had a subway in portland ore gin I was sick for 3 days ...10lb weight loss was ok but being stuck in my room wasn't !! 
May 2, 2014 1:27AM
Employees can protest with their feet. Walk down the street and find a new job if you don't like the pay for the hours worked. If one side of the party isn't living up to their agreement (i.e. work hours in exchange for something of monetary value) it should only take one paycheck for either side to cancel the agreed upon arrangement. No need for anyone else or any other entity, government or otherwise to get involved. 
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
267 rated 2
455 rated 3
612 rated 4
682 rated 5
695 rated 6
632 rated 7
472 rated 8
279 rated 9
147 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.