The U.S. Department of Labor’s Wage and Hour Division (WHD) and the franchisor of the world’s largest restaurant chain are collaborating to increase compliance with federal labor laws at SUBWAY locations nationwide. Although these restaurants are independently owned and operated, the franchisor is providing a forum and resources to assist the division in educating franchisees, WHD officials noted.
“The SUBWAY chain has embraced the opportunity to work with the Wage and Hour Division,” said acting Secretary of Labor Seth D. Harris. “Too often, franchisors ignore compliance issues among their independently owned franchised locations. This company’s efforts illustrate both a commitment to the integrity of its brand and to the well-being of SUBWAY restaurant employees nationwide.”
The franchisor has placed a link to the Wage and Hour Division’s website on its intranet site for restaurant owners to reference, amended several of its governing documents and provided numerous other resources to help franchisees comply with labor laws, a WHD press release said.
Additionally, the franchisor has agreed to enforce its rights under the franchise contract if it becomes aware of a legal disposition that a franchisee knowingly violated a federal labor law. This agreement should elevate Fair Labor Standards Act (FLSA) compliance to a new level of priority among franchisees, according to the WHD.