The U.S. Department of Labor has secured a consent judgment to recover $63,604 in back wages and liquidated damages from a Subway franchisee operating six locations in Massachusetts. The employers involved include Om Soham Inc., Om Soham Om Inc., Shri Krsna Inc., Shri Ram Inc., Shri Vedmata Gayatri Inc., and Shri Vishnu Inc. Ritesh Patel is the owner and operator of these franchises.

The Department of Labor alleged that these Subway franchises violated the Fair Labor Standards Act (FLSA) by not paying employees the required overtime rates. Employees were reportedly paid set weekly amounts for varying overtime hours, or the same hourly rate for all hours worked, including those over 40 per week. Federal law mandates that certain employees receive time and one-half their regular rate for overtime hours.

Additionally, it was alleged that the franchises failed to maintain accurate records of work hours and wage payments for some employees.

On January 13, 2025, the U.S. District Court for the District of Massachusetts ordered the employers to pay $31,802 in back wages and an equal amount in liquidated damages to 12 affected workers. Civil money penalties totaling $4,626 were also imposed due to willful FLSA violations. A permanent injunction was issued to prevent future violations.

Regional Solicitor Maia S. Fisher stated, “When employers create compensation structures that deprive employees of proper overtime pay, the Office of the Solicitor will litigate aggressively to ensure that workers receive the wages they have earned.”

Wage and Hour Division District Director Carlos Matos added, “These Subway franchises willfully violated the rights of 12 restaurant workers who work hard. The Wage and Hour Division will use all available enforcement tools to hold employers accountable and bring them into compliance with the Fair Labor Standards Act.”