MONROE — A U.S. Department of Labor (DOL) investigation found multiple local Subway restaurant franchises stole tips and altered employee timesheets to avoid paying overtime.
The tips taken were when customers left tips though credit card payments.
Penalized include Quantum Enterprises USA, the entity owner of the Monroe Subway in the Kelsey Place shopping center on N. Kelsey Street and the Subway in the Shell gas station in Sultan, the DOL said.
Others include Keeyarah Enterprises, the entity owner of two Subways in Lake Stevens on Main Street and on 91st; and Kian Enterprises, the entity owner of three Subways in Marysville and one in Arlington.
These Subways are governed by the Sondhi family which own upwards of 26 different Subway restaurants under multiple entity names in Western Washington, state Department of Revenue business governance records show.
From detailed information the DOL provided to the Tribune, Quantum withheld $93,132 in back wages and tips from 22 employees and was fined $6,166. Keeyarah withheld about $76,000 from 35 employees and was fined $12,074. Kian withheld about $2,000 from a handful of employees and was fined $800.
Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for help and assistance at its toll-free number, 1-866-4-US-WAGE.
The Quantum that owns Subway franchises is different from the construction company with a similar name.
Overtime is required to be given on paychecks to most employees working over 40 hours in a week, or over 80 in a two-week paycheck, according to information from state Labor and Industries. Salaried employees earning less than $1,302.40 a week ($67,724.80 a year) also are eligible for overtime according to 2024 state salary overtime thresholds. “White collar” employees earning more than these salaries may be exempt from overtime.
