US Department of Labor secures consent judgment recovering $63K in back wages, liquidated damages from Subway franchisee for workers at 6 Massachusetts locations

Date of action:                       Jan. 13, 2025

Type of action:                      Consent judgment and order 

Employers:                             Om Soham Inc. in Framingham

                                                      Om Soham Om Inc. in Sudbury

                                                      Shri Krsna Inc. in Oxford

                                                      Shri Ram Inc. in Framingham

                                                     Shri Vedmata Gayatri Inc. in Sturbridge

                                                     Shri Vishnu Inc. in Leicester 

                                                     Ritesh Patel, owner/operator

Allegations: The U.S. Department of Labor alleged that six Subway franchise locations in Massachusetts willfully violated the Fair Labor Standard Act’s overtime provisions when the employers paid certain employees set weekly amounts for varying overtime hours worked. Additionally, the department alleged that the employer deprived certain employees of the required overtime rate by paying them the same hourly amount for all hours worked, including hours over 40 in a workweek. Federal law requires the payment of overtime pay for certain employees at time and one-half their regular rate for hours over 40 in a workweek.

The department’s lawsuit also alleged that the franchise locations failed to keep accurate or complete records of some employees’ work hours and wage payments. 

Resolution: In a Jan. 13, 2025, consent judgment, the U.S. District Court for the District of Massachusetts directed the employers to pay the 12 affected workers their shares of $31,802 in back wages and an equal amount in liquidated damages. The employer will also pay civil money penalties of $4,626 for the employers’ willful FLSA violations. The court also issued a permanent injunction forbidding the employers from future FLSA violations.

View the consent judgment and order.

Quotes: “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,” said Regional Solicitor Maia S. Fisher in Boston.

“These Subway franchises willfully violated the rights of 12 restaurant workers who work hard,” said Wage and Hour Division District Director Carlos Matos in Boston. “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.” 

Court:                                          The U.S. District Court for the District of Massachusetts

Docket Number:                    4:23-cv-40119-MRG