Court orders operators of 14 Bay Area Subway locations to pay employees nearly $1M in wages, damages; sell or shut down their businesses
Court orders operators of 14 Bay Area Subway locations to pay ... US Department of Labor
sdgtalks
SAN FRANCISCO – U.S. District Court Orders Subway Restaurants to Pay Employees $1 Million in Back Wages and Damages
The U.S. District Court for the Northern District of California has ordered the owners and operators of 14 Bay Area Subway restaurants to pay employees nearly $1 million in back wages and damages. This action was taken after federal investigators found several violations of the Fair Labor Standards Act (FLSA) and the endangerment of children in the workplace.
Violations and Consequences
- The owners directed children as young as 14 and 15 to use dangerous equipment and assigned minors to work hours not permitted by law.
- Employees were not paid their wages regularly, including receiving hundreds of bad checks.
- Tips left by customers were illegally kept by the owners.
In a rare move, the court’s order requires the owners to sell or shut down their businesses by November 27, 2023, as a resolution to the case.
Department of Labor’s Investigation
The Wage and Hour Division of the Department of Labor found these violations by John Michael Meza and his wife, Jessica L. Meza, who had franchise agreements with Doctor’s Associates LLC to operate the Subway restaurants in various cities.
During the investigation, it was discovered that the employers interfered with the division’s review by coercing employees not to cooperate and threatening children who raised concerns or tried to exercise their legal rights. Hamza “Mike” Ayesh, an associate of the Mezas, was also involved in these violations.
Court Injunction and Judgment
The Department of Labor obtained a preliminary court injunction on May 19, 2023, forbidding the employers from violating child labor laws, threatening and retaliating against workers, and obstructing a federal investigation.
On September 27, 2023, a consent judgment and permanent injunction were obtained, ordering the Mezas to pay 184 workers $475,000 in minimum wage, overtime, and tips, along with an equal amount in liquidated damages. They were also ordered to pay $150,000 in penalties. Additionally, the Mezas and Ayesh will have to pay $12,000 in punitive damages for their retaliatory conduct.
Emphasis on Sustainable Development Goals (SDGs)
This case highlights the importance of SDG 8: Decent Work and Economic Growth. By holding these business owners accountable for their exploitation of workers and violation of federal law, the Department of Labor and the court are promoting fair treatment and safe working conditions for all employees.
Subway Franchise Locations Involved
- 2777 Lone Tree Way, Antioch
- 1026 Oak St., Suite #103, Clayton
- 301 Sun Valley Mall, Concord
- 8500 Gravestein Highway, Unit B, Cotati
- 2375 California Blvd., Napa
- 3214 Jefferson St., Napa
- 902 Enterprise Way, Unit A, Napa
- 2620 Lakeville Highway, Unit #320, Petaluma
- 221 North McDowell Blvd., Petaluma
- 961 Lakeville Highway, Petaluma
- 13501 San Pablo Ave., San Pablo
- 124-B Calistoga Road, Santa Rosa
- 199 Lincoln Road West, C, Vallejo
- 6400 Hembree Lane, Unit #100, Windsor
Resources for Employers and Workers
The Wage and Hour Division provides resources to help employers comply with child labor laws. The YouthRules! initiative promotes positive and safe work experiences for teens, and the division has published Seven Child Labor Best Practices for Employers to assist with compliance.
The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek. The Department of Labor offers a search tool for workers to check if they are owed back wages.
For questions or assistance, employers and workers can call the division’s toll-free helpline at 866-4US-WAGE (487-9243) in over 200 languages. The department also provides a Timesheet App to help track work hours and pay.
Civil Action No. 3:23-cv-01714
SDGs, Targets, and Indicators
-
SDG 8: Decent Work and Economic Growth
- Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.
- Indicator 8.7.1: Proportion and number of children aged 5-17 years engaged in child labor, by sex and age group (relevant to the issue of child labor)
- Indicator 8.8.1: Frequency rates of fatal and non-fatal occupational injuries, by sex and migrant status (relevant to the issue of dangerous equipment)
- Indicator 8.8.2: Number of occupational accidents and diseases, by sex and migrant status (relevant to the issue of dangerous equipment)
-
SDG 10: Reduced Inequalities
- Target 10.7: Facilitate orderly, safe, regular, and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies.
- Indicator 10.7.1: Recruitment cost borne by employee as a proportion of monthly income earned in country of destination (relevant to the issue of migrant workers)
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor. | Indicator 8.7.1: Proportion and number of children aged 5-17 years engaged in child labor, by sex and age group (relevant to the issue of child labor) |
| SDG 8: Decent Work and Economic Growth | Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor. | Indicator 8.8.1: Frequency rates of fatal and non-fatal occupational injuries, by sex and migrant status (relevant to the issue of dangerous equipment) |
| SDG 8: Decent Work and Economic Growth | Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor. | Indicator 8.8.2: Number of occupational accidents and diseases, by sex and migrant status (relevant to the issue of dangerous equipment) |
| SDG 10: Reduced Inequalities | Target 10.7: Facilitate orderly, safe, regular, and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies. | Indicator 10.7.1: Recruitment cost borne by employee as a proportion of monthly income earned in country of destination (relevant to the issue of migrant workers) |
Analysis
The issues highlighted in the article are connected to SDG 8: Decent Work and Economic Growth and SDG 10: Reduced Inequalities.
SDG 8: Decent Work and Economic Growth
The article addresses the issue of child labor, dangerous equipment, and wage irregularities. These issues are directly related to Target 8.7, which aims to eradicate forced labor, end modern slavery and human trafficking, and eliminate the worst forms of child labor. The article mentions that children as young as 14 and 15 were directed to use dangerous equipment, which is a violation of child labor laws. The article also mentions wage irregularities, which can be considered a form of forced labor. The indicators relevant to these issues are Indicator 8.7.1 (proportion and number of children engaged in child labor) and Indicators 8.8.1 and 8.8.2 (frequency rates of occupational injuries and diseases).
SDG 10: Reduced Inequalities
The article mentions the involvement of migrant workers in the violations. This is connected to Target 10.7, which aims to facilitate safe and responsible migration. The indicator relevant to this issue is Indicator 10.7.1, which measures the recruitment cost borne by employees as a proportion of their monthly income earned in the country of destination.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: dol.gov
Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.
