Federal court orders a Subway franchisee to close or sell their restaurants

Federal court orders a Subway franchisee to close or sell their ...  Restaurant Business Online

Federal court orders a Subway franchisee to close or sell their restaurants

U.S. Department of Labor Orders Closure of Subway Franchisee for Violating Wage and Hour Laws

Subway department of labor

The U.S. Department of Labor has taken action against a 14-unit Subway franchisee for multiple violations of federal child labor laws and threats towards employees who raised concerns. A federal court has ordered the franchisee, John Michael Meza and his wife Jessica Meza, to either close or sell their stores by November 27. The court has also prohibited them from owning a Subway or any other food franchise for three years.

Violations and Penalties

  • The franchisee failed to pay employees regularly
  • 14-year-olds were found using damaged equipment
  • Bad checks were issued and tips were withheld
  • The Mezas attempted to coerce employees into not cooperating with the investigation
  • Children who raised concerns were threatened

The U.S. Department of Labor (DOL) conducted an investigation and discovered these violations. As a result, the Mezas have been ordered to pay nearly $1 million in back pay and damages. The DOL has commended the courageous employees who stood up against exploitation and intimidation, emphasizing the importance of holding business owners accountable for their actions.

Subway’s Response

Subway, in response to the situation, stated that they took immediate action to remove the operator from their system. They expressed their disapproval of such behavior and highlighted that their restaurants are independently owned and operated, with franchisees required to adhere to federal, state, and local laws.

Importance of Sustainable Development Goals (SDGs)

This case highlights the significance of the Sustainable Development Goals (SDGs), particularly Goal 8: Decent Work and Economic Growth. By enforcing wage and hour laws and protecting workers’ rights, the U.S. Department of Labor is contributing to the achievement of this goal. The SDGs aim to ensure fair and safe working conditions for all individuals, promoting inclusive economic growth.

Conclusion

This rare order to close or sell restaurants due to violations of wage and hour laws demonstrates the commitment of federal regulators to address ongoing violations by restaurant owners. The Mezas’ franchise operated 14 locations in the Bay area, and their actions resulted in severe harm to employees, including burns and injuries. The order serves as a warning to others engaging in similar illegal practices.

Author: Jonathan Maze

Source: Restaurant Business

SDGs, Targets, and Indicators

  1. 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.
  2. 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.

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.
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.

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 discusses wage and hour law violations committed by a Subway franchisee, including failure to pay employees regularly, employing underage workers, issuing bad checks, and keeping tips. These violations are related to Target 8.7 of SDG 8, which aims to eradicate forced labor, end modern slavery and human trafficking, and eliminate the worst forms of child labor. The article mentions that 14-year-olds were using damaged equipment, indicating the violation of child labor laws. The indicator that can be used to measure progress towards this target is Indicator 8.7.1, which measures the proportion and number of children aged 5-17 years engaged in child labor.

SDG 10: Reduced Inequalities

The article mentions that the franchisee threatened workers who raised concerns and tried to coerce employees into not cooperating with the investigation. These actions contribute to an environment of inequality and intimidation. SDG 10 aims to reduce inequalities, and Target 10.7 specifically focuses on facilitating safe and responsible migration and mobility of people. The article does not provide specific indicators related to this target, but it highlights the importance of addressing issues such as recruitment cost borne by employees.

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: restaurantbusinessonline.com

 

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