Check out this important business news.
In a move that must be freaking out International Franchise Association executives, Subway® has agreed (in writing) to focus on making sure its franchisees comply with current labor laws.
Subway just voluntarily signed a cooperative agreement with the U.S. Department of Labor Wage And Hour Division ensuring fair pay for its workers. From The U.S. Department of Labor website:
“The agreement serves our two missions and codifies our shared interests. Subway, like every franchisor, is committed to protecting the integrity and identity of its brand. Our mission is to protect workers’ paychecks. The agreement serves those two objectives by boosting franchisees’ compliance with labor laws, and helping us to ensure that workers get paid the wages to which they are legally entitled.”
That’s the amount of money owed by food-service establishments in back wages (last year) by the Wage And Hour Division. The majority of the money owed comes from minimum wage and overtime violations. That’s huge!
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It’s been a long time since I worked in the food-service business.
I don’t remember what I was paid, hourly…but I wonder if I’m owed any money by the restaurants that employed me. Did the restaurants I worked for pay the wages they were supposed to? Was I ever paid for working overtime? And, what about you? When you were an hourly employee, were you paid a legal wage? Did you work overtime? Did you get paid overtime wages?
Just some food for thought.
This Is Why The IFA Is Freaking Out
The International Franchise Association (IFA) has been hammering on the National Labor Relations Board (NLRB) for the past 1.5 years or so. They’re worried about the franchise model-and the potential for it to disappear because of what the NLRB wants to do.
And now, from the looks of things (in the IFA’s eyes), Subway executives have just cozied up to a U.S. Government agency-because they signed this agreement with the U.S. Labor Department.
FYI: The IFA does not like the current administration. The association has been like Congress: They’re against anything President Obama proposes. So, to see the largest franchise company in the world sign something like this-it’s a major ouch for the IFA. They’ve got to be freaking out.
Finally, there’s this-from the agreement:
It looks like Subway is taking the law seriously.
Will other franchisors follow suit?