PHILADELPHIA — A Pennsylvania Primo Hoagies franchise owner has agreed to settle charges by the U.S. Department of Labor that it incorrectly classified some of its employees to avoid paying overtime as well as violating other Fair Labor Standards Act (FLSA) regulations.
According to the U.S. Department of Labor's wage and Hour Division (WHD), BUB Inc. failed to pay overtime to employees at Primo Hoagies locations in Pennsylvania and, instead, paid workers time-and-one half for more than 40 hours of work per week, in addition to misclassifying some employees as "exempt" from FLSA overtime requirements. BUB also did not add the time employees worked at more than one franchise location and did not keep payroll records in accordance with the FLSA, the WHD said.
“The employees at these establishments worked as deli slicers, cashiers and delivery drivers, earning hourly rates between $7.25 and $13 per hour," James Cain, WHD division director in Philadelphia, said in a statement. "We remain committed to ensuring that workers receive all the wages they have legally earned.
“We provide a wide variety of compliance assistance – from live trainings, to online tools, to video tutorials – to help employers understand their responsibilities and prevent violations like those that occurred in this case.".
According to the WHD, BUB will pay $23,834 in back wages to 19 employees as well as $8,618 in civil penalties.