Underpaid and Overworked: Subway Workers in San Francisco Seek Justice for Wage Theft

Wage theft is a growing problem across California, especially in industries where low-wage workers are often unaware of their rights or don’t know where to turn for help. In recent years, the fast-food sector has seen multiple allegations of labor law violations, with workers claiming they were underpaid, forced to work without breaks, or denied proper overtime pay. 

In San Francisco, Subway sandwich franchises have come under fire for alleged wage theft, prompting an investigation by the California Labor Commissioner’s Office. The ownership was accused of committing serious wage and hour violations against their workers, most of whom are immigrants.

In San Francisco, which has one of the nation’s highest minimum wages at $18.67 per hour as of July 2024, many Subway workers reported earning significantly less. Employees from multiple Subway locations in the city have shared stories of being paid as little as $14 an hour in cash, often without receiving proper pay stubs or documentation of their work hours. This not only violates local and state labor laws but also leaves workers in a financially vulnerable position.

One of the workers who came forward was Khadengra Subedi, an immigrant from Nepal who worked at a San Francisco Subway location for nine months. He reported working shifts of up to 10 hours without receiving proper breaks or overtime pay. Like many immigrant workers in the fast-food industry, Subedi was unaware of his rights as an employee. Thus, he accepted the working conditions without question.

California has strict laws regarding meal breaks and rest breaks for workers to ensure they have access to necessities like restroom breaks. However, Subedi often found himself running the Subway restaurant alone and unable to take a break, even for a few minutes. Subedi, a father of two, said his employer also paid his wages late, which created additional financial strain on his family.

The California Labor Commissioner’s Office is investigating seven Subway restaurants in San Francisco owned by one couple. Allegations against the franchise owners include paying workers below the city’s minimum wage, withholding overtime pay, and providing cash payments in envelopes instead of official checks or direct deposits. Workers said it seemed that the franchise manager allegedly sought to hire immigrants who did not speak English or know about their employee rights.

The wage violations consisted of three counts. These included paying below California’s minimum wage of $16 an hour, paying below San Francisco’s minimum wage of $18.67 an hour and paying below the new state fast-food worker minimum wage of $20 an hour, as of April this year.

Failing to provide pay stubs is a violation of California labor laws. Without pay stubs, workers have no proof of income or documentation of hours worked, which makes it difficult to claim wages they are owed or take legal action when underpaid.

Subway’s history of labor violations is not new, either. Similar complaints have been filed against Subway franchises across the country, with immigrant workers frequently being the targets of exploitation. To date, at least 25 employees are thought to have been affected by wage theft at San Francisco Subway locations over the past three years.

Employers who fail to pay minimum wage, pressure workers into skipping breaks, or deny overtime pay are breaking the law. Yet many employees endure these conditions thinking they have no choice, particularly when they are unfamiliar with labor laws or fear losing their jobs.

If you are struggling with unpaid wages, it is important to know that you have rights. At McCormack Law Firm, we represent workers who have been wronged by their employers. While we are not involved with the Subway case, our experienced San Francisco employment lawyers are ready to help you with wage theft and other employment disputes.

If you have experienced unpaid wages, missed overtime pay, or other labor law violations, contact us today for a free consultation. Let us help you take the next step toward recovering what you are owed and holding your employer accountable.