Subway Class Action: Franchise Accused of Wage Theft

A former Subway employee filed a class action lawsuit against the company, alleging unpaid overtime and minimum wage violations.

Consumers Affected: Current and former employees of the Kendall County Subway location who worked over 40 hours per week and were not paid the legally required overtime rate or minimum wage.

Court: U.S. District Court for the Northern District of Illinois, Eastern Division

A former Subway employee is taking his chain of the fast food sandwich maker to court, accusing it of failing to pay overtime wages at the legally required rate of one and a half regular pay and for failing to pay the legally required minimum wage.

Unpaid Overtime and Minimum Wage Allegations at Subway

Kendall County local Harshilkumar Chaudhari filed the proposed class action lawsuit against Subway accusing the Kendall County location of violating the Fair Labor Standards Act and Illinois Minimum Wage Law.

Chaudhari worked for the restaurant from July 2023 through April 2024, and during that time he says he regularly worked over 40 hours per week but was only ever paid a regular hourly wage. In a two week period in September, Chaudhari said he worked 150.28 hours, which he was paid $1,803.36 equaling $12.00 per hour.   

“Not only did Defendants fail to pay Plaintiff time and one-half his regular rate of pay for all hours worked in excess of forty hours within a work week during one or more weeks of employment, but Defendant failed to pay Plaintiff the state minimum wage of $13.00 per hour for all hours worked in 2023 and the minimum wage of $14.00 per hour for all hours worked in 2024,” the lawsuit claims. 

Subway's History of Wage and Labor Violations

This is far from the first time a Subway chain has been under fire for violating state and federal wage laws. In August, a federal investigation resulted in eight workers in New York getting $178,372 in back wages and damages after the restaurant’s owners were found to be underpaying workers and not keeping records of hours worked and employee pay.

In September, a Subway in O’Fallon was hit with a class action lawsuit in which an employee accuses the branch of failing to pay overtime. Then in October, an investigation into several Subway restaurants by the U.S. Department of Labor’s Wage and Hour Division found chains in Burien, Renton, SeaTac, and Tukwila were in violation of minimum wage, overtime, and tip pool regulations. Workers at the locations recovered $75,000.

Meanwhile, Subway has long been fighting claims in court regarding the quality—and existence—of the tuna in its sandwiches. In September last year, the lawsuit was dismissed "with prejudice," meaning it can’t be brought back again, after the plaintiff  asked for it to be dismissed because of her health. 

"The lawsuit and the plaintiff's meritless claims, which have always lacked any supporting evidence, resulted in the spread of harmful misinformation and caused damage to Subway franchisees and the brand," a Subway spokesperson told CBS. 

The Growing Problem of Wage Theft in the Fast-Food Industry

Subway isn’t alone in fighting employees in court over alleged wage and labor law violations. Yerba Mate has been hit with bitter allegations its underpays delivery drivers, doesn’t pay them on time, and doesn’t provide wage statements all required by law, a lawsuit alleges. 

Additionally, Hollywood giant Paramount Pictures is facing a class action lawsuit filed by film and television crew members alleging a web of labor law violations. The lawsuit accuses Paramount of shortchanging workers in several ways.

And this month, thousands of Tesla employees were represented in a class action lawsuit that argues those who lost their jobs in mass layoffs in April should be eligible for compensation. The complaint, lodged in response to mass layoffs and plant closings that began on April 14, alleges that Tesla violated both federal and California state laws by failing to provide the requisite 60 days’ advance notice before the layoffs. 

In the Subway unpaid overtime class action lawsuit, Chaudhari is seeking liquidated damages, fees, and costs.

Case Details

• Lawsuit: Chaudhari v. Subway
• Case Number: 1:24-cv-06021 
• Court: U.S. District Court for the Northern District of Illinois, Eastern Division 

Plaintiffs' Attorneys

• Chad W. Eisenback (Sulaiman Law Group LTD)

Did you work at this Subway location or another Subway location? Tell us about your experience in the comments below.