Subway Created Fake Employees to Avoid Paying Overtime Rates

A subway franchise in Washington DC is being sued by a former sandwich maker for shorting employees’ overtime.

Erwin Zambrano Moya filed a lawsuit against the franchise alleging the company’s owner created fictitious employees for every real employee that worked there. When employees would work over 40 hours a week, the real employee who receives a check accounting for the first 40 hours. The rest of the overtime hours were paid in a second check made out to the fake employee. Rather than pay one employee with a bit of overtime pay, the owner paid two “employees” with no overtime pay.

Zambrano claims he regularly worked about 70 hours per week. All 70 hours were compensated at a straight time because of the two separate checks. Zambrano’s fictitious alter ego was named “Ever Ventura.”

“To hide Plaintiff’s very high number of hours worked per week, Defendant regularly paid Plaintiff about half of his wages under his name and about half under a fictitious employee name…” the complaint alleges.

Furthermore, the employees were paid the federal minimum wage, which at the time was $7.25 per hour. Washington DC, however, had an $8.25 per hour minimum wage at this time.

Does this scheme to avoid paying overtime sound familiar? If so, consult with an Aegis attorney.