AUSTIN (KXAN) — ThunderCloud Subs violated overtime, minimum wage and record-keeping requirements, a U.S. Labor Department investigation found.
Thursday, investigators say the company, which has 30 restaurant locations in the Austin area, failed to pay its employees for all the hours they worked. ThunderCloud allowed employees to work off the clock, but paid only for scheduled hours, not hours actually worked, the Labor Department said in a statement Thursday.
The company also failed to pay employees time and a half for overtime hours worked, as required by law. Several managers, who do not meet the requirements for any exemption, were also not paid overtime. Investigators found ThunderCloud failed to keep accurate records of weekly hours worked by nonexempt employees.
Cumulus, Inc., which does business as ThunderCloud Subs, paid $83,617 in back wages and liquidated damages to 324 workers and ThunderCloud Inc. paid $44,250 in back wages and liquidated damages to 229 employees.
“Employers like ThunderCloud Subs have a responsibility to know and follow the law,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “The restaurant industry employs some of the most vulnerable workers we see, who are often afraid to complain when their employers do not pay them the wages they have earned.”
Campbell says that on top of continuing to enforce the law, the department will continue to educate employers and employees to ensure proper wages are paid. “Companies who violate the law must not gain a competitive advantage over employers that play by the rules.”