Court orders operators of 14 Bay Area Subway locations to pay employees nearly $1M in wages, damages; sell or shut down their businesses

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Case Summary:

The U.S. District Court for the Northern District of California has ordered 14 Bay Area Subway restaurant owners and operators to pay nearly $1 million in back wages and damages. The court found the employers, John Michael Meza and his wife Jessica L. Meza, and their associate Hamza Ayesh, violated the Fair Labor Standards Act by:

1. Exploiting child labor laws, assigning minors aged 14 and 15 to work with dangerous equipment and during prohibited hours.
2. Failing to pay employees their wages regularly, issuing hundreds of bad checks.
3. Illegally retaining tips left by customers.

The court also ordered the employers to shut down or sell their businesses by November 27, 2023. The Department of Labor's Wage and Hour Division obtained a preliminary court injunction and a permanent injunction, with penalties, liquidated damages, and punitive damages totaling over $975,000. The case highlights the consequences of wage theft and illegal employment practices.