Subway Chain Accused of Pay Violations

AUSTIN, Texas - The owner of 29 Subway outlets illegally pays workers with a "cash card" from a South Dakota bank, which charges them for every transaction, a worker claims in a class action.

Jake Branson sued Destiny Foods in Travis County Court. It owns 29 stores, employing about 300 people in Travis and Williams counties.

Branson claims that on April 17, Destiny issued a memo to employees stating that as of April 28 it "is moving to a paperless payroll system. This means we will no longer issue paper paychecks each payday. Instead, you have been given a pay card where your pay will be electronically loaded each payday."

The "Global Cash Card: was linked to Meta Bank, of Sioux Falls, S.D.

Branson claims that the "'Cardholder Agreement' - which was not provided to the employees at the time they were issued their cards ... provides for a number of fees, including but not limited to a per transaction withdrawal fee of $1.75, a per transaction balance inquiry fee of $1.00 and a per transaction 'Point of Sale PIN Transaction fee of $.50.'"

Branson claims this violates the Electronic Funds Transfer Act, 15 U.S.C. §1693k(2), and the Texas Pay Day Law.

He seeks an injunction, damages and costs.

He is represented by James Terry Jr., with Terry, Simon & Kelly.

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit