An investigation by the Department of Labor found Thundercloud Subs owes nearly $128,000 in back wages and damages to their employees at several locations in Austin, Texas.

According to a release from the Department, the investigation revealed the sandwich franchise and Cumulus Inc., which operates 30 restaurants and employs 480 people, violated overtime, minimum wage, and record-keeping provisions.

For instance, the Department said both enterprises failed at the following:

  • Paying employees for all hours worked
  • Paying employees time and one-half for overtime hours worked
  • Paying overtime to several managers, who met requirements to receive it
  • Did not keep accurate records of weekly hours worked by nonexempt employees

READ MORE: Labor: Austin restaurant owners not paying workers wages legally owed

As a result of the investigation, Cumulus Inc. was required to pay $83,617 in back wages and liquidated damages to 324 workers. Thundercloud Inc. paid $44,250 in back wages and liquidated damages to 229 employees.

KVUE received this statement from ThunderCloud Subs Inc.:

We’re proud of the relationship we have with our employees and the culture we’ve built at ThunderCloud for 40 years. ThunderCloud has been an Austin institution in large part because of our employees, and the fact that we’ve had hundreds of employees and managers working for us for many years is testament to that. (As a matter of fact, the vast majority of employees who received money from this settlement still work for ThunderCloud.)
ThunderCloud is known as a great place to work, and we’re also known for our service to the community, including donating nearly $3 million to Caritas of Austin through the ThunderCloud Subs Turkey Trot.
While we take exception to the interpretations of the law that resulted in this settlement, we fully cooperated and complied with every aspect of it. We’re going to continue serving the community and our customers as we have for 40 years.