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Morganton Subways closed; employees demand payment for work

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Three Subway employees in Morganton say their paychecks bounced, and they’re out more than $2,000. Police are now investigating a possible case of fraud after officers went to the restaurant owner’s home and found it empty. Channel 9 learned the three stores in town have been closed for more than two weeks, and former workers say they still haven’t received pay for hours they worked in June.

For more than two weeks, the three Subways in Morganton have been closed. Channel 9’s Dave Faherty spotted a sign at the store on Burkemont Avenue, which is the same one where Katherine Piece worked. She said her check in June bounced.

“We went to the bank to cash it, and the bank said he didn’t have enough funds in his account,” said Pierce. “That he had withdrawn all of his funds that Monday morning.”

Karen Harris said she managed the store and that several workers didn’t get paid in June, including the more than 80 hours she worked at the restaurant. She said the store, along with more than a dozen others across the Carolinas, are owned by the same man but he was rarely seen at the businesses.

“You had some really good employees that had your back for you that would work day and night for you, as for myself,” said Harris. “I killed myself for that place … for what?”

The police report said Morganton Public Safety is looking into a possible case of fraud.

“I’m super stressed, because I’m worried about paying my bills ... keeping my home,” Harris said.

Several parents reached out Tuesday concerned over the impact on their teenagers who took jobs at the Subways. Kimberly Carrel, 18, recently graduated from high school and isn’t sure she’ll ever get paid and plans on filing a police report on Wednesday.

“Ever since then, we’ve had issues contacting management getting a hold of anybody,” Carrel said. “You can’t get corporate. There’s no communication whatsoever.”

Channel 9’s Dave Faherty emailed the owner but has not heard back. We’re not naming him since he hasn’t been charged.

However, Subway officials said the franchise owner is no longer in its system and doesn’t run any restaurants anymore.

Subway Statement

“All Subway restaurants are independently owned and operated businesses. This former franchisee is no longer a part of our system and does not operate any Subway restaurants. While their exit from our system was unrelated to these allegations, we take them very seriously and do not condone such practices.”


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