In the past, if a restaurant was investigated by the Department of Labor's (DOL) Wage and Hour Division and found in violation of federal labor rights, they would be charged fines and ordered to pay back wages. Now, the stakes are even higher because the DOL has developed a mobile application, called "Eat Shop Sleep," to make information about health and labor violations widely available for consumers to access.
With the application, consumers can look up restaurants, hotels and retailers they are thinking about patronizing before making a purchase. Through the platform, they will be able to see if that business has been investigated by the Wage and Hour Division and found in violation of the Fair Labor Standards Act (FLSA), which could end up costing the company a significant amount of business.
To ensure a business is in compliance with the FLSA, employers should first become familiar with the benefits owed to all non-exempt employees under federal law. Most hourly workers are owed minimum wage and overtime pay (one-and-a-half times the regular rate) for hours worked beyond 40 in a single workweek.
In states where restaurant workers are not owed minimum wage because they are tipped employees, it is important for owners and managers to ensure they are still properly compensated for overtime and that earned tips plus hourly pay are equal to, or above, the federal base pay rate. If employers are concerned about compliance, they can now use a
timeclock capable of calculating various pay rates automatically and can flag potential payroll problems.
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