DOL to focus on tipping in restaurants
The Department of Labor has made a serious effort to crack down on more wage and hour violations lately. Now its energies will be particularly focused on restaurants and their tipping policies for time and attendance, as reported by Lexology.
Added initiatives have already caught numerous businesses breaking the law, and the Wage and Hour Division ordered for more than $22.5 million in back pay to be awarded to restaurant employees in 2011, according to the source.
The DOL has asked for extra funding in 2013 to increase vigilance in "priority" areas such as the restaurant industry. This means employers will be at an even greater risk of getting fined for violations and should be aware of their responsibilities under the law.
Tipped employees are protected by the Fair Labor Standards Act. A worker only qualifies as a tipped employee if he or she gets more than $30 a month in tips, according to the DOL website. However, if a worker does qualify, an employer must get a tip credit in order to fulfill its minimum wage obligation. This ensures that the employee receives enough in addition to the required $2.13 an hour in order to meet federal minimum wage.
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