FLSA violations common, costly in the restaurant industry
If restaurant owners or managers fail to keep a close watch on the business' payroll practices, they could end up owing employees thousands in back wages. In most cases, though, restaurant employees don't fall under the standard labor rights established by the Department of Labor.
The Fair Labor Standards Act (FLSA) does not require employers pay waitstaff base minimum wage because of the tips they earn on top of hourly rates. However, some states like California have different provisions for employee attendance that counts as overtime. For example, workers in California must be paid time-and-a-half if they work more than eight hours in a day or more than six consecutive days in a workweek.
According to the Los Angeles Office of the Wage and Hour Division, there have been 1,800 investigations into the payroll practices of restaurants along the West Coast in the past six years. The agency discovered FLSA violations in 71 percent of those locations. As a result, more than 9,500 employees received a combined $12 million in back wages.
Employers can ensure their payroll policies are in compliance with the FLSA by keeping accurate records of employee time and attendance or installing a timeclock that automatically factors in premium pay rates.
The Fair Labor Standards Act (FLSA) does not require employers pay waitstaff base minimum wage because of the tips they earn on top of hourly rates. However, some states like California have different provisions for employee attendance that counts as overtime. For example, workers in California must be paid time-and-a-half if they work more than eight hours in a day or more than six consecutive days in a workweek.
According to the Los Angeles Office of the Wage and Hour Division, there have been 1,800 investigations into the payroll practices of restaurants along the West Coast in the past six years. The agency discovered FLSA violations in 71 percent of those locations. As a result, more than 9,500 employees received a combined $12 million in back wages.
Employers can ensure their payroll policies are in compliance with the FLSA by keeping accurate records of employee time and attendance or installing a timeclock that automatically factors in premium pay rates.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.