Food service positions can be problematic for payroll
Restaurant owners and managers face the challenge of processing payroll for employees that receive varying pay rates. Tipped servers might also be scheduled for hosting or bartending shifts and they must be compensated different pay rates when they are receiving gratuity or are just paid for hourly work.
Back-of-the-house staff can prove similarly problematic. In an employee lawsuit that was brought against Carlos Miguel's Mexican Bar & Grill, cooks and dishwashers said they were improperly classified as exempt workers. As a result, the employer failed to pay them overtime rates (time-and-a-half the regular wage) when they worked more than 40 hours in a workweek.
However, the suit claims those workers did not meet the criteria for an exemption from those rights guaranteed in the Fair Labor Standards Act (FLSA). According to the Department of Labor, chefs who regularly perform managerial functions might qualify for an executive exemption, and those who have attended specialized training programs like culinary institutions might fall under the professional exemption, while cooks who perform routine manual, physical and mental labor are not considered exempt.
If employers are uncertain about the classification of their workers, they can consult the FLSA or solicit a payroll processing service that can offer expertise in the field. Once they understand the constraints of the law, they should implement necessary changes to their timekeeping practices that will help maintain compliance.
Back-of-the-house staff can prove similarly problematic. In an employee lawsuit that was brought against Carlos Miguel's Mexican Bar & Grill, cooks and dishwashers said they were improperly classified as exempt workers. As a result, the employer failed to pay them overtime rates (time-and-a-half the regular wage) when they worked more than 40 hours in a workweek.
However, the suit claims those workers did not meet the criteria for an exemption from those rights guaranteed in the Fair Labor Standards Act (FLSA). According to the Department of Labor, chefs who regularly perform managerial functions might qualify for an executive exemption, and those who have attended specialized training programs like culinary institutions might fall under the professional exemption, while cooks who perform routine manual, physical and mental labor are not considered exempt.
If employers are uncertain about the classification of their workers, they can consult the FLSA or solicit a payroll processing service that can offer expertise in the field. Once they understand the constraints of the law, they should implement necessary changes to their timekeeping practices that will help maintain compliance.
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.