A report that was recently released by the Restaurant Opportunities Centers United (ROC) revealed that many employees in the industry are not only receiving wages that do not allow them to maintain financial stability, but they are often not being fairly compensated. "Behind the Kitchen Door: The Hidden Reality of Philadelphia's Thriving Restaurant Industry" revealed 62.1 percent of workers are paid at rates so low they fall below the poverty line.

Typically, the Department of Labor's Wage and Hour Division hones in on low-paying industries, investigating employers to identify those who might be violating the Fair Labor Standards Act (FLSA) as a way to keep payroll down. Labor rights violations tend to occur more frequently in industries that pay low hourly wages.

The report found that 40 percent of workers surveyed said they had performed unpaid work off the clock and nearly 60 percent reported they hadn't received the proper pay for overtime employee attendance. Tipped employees are still guaranteed overtime wages (time-and-a-half their standard pay), according to the FLSA.

However, it's important for owners to keep in mind that while they can legally pay tipped employees $2.83 per hour (in Philadelphia), the extra pay they receive must bring their total earnings up to, or beyond, minimum wage rates. Moreover, overtime pay must be calculated based on total earnings, including hourly pay rates and gratuity. 

---

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.