NM tearoom ordered to pay missed wages, overtime
A tearoom in New Mexico has been accused of improperly tracking employee time, tips and wages in a lawsuit filed by the U.S. Department of Labor.
A group of tearoom employees could receive $304,000 in back pay and uncompensated overtime if New Mexico's U.S. District Court finds in their favor, according to local news source The Albuquerque Journal.
Two alleged Fair Labor Standards Act violations are at the heart of the suit. The first is a company practice to include dishwashers in a tip pool, who are ineligible to take part in tip sharing, according to the DOL. The second is the lack of proper overtime pay for employees who worked more than 40 hours per week.
The suit also charges the tearoom with a failure to maintain proper employee attendance and pay records, The Journal said.
While informal tip sharing between eligible and non-eligible employees is not uncommon in the restaurant and service industry, all such transactions must be voluntary. Employers cannot force workers earning tips to share them with cooks, dishwashers or other "back-of-house" employees who do not commonly earn gratuities, according to the DOL.
Time and attendance software can help businesses avoid FLSA violations and litigation by tracking and maintaining records of employee pay, hours worked and more.
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