Ongoing DOL investigations reveal widespread violations

Through its efforts to protect the most vulnerable of the American workforce, the Department of Labor is continually investigating businesses that might not be complying with the Fair Labor Standards Act (FLSA). The restaurant industry is one that has drawn attention recently, in part because it employs both tipped and non-tipped workers, as well as exempt staff members who fall under provisions of the FLSA and require varying pay for their time and attendance.

For instance, servers and bartenders are considered tipped employees if they make at least $30 per month in gratuity. As a result of this classification, employers are usually not required to pay them standard minimum wage ($7.25 per hour) and can instead issue a rate of $2.13. However, the business must monitor employees' earnings because they are responsible for ensuring total wages - including hourly rates and tips - don't fall below minimum wage. If they do, employers must make up the difference.

Non-tipped workers like bussers or dishwashers, on the other hand, fall under standard guidelines and are paid on a hourly basis for all of their employee attendance.

In 2012, investigations of San Francisco and Los Angeles area restaurants allegedly found widespread violations, resulting in the DOL recovering $672,333 total in back wages that will be dispersed among 273 affected employee