A dispute over employee time and attendance that led to a court case in New York has reached a provisional conclusion, based on a request submitted to a state court at the end of January.

A group of restaurants operated by a prominent chef was accused of improperly compensating employees in a variety of ways, according to legal news source Law 360. The 88 current and former workers involved in the class-action suit said that overtime pay was incorrectly calculated to the detriment of staff. The suit also alleged Improper application of tip credit provisions to employees working in multiple roles, where some shifts involved gratuities and others did not.

The Fair Labor Standards Act is very clear with overtime requirements, stating in plain language that non-exempt employees earning hourly wages need to be paid one-and-one-half times their standard compensation after putting in more than 40 hours in a given workweek. Although exceptions exist for classifying employees as salaried staff and removing the overtime obligation, they very infrequently apply to restaurant staff.

Companies should consider using time and attendance software to effectively manage hour and wage issues and potentially reduce legal liability.

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