Restaurateurs operate in a competitive market with a steep failure rate. According to the most recent figures from the National Restaurant Association, there are approximately 980,000 open establishments in the United States that are expected to bring in $660.5 billion during 2013. This sector has also been an important contributor to overall economic success, providing jobs for 13.1 million employees across the country.
While it's important to create jobs and lower the unemployment rate, the benefits can be counteracted when those positions are not providing employees with basic labor rights.
For instance, the Department of Labor recently announced Don Gallo, a small restaurant chain based in Knoxville, Tennessee, has agreed to pay 43 employees a total of $29,061 in back wages. An investigation by the DOL's Wage and Hour Division (WHD) revealed the employer was not complying with minimum wage, overtime or recordkeeping provisions of the Fair Labor Standards Act. As a result, workers didn't get the compensation they should have earned for their time and attendance.
"At all three Don Gallo restaurant locations we found many low-wage employees working long hours, without any overtime compensation, and at times earning wages far below the federal minimum wage. Unfortunately, these types of labor violations are all too common in the restaurant industry," said Sandra Sanders, WHD director of the Nashville district office.
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