Overtime Lawyer Blog

A Maryland Congresswoman has introduced a new bill to amend federal law regarding the way “tipped employees” are paid. The bill – known as WAGES [working for adequate gains for employment in services] would require employers pay a base salary of at least $5.50, up 158% from its current $2.13.

Tipped employees – such as waiters and waitresses – are guaranteed minimum wage and overtime under federal law. The bill will not affect worker’s legal rights to demand fair compensation. Even if it doesn’t pass, those rights remain in place.

Instead this bill seeks to raise the amount employers must pay in direct wages to workers. Supporters see this as an important measure to ensure tipped workers receive adequate pay. Depending on the amount of tips earned, a tipped worker’s take home pay could increase.

Continue reading "New Legislation Introduce to Raise Base Pay For Tipped Workers" »

Recently, several news stories have reported that the government is cracking down on businesses such as restaurants and factories that fail to pay employees minimum wage and overtime. Under federal law, most businesses must pay workers at least the federal minimum wage, $7.25 per hour. Employers must also pay all non-exempt employees overtime, calculated at a rate of one and one-half times your rate of pay for all hours worked in excess of 40 hours in a workweek.

Recently, three Seattle-area restaurants settled a lawsuit brought by the Department of Labor after an investigation found several federal pay-roll violations. The restaurants agreed to pay more than $420,000 in back wages and damages to 83 employees.

Payroll abuses at the restaurants included:

• Paying some workers only $10/day;
• Paying kitchen workers on a salary regardless of number of hours worked; and
• Paying employees in cash.

As a result of the investigation and lawsuit, the restaurants have agreed to keep accurate time and payroll records.

Continue reading "Back Wages Allowed For Restaurant Workers" »

Next time you go to an Atlanta sushi or other nice restaurant, notice the side conversations among the staff. Much of the time, it concentrates on tips, taxes, and other paperwork that most restaurant workers know little or nothing about.

If you work for tips, one of the more disliked conventions in the hospitality business is the practice of tip pooling, where the wait staff makes the tips and then is mandated to share them with the host staff, bus staff, etc. This is different from the wait staff voluntarily giving a percentage of tips to their co-workers, and has tax and other implications. This practice has its own set of rules for both employers and employees, and is easily abused by employers looking to save a few bucks here and there.

Continue reading "Tip Pooling under the FLSA" »

Two major amendments to the Fair Labor Standards Act, one each by a Republican and a Democrat, could profoundly change several FLSA standards for overtime and minimum wages if and when they are passed into law.

The first, introduced in February by Congresswoman Cathy McMorris Rodgers (R. WA), would allow comp time in the private sector. The second, introduced last week by Rep. Donna Edwards (D-MD), raises the minimum wage for restaurant workers. Both bills are fairly controversial, but for different reasons.

Continue reading "Pending FLSA Legislation" »

No matter what, people have to eat. And restaurant employees will always be there to serve them.

There are over 7 million people employed in restaurants in the United States, a large percentage of whom work in fast food establishments. These jobs are often very transient, and the fact is that many fast food workers don’t realize that they have a number of rights under federal employment law.

Most large fast food restaurants are covered under the Fair Labor Standards Act. Any restaurant or fast food business with annual gross sales from one or more establishments that total at least $500,000 are subject to the FLSA.

Continue reading "Fast Food and Restaurant Workers and the FLSA" »